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OAK BROOK, Ill. - Hub Group, Inc. (NASDAQ:HUBG), a transportation company with a market capitalization of $2.1 billion and currently trading below its InvestingPro Fair Value, announced today it has entered into an agreement to acquire the intermodal assets of Marten Transport, Ltd. Intermodal (NASDAQ:MRTN) for $51.8 million in cash.
The acquisition includes approximately 1,200 refrigerated containers and will make Hub Group the second largest provider of temperature-controlled intermodal solutions in North America. The transaction, which represents just a fraction of Hub Group’s total assets given its moderate debt level of $485 million, is expected to close by the end of the third quarter, subject to customary closing conditions.
Marten Intermodal provides temperature-controlled intermodal service to approximately 100 shippers in the food and beverage segments and generated $51.5 million in revenue over the trailing twelve months ended June 30, 2025.
"We are excited to more than double Hub Group’s temperature-controlled container fleet and leverage our existing intermodal network to serve Marten Intermodal’s customers," said Phil Yeager, Hub Group’s President, CEO and Vice Chairman.
The deal is structured as an asset purchase of certain intermodal equipment and contracts. According to the company’s press release, the acquisition is expected to be immediately accretive to Hub Group’s fourth quarter 2025 earnings per share and accretive to 2026 EPS.
Hub Group anticipates operational synergies through additional scale and network density, along with cross-selling opportunities with additional refrigerated customers across business lines.
Winston & Strawn LLP is serving as lead legal counsel and Stephens Inc. as financial advisor to Hub Group on the transaction.
In other recent news, Hub Group reported its first-quarter 2025 earnings with an adjusted earnings per share (EPS) of $0.44, slightly exceeding analyst projections. Despite this earnings beat, the company faced a revenue shortfall, reporting $915 million against the expected $973.86 million. The company’s operating margins improved year-over-year, supported by an increase in intermodal volume growth, particularly in the Local East and Mexico regions. However, intermodal revenue per load saw a decline due to factors such as service mix and fuel costs.
Benchmark analysts responded by raising their price target for Hub Group to $40, maintaining a Buy rating. In contrast, Evercore ISI lowered its price target to $35 but kept an In Line rating. Hub Group also revised its full-year 2025 EPS guidance downward, citing challenges in the freight sector and anticipated declines in intermodal volumes, especially in the Transcon business. The company expects second-quarter results to be similar to or slightly below the first quarter. These developments highlight the mixed outlook for Hub Group amid ongoing sector challenges.
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