Hub Group ( (HUBG) ) has released its Q4 earnings. Here is a breakdown of the information Hub Group presented to its investors.
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Hub Group, Inc., a publicly traded company on Nasdaq, specializes in comprehensive transportation and logistics management solutions, leveraging industry-leading technology to enhance supply chain efficiency and visibility. The company reported a fourth-quarter revenue of $1 billion and a full-year revenue of $4 billion for 2024, with a GAAP EPS of $0.40 and $1.70 for the quarter and full year, respectively.
Hub Group’s financial performance in 2024 was marked by a slight decline in revenue, attributed to decreased fuel, brokerage, and transportation revenues, despite strong intermodal volume growth. The company achieved a GAAP operating income margin of 3.2% for the fourth quarter and 3.6% for the full year, with adjusted operating income margins slightly higher. Key initiatives included a joint venture with EASO to expand intermodal capabilities in North America and a return of nearly $100 million to shareholders through dividends and share repurchases.
The Intermodal and Transportation Solutions (ITS) segment reported a 14% growth in intermodal volumes, contributing to a 3.1% adjusted operating margin improvement. The Logistics segment experienced a slight revenue decline, countered by gains in the Final Mile service. Hub Group maintained a strong balance sheet with $127 million in cash and a net debt to adjusted EBITDA ratio of 0.5x.
Looking ahead to 2025, Hub Group anticipates revenues between $4.0 billion and $4.3 billion, with expected EPS ranging from $1.90 to $2.40. The company remains focused on executing strategic priorities to drive growth and enhance shareholder value.
