Hub Group ( (HUBG) ) has released its Q1 earnings. Here is a breakdown of the information Hub Group presented to its investors.
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Hub Group, Inc., a leading provider of transportation and logistics management solutions, specializes in optimizing supply chains through advanced technology and comprehensive services. In its first quarter of 2025, Hub Group reported steady earnings with a diluted EPS of $0.44, matching the previous year’s performance, and a revenue of $915 million. The company also returned $21 million to shareholders and ended the quarter with $141 million in cash.
Key financial highlights include an operating income of $37 million, representing a 4.1% margin, which is a 40-basis point improvement from the previous year. The Intermodal and Transportation Solutions segment saw a revenue decline to $530 million but improved its operating income to $14 million due to cost control measures. Meanwhile, the Logistics segment experienced a revenue drop to $411 million but achieved a 70-basis point improvement in operating margin.
The company’s strategic focus on cost containment and operational efficiency has resulted in a favorable net debt/EBITDA ratio of 0.4x, well below its target range. Despite an 8% decline in overall revenue compared to the first quarter of 2024, Hub Group maintained its profitability through effective management of transportation and warehousing costs, which decreased by 11%.
Looking ahead, Hub Group remains committed to delivering exceptional service and value while managing costs and investing in long-term growth. The company projects full-year revenue between $3.6 billion and $4.0 billion, with an expected EPS range of $1.75 to $2.25, reflecting its confidence in navigating the current market conditions.