Hub Group Reports Third Quarter 2025 Results

Highlights: 

• GAAP diluted earnings per share (EPS) of $0.47 for the third quarter
• Third quarter revenue of $934 million
• Non-GAAP adjusted EPS of $0.49, which excludes adjusted items in the quarter
• Operating income of $39 million or 4.2% of revenue, adjusted operating income (non-GAAP) of $41 million or 4.4% of revenue
• Closed on the acquisitions of Marten Transport Intermodal assets and SITH, LLC
• Strong balance sheet with net debt/EBITDA LTM (non-GAAP) of 0.4x as of September 30, 2025
  
  
  
  

OAK BROOK, Ill., Oct. 30, 2025 (GLOBE NEWSWIRE) -- Hub Group, Inc. (NASDAQ:HUBG) announced third quarter 2025 net income of $29 million and diluted earnings per share of $0.47. Adjusting for certain expenses of $1.2 million (pre-tax), third quarter 2025 adjusted net income (non-GAAP) of $30 million decreased 6% from the prior year adjusted net income of $32 million. Adjusted EPS (non-GAAP) of $0.49 per diluted share decreased $0.03 from $0.52 of adjusted EPS reported in the third quarter of 2024.

"During the third quarter, Hub Group continued to navigate softer demand across freight markets. Intermodal profitability and revenue per load increased sequentially and from prior year. The Logistics operating margin also improved, and Hub Group started onboarding recent Final Mile awards. Our continuous improvement approach to expense management helped offset the impact of lower revenue. The recent addition of Marten Intermodal accelerates the momentum of our refrigerated intermodal business, and our strong balance sheet and free cash flow generation provide significant capital flexibility. We remain focused on serving customers and realizing the intermodal growth potential for Hub Group in collaboration with our rail partners Union Pacific and Norfolk Southern. Hub Group is well positioned to deliver accelerating growth and further improvement in margin performance," said Phil Yeager, Hub Group's President, Chief Executive Officer and Vice Chairman.

Third Quarter 2025 Results

Consolidated revenue for the third quarter of 2025 was $934 million, a 5% decrease from $987 million reported in the third quarter of 2024. Stable intermodal volume and higher intermodal revenue per unit were partially offset by lower Dedicated and Logistics revenue reflecting sub-seasonal demand and lower fuel revenue.

Purchased transportation and warehousing costs of $684 million were 8% lower than prior year. Salaries and benefits of $143 million were stable compared to prior year as lower headcount offset the impact from the EASO transaction. Depreciation and amortization of $31 million decreased 3% from prior year. Insurance and claims of $10 million increased just 1% from prior year due to safety performance and lower claims costs in the quarter. General and administrative expenses decreased 9% from prior year due to benefits from cost saving initiatives.

GAAP operating income for the third quarter was $39 million or 4.2% of revenue and adjusted operating income (non-GAAP) was $41 million or 4.4% of revenue. Prior year adjusted operating income was $42 million or 4.3% of revenue. Adjusted EBITDA (non-GAAP) for the third quarter was $88 million. Net debt/EBITDA LTM (non-GAAP) was 0.4x for the third quarter, below the leverage target range of 0.75x to 1.25x.

Intermodal and Transportation Solutions ("ITS") Segment revenue was $561 million in the third quarter compared to $560 million in the prior year as growth in intermodal revenue was largely offset by lower dedicated revenue. GAAP ITS operating income was $16 million, or 2.8% of revenue. Adjusted ITS operating income (non-GAAP) was $16 million, or 2.9% of revenue, up from $15 million in the prior year.

Third quarter Logistics Segment revenue was $402 million, down from $461 million in the prior year due to lower volume and revenue per load in our brokerage business, a decrease in customer activity for consolidation and fulfillment, and soft demand in managed transportation and final mile businesses. GAAP Logistics operating income was $24 million, or 5.9% of revenue. Adjusted Logistics operating income (non-GAAP) was $25 million, or 6.1% of revenue, down from $28 million in the prior year, due to lower brokerage and consolidation and fulfillment results.

Capital expenditures for the third quarter of 2025 totaled $9 million and decreased sequentially due to lower tractor fleet spending. As of September 30, 2025, Hub Group had cash and restricted cash of $147 million. Year-to-date the company returned $36 million to shareholders through dividend payments of $23 million and stock repurchases of $14 million.

2025 Outlook

We expect 2025 diluted earnings per share will range from $1.80 to $1.90. We estimate revenue of approximately $3.6 billion to $3.7 billion for the full year. We project an effective tax rate of approximately 24.5% and capital expenditures of less than $50 million for the full year.

Non-GAAP Financial Measures

In this press release, we present certain non-GAAP financial measures, including adjusted EPS, adjusted operating income, adjusted EBITDA, and net debt/EBITDA. As required by the rules of the Securities and Exchange Commission ("SEC"), we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP, along with an explanation why management believes these non-GAAP financial measures provide relevant and useful information. These non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to non-GAAP measures that may be presented by other companies.

Certain Forward-Looking Statements:

Statements in this press release that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect Hub Group's business is included in filings it makes with the SEC from time to time, including those discussed under the "Risk Factors" section in Hub Group's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.

Conference Call

Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on October 30, 2025, to discuss our Third quarter 2025 results. Hosting the conference call will be Phil Yeager, President, CEO and Vice Chairman and Kevin Beth, Executive Vice President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link on Hub Group's web site at www.hubgroup.com. The webcast is listen-only. Those interested in participating in the question-and-answer session should follow the telephone dial-in instructions below.

To participate in the conference call by telephone, please pre-register at https://register-conf.media-server.com/register/BIe1c47b2f07e74a5c92ae89b678187755 to receive the dial-in number and unique PIN. On the day of the call, dial in approximately ten minutes prior to the scheduled call time and enter the unique participant PIN received during registration. The call will be limited to 60 minutes, including questions and answers. An audio replay will be available through the Investors link on the Company's web site at www.hubgroup.com. This replay will be available for 30 days.

About Hub Group

Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers' needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers' supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (NASDAQ:HUBG) with approximately $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of "The Way Ahead" – a commitment to service, integrity and innovation. For more information, visit hubgroup.com.

SOURCE: Hub Group, Inc.

CONTACT: Garrett Holland, [email protected]

HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
(unaudited)
	Three Months Ended September 30,
	2025					2024
				% of					% of
	Amount			Revenue		Amount			Revenue
Operating revenue	$	934,496		100.0%		$	986,892		100.0%
Operating expenses:
Purchased transportation and warehousing		683,657		73.2%			739,995		75.0%
Salaries and benefits		143,085		15.3%			142,948		14.5%
Depreciation and amortization		31,390		3.4%			32,386		3.3%
Insurance and claims		10,338		1.1%			10,217		1.0%
General and administrative		27,128		2.9%			29,674		3.0%
(Gain) loss on sale of assets, net		(545	)	-0.1%			(427	)	-0.1%
Total operating expenses		895,053		95.8%			954,793		96.7%
Operating income		39,443		4.2%			32,099		3.3%
Other income (expense):
Interest expense, net		(1,661	)	-0.2%			(1,333	)	-0.1%
Other, net		735		0.1%			(23	)	-0.0%
Total other expense, net		(926	)	-0.1%			(1,356	)	-0.1%
Income before provision for income taxes		38,517		4.1%			30,743		3.2%
Provision for income taxes		9,589		1.0%			7,140		0.7%
Net income		28,928					23,603
Less: Net income attributable to non-controlling interests		374					-
Net income attributable to Hub Group, Inc.	$	28,554				$	23,603
Earnings per share
Basic	$	0.48				$	0.39
Diluted	$	0.47				$	0.39
Basic weighted average number of shares outstanding		60,006					60,374
Diluted weighted average number of shares outstanding		60,333					60,949

HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share amounts)
(unaudited)
	Nine Months Ended September 30,
	2025					2024
				% of					% of
	Amount			Revenue		Amount			Revenue
Operating revenue	$	2,755,360		100.0%		$	2,972,880		100.0%
Operating expenses:
Purchased transportation and warehousing		1,997,484		72.5%			2,207,403		74.3%
Salaries and benefits		435,809		15.8%			429,300		14.4%
Depreciation and amortization		96,356		3.5%			108,489		3.6%
Insurance and claims		31,864		1.2%			35,474		1.2%
General and administrative		83,198		3.0%			84,785		2.9%
(Gain) loss on sale of assets, net		(480	)	0.0%			(1,337	)	-0.1%
Total operating expenses		2,644,231		96.0%			2,864,114		96.3%
Operating income		111,129		4.0%			108,766		3.7%
Other income (expense):
Interest expense, net		(5,782	)	-0.2%			(5,720	)	-0.2%
Other, net		1,758		0.1%			(259	)	-0.0%
Total other expense, net		(4,024	)	-0.1%			(5,979	)	-0.2%
Income before provision for income taxes		107,105		3.9%			102,787		3.6%
Provision for income taxes		25,952		0.9%			23,116		0.8%
Net income		81,153					79,671
Less: Net income attributable to non-controlling interests		505					-
Net income attributable to Hub Group, Inc.	$	80,648				$	79,671
Earnings per share
Basic	$	1.34				$	1.31
Diluted	$	1.34				$	1.30
Basic weighted average number of shares outstanding		60,066					60,803
Diluted weighted average number of shares outstanding		60,321					61,241

HUB GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
				September 30,				December 31,
				2025				2024
				(unaudited)
ASSETS
	CURRENT ASSETS:
		Cash and cash equivalents		$	119,699			$	98,248
		Restricted cash			26,806				28,700
		Accounts receivable trade, net			592,202				581,516
		Accounts receivable other			13,578				10,880
		Prepaid taxes			12,890				15,115
		Prepaid expenses and other current assets			23,158				33,870
			TOTAL CURRENT ASSETS		788,333				768,329
	Restricted investments				20,700				21,642
	Property and equipment, net				764,386				739,896
	Right-of-use assets - operating leases				231,588				233,651
	Right-of-use assets - financing leases				563				1,062
	Other intangibles, net				251,892				267,357
	Goodwill				818,150				814,309
	Other non-current assets				25,109				22,097
			TOTAL ASSETS	$	2,900,721			$	2,868,343
LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES:
		Accounts payable trade		$	243,415			$	279,982
		Accounts payable other			30,244				29,069
		Accrued payroll			34,511				32,833
		Accrued other			85,672				91,441
		Lease liability - operating leases			46,205				45,492
		Lease liability - financing leases			434				663
		Current portion of long-term debt			94,520				100,001
			TOTAL CURRENT LIABILITIES		535,001				579,481
	Deferred consideration				28,579				30,639
	Long-term debt				160,479				164,361
	Other non-current liabilities				51,786				51,004
	Lease liability - operating leases				197,057				197,664
	Lease liability - financing leases				64				330
	Deferred taxes				172,200				152,913
	STOCKHOLDERS' EQUITY:
		Preferred stock, $.01 par value; 2,000,000 shares authorized; no shares issued or outstanding in 2025 and 2024.			-				-
		Common stock
			Class A: $.01 par value; 97,337,700 shares authorized; 72,303,228 shares issued in both 2025 and 2024; 60,607,391 shares outstanding in 2025 and 60,746,745 shares outstanding in 2024.		723				723
			Class B: $.01 par value; 662,300 shares authorized; 574,903 shares issued and outstanding in both 2025 and 2024.		6				6
		Additional paid-in capital			222,446				222,039
		Retained earnings			2,080,174				2,022,265
		Accumulated other comprehensive loss			4,255				(1,453	)
		Treasury stock; at cost, 11,695,837 shares in 2025 and 11,556,483 shares in 2024			(605,188	)			(598,583	)
			Total Hub Group, Inc. equity		1,702,416				1,644,997
		Non-controlling interests			53,139				46,954
			TOTAL STOCKHOLDERS' EQUITY		1,755,555				1,691,951
			TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	2,900,721			$	2,868,343

HUB GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
				Nine Months Ended September 30,
				2025				2024
Cash flows from operating activities:
	Net income			$	81,153			$	79,671
	Adjustments to reconcile net income
		to net cash provided by operating activities:
			Depreciation and amortization of intangibles and right-of-use assets		140,836				145,474
			Deferred taxes		6,341				(11,652	)
			Non-cash share-based compensation expense		14,391				14,695
			Gain on sale of assets, net		(480	)			(1,337	)
	Changes in operating assets and liabilities, net of acquisitions:
			Restricted investments		942				(579	)
			Accounts receivable, net		(10,106	)			22,967
			Prepaid taxes		2,410				6,305
			Prepaid expenses and other current assets		11,252				11,210
			Other non-current assets		(5,044	)			(2,083	)
			Accounts payable		(37,033	)			(29,520	)
			Accrued expenses		(10,187	)			(10,106	)
			Non-current liabilities		(34,842	)			(31,230	)
			Net cash provided by operating activities		159,633				193,815
Cash flows from investing activities:
	Proceeds from sale of equipment				6,836				9,792
	Purchases of property and equipment				(39,190	)			(43,220	)
	Acquisition of container assets				(53,427	)			-
	Acquisitions, net of cash acquired				(1,259	)			3,701
			Net cash used in investing activities		(87,040	)			(29,727	)
Cash flows from financing activities:
	Repayments of long term debt				(76,953	)			(81,356	)
	Purchase of treasury stock				(13,814	)			(68,273	)
	Dividends paid				(22,500	)			(22,733	)
	Stock withheld for payments of withholding taxes				(6,775	)			(9,064	)
	Finance lease payments				(494	)			(1,532	)
	Proceeds from issuance of debt				67,385				17,764
			Net cash used in financing activities		(53,151	)			(165,194	)
	Effect of exchange rate changes on cash and cash equivalents				115				(25	)
Net increase in cash and cash equivalents					19,557				(1,131	)
Cash and cash equivalents beginning of period					126,948				187,270
Cash and cash equivalents end of period				$	146,505			$	186,139

HUB GROUP, INC.
FINANCIAL INFORMATION BY SEGMENT (NON-GAAP)
(in thousands)
(unaudited)
	Three Months Ended September 30,
Operating Revenue	2025			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2025				2024			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2024
Intermodal and Transportation Services	$	561,487			-			-			$	559,968			-			-
Logistics		402,399			-			-				460,847			-			-
Inter-segment eliminations		(29,390	)		-			-				(33,923	)		-			-
Total operating revenue	$	934,496			-			-			$	986,892			-			-
	Three Months Ended September 30,
Operating Income	2025			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2025				2024			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2024
Intermodal and Transportation Services	$	15,868		$	257		$	16,125			$	13,516		$	1,440		$	14,956
Logistics		23,575			957			24,532				18,583			8,949			27,532
Total operating income	$	39,443		$	1,214		$	40,657			$	32,099		$	10,389		$	42,488
	Three Months Ended September 30,
Depreciation and Amortization	2025			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2025				2024			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2024
Intermodal and Transportation Services	$	21,065			-			-			$	21,249			-			-
Logistics		10,325			-			-				11,137			-			-
Total depreciation and amortization	$	31,390			-			-			$	32,386			-			-
(1) See Reconciliation of GAAP to Non-GAAP Financial Measures for further discussion.

HUB GROUP, INC.
FINANCIAL INFORMATION BY SEGMENT (NON-GAAP)
(in thousands)
(unaudited)
	Nine Months Ended September 30,
Operating Revenue	2025			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2025				2024			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2024
Intermodal and Transportation Services	$	1,619,693			-			-			$	1,673,034			-			-
Logistics		1,217,710			-			-				1,400,159			-			-
Inter-segment eliminations		(82,043	)		-			-				(100,313	)		-			-
Total operating revenue	$	2,755,360			-			-			$	2,972,880			-			-
	Nine Months Ended September 30,
Operating Income	2025			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2025				2024			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2024
Intermodal and Transportation Services	$	44,325		$	257		$	44,582			$	40,186		$	1,440		$	41,626
Logistics		66,804			3,532			70,336				68,580			8,949			77,529
Total operating income	$	111,129		$	3,789		$	114,918			$	108,766		$	10,389		$	119,155
	Nine Months Ended September 30,
Depreciation and Amortization	2025			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2025				2024			NON-GAAP Adjustments (1)			NON-GAAP  Adjusted 2024
Intermodal and Transportation Services	$	65,134			-			-			$	75,568			-			-
Logistics		31,222			-			-				32,921			-			-
Total depreciation and amortization	$	96,356			-			-			$	108,489			-			-
(1) See Reconciliation of GAAP to Non-GAAP Financial Measures for further discussion.

HUB GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(unaudited)
The following is a reconciliation of GAAP earnings to Non-GAAP Adjusted Earnings, excluding certain items, for income before provision for income taxes (Pre-Tax), net income (After-Tax) and diluted earnings per share (Per Share):
					Three Months Ended												Nine Months Ended
					September 30, 2025												September 30, 2025
					Pre-Tax				After-Tax				Per Share				Pre-Tax				After-Tax				Per Share
GAAP Earnings					$	38.5			$	28.9			$	0.47			$	107.1			$	81.2			$	1.34
Vendor settlements (i)						-				-				-				2.6				2.0				0.03
Network alignment (ii)						0.9				0.6				0.01				0.9				0.6				0.01
Transaction related (iii)						0.1				0.1				-				0.1				0.1				-
Other (iv)						0.2				0.2				0.01				0.2				0.2				0.01
Non-GAAP Adjusted Earnings					$	39.7			$	29.8			$	0.49			$	110.9			$	84.1			$	1.39
By providing this measure of Non-GAAP Adjusted Earnings, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability.
(i) Vendor settlements includes vendor disputes related to our network alignment consolidation activities.
(ii) Network alignment expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business.
(iii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the acquisition of SITH, LLC in 2025.
(iv) Other includes non-ordinary expenses related to employee matters.

HUB GROUP, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(unaudited)
The following is a reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income, excluding certain items.
					Three Months Ended												Nine Months Ended
					September 30, 2025												September 30, 2025
					ITS				Logistics				Consolidated				ITS				Logistics				Consolidated
GAAP Operating Income					$	15.9			$	23.6			$	39.5			$	44.3			$	66.8			$	111.1
Vendor settlements (i)						-				-				-				-				2.6				2.6
Network alignment (ii)						-				0.9				0.9				-				0.9				0.9
Transaction related (iii)						0.1				-				0.1				0.1				-				0.1
Other (iv)						0.1				0.1				0.2				0.1				0.1				0.2
Non-GAAP Adjusted Operating Income					$	16.1			$	24.6			$	40.7			$	44.5			$	70.4			$	114.9
By providing this measure of Non-GAAP Adjusted Operating Income, management intends to provide investors with a useful measure of Hub Group's performance that excludes certain non-ordinary expense items and allowing better evaluation of underlying business performance and period-to-period comparability.
(i) Vendor settlements includes vendor disputes related to our network alignment consolidation activities.
(ii) Network alignment expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business.
(iii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the acquisition of SITH, LLC in 2025.
(iv) Other includes non-ordinary expenses related to employee matters.

RECONCILIATION OF NET INCOME TO EBITDA (1) AND NET DEBT / EBITDA LEVERAGE
(in thousands)
(unaudited)
	2024				2025				2025				2025
	Q4				Q1				Q2				Q3				LTM (3)
Net Income	$	24,372			$	27,194			$	25,031			$	28,928			$	105,525
Interest Expense, net		1,858				1,992				2,129				1,661				7,640
Depreciation and Amortization (2)		47,088				47,046				47,402				46,388				187,924
Provision for Income Taxes		5,387				8,447				7,916				9,589				31,339
EBITDA	$	78,705			$	84,679			$	82,478			$	86,566			$	332,428
Network Alignment (i)	$	4,814			$	-			$	-			$	857			$	5,671
Transaction Related (ii)		1,194				-				-				104				1,298
Other (iii)		67				-				-				253				320
Vendor Settlements (iv)		-				-				2,575				-				2,575
Adjusted EBITDA	$	84,780			$	84,679			$	85,053			$	87,780			$	342,292
EBITDA LTM (3)	$	332,686			$	330,791			$	324,312			$	332,428
Net Debt (4)	$	167,106			$	140,223			$	95,537			$	135,798
Net Debt / EBITDA LTM		0.5				0.4				0.3				0.4
Adjusted EBITDA LTM (3)	$	349,150			$	347,255			$	343,351			$	342,292
Net Debt / Adjusted EBITDA LTM		0.5				0.4				0.3				0.4
(1) By providing this Non-GAAP measure of EBITDA and Net Debt / EBITDA Leverage, management intends to provide investors with a meaningful, consistent comparison of the Company's profitability and leverage for the periods presented.
(2) Includes depreciation of property and equipment, amortization of intangible assets and amortization of right-of-use assets.
(3) Last twelve months
(4) Total debt (including finance leases) less cash and cash equivalents
(i) Network Alignment expenses include transfer costs, legal fees and other expenses related to consolidating from existing warehouses to improve operational efficiency of our cross dock services, Final Mile and Consolidation and Fulfillment lines of business.
(ii) Transaction related expenses are comprised of due diligence costs, legal fees, insurance fees and other professional service fees incurred as part of the acquisition of SITH, LLC in 2025 as well as the forming of a joint venture with EASO in 2024.
(iii) Other includes non-ordinary expenses related to employee matters.
(iv) Vendor settlements includes vendor disputes related to our network alignment consolidation activities.