Hub Group, Inc. SEC 10-Q Report

Hub Group, Inc., a leading provider of transportation and logistics management solutions, has released its Form 10-Q report for the third quarter of 2024. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting the challenges and strategic initiatives undertaken during the period.

Financial Highlights

Operating Revenue: $905.6 million, a decrease of 8% from $986.5 million in 2024, primarily due to lower volume and revenue per load in the Logistics segment and price declines in the Intermodal and Transportation Solutions segment.

Operating Income: $34.3 million, down from $39.5 million in 2024, with the Intermodal and Transportation Solutions segment showing a 6% increase in operating income due to cost controls and improved insurance and claims expenses.

Net Income: $25.0 million, a decrease from $29.0 million in 2024, reflecting lower operating income and a decrease in interest income.

Basic Earnings Per Common Share: $0.42, down from $0.48 in 2024, reflecting the decrease in net income.

Diluted Earnings Per Common Share: $0.42, down from $0.47 in 2024, consistent with the decrease in net income.

Business Highlights

Revenue Segments: The Intermodal and Transportation Solutions (ITS) segment reported a revenue decrease of 6% to $528 million, primarily due to intermodal mix, price declines, and lower fuel and dedicated revenue, partially offset by increased volume. The Logistics segment saw a 12% revenue decrease to $404 million, attributed to lower volume and revenue per load in brokerage, exiting unprofitable business, and sub-seasonal demand in managed transportation and final mile services.

Geographical Performance: Revenue from the United States decreased, while revenue from Mexico increased significantly, reflecting the company's expanded operations in the region following the EASO acquisition.

Sales Units: The ITS segment operates approximately 50,000 containers and has a trucking operation consisting of about 2,400 tractors, 3,300 employee drivers, and 4,500 trailers. The Logistics segment leverages approximately 7 million square feet of warehousing and cross-dock space across North America.

Future Outlook: The company is focused on margin enhancement projects, including network optimization, reducing empty miles, and improving driver and asset utilization. The enactment of the One Big Beautiful Bill Act (OBBBA) is expected to impact financial statements, particularly with 100% bonus depreciation and domestic research cost expensing.

SEC Filing: Hub Group, Inc. [ HUBG ] - 10-Q - Aug. 06, 2025