Hub Group 2025 Q2 Earnings Misses Targets as Net Income Falls 13.7%

Hub Group reported its fiscal 2025 Q2 earnings on August 6, 2025. The results fell short of expectations, with both revenue and net income declining year-over-year. Management also issued conservative full-year guidance, reflecting ongoing industry pressures and cost challenges.

Revenue
The company’s total revenue for the quarter came in at $905.65 million, an 8.2% decline from the prior-year period. The Intermodal and Transportation Solutions segment generated $528.18 million in revenue, serving as the primary driver of the company’s operations. Meanwhile, the Logistics segment contributed $404.31 million. However, inter-segment eliminations reduced total revenue by $26.85 million, ultimately resulting in a total operating revenue of $905.65 million.

Earnings/Net Income
Hub Group’s earnings per share (EPS) dropped 12.5% to $0.42, and net income fell to $25.03 million, a 13.7% decline compared to $29.02 million in the same period last year. Despite the decline, the company has maintained profitability for over two decades during this fiscal quarter, highlighting its long-term operational resilience.

Price Action
HUBG’s stock edged up 0.40% during the latest trading day, 1.47% over the past week, and 1.49% month-to-date, showing modest near-term gains.

Post-Earnings Price Action Review
Despite a 30.77% return for the strategy of buying HUBG when it beat revenue and holding for 30 days, the performance significantly underperformed the benchmark’s 84.41%. The strategy had a Sharpe ratio of 0.16, indicating modest risk-adjusted returns. With a volatility of 35.43% and a maximum drawdown of 0%, the strategy showed limited downside risk but also constrained upside potential.

CEO Commentary
Jeffrey C. Coni, CEO of Hub Group, emphasized the company’s ability to navigate macroeconomic headwinds and maintain strong operational execution. He pointed to cost optimization and customer retention as key growth drivers, while highlighting ongoing investments in technology and fleet modernization to enhance efficiency. Despite moderating demand in some markets, Coni expressed confidence in the company’s long-term strategic position.

Guidance
For the full year 2025, Hub Group expects diluted EPS to range between $1.80 and $2.05, below the current consensus estimate of $2.20. The company also guided for annual revenue between $3.6 billion and $3.8 billion, slightly below the $3.8 billion consensus. Management plans to continue prioritizing cost discipline and operational improvements to sustain performance.

Additional News
On August 5, 2025, Robert W. Baird issued a report that cut Hub Group’s price target, signaling concerns about the company’s near-term outlook. While no specific earnings metrics were included in the report, the move reflected a more cautious stance from the firm. The report was published amid a broader period of market uncertainty for transportation and logistics firms. No major corporate changes, M&A activity, or dividend updates were announced in the three weeks surrounding the earnings report.