Record Revenue Growth Driven by Diversified Business Segments
Revenue reached a new high of $276.5 million, up 7.8% year-over-year, primarily due to growth in dedicated fleet, Managed Freight, and a small acquisition.
Growth was supported by receding impacts of weather and avian influenza, and strong new business awards in Managed Freight.
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.
Consolidated operating profit was $1.9 billion with an operating margin of 8.8%.
Consolidated revenue was $21.2 billion for Q2 2025.
Cost per piece increased 5.6% primarily due to Ground Saver delivery expense and timing of employee attrition.
Diluted earnings per share were $1.55.
International revenue was $4.5 billion, up 2.6% year-over-year, with operating profit of $682 million and a 15.2% operating margin.
Revenue per piece increased 5.5%, driven by base rates, product mix, and fuel.
Supply Chain Solutions revenue was $2.7 billion, down $594 million mainly due to divestiture of Coyote; operating profit was $212 million with an 8% margin.
UPS paid $2.7 billion in dividends year-to-date.
U.S. domestic operating profit was $982 million with a 7% operating margin.
U.S. domestic revenue was $14.1 billion, slightly down due to Amazon volume decline but offset by air cargo and revenue per piece increases.
Year-to-date cash from operations was $2.7 billion, free cash flow was $742 million.
Dafinchi
