Universal Logistics reports Q2 revenue decline, declares dividend

WARREN, Mich. - Universal Logistics Holdings, Inc. (NASDAQ:ULH) reported second quarter 2025 net income of $8.3 million, or $0.32 per share, on total operating revenues of $393.8 million, according to a company press release. The company, currently trading at a P/E ratio of 8.61, appears undervalued according to InvestingPro analysis.

The quarterly results represent a significant decline from the same period last year when the company reported net income of $30.7 million, or $1.17 per share, on revenues of $462.2 million. This performance decline reflects broader market challenges, with the stock experiencing a 39% decrease over the past six months. InvestingPro subscribers can access 8 additional key insights about ULH’s current market position and future prospects.

Operating income for the quarter decreased to $19.9 million from $47.1 million a year earlier, with operating margin falling to 5.1% from 10.2%. EBITDA, a non-GAAP measure, decreased to $56.2 million from $84.8 million in the comparable period.

The company’s contract logistics segment, which includes value-added and dedicated services, saw a 1.1% revenue decrease to $260.6 million, while operating income in this segment fell to $21.8 million from $52.9 million a year earlier.

The intermodal segment reported a 13.5% revenue decline to $68.9 million and an operating loss of $5.7 million, an improvement from the $8.6 million loss in the same quarter last year.

In the trucking segment, revenues decreased 29.9% to $64.1 million, with operating income falling to $3.3 million from $4.4 million in the prior-year period.

"Universal’s results for the second quarter, although muted, were broadly in-line with our previously guided expectations," said Tim Phillips, Universal’s CEO, in the press release.

The company’s board declared a quarterly cash dividend of $0.105 per share, payable on October 1, 2025, to shareholders of record as of September 1, 2025.

As of June 28, 2025, Universal held cash and cash equivalents of $24.3 million, with outstanding debt of $798.6 million. The company’s debt-to-equity ratio stands at 1.3, while maintaining a FAIR financial health score according to InvestingPro analysis. Notably, Universal has maintained consistent dividend payments for 15 consecutive years, demonstrating commitment to shareholder returns despite its significant debt burden.

In other recent news, Universal Logistics reported its first-quarter earnings for 2025, revealing a notable shortfall compared to analyst expectations. The company posted earnings per share (EPS) of $0.23, significantly below the forecasted $1.04. Revenue for the quarter was $382.4 million, missing the anticipated $454.1 million. This underperformance was primarily attributed to challenges in the Trucking segment and a persistent downturn in freight, alongside difficulties in auto production. The company’s EBIT margin was reported at 4.1%, which fell short of both Stifel’s estimate of 7.2% and Universal Logistics’ own guidance of 6.5-7.5%. Following these developments, Stifel analysts revised their outlook, reducing the price target for Universal Logistics from $37.00 to $29.00 while maintaining a Hold rating. The earnings miss was evident across all operating divisions, with Contract Logistics experiencing significant underperformance.

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