These terms and conditions govern your use of the website alphaminr.com and its related
services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr,
(“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms
include the provisions in this document as well as those in the Privacy Policy. These terms may
be modified at any time.
Subscription
Your subscription will be on a month to month basis and automatically renew every month. You may
terminate your subscription at any time through your account.
Fees
We will provide you with advance notice of any change in fees.
Usage
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Limitation of Liability
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The
service is provided “As is”. The materials and information accessible through the Service are
solely for informational purposes. While we strive to provide good information and data, we make
no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO
YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY
OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR
(2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE
CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR
CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision
shall not affect the validity or enforceability of the remaining provisions herein.
Privacy Policy
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal
information when we provide our service (“Service”). This Privacy Policy explains how
information is collected about you either directly or indirectly. By using our service, you
acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy
Policy, please do not use our Service. You should contact us if you have questions about it. We
may modify this Privacy Policy periodically.
Personal Information
When you register for our Service, we collect information from you such as your name, email
address and credit card information.
Usage
Like many other websites we use “cookies”, which are small text files that are stored on your
computer or other device that record your preferences and actions, including how you use the
website. You can set your browser or device to refuse all cookies or to alert you when a cookie
is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not
function properly. We collect information when you use our Service. This includes which pages
you visit.
Sharing of Personal Information
We use Google Analytics and we use Stripe for payment processing. We will not share the
information we collect with third parties for promotional purposes.
We may share personal information with law enforcement as required or permitted by law.
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
June 30,
2025
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
to
Commission file number:
0-27754
HUB GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware
36-4007085
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
2001 Hub Group Way
Oak Brook
,
Illinois
60523
(Address, including zip code, of principal executive offices)
(
630
)
271-3600
Registrant’s telephone number, including area code
Securities registered pursuant to Section 12(b) of the Exchange Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A Common Stock, par value $.01 per share
HUBG
NASDAQ
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐
Indicate by check mark if Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
☒ Accelerated Filer ☐ Non-Accelerated Filer ☐ Smaller Reporting Company
☐
Emerging Growth Company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
☒
On July 31, 2025, the registrant ha
d
60,644,678
outsta
nding shares of Class A common stock, par value $.01 per share, and
574,903
outstanding shares of Class B common stock, par value $.01 per share.
Preferred stock, $
.01
par value;
2,000,000
shares authorized;
no
shares issued or outstanding in 2025 and 2024.
-
-
Common stock
Class A: $
.01
par value;
97,337,700
shares authorized;
72,303,228
shares issued in both 2025 and 2024;
60,641,237
shares outstanding in 2025 and
60,746,745
shares outstanding in 2024
723
723
Class B: $
.01
par value;
662,300
shares authorized;
574,903
shares issued and outstanding in 2025 and 2024.
6
6
Additional paid-in capital
216,107
222,039
Retained earnings
2,059,244
2,022,265
Accumulated other comprehensive gain (loss)
2,672
(
1,453
)
Treasury stock; at cost,
11,661,991
shares in 2025 and
11,556,483
shares in 2024
(
603,793
)
(
598,583
)
Total Hub Group, Inc. equity
1,674,959
1,644,997
Non-controlling interests
51,249
46,954
TOTAL STOCKHOLDERS' EQUITY
1,726,208
1,691,951
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
2,800,051
$
2,868,343
See notes to unaudited condensed consolidated financial statements.
3
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
O
F INCOME
(in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Operating revenue
$
905,648
$
986,495
$
1,820,864
$
1,985,988
Operating expenses:
Purchased transportation and warehousing
655,904
727,236
1,313,827
1,467,408
Salaries and benefits
143,310
141,856
292,723
286,352
Depreciation and amortization
32,387
37,772
64,966
76,103
Insurance and claims
10,644
12,639
21,526
25,257
General and administrative
28,925
27,877
56,070
55,111
Loss (gain) on sale of assets, net
130
(
413
)
65
(
910
)
Total operating expenses
871,300
946,967
1,749,177
1,909,321
Operating income
34,348
39,528
71,687
76,667
Other income (expense):
Interest expense
(
3,148
)
(
3,689
)
(
6,395
)
(
7,588
)
Interest income
1,019
1,808
2,274
3,201
Other, net
728
(
66
)
1,023
(
236
)
Total other expense, net
(
1,401
)
(
1,947
)
(
3,098
)
(
4,623
)
Income before provision for income taxes
32,947
37,581
68,589
72,044
Provision for income taxes
7,916
8,566
16,363
15,976
Net income
25,031
29,015
52,226
56,068
Less: net (loss) income attributable to non-controlling interests
(
216
)
-
131
-
Net income attributable to Hub Group, Inc.
$
25,247
$
29,015
$
52,095
$
56,068
Basic earnings per common share
$
0.42
$
0.48
$
0.87
$
0.92
Diluted earnings per common share
$
0.42
$
0.47
$
0.86
$
0.91
Basic weighted average number of shares outstanding
60,002
60,710
60,096
61,018
Diluted weighted average number of shares outstanding
60,210
61,108
60,314
61,387
See notes to unaudited condensed consolidated financial statements.
4
HUB GR
OUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(in thousands, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
Net income
$
25,031
$
29,015
$
52,226
$
56,068
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments
8,053
(
63
)
8,289
(
71
)
Total comprehensive income
$
33,084
$
28,952
$
60,515
$
55,997
Less: comprehensive income attributable to non-controlling interests
3,553
-
4,295
-
Comprehensive income attributable to Hub Group, Inc.
$
29,531
$
28,952
$
56,220
$
55,997
See notes to unaudited condensed consolidated financial statements.
5
HUB GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except per share amounts)
Class A & B
Accumulated
Common Stock
Additional
Other
Non-
Shares
Paid-in
Retained
Comprehensive
Treasury Stock
Controlling
Issued
Amount
Capital
Earnings
Income (loss)
Shares
Amount
Interests
Total
Balance March 31, 2024
72,878,131
$
729
$
208,964
$
1,968,361
$
(
137
)
(
10,455,784
)
$
(
555,701
)
$
1,622,216
Net income attributable to Hub Group, Inc.
-
-
-
29,015
-
-
-
-
29,015
Stock tendered for payments of withholding taxes related to awards vested
-
-
-
-
-
(
4,237
)
(
178
)
-
(
178
)
Purchase of treasury stock
-
-
-
-
-
(
179,875
)
(
7,182
)
-
(
7,182
)
Federal excise tax on purchased treasury stock
-
-
-
-
-
-
(
295
)
-
(
295
)
Issuance of restricted stock awards, net of forfeitures
-
-
(
3,011
)
-
-
(
10,329
)
3,011
-
-
Share-based compensation expense
-
-
5,393
-
-
-
-
-
5,393
Dividends paid
-
-
-
(
7,604
)
-
-
-
-
(
7,604
)
Change in unvested dividends
-
-
-
(
172
)
-
-
-
-
(
172
)
Foreign currency translation adjustment
-
-
-
-
(
63
)
-
-
-
(
63
)
Balance June 30, 2024
72,878,131
$
729
$
211,346
$
1,989,600
$
(
200
)
(
10,650,225
)
$
(
560,345
)
$
-
$
1,641,130
Balance March 31, 2025
72,878,131
$
729
$
208,650
$
2,041,622
$
(
1,612
)
(
11,615,118
)
$
(
600,886
)
$
47,696
$
1,696,199
Net income attributable to Hub Group, Inc.
-
-
-
25,247
-
-
-
-
25,247
Net loss attributable to non-controlling interests
-
-
-
-
-
-
-
(
216
)
(
216
)
Stock tendered for payments of withholding taxes related to awards vested
-
-
-
-
-
(
3,661
)
(
143
)
-
(
143
)
Issuance of restricted stock awards, net of forfeitures
-
-
2,764
-
-
(
43,212
)
(
2,764
)
-
-
Share-based compensation expense
-
-
4,693
-
-
-
-
-
4,693
Dividends paid
-
-
-
(
7,500
)
-
-
-
-
(
7,500
)
Change in unvested dividends
-
-
-
(
125
)
-
-
-
-
(
125
)
Foreign currency translation adjustment
-
-
-
-
4,284
-
-
3,769
8,053
Balance June 30, 2025
72,878,131
$
729
$
216,107
$
2,059,244
$
2,672
(
11,661,991
)
$
(
603,793
)
$
51,249
$
1,726,208
Balance December 31, 2023
76,099,092
$
761
$
209,830
$
1,949,110
$
(
129
)
(
13,323,268
)
$
(
524,927
)
$
1,634,645
Adjustment related to stock split
(
3,220,961
)
(
32
)
32
-
-
3,220,961
-
-
-
Net income attributable to Hub Group, Inc.
-
-
-
56,068
-
-
-
-
56,068
Stock tendered for payments of withholding taxes related to awards vested
-
-
-
-
-
(
190,304
)
(
8,664
)
-
(
8,664
)
Purchase of treasury stock
-
-
-
-
-
(
767,803
)
(
32,938
)
-
(
32,938
)
Federal excise tax on purchased treasury stock
-
-
-
-
-
-
(
1,765
)
-
(
1,765
)
Issuance of restricted stock awards, net of forfeitures
-
-
(
7,949
)
-
-
410,189
7,949
-
-
Share-based compensation expense
-
-
9,433
-
-
-
-
-
9,433
Dividends paid
-
-
-
(
15,230
)
-
-
-
-
(
15,230
)
Change in unvested dividends
-
-
-
(
348
)
-
-
-
-
(
348
)
Foreign currency translation adjustment
-
-
-
-
(
71
)
-
-
-
(
71
)
Balance June 30, 2024
72,878,131
$
729
$
211,346
$
1,989,600
$
(
200
)
(
10,650,225
)
$
(
560,345
)
$
-
$
1,641,130
Balance December 31, 2024
72,878,131
$
729
$
222,039
$
2,022,265
$
(
1,453
)
(
11,556,483
)
$
(
598,583
)
$
46,954
$
1,691,951
Net income attributable to Hub Group, Inc.
52,095
-
-
-
-
52,095
Net income attributable to non-controlling interests
-
-
-
-
131
131
Stock tendered for payments of withholding taxes related to awards vested
-
-
-
-
-
(
151,685
)
(
6,673
)
(
6,673
)
Purchase of treasury stock
-
-
-
-
-
(
330,441
)
(
13,814
)
(
13,814
)
Issuance of restricted stock awards, net of forfeitures
-
-
(
15,277
)
-
-
376,618
15,277
-
Share-based compensation expense
-
-
9,345
-
-
-
-
-
9,345
Dividends paid
-
-
-
(
15,000
)
-
-
-
-
(
15,000
)
Change in unvested dividends
-
-
-
(
116
)
-
-
-
-
(
116
)
Foreign currency translation adjustment
-
-
-
-
4,125
-
-
4,164
8,289
Balance June 30, 2025
72,878,131
$
729
$
216,107
$
2,059,244
$
2,672
(
11,661,991
)
$
(
603,793
)
$
51,249
$
1,726,208
See notes to unaudited condensed consolidated financial statements.
6
HUB GROUP, INC.
U
NAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Six Months Ended June 30,
2025
2024
Cash flows from operating activities:
Net income
$
52,226
$
56,068
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles and right-of-use assets
94,448
99,100
Deferred taxes
(
4,191
)
(
9,249
)
Non-cash share-based compensation expense
9,345
9,433
Loss (gain) on sale of assets, net
65
(
910
)
Changes in operating assets and liabilities, net of acquisition:
Restricted investments
640
(
281
)
Accounts receivable, net
41,251
15,784
Prepaid taxes
4,191
4,537
Prepaid expenses and other current assets
16,910
19,697
Other non-current assets
(
4,445
)
(
1,503
)
Accounts payable
(
43,705
)
(
14,270
)
Accrued expenses
(
13,552
)
(
6,542
)
Non-current liabilities
(
21,647
)
(
21,399
)
Net cash provided by operating activities
131,536
150,465
Cash flows from investing activities:
Proceeds from sale of equipment
4,056
5,750
Purchases of property and equipment
(
30,480
)
(
31,255
)
Acquisitions, net of cash acquired
-
3,701
Net cash used in investing activities
(
26,424
)
(
21,804
)
Cash flows from financing activities:
Repayments of long-term debt
(
51,729
)
(
53,233
)
Purchase of treasury stock
(
13,814
)
(
32,938
)
Dividends paid
(
15,000
)
(
15,230
)
Stock withheld for payments of withholding taxes
(
6,673
)
(
8,664
)
Finance lease payments
(
328
)
(
1,217
)
Proceeds from issuance of debt
19,103
15,618
Net cash used in financing activities
(
68,441
)
(
95,664
)
Effect of exchange rate changes on cash and cash equivalents and restricted cash
(
18
)
(
20
)
Net increase in cash and cash equivalents and restricted cash
36,653
32,977
Cash and cash equivalents and restricted cash at beginning of the period
126,948
187,270
Cash and cash equivalents and restricted cash at end of the period
$
163,601
$
220,247
Supplemental disclosures of cash paid for:
Interest paid
$
6,284
$
7,413
Income taxes paid, net
$
16,840
$
20,684
See notes to unaudited condensed consolidated financial statements.
7
HUB GROUP, INC.
N
OTES TO UNAUDITED CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. Interim Financial Statements
Our accompanying unaudited condensed consolidated financial statements of Hub Group, Inc. (the “Company,” “Hub,” “we,” “us” or “our”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in annual financial statements have been omitted pursuant to those rules and regulations. However, we believe that the disclosures contained herein are adequate to make the information presented not misleading.
The financial statements reflect, in our opinion, all material adjustments (which include only normal recurring adjustments) necessary to fairly present our financial position as of June 30, 2025 and results of operations for the three and six months ended June 30, 2025 and 2024.
These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 10-K”). Results of operations in interim periods are not necessarily indicative of results to be expected for a full year due partially to seasonality.
On March 5, 2025, the Board declared a quarterly cash dividend of $
0.125
per share on the Company’s Class A and Class B common stock. The dividend was paid on March 28, 2025 to stockholders of record as of March 18, 2025. The declaration and payment of the quarterly cash dividend was subject to the approval of the Board at its sole discretion and in compliance with applicable laws and regulations.
On May 13, 2025, the Board declared a quarterly cash dividend of $
0.125
per share on the Company’s Class A and Class B common stock. The dividend was paid on June 30, 2025 to stockholders of record as of June 23, 2025. The declaration and payment of the quarterly cash dividend was subject to the approval of the Board at its sole discretion and in compliance with applicable laws and regulations.
In October 2023, the Board authorized the purchase of up to $
250
million of our Class A Common Stock pursuant to a share repurchase program. During the quarter ended
June 30, 2025
, we did
no
t purchase any shares. During the six months ended
June 30, 2025
, we purchased
330,441
shares for approximately
$
13.8
million.
NOTE 2. Earnings Per Share
The Company has two classes of common stock, Class A and Class B, both of which have identical rights to dividends and share equally in the earnings of the Company. Accordingly, the Company presents a single calculation of basic and diluted earnings per share for both classes in accordance with the guidance in ASC 260 “Earnings Per Share”.
The following is a reconciliation of our earnings per share (in thousands, except for per share data):
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Net income for basic and diluted earnings per share
$
25,031
$
29,015
$
52,226
$
56,068
Less: net (loss) income attributable to non-controlling interests
(
216
)
-
131
-
Net income attributable to Hub Group, Inc.
$
25,247
$
29,015
$
52,095
$
56,068
Weighted average shares outstanding - basic
60,002
60,710
60,096
61,018
Dilutive effect of restricted stock
208
398
218
369
Weighted average shares outstanding - diluted
60,210
61,108
60,314
61,387
Earnings per share - basic
$
0.42
$
0.48
$
0.87
$
0.92
Earnings per share - diluted
$
0.42
$
0.47
$
0.86
$
0.91
8
NOTE 3. Acquisitions
EASO Transaction
On
October 23, 2024
, we entered into an investment agreement with Corporación Interamericana de Logística, S.A. de C.V. and certain associated entities (commonly known as “EASO”), a family-led, intermodal and trucking logistics provider headquartered in Mexico City to acquire a controlling interest in EASO. EASO specializes in intermodal, dedicated trucking, truckload and freight brokerage services. Through a network of terminals across Mexico, EASO serves the entire Mexican domestic market and main logistics hubs in the U.S. using its intermodal cross-border network.
The estimated fair value of total consideration transferred was approximately $
55
million for a
51
% equity stake in EASO. The financial results of EASO, since the date of acquisition, are included in our ITS segment.
The EASO investment transaction expanded our intermodal and transportation solutions business. With a substantial increase in cross-border trade activity from nearshoring, this transaction improves our ability to provide a cross-border service offering and provides increased intermodal conversion opportunities.
The initial accounting for the EASO transaction is incomplete as we, with the support of our valuation specialist, are in the process of finalizing the fair market value calculations of the acquired net assets as well as non-controlling interests. In addition, we are in the preparation and review process of the valuation of certain acquired assets, liabilities, and non-controlling interest used in determining the purchase accounting. Finally, certain post-closing activities outlined in the investment agreement remain incomplete. As a result, the amounts recorded in the condensed consolidated financial statements related to the EASO transaction are preliminary and the measurement period remains open.
The following table summarizes the preliminary purchase price allocation to the assets acquired and liabilities assumed as of the date of the investment agreement (in thousands):
October 23, 2024
Cash and cash equivalents
$
2,018
Accounts receivable trade, net
15,138
Other receivables
8,258
Prepaid taxes
1,174
Prepaid expenses and other current assets
1,790
Property and equipment, net
20,275
Right-of-use assets - operating leases
1,647
Other intangibles
42,511
Goodwill
30,507
Other non-current assets
243
Deferred taxes
780
Total assets acquired
$
124,341
Accounts payable trade
$
9,976
Accounts payable other
3,844
Accrued payroll
1,273
Accrued other
841
Lease liability - operating leases (current)
336
Current portion of long-term debt
1,031
Long-term debt
2,017
Lease liability - operating leases (non-current)
1,311
Total liabilities assumed
$
20,629
Total purchase price allocation
$
103,712
Less: non-controlling interests
48,996
Consideration transferred for
51
% ownership
54,716
Less: contingent consideration due to sellers
3,721
Cash contributed for
51
% ownership
50,995
Less: cash and cash equivalents acquired
2,018
Less: deferred cash consideration
28,436
Cash paid, net
$
20,541
9
The following table summarizes the preliminary estimated acquisition date fair value of consideration transferred and purchase price allocation.
October 23, 2024
Cash
$
22,559
Deferred cash consideration
28,436
Contingent consideration
3,721
Total consideration transferred
54,716
Non-controlling interests
48,996
Total purchase price allocation
$
103,712
The EASO transaction was accounted for as a purchase business combination in accordance with ASC 805 “Business Combinations.” In connection with the transaction, we performed a consolidation analysis concluding that we control all EASO entities through either a majority voting interest or as the primary beneficiary of a variable interest entity. As a result,
100
% of assets acquired, liabilities assumed and non-controlling interests were recorded in the accompanying Condensed
Consolidated Balance Sheet at their preliminary estimated fair values as of October 23, 2024, with the remaining unallocated purchase price recorded as goodwill. The goodwill recognized in the EASO transaction was primarily attributable to potential expansion and future development of the business. This goodwill is not expected to be deductible for tax purposes.
Total consideration transferred includes $
28.4
million of deferred cash consideration, all or a portion of which may be paid at least two years after the closing date of the transaction. As a result of the restrictions on this deferred consideration in the investment agreement, we have classified the associated cash as Restricted Cash in the accompanying Condensed
Consolidated Balance Sheet. As of June 30, 2025, the balances of Deferred Consideration and Restricted Cash were
$
28.4
million and $
26.6
million, respectively
, on the Condensed Consolidated Balance Sheet.
Total consideration transferred includes
$
3.7
million of contingent consideration related to certain operating tax balances existing prior to the transaction for which we have agreed to reimburse the full amount of cash collected within two years of the closing date of the transaction. The estimated fair value of such contingent consideration is based on estimated collectability of such operating tax balances within the agreed timeframe.
Our investment in one of the EASO entities, Corporación Interamericana de Logística, S.A. de C.V. (“CIL”), qualifies as a Variable Interest Entity (“VIE”). Based on the rights provided in the investment and shareholder agreements, as well as the design of the VIE, our majority exposure to the variability associated with economic performance of the VIE, and the relationship and significance of activities of the VIE to us, we determined that we are most closely associated with the VIE and are therefore considered the primary beneficiary.
During a period from 2030 to 2032, Hub will have the right, but not the obligation, to purchase an amount of issued and outstanding shares of EASO such that, upon exercising this call right, we would own
80
% of all of the issued and outstanding shares of EASO at a purchase price based on earnings multiples as defined in the shareholders agreement. We evaluated this call right and concluded that it does not meet the definition of a derivative, resulting in the non-controlling interest and embedded call right being classified as permanent equity.
The components of “Other intangibles” listed in the above table as of the transaction date are preliminarily estimated as follows (in thousands):
Closing Date
Accumulated
Balance at
Estimated Useful
Amount
Amortization
June 30, 2025
Life
Customer relationships
$
33,018
$
1,512
$
31,506
15
years
Trade name
9,493
326
9,167
20
years
Subtotal
$
42,511
$
1,838
40,673
Effect of translation
2,169
Ending Balance
$
42,842
The above intangible assets are amortized using the straight-line method. Amortization expense related to the intangible assets acquired with this transaction was
$
0.4
million and $
1.2
million for the three months and six months ended June 30, 2025, respectively. The intangible assets have a weighted average useful life of approximately
15.46
years as of June 30, 2025.
10
Amortization expense related to EASO investment agreement for the next five years is estimated as follows (in thousands):
Total
2025 (Remainder of year)
$
1,341
2026
2,681
2027
2,681
2028
2,681
2029
2,681
The following table presents the total carrying amount of goodwill by segment (in thousands):
ITS
Logistics
Total
Balance at December 31, 2024
$
413,745
$
400,564
$
814,309
Adjustments
(
12,891
)
-
(
12,891
)
Currency translation adjustment
2,601
-
2,601
Balance at June 30, 2025
$
403,455
$
400,564
$
804,019
The changes noted as "Adjustments" in the above table refer to preliminary purchase accounting adjustments related to the EASO acquisition recorded during the three month period ending June 30, 2025, primarily related to the increase in the valuation of intangibles for $
5.9
million and the increase in valuation of property, plant, and equipment for $
4.5
million.
NOTE 4. Segment Reporting
Our
CEO
has been identified as our Chief Operating Decision Maker (“CODM”). We have
two
reportable segments: Intermodal and Transportation Solutions (“ITS”) and Logistics which are based primarily on the services each segment provides. Our ITS segment includes our asset-light business lines: intermodal and dedicated trucking. Our Logistics segment includes our non-asset business lines: managed transportation, truck brokerage, final mile and consolidation and fulfillment services.
Our CODM uses operating income by segment to make decisions over the allocation of capital and resources and assess the performance of our segments.
Intermodal and Transportation Solutions.
Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery (referred to as “drayage”) as well as high service local and regional trucking transportation using equipment dedicated to their needs. We arrange for the movement of our customers’ freight in one of our approximately
50,000
containers. As of June 30, 2025, we operated trucking terminals a
t
32
l
ocations throughout the United States and Mexico, with locations in many large metropolitan areas. We also contract for services with independent owner-operators who supply their own equipment and operate under our regulatory authority. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of June 30, 2025, our trucking transportation operation consisted of approximately
2,400
tractors,
3,300
employee drivers and
4,500
trailers. We also contract for services with approximately
500
independent owner-operators.
Logistics
. Our Logistics segment offers a wide range of services including transportation management, freight brokerage services, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, warehousing, fulfillment, cross-docking, consolidation services and final mile delivery. These services include a full range of trucking transportation services, including dry van, expedited, less-than-truckload, refrigerated and flatbed, all of which is provided by third party carriers with whom we contract. We also leverage proprietary technology along with collaborative relationships with third party service providers to deliver cost savings and performance-enhancing supply chain services to our clients. Our transportation management offering also serves as a source of volume for our ITS segment. Many of the customers for these solutions are consumer goods companies who sell into the retail channel. Our final mile delivery offering provides residential final mile delivery and installation of appliances and big and bulky goods. Final mile operates through a network of independent service providers in company, customer and third-party facilities throughout the continental United States. Our business operates or has access to approximatel
y
7
million square feet of warehousing and cross-dock space across North America, to which our customers ship their goods to be stored and distributed to destinations including residences, retail stores and other commercial locations. These services offer our customers shipment visibility, transportation cost savings, high service and compliance with retailers’ increasingly stringent supply chain requirements. Logistics also includes our brokerage business which provides third-party truckload, less-than-truckload (“LTL”), flatbed and temperature-controlled needs.
11
The following tables summarize our financial and operating data by segment for the three months ended June 30, 2025 and June 30, 2024 (in thousands):
Three Months Ended
June 30, 2025
ITS
Logistics
Eliminations
Total
Operating revenue
$
528,184
$
404,310
$
(
26,846
)
$
905,648
Operating expenses
Purchased transportation and warehousing
364,048
318,409
(
26,553
)
Salaries and benefits
87,716
32,556
-
Depreciation and amortization
19,140
8,250
-
Insurance and claims
9,423
868
(
293
)
General and administrative
8,298
6,233
-
Corporate allocations
25,018
18,053
-
(Gain) / loss on sale of assets, net
134
-
-
Total operating expenses
513,777
384,369
(
26,846
)
871,300
Operating income
$
14,407
$
19,941
$
-
$
34,348
Three Months Ended
June 30, 2024
ITS
Logistics
Eliminations
Total
Operating revenue
$
561,033
$
459,088
$
(
33,626
)
$
986,495
Operating expenses
Purchased transportation and warehousing
397,129
363,424
(
33,292
)
Salaries and benefits
84,157
35,029
-
Depreciation and amortization
24,045
8,021
-
Insurance and claims
10,012
1,542
(
334
)
General and administrative
7,249
5,872
-
Corporate allocations
25,184
19,345
-
(Gain) / loss on sale of assets, net
(
382
)
(
34
)
-
Total operating expenses
547,394
433,199
(
33,626
)
946,967
Operating income
$
13,639
$
25,889
$
-
$
39,528
12
The following tables summarize our financial and operating data by segment for the six months ended June 30, 2025 and June 30, 2024 (in thousands):
Six Months Ended
June 30, 2025
ITS
Logistics
Eliminations
Total
Operating revenue
$
1,058,206
$
815,311
$
(
52,653
)
$
1,820,864
Operating expenses
Purchased transportation and warehousing
727,962
637,929
(
52,066
)
Salaries and benefits
177,247
67,412
-
Depreciation and amortization
38,089
16,536
-
Insurance and claims
18,323
2,460
(
587
)
General and administrative
16,869
10,720
-
Corporate allocations
51,191
37,027
-
(Gain) / loss on sale of assets, net
68
(
3
)
-
Total operating expenses
1,029,749
772,081
(
52,653
)
1,749,177
Operating income
$
28,457
$
43,230
$
-
$
71,687
Six Months Ended
June 30, 2024
ITS
Logistics
Eliminations
Total
Operating revenue
$
1,113,066
$
939,312
$
(
66,390
)
$
1,985,988
Operating expenses
Purchased transportation and warehousing
785,334
747,850
(
65,722
)
Salaries and benefits
169,558
69,737
-
Depreciation and amortization
48,103
16,841
-
Insurance and claims
19,855
3,327
(
668
)
General and administrative
14,092
11,708
-
Corporate allocations
50,337
39,886
-
(Gain) / loss on sale of assets, net
(
883
)
(
34
)
-
Total operating expenses
1,086,396
889,315
(
66,390
)
1,909,321
Operating income
$
26,670
$
49,997
$
-
$
76,667
The “Eliminations” column primarily relates to revenues for transportation management services provided to the Logistics segment and recognized as revenues in the ITS segment, and operating expenses incurred by the Logistics segment for these intercompany services.
The following table
summarizes our revenue from external customers by geographic region (in thousands):
Three Months Ended
Six Months Ended
June 30,
June 30,
2025
2024
2025
2024
United States
$
878,479
$
986,362
$
1,769,045
$
1,985,740
Mexico
27,169
133
51,819
248
Revenue from external customers
$
905,648
$
986,495
$
1,820,864
$
1,985,988
Separate balance sheets are not presented by segment to our Chief Operating Decision Maker (“CODM”). Our CODM does not utilize segment asset information to evaluate performance and make resource allocation decisions, and thus such disclosures are not provided.
13
NOTE 5. Fair Value Measurement
The carrying value of cash and cash equivalents, accounts receivable and accounts payable approximated fair value as of June 30, 2025 and December 31, 2024. As of June 30, 2025, the fair value of the Company’s fixed-rate borrowings was $
2.6
million more than the historical carrying value of $
231.9
million. As of December 31, 2024, the $
264.4
million carrying value of the Company's fixed-rate borrowings approximated the fair value. The fair value of the fixed-rate borrowings was estimated using an income approach based on current interest rates available to the Company for borrowings on similar terms and maturities.
We consider as cash equivalents all highly liquid instruments with an original maturity of three months or less. As of June 30, 2025 and December 31, 2024, our cash and temporary investments were with high quality financial institutions in demand deposit accounts, savings accounts, checking accounts and money market accounts.
Restricted Cash of $
26.6
million and $
28.7
million as of June 30, 2025 and December 31, 2024, respectively, includes cash held in both deposit accounts and escrow accounts that are not subject to remeasurement on a recurring basis.
Restricted investments included $
20.0
million and $
21.6
million as of June 30, 2025 and December 31, 2024, respectively, of mutual funds and other security investments which are reported at fair value. These investments relate to our non-qualified deferred compensation plan and insurance deposits.
Our assets and liabilities measured at fair value are based on valuation techniques which consider prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. These valuation methods are based on either quoted market prices (Level 1) or inputs, other than quoted prices in active markets, that are observable either directly or indirectly (Level 2), or unobservable inputs (Level 3). Cash and cash equivalents, accounts receivable, accounts payable and mutual funds and related liabilities are defined as “Level 1,” while long-term debt is defined as “Level 2” of the fair value hierarchy in the Fair Value Measurements and Disclosures Topic of the Codification.
NOTE 6. Long-Term Debt and Financing Arrangements
On June 20, 2025, we entered into a
five-year
, $
450
million credit agreement (the "Credit Agreement"). This Credit Agreement replaces the credit agreement dated as of February 24, 2022 (the “2022 Credit Agreement”). As part of this transition, all outstanding standby letters of credit issued under the 2022 Credit Agreement were transferred to the new Credit Agreement. We did not incur any early termination penalties in connection with the termination of the 2022 Credit Agreement.
Borrowings under the Credit Agreement generally bear interest at a variable rate equal to
(i) the secured overnight financing rate (published by the Federal Reserve Bank of New York, “SOFR”), plus a specified margin based on the term of such borrowing, plus a specified margin based upon our total net leverage ratio (as defined in the Credit Agreement) (the "Total Net Leverage Ratio"), or (ii) the base rate (which is the highest of (a) the administrative agent's prime rate, (b) the federal funds rate plus
0.50
% or (c) the sum of
1
% and
one-month SOFR
) plus a specified margin based upon the Total Net Leverage Ratio.
The specified margin for SOFR loans varies from
100.0
to
175.0
basis points per annum. The specified margin for base rate loans varies from
0.0
to
75.0
basis points per annum. We must also pay (1) a commitment fee ranging from
10.0
to
25.0
basis points per annum (based upon the Total Net Leverage Ratio) on the aggregate unused commitments and (2) a letter of credit fee ranging from
100.0
to
175.0
basis points per annum (based upon the Total Net Leverage Ratio) on the undrawn amount of letters of credit. While any payment default exists, we must pay interest at a default rate equal to the applicable interest rate described above plus
2.0
% per annum.
We have standby letters of credit that expire in
2025
. As of June 30, 2025 and December 31, 2024, our letters of credit were $
0.7
million and $
0.8
million, respectively.
As of June 30, 2025 and December 31, 2024
, we had
no
borrowings under the Credit Agreement and the 2022 Credit Agreement, and our unused and available borrowings were $
449.3
million and $
349.2
million, respectively. We were in compliance with our debt covenants as of June 30, 2025 and December 31, 2024.
14
We have entered into various Equipment Notes (“Notes”) for t
he purchase of tractors, trailers, containers and refrigeration units. The Notes are secured by the underlying equipment financed in the agreements.
Our outstanding Notes are as follows (in thousands):
June 30,
December 31,
2025
2024
Interim funding for equipment received and expected to be converted to an equipment note in a subsequent period; interest paid at a variable rate
$
857
$
-
Secured Equipment Note maturing in
2030
commencing in
2025
; interest is paid
monthly
at a fixed annual rate between
5.34
% and
5.40
%
17,710
-
Secured Equipment Notes maturing on various dates in
2029
commencing on various dates in
2024
; interest is paid
monthly
at a fixed annual rate between
5.11
% and
6.24
% (1)
18,549
21,400
Secured Equipment Notes maturing on various dates in
2028
commencing on various dates in
2023
; interest is paid
monthly
at a fixed annual rate between
5.21
% and
6.32
%
74,581
85,050
Secured Equipment Notes maturing on various dates in
2027
commencing on various dates in
2022
and
2023
; interest is paid
monthly
at a fixed annual rate between
2.07
% and
6.45
%
88,315
108,411
Secured Equipment Notes maturing on various dates in
2026
commencing on various dates in
2021
; interest is paid
monthly
at a fixed annual rate between
1.48
% and
2.41
%
26,337
36,942
Secured Equipment Notes maturing on various dates in
2025
commencing on various dates in
2020
; interest is paid
monthly
at a fixed annual rate between
1.51
% and
1.80
%
5,571
12,559
Total debt
231,920
264,362
Less current portion of long-term debt
(
97,641
)
(
100,001
)
Total long-term debt
$
134,279
$
164,361
(1) Includes an immaterial amount of notes held at EASO with interest rates up to
13.95
%.
NOTE 7. Legal Matters
The Company is involved in certain claims, commercial disputes and pending litigation arising from the normal conduct of business, including putative class-action lawsuits involving employment related claims. Based on management's present knowledge, management does not believe that any potential unrecorded loss contingencies arising from these pending matters are likely to have a material adverse effect on our overall financial position, operating results, or cash flows after taking into account any existing accruals for settlements or losses determined to be probable and estimable. However, actual outcomes could be material to the Company's financial position, operating results, or cash flows for any particular period.
NOTE 8. Subs
equent Event
On July 22, 2025, we entered into an Asset Purchase Agreement with Marten Transport, Ltd. Intermodal. The transaction is expected to close by the end of the third quarter. Under the agreement, we will acquire certain intermodal equipment and contracts for a total purchase price of $
51.8
million in cash.
15
Item 2.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Forward-Looking Statements
Statements in this section and other parts of this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of the Company to differ materially from those expressed or implied by this discussion and, therefore, should be viewed with caution. Further information on the risks that may affect the Company’s business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in the 2024 10-K and subsequent filings. The Company assumes no obligation to update any such forward-looking statements.
EXECUTIVE SUMMARY
We are a leading supply chain solutions provider in North America that offers comprehensive transportation and logistics management services focused on reliability, visibility and value for our customers. Our service offerings include a full range of freight transportation and logistics services, some of which are provided by assets we own and operate, and some of which are provided by third parties with whom we contract. Our services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, dedicated and regional trucking. Other services include full outsource logistics solutions, transportation management services, freight consolidation, warehousing and fulfillment, final mile delivery, parcel and international services.
We service a large and diversified customer base in a broad range of industries, including retail, consumer products and durable goods. We believe our strategy to offer multi-modal supply chain management solutions serves to strengthen and deepen our relationships with our customers and allows us to provide a more cost effective and higher service solution.
We concluded we have two reportable segments, Intermodal and Transportation Solutions (“ITS”) and Logistics, which are based primarily on the services each segment provides.
Intermodal and Transportation Solutions.
Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery as well as high service local and regional trucking transportation using equipment dedicated to their needs. In the first six months of 2025, approximately 78% of our drayage services was provided by our own fleet. We arrange for the movement of our customers’ freight in one of our approximately 50,000 containers. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of June 30, 2025, our trucking transportation operation consisted of approximately 2,400 tractors, 3,300 employee drivers and 4,500 trailers. We also contract for services with approximately 500 independent owner-operators. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations.
Logistics
. Our Logistics segment offers a wide range of non-asset-based services including transportation management, freight brokerage services, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, cross-docking, consolidation and fulfillment services and final mile delivery. Logistics includes our brokerage business which consists of a full range of trucking transportation services, including dry van, expedited, less-than-truckload (“LTL”), refrigerated and flatbed, all of which is provided by third-party carriers with whom we contract. We leverage proprietary technology along with collaborative relationships with third-party service providers to deliver cost savings and performance-enhancing supply chain services to our clients. Our transportation management offering also serves as a source of volume for our ITS segment. Many of the customers for these solutions are consumer goods companies who sell into the retail channel. Our final mile delivery offering provides residential final mile delivery and installation of appliances and big and bulky goods. Final mile operates through a network of independent service providers in company, customer and third-party facilities throughout the continental United States. Our business operates or has access to approximately 7 million square feet of warehousing and cross-dock space across North America, to which our customers ship their goods to be stored and distributed to destinations including residences, retail stores and other commercial locations. These services offer our customers shipment visibility, transportation cost savings, high service and compliance with retailers’ increasingly stringent supply chain requirements.
16
We are focused on several margin enhancement projects including network optimization, matching of inbound and outbound loads, reducing empty miles, improving our recovery of accessorial costs, increasing our driver and asset utilization, reducing repositioning costs, providing holistic solutions and improving low profit freight. Hub’s top 50 customers represent approximately 68% of revenue for the six months ended June 30, 2025, while one customer accounted for more than 10% of our revenue in both segments for both the six months ended June 30, 2025 and 2024. We use various performance indicators to manage our business. We closely monitor profit levels for our customers. We also evaluate on-time performance, customer service, cost per load and daily sales outstanding by customer account. Vendor cost changes and vendor service levels are also monitored closely.
The following table includes the one customer that represented 10% or more of our revenue by segment for the six months ending June 30, 2025 and 2024, respectively:
Six Months Ended
Customer A
Jume 30,
2025
2024
ITS
15%
19%
Logistics
16%
15%
Total operating revenue
16%
18%
Uncertainties and risks to our outlook include inflation, increased healthcare costs, a slowdown in consumer spending (driven by, among other factors, tariffs, inflation, increases in interest rates, an economic recession and geopolitical concerns), a shift by consumers to spending on services at the expense of goods, an increase of retailers’ inventory levels, the ability of customers to pay our accounts receivable, a significant increase in transportation supply in the marketplace, aggressive pricing actions by our competitors and any inability to pass cost increases, such as transportation and warehouse costs, through to our customers, economic factors such as the impact of potentially increasing tariffs between trading partners, all of which could have a materially negative impact on our revenue, profitability and cash flow in 2025. Exiting of truckload capacity, retail inventory levels declining leading to restocking demand, a return of typical shipping peak season demands and a stronger used tractor market could have a materially positive impact on our revenue, profitability and cash flows in 2025.
RESULTS OF OPERATIONS
Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024
The following table summarizes our operating revenue by segment (in thousands):
Three Months Ended
Operating Revenue
June 30,
2025
2024
Intermodal and Transportation Solutions
$
528,184
$
561,033
Logistics
404,310
459,088
Inter-segment eliminations
(26,846
)
(33,626
)
Total operating revenue
$
905,648
$
986,495
The following table summarizes our operating income by segment (in thousands):
Three Months Ended
Operating Income
June 30,
2025
2024
Intermodal and Transportation Solutions
$
14,407
$
13,639
Logistics
19,941
25,889
Total operating income
$
34,348
$
39,528
17
Operating Revenue and Operating Income
Total consolidated operating revenue decreased 8% to $906 million in 2025 from $986 million in 2024.
Intermodal and Transportation Solutions (“ITS”) revenue decreased 6% to $528 million primarily due to intermodal mix, price declines and lower fuel revenue, as well as lower dedicated revenue. These decreases were partially offset by an increase in volume. ITS operating income increased 6% to $14.4 million, or 2.7% of revenue, as compared to $13.6 million, or 2.4% of revenue in the prior year primarily due to positive impacts from continued cost controls, improved insurance and claims expenses, and lower accessorial costs.
Logistics revenue decreased 12%
to $404 million primarily due to lower volume and revenue per load in our brokerage business, exiting from unprofitable business in consolidation and fulfillment, and sub-seasonal demand in managed transportation and final mile businesses. Logistics operating income decreased to $20 million, or 4.9% of revenue, as compared to $26 million, or 5.6% of revenue, due to lower brokerage margins and $3 million of vendor settlement related costs.
The following is a summary of operating results and certain items in the condensed consolidated statements of income as a percentage of revenue (in thousands):
Three Months Ended
June 30,
2025
2024
Operating revenue
$
905,648
100.0%
$
986,495
100.0%
Operating expenses:
Purchased transportation and warehousing
655,904
72.4%
727,236
73.7%
Salaries and benefits
143,310
15.8%
141,856
14.4%
Depreciation and amortization
32,387
3.6%
37,772
3.8%
Insurance and claims
10,644
1.2%
12,639
1.3%
General and administrative
28,925
3.2%
27,877
2.8%
Gain on sale of assets, net
130
0.0%
(413
)
0.0%
Total operating expenses
871,300
96.2%
946,967
96.0%
Operating income
$
34,348
3.8%
$
39,528
4.0%
Other income (expense):
Interest expense
(3,148
)
-0.3%
(3,689
)
-0.4%
Interest income
1,019
0.1%
1,808
0.2%
Other, net
728
0.1%
(66
)
0.0%
Total other expense, net
(1,401
)
-0.2%
(1,947
)
-0.2%
Income before provision for income taxes
32,947
3.6%
37,581
3.8%
Provision for income taxes
7,916
0.9%
8,566
0.9%
Net income
$
25,031
2.7%
$
29,015
2.9%
CONSOLIDATED OPERATING EXPENSES. OTHER EXPENSES AND INCOME TAXES
Purchased Transportation and Warehousing
Purchased transportation and warehousing costs decreased 10% to $656 million in 2025 from $727 million in 2024. As a percentage of revenue, purchased transportation and warehousing costs decreased to 72.4% in 2025 from 73.7%
in 2024.
Purchased transportation and warehousing costs declined compared to prior year due to rail cost decreases, lower third-party drayage and warehousing costs, and lower fuel costs.
18
Salaries and Benefits
Salaries and benefits increased to $143 million in 2025 from $142 million in 2024. As a percentage of revenue, salaries and benefits increased to 15.8% in 2025 from 14.4%
in 2024.
The increase was primarily due to increased driver and warehouse employee costs of $4 million, which includes the acquisition of EASO on October 23, 2024. This increase was partially offset by decreases in office employee compensation expense of $3 million, primarily related to lower headcount, which excludes EASO.
Headcount, which includes drivers, warehouse personnel and office employees, was 6,310, which includes 614 employees of EASO, as of June 30, 2025 and 5,813 as of June 30, 2024, respectively. The increase in headcount related primarily to drivers and warehouse employees due to the EASO acquisition.
Depreciation and Amortization
Depreciation and amortization expense decreased to $32 million in 2025 from $38 million in 2024. This decrease was related primarily to decreased container depreciation expense resulting from changes made in the third quarter of 2024 to the estimated useful lives of our containers. This expense, as a percentage of revenue, decreased to 3.6% in 2025 from 3.8% in 2024. Depreciation expense includes transportation equipment, technology investments, leasehold improvements, warehouse equipment, office equipment and building improvements.
Insurance and Claims
Insurance and claims expense decreased to $11 million in 2025 from $13 million in 2024. This decrease was primarily due to decreased claims costs related to auto liability claims. These expenses, as a percentage of revenue, decreased to 1.2% in 2025 from 1.3% in 2024.
General and Administrative
General and administrative expenses increased to $29 million in 2025 from $28 million in 2024. These expenses, as a percentage of revenue, increased to 3.2% in 2025 from 2.8% in 2024.
This increase in general and administrative expenses was primarily due to vendor settlement related costs of $3 million incurred in 2025, partially offset by decreases in third party service costs and bad debt expense of $1 million each.
Gain on Sale of Assets, Net
Net gains on the sale of equipment decreased to a loss of $0.1 million in 2025 from a gain of $0.4 million in 2024. This decrease resulted from both less units sold and a lower average gain per unit sold in 2025 as compared to 2024.
Other Income (Expense)
Other expense decreased to $1 million in 2025 from $2 million in 2024. Interest expense decreased $0.5 million primarily due to lower overall debt balances while interest rates remained relatively consistent. Interest income decreased by $0.8 million due to lower invested cash balances. These decreases were partially offset by a $0.8 million change in other, net related to the change in the Peso exchange rate due to the addition of EASO.
Provision for Income Taxes
The provision for income taxes decreased to $8 million in 2025 from $9 million in 2024 due primarily to lower pre-tax income in 2025. We provided for income taxes using an effective rate of 24.0% in 2025 and an effective rate of 22.8% in 2024. The second quarter 2025 effective tax rate of 24.0% was higher than the rate from 2024, as in 2024 we received a one-time benefit from amending state tax returns.
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. We are still evaluating the impact the OBBBA will have on our financial statements.
19
Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024
The following table summarizes our operating revenue by segment (in thousands):
Six Months Ended
Operating Revenue
June 30,
2025
2024
Intermodal and Transportation Solutions
$
1,058,206
$
1,113,066
Logistics
815,311
939,312
Inter-segment eliminations
(52,653
)
(66,390
)
Total operating revenue
$
1,820,864
$
1,985,988
The following table summarizes our operating income by segment (in thousands):
Six Months Ended
Operating Income
June 30,
2025
2024
Intermodal and Transportation Solutions
$
28,457
$
26,670
Logistics
43,230
49,997
Total operating income
$
71,687
$
76,667
Operating Revenue and Operating Income
Total consolidated operating revenue decreased 8% to $1,821 million in 2025 from $1,986 million in 2024.
Intermodal and Transportation Solutions (“ITS”) revenue decreased 5% to $1,058 million primarily due to mix, price declines, lower fuel revenue, as well as lower dedicated revenue, partially offset by an increase in intermodal volume. ITS operating income increased 7% to $28 million, or 2.7% of revenue, as compared to $27 million, or 2.4% of revenue in the prior year, primarily due to cost control efforts, lower dedicated start-up costs, and improved insurance and claims expenses.
Logistics revenue decreased 13%
to $815 million primarily due to lower volume and revenue per load in our brokerage business, exiting from unprofitable business in consolidation and fulfillment, and sub-seasonal demand in managed transportation and final mile businesses. Logistics operating income decreased to $43 million, or 5.3% of revenue, as compared to $50 million, or 5.3% of revenue, due to lower brokerage margins.
20
The following is a summary of operating results and certain items in the condensed consolidated statements of income as a percentage of revenue (in thousands):
Six Months Ended
June 30,
2025
2024
Operating revenue
$
1,820,864
100.0%
$
1,985,988
100.0%
Operating expenses:
Purchased transportation and warehousing
1,313,827
72.2%
1,467,408
73.9%
Salaries and benefits
292,723
16.1%
286,352
14.4%
Depreciation and amortization
64,966
3.5%
76,103
3.8%
Insurance and claims
21,526
1.2%
25,257
1.3%
General and administrative
56,070
3.1%
55,111
2.8%
Gain on sale of assets, net
65
0.0%
(910
)
-0.1%
Total operating expenses
1,749,177
96.1%
1,909,321
96.1%
Operating income
$
71,687
3.9%
$
76,667
3.9%
Other income (expense):
Interest expense
(6,395
)
-0.3%
(7,588
)
-0.4%
Interest income
2,274
0.1%
3,201
0.2%
Other, net
1,023
0.1%
(236
)
0.0%
Total other expense, net
(3,098
)
-0.1%
(4,623
)
-0.2%
Income before provision for income taxes
68,589
3.8%
72,044
3.7%
Provision for income taxes
16,363
0.9%
15,976
0.8%
Net income
$
52,226
2.9%
$
56,068
2.9%
CONSOLIDATED OPERATING EXPENSES. OTHER EXPENSES AND INCOME TAXES
Purchased Transportation and Warehousing
Purchased transportation and warehousing costs decreased 10% to $1,314 million in 2025 from $1,467 million in 2024. As a percentage of revenue, purchased transportation and warehousing costs decreased to 72.2% in 2025 from 73.9% in 2024.
Purchased transportation and warehousing costs declined as compared to prior year due to lower rail, third-party warehouse, third party drayage and carrier costs, and fuel costs. The reduction in warehouse costs is primarily driven by the completion of our network optimization project in 2024.
Salaries and Benefits
Salaries and benefits increased to $293 million in 2025 from $286 million in 2024. As a percentage of revenue, salaries and benefits increased to 16.1% in 2025 from 14.4% in 2024.
The $7 million increase in salaries and benefits expense primarily related to increases in driver and warehouse employee costs of $11 million. This increase in expense was partially offset by lower office employee related expense of $4 million.
Depreciation and Amortization
Depreciation and amortization expense decreased to $65 million in 2025 from $76 million in 2024. This decrease was related primarily to decreased container depreciation expense resulting from changes made in the third quarter of 2024 to the estimated useful lives of our containers. This expense, as a percentage of revenue, decreased to 3.5% in 2025 from 3.8% in 2024. Depreciation expense includes transportation equipment, technology investments, leasehold improvements, warehouse equipment, office equipment and building improvements.
21
Insurance and Claims
Insurance and claims expense decreased to $22 million in 2025 from $25 million in 2024. This decrease was primarily due to decreased claim costs related to auto liability claims in 2025. These expenses, as a percentage of revenue, decreased to 1.2% in 2025 from 1.3% in 2024.
General and Administrative
General and administrative expenses increased to $56 million in 2025 from $55 million in 2024. These expenses, as a percentage of revenue, increased to 3.1% in 2025 from 2.8% in 2024.
This increase in general and administrative expenses was primarily due to an increase of $3 million of expense due to vendor settlement related costs incurred in 2025, as well as an increase in rent expense of approximately $0.7 million. These increases were partially offset by decreases in third party service costs and lower property taxes and licensing fees of $1 million each, and bad debt expense of $0.7 million.
Gain on Sale of Assets, Net
Net gains on the sale of equipment decreased to a loss of $0.1 million in 2025 from a gain of $0.9 million in 2024. The decrease resulted from both less units sold and a lower average gain per unit sold in 2025 as compared to 2024.
Other Income (Expense)
Other expense decreased to $3 million in 2025 from $5 million 2024. Interest expense decreased $1.2 million primarily due to lower overall debt balances while interest rates remained relatively consistent. Interest income decreased by $0.9 million due to lower invested cash balances. These decreases were partially offset by a $1.3 million change in other, net related to the change in the Peso exchange rate due to the addition of EASO.
Provision for Income Taxes
The provision for income taxes remained consistent at approximately $16 million in 2025 and 2024. We provided for income taxes using an effective rate of 23.9% in 2025 as compared to an effective rate of 22.2% in 2024. The effective tax rate was higher in 2025 as compared to 2024, as in 2024 we had a one-time benefit from amending state tax returns, and in 2025 we had a smaller rate benefit related to the vesting of stock-based compensation than in 2024.
LIQUIDITY AND CAPITAL RESOURCES
Our financing and liquidity strategy is to fund operating cash payments and future dividends through cash received from the provision of services, cash on hand, and to a lesser extent, from cash received from the sale of equipment. As of June 30, 2025, we had $137 million of cash. In addition, we had $20.0 million of restricted investments and $26.6 million of restricted cash, which are held for payments of long-term liabilities and the deferred cash consideration from the EASO transaction, respectively. We generally fund our purchases of transportation equipment through the issuance of secured, fixed rate Equipment Notes. In prior years, we have funded our business acquisitions from cash on hand. Payments for our other investing activities, such as our capitalized technology investments, have been funded by cash on hand or cash flows from operations. Cash used in financing activities, including the purchase of treasury stock and dividend payments, have been funded by cash from operations or cash on hand. We have not historically used our Credit Facility to fund our operating, investing, or financing cash needs, though it is available to fund future cash requirements as needed. Based on past performance and current expectations, we believe cash on hand and cash received from the provision of services, along with other financing sources, will provide us the necessary capital to fund transactions and achieve our planned growth for the next twelve months and the foreseeable future.
Cash provided by operating activities for the six months ended June 30, 2025 was approximately $132 million, which resulted primarily from net income of $52 million plus non-cash charges of $100 million, partially offset by the changes in operating assets and liabilities of $20 million.
Cash provided by operating activities totaled $132 million in 2025 compared to $150 million in 2024. The $18 million decrease in cash flow was primarily due to a decrease in net income of $4 million and a negative change in operating assets and liabilities of $16 million, primarily due to the change in accounts payable, partially offset by an increase in non-cash charges of $2 million.
Net cash used in investing activities for the six months ended June 30, 2025 was $26 million which resulted from capital expenditures of $30 million, partially offset by proceeds from the sale of equipment of $4 million. Capital expenditures of $30 million related primarily to tractors of $18 million, technology investments of $9 million, warehouse equipment of $2 million, and other transportation equipment of $1 million.
22
Capital expenditures decreased by approximately $1 million in 2025 as compared to 2024. The 2025 decrease was due to decreases in container purchases of $2 million and warehouse equipment of $3 million. These decreases were partially offset by increases in spend on tractors of $4 million.
In 2025, we estimate capital expenditures will range from $40 million to $50 million. We expect to focus these expenditures on replacements for tractors that have reached the end of their useful life as well as technology investments. We do not plan to purchase containers in 2025. In addition to our estimated capital expenditures, we expect to fund the Marten Intermodal transaction disclosed in Note 8 with equipment debt.
Net cash used in financing activities for the six months ended June 30, 2025 was $68 million which includes repayments of long-term debt of $52 million, purchases of treasury stock of $14 million, dividends paid of $15 million, and cash for stock tendered for payments of withholding taxes of $6 million, partially offset by proceeds from the issuance of debt of $19 million. Debt incurred in 2025 was used to fund the purchase of transportation equipment.
The $27 million decrease in cash used in financing activities for 2025 versus 2024 was primarily due to the decrease in the purchase of treasury stock of $19 million, less repayments of long-term debt of $2 million, less stock tendered for payments of withholding taxes of $2 million, more proceeds from the issuance of debt of $3 million and a decrease in finance lease payments of $1 million.
While we still need more time to evaluate the impacts of the enactment of the OBBBA, it seems likely that given the enactment of 100% bonus depreciation and domestic research cost expensing for taxes, that our cash paid for income taxes in 2025 will be less than our income tax expense.
See Note 6 of the condensed consolidated financial statements for details related to interest rates and commitment fees.
We have standby letters of credit that expire in 2025. As of both June 30, 2025 and December 31, 2024, our letters of credit were $1 million.
As of both June 30, 2025, and December 31, 2024, we had no borrowings under the Credit Agreement and our unused and available borrowings were $449 million and $349 million, respectively. We were in compliance with our debt covenants as of June 30, 2025 and December 31, 2024.
We are continually evaluating the possible effects of current economic conditions and reasonable and supportable economic forecasts in operational cash flows, including the risks of declines in the overall freight market and our customers’ liquidity and ability to pay. We are monitoring working capital on a daily basis and are in frequent communications with our customers.
We do not have any off-balance sheet transactions, arrangements, obligations (including contingent obligations) or liabilities.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Refer to the company's 2024 10-K for a complete discussion regarding our critical accounting policies and estimates. As of June 30, 2025, there were no material changes to our critical accounting policies and estimates.
I
tem 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in our market risk as of June 30, 2025 from that presented in our 2024 10-K.
I
tem 4. CONTROLS AND PROCEDURES
(a) Disclosure Controls and Procedures.
As of June 30, 2025, an evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as such term is defined in Exchange Act Rule 13a-15(e)). Based upon this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025.
(b) Changes in Internal Control over Financial Reporting.
There have been no changes in our internal control over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) during the fiscal quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
On October 23, 2024, we entered into an investment agreement with Corporación Interamericana de Logística, S.A. de C.V. and certain associated entities (commonly known as “EASO”), to acquire a controlling interest in EASO. We are currently integrating processes, employees, technologies and operations. Management will continue to evaluate our internal controls over financial reporting as we complete our integration.
23
P
ART II.
Other Information
Item 1.
Legal Proceedings
For information regarding legal proceedings, see Note 7 “Legal Matters” to the Condensed Consolidated Financial Statements included in Part I, Item 1. “Financial Statements.”
Item 1A.
Risk Factors
Investing in shares of our stock involves certain risks, including those identified and described in Part I, Item 1A of our 2024 10-K under the heading “Risk Factors.” When any one or more of these risks materialize from time to time, the Company’s business and stock price can be materially and adversely affected. There have been no material changes to the Company’s risk factors since the 2024 Form 10-K.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
In October 2023, the Board authorized the purchase of up to $250 million of our Class A Common Stock pursuant to a share repurchase program (the
“
2023 Program
”
). Under the 2023 Program, the shares may be repurchased in the open market or in privately negotiated transactions, from time to time subject to market and other conditions. The approved share repurchase program does not obligate us to repurchase any dollar amount or number of shares and the program may be modified, suspended or discontinued at any time.
During the three months ended June 30, 2025, we did not purchase any shares under the 2023 Program. During the six months ended June 30, 2025, we purchased 330,441 shares for approximately $13.8 million under the 2023 Program.
During the three months ended June 30, 2025, we purchased 3,661 shares for approximately $0.1 million related to withholding upon vesting of restricted stock. During the six months ended June 30, 2025, we purchased 151,685 shares for approximately $6.7 million related to withholding upon vesting of restricted stock.
The table below includes information on a monthly basis regarding shares purchased under the 2023 Program and the number of shares delivered to us to satisfy the mandatory tax withholding requirement upon vesting of restricted stock during the quarter ended June 30, 2025. Shares delivered to us to satisfy the mandatory tax withholding requirement upon vesting of restricted stock do not reduce the repurchase authority under the 2023 Program.
Maximum Value of
Total
Total Number of
Shares that May Yet
Number of
Average
Shares Purchased as
Be Purchased Under
Shares
Price Paid
Part of Publicly
the Program
Purchased
Per Share
Announced Plan
(in 000’s)
April 2025
3,574
$
37.18
-
$
141,540
May 2025
-
$
-
-
$
141,540
June 2025
87
$
32.78
-
$
141,540
Total
3,661
$
37.07
-
$
141,540
Item 3. Defaults Upon Senior Securities
N
ot applicable.
Item 4. Mine Safety Disclosures
N
ot applicable.
Item 5. Other Information
On
June 11, 2025
,
Phillip D. Yeager
,
President and Chief Executive Officer
,
adopted
a Rule 10b5-1 trading arrangement for the sale of shares of the Company's common stock. The plan was entered into during an open trading window in accordance with the Company's insider trading policy and is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934. The plan provides for the potential sale of up to
32,000
shares of the Company's common stock, subject to a cooling-off period and specified trading parameters. The plan is scheduled to expire on
January 26, 2026
, unless terminated earlier in accordance with its terms.
Interactive data files
for this Quarterly Report on Form 10-Q, formatted in Inline XBRL:
(i) the C
ondensed
Consolidated Balance Sheets (unaudited); (ii) the Unaudited C
ondensed
Consolidated Statements of Income; (iii) the Unaudited Condensed Consolidated Statements of Comprehensive Income; (iv) the Unaudited C
ondensed
Consolidated Statements of Stockholders’ Equity; (v) the Unaudited C
ondensed
Consolidated Statements of Cash Flows (unaudited); and (vi) the Notes to Unaudited C
ondensed
Consolidated Financial Statements
. XBRL Instance Document-the XBRL Instance Document does not appear in the Interactive Data file because its XBRL tags are embedded within the Inline XBRL document.
104
The cover page from this Quarterly Report on Form 10-Q (formatted in Inline XBRL and included in Exhibit 101).
25
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
(We are using algorithms to extract and display detailed data. This is a hard problem and we are working continuously to classify data in an accurate and useful manner.)