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Hub Group Reports Fourth Quarter 2024 Results

Highlights:

• Fourth quarter revenue of $1 billion; Full year revenue of $4 billion
• Fourth quarter and full year GAAP EPS of $0.40 and $1.70. Fourth quarter and full year GAAP operating income margin percentage of 3.2% and 3.6% of revenue
• Fourth quarter and full year adjusted EPS of $0.48 and $1.91. Fourth quarter and full year adjusted operating income percentage of 3.9% and 4.0% of revenue
• Returned nearly $100 million to shareholders in 2024 through share repurchases and dividends
• Strong balance sheet with cash of $127 million and net debt/adjusted EBITDA of 0.5x as of December 31, 2024
• Completed joint venture with EASO in October, expanding Hub Group鈥檚 North American intermodal presence
• Introduced 2025 outlook with expected revenue of $4.0 billion to $4.3 billion and EPS of $1.90 to $2.40
  

OAK BROOK, Ill., Feb. 06, 2025 (GLOBE NEWSWIRE) -- Hub Group, Inc. (Nasdaq: HUBG) announced fourth quarter 2024 net income of $24 million and diluted earnings per share of $0.40. Adjusting for network alignment and transaction related expenses of $6 million (pre-tax), fourth quarter 2024 adjusted net income was $29 million and adjusted EPS was $0.48 per diluted share. Full year 2024 net income was $104 million, or $1.70 per diluted share. Adjusted full year net income was $117 million, or $1.91 per diluted share.

鈥淚 am proud of the team鈥檚 performance in 2024 as our disciplined market approach resulted in Intermodal volume growth of 14% and ITS adjusted operating margin of 3.1% in the quarter, a 50-basis point improvement over Q4 2023. We closed on the joint venture with EASO to enhance solutions for our customers and add significant scale to our Intermodal capabilities in Mexico. We continue to implement our key strategic priorities that position us for growth in the long term. We are excited to continue the momentum and deliver for our customers and shareholders in 2025,鈥� said Phil Yeager, Hub Group鈥檚 President, Chief Executive Officer and Vice Chairman.

Fourth Quarter and Full Year 2024 Results

Consolidated revenue for the fourth quarter of 2024 of $974 million, a 1% decline from $985 million reported in the fourth quarter of 2023. Strong Intermodal volume growth, surcharge revenue, and Final Mile growth was offset by lower fuel, Brokerage, Consolidation and Fulfillment, and Managed Transportation revenue. Full year 2024 revenue of $3.95 billion was down 6% compared to 2023 revenue of $4.20 billion.

Fourth quarter purchased transportation and warehousing costs of $723 million decreased $19 million compared to prior year due to lower rail and third-party warehouse costs. Salaries and benefits of $148 million were $13 million higher than prior year due to the Final Mile acquisition, EASO transaction, and more normalized bonus expense. Total legacy headcount, which excludes acquisition employees, drivers and warehouse employees, declined by 3%. Depreciation and amortization expenses was $33 million, a decrease of $4 million. Insurance and claims totaled $9 million, a $4 million decrease due to lower claim costs in the quarter. General and administrative expenses of $29 million were comparable to prior year and included transaction expenses related to the joint venture and operating costs associated with the Final Mile acquisition which were offset by cost management efforts.

GAAP operating income for the fourth quarter was $32 million or 3.2% of revenue, a 7% or 20-basis point improvement over last year. Adjusted operating income for the fourth quarter was $38 million or 3.9% of revenue, a 9% or 40-basis point improvement over the adjusted fourth quarter of last year. Adjusted EBITDA for the fourth quarter was $85 million. Full year GAAP operating income was $140 million or 3.6% and adjusted operating income was $157 million or 4.0% of revenue. Full year adjusted EBITDA was $349 million. Net debt/adjusted EBITDA was 0.5x, below the leverage target range of 0.75 to 1.25x.

Fourth Quarter and Full Year 2024 Segment Results

Fourth quarter Intermodal and Transportation Solutions (鈥淚TS鈥�) Segment revenue of $570 million was a 1% decline over prior year but quarterly GAAP ITS operating income was $17 million or 2.9% of revenue, an increase of $5 million over the prior year. Quarterly revenue was driven by 14% Intermodal volume growth and surcharge revenue partially offsetting lower revenue per load and fuel revenue. Full year revenue was $2.24 billion. Adjusted ITS operating income was $18 million or 3.1% of revenue, a 17% or 50-basis point improvement over last year鈥檚 adjusted numbers. Adjusted ITS operating margin excludes expenses of $1 million related to the EASO transaction and other adjustments in the quarter. Full year adjusted ITS operating income was $59 million or 2.6% of revenue.

Fourth quarter Logistics Segment revenue of $429 million was a 2% decline over prior year as growth in Final Mile partially offset lower Brokerage, Consolidation and Fulfillment, and Managed Transportation revenue. Full year revenue for the Logistics Segment was $1.83 billion. Quarterly GAAP Logistics operating income was $15 million or 3.4% of revenue, down from $17 million in the prior year due to expenses related to the network alignment project. Quarterly adjusted Logistics operating income was $20 million, or 4.6% of revenue, a 3% or 20-basis point improvement over last year鈥檚 results. Adjusted operating income excludes network alignment expenses and other adjustments of $5 million. Full year adjusted Logistics Segment operating income was $97 million or 5.3% of revenue.

Capital expenditures for the full year of 2024 totaled $51 million as we continued to manage our spend. As of December 31, 2024, we had cash of $127 million. For the full year 2024 the company returned nearly $100 million to shareholders through stock repurchases and dividend payments.

2025 Outlook

We expect 2025 diluted earnings per share will range from $1.90 to $2.40. We estimate revenue of approximately $4.0 to $4.3 billion for the full year. We project an effective tax rate of approximately 25% and capital expenditures in the range of $50 million to $70 million for the full year.

Non-GAAP Financial Measures

In this press release, we present certain non-GAAP financial measures, including adjusted EPS, adjusted operating income, adjusted EBITDA, and net debt/adjusted EBITDA. As required by the rules of the Securities and Exchange Commission (鈥淪EC鈥�), we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP, along with an explanation why management believes these non-GAAP financial measures provide relevant and useful information. These non-GAAP financial measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP and are not necessarily comparable to non-GAAP measures that may be presented by other companies.

Certain Forward-Looking Statements:

Statements in this press release 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 Hub Group 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 Hub Group鈥檚 business is included in filings it makes with the SEC from time to time, including those discussed under the 鈥淩isk Factors鈥� section in Hub Group鈥檚 most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. Hub Group assumes no obligation to update any such forward-looking statements.

Conference Call

Hub Group, Inc. will hold a conference call at 5:00 p.m. Eastern Time on February 6, 2025, to discuss our fourth quarter 2024 results. Hosting the conference call will be Phil Yeager, President, CEO and Vice Chairman and Kevin Beth, Executive Vice President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link on Hub Group鈥檚 web site at . The webcast is listen-only. Those interested in participating in the question-and-answer session should follow the telephone dial-in instructions below.

To participate in the conference call by telephone, please pre-register at to receive the dial-in number and unique PIN. On the day of the call, dial in approximately ten minutes prior to the scheduled call time and enter the unique participant PIN received during registration. The call will be limited to 60 minutes, including questions and answers. An audio replay will be available through the Investors link on the Company's web site at . This replay will be available for 30 days.

About Hub Group

Hub Group offers comprehensive transportation and logistics management solutions. Keeping our customers鈥� needs in focus, Hub Group designs, continually optimizes, and applies industry-leading technology to our customers鈥� supply chains for better service, greater efficiency, and total visibility. As an award-winning, publicly traded company (Nasdaq: HUBG) with approximately $4 billion in revenue, our nearly 6,000 employees and drivers across the globe are always in pursuit of 鈥淭he Way Ahead鈥� 鈥� a commitment to service, integrity and innovation. For more information, visit hubgroup.com.

SOURCE: Hub Group, Inc.
CONTACT: Lorna Williams, Investor Relations,

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