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CHICAGO - Hub Group , Inc. (NASDAQ:HUBG) reported second quarter earnings that slightly exceeded analyst expectations while revenue fell short of estimates, as the logistics provider navigated challenging market conditions.
The Oak Brook, Illinois-based company posted adjusted earnings per share of $0.45, beating the analyst consensus of $0.44. However, revenue came in at $905.6 million, below the analyst estimate of $918.11 million and down 8% from $986 million in the same quarter last year. The revenue decline was attributed to lower pricing in intermodal and brokerage services, decreased fuel revenue, and sub-seasonal demand across segments.
For the full year 2025, Hub Group provided guidance of $1.80 to $2.05 EPS on revenue of $3.6 billion to $3.8 billion. The midpoint of this EPS guidance ($1.93) is slightly above the analyst consensus of $1.90, while the revenue guidance midpoint ($3.7 billion) is slightly below the consensus of $3.77 billion.
"The team continues to navigate this operating environment with a focus on serving customers, improving productivity, and leveraging growth investments," said Phil Yeager, Hub Group’s President, CEO and Vice Chairman. "Although market conditions remain challenging, higher margin and free cash flow performance from cycle trough-to-trough highlight the benefits of our strategy and execution."
The company’s Intermodal and Transportation Solutions segment saw a 2% volume growth, but revenue fell to $528 million from $561 million a year earlier due to mix, price, and fuel impacts. The Logistics segment revenue dropped to $404 million from $459 million in the prior year.
Hub Group maintained a strong balance sheet with net debt/EBITDA of 0.3x, below its target range of 0.75 to 1.25x. The company returned $29 million to shareholders year-to-date through dividend payments and stock repurchases.
The company also expressed support for the proposed combination of Union Pacific (NYSE:UNP) and Norfolk Southern (NYSE:NSC), suggesting it would accelerate long-term growth opportunities by improving network efficiency and market access.
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