Adjusted EBITDA was $85 million, adjusted EPS was $0.45, down from $0.47 in Q2 2024.
Adjusted operating income decreased 7% year-over-year, but operating margin improved by 10 basis points to 4.1%.
Cash flow from operations for the first half of 2025 was $132 million; capital expenditures totaled $11 million in Q2.
Hub Group reported second quarter 2025 revenue of $906 million, down 8% year-over-year and 1% sequentially.
ICS operating margin improved 30 basis points to 2.7%, while Logistics margin remained stable at 5.6%.
ICS revenue declined 6% to $528 million, driven by 2% intermodal volume growth offset by lower revenue per load and dedicated revenue declines.
Logistics revenue decreased 12% to $404 million due to lower brokerage volumes and revenue per load, exiting unprofitable business, and subseasonal demand.
Net debt was $96 million, or 0.3x adjusted EBITDA, below the target range of 0.75x to 1.25x.
Purchased transportation and warehousing costs fell by $71 million, improving cost control and reducing rail and warehouse expenses.
Returned $29 million to shareholders through dividends and stock repurchases in the first half of 2025.
Salaries and benefits increased slightly by $1 million due to additional drivers and warehouse staff.
Free cash flow was $78 million, a significant increase compared to last year, representing a cash conversion of 108%.
Interest and other expenses were $44 million, $29 million higher than last year due to ESG acquisition financing interest.
Liquidity remained strong with $1.2 billion at quarter end, no debt maturities until 2029.
Operating margin declined 310 basis points year-over-year, consistent with planned sequential improvement of 190 basis points.
Returned capital to shareholders with $21 million stock repurchase and $11 million dividends in Q2.
Segment results: Aerials sales of $607 million with improved operating margin sequentially; MP sales of $454 million with 12.7% operating margin; Environmental Solutions sales of $430 million with 19.1% operating margin.
Terex delivered earnings per share of $1.49 on sales of $1.5 billion with an operating margin of 11% in Q2 2025.
Total net sales grew 8% year-over-year or 7% at constant exchange rates, with legacy sales declining by 12% excluding ESG.
Advanced Polymer Solutions segment EBITDA was $40 million, stable with prior quarter despite ongoing challenges in automotive markets.
Cash balance at the end of the quarter was $1.7 billion, above the target cash balance of $1.5 billion, supporting financial flexibility.
Cash conversion rate over the past 12 months was 75%, close to the long-term target of 80%, with strong shareholder returns totaling $2.1 billion over the last 12 months.
Cash generation resumed in the quarter with cash returns to shareholders exceeding $500 million through increased dividends and opportunistic share repurchases.
Intermediates and Derivatives segment EBITDA increased by $79 million to $290 million, primarily from improved styrene and propylene oxide margins.
Olefin and Polyolefin Americas segment EBITDA improved by more than 25% sequentially to $318 million, driven by higher integrated polyethylene margins and less downtime.
Olefin and Polyolefin Europe, Asia and International segment EBITDA was $46 million, improving due to lower feedstock costs and seasonal demand.
Second quarter earnings were $0.62 per share with EBITDA of $715 million, showing sequential improvement due to less downtime and lower feedstock costs.
Technology segment EBITDA was $34 million, lower than guidance due to inventory cost adjustments and sales mix changes, with licensing activity remaining subdued.
Dafinchi