Hub Group Reports Steady Q1 Earnings Amid Revenue Slip

Hub Group kept its earnings almost perfectly steady year over year despite revenue declining during the first quarter of 2025, the company reported May 8.

The Oak Brook, Ill.-based intermodal and logistics service provider posted net income of $27.2 million, or 44 cents a diluted share, for the three months ending March 31. That compared with $27.1 million, 44 cents, during the same time the previous year. Total consolidated revenue decreased 8% to $915.2 million from $999.5 million.

The revenue decline was due to lower revenue per unit in intermodal and brokerage offsetting strong intermodal volume growth, decreased fuel revenue surcharge and slowing shipping patterns in the logistics segment. The report also highlighted that purchased transportation and warehousing costs decreased 11%. That was met with declines in depreciation, amortization and insurance costs. But salaries and benefits increased 3%.

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“I am proud of the team’s performance in the first quarter as we remained focused on yield management, cost containment and operating efficiency initiatives,” Hub Group CEO Phil Yeager said. “Looking ahead, we are focused on providing exceptional service and value to our customers while effectively managing our costs and investing in our business to deliver long-term growth.”

Hub Group showed in its earnings report that these performance initiatives resulted in an operating income margin of 4.1%. That is a 40-basis-point improvement over 2024 Q1 and a 20-basis-point improvement over the fourth quarter. The improvement included a 70-basis-point improvement in the logistics segment operating margin versus a year ago.

Intermodal and Transportation Solutions segment revenue decreased 4% to $530 million from $552 million. This was due to mix, price and fuel being partially offset by higher intermodal volumes. ITS operating income increased 7.8% to $14.1 million from $13 million. This was due to cost-control efforts, lower dedicated startup costs and improved insurance and claims expenses.

Hub Group Q1 2025 Report

Logistics segment revenue decreased 14.4% to $411 million from $480.2 million. This was due to lower volume and revenue per load in the brokerage business, exiting of unprofitable business and seasonal softness in managed transportation and final-mile businesses. Operating income decreased 3.3% to $23.3 million from $24.1 million. This was due to positive contribution from consolidation and fulfillment, managed transportation and final-mile that offset a lower brokerage margin.

Hub Group ranks No. 14 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 20 on the TT Top 100 logistics companies list.

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