Universal Logistics Q2 2025: Tariff Impacts and Profitability Strategies Under Scrutiny

Intermodal division and tariff impact, intermodal division profitability initiatives, impact of tariffs on Intermodal division, Parsec acquisition impact on EBITDA and margin expansion are the key contradictions discussed in Universal Logistics Holdings, Inc.'s latest 2025Q2 earnings call.



Intermodal Segment Performance:
- Universal Logistics' Intermodal segment saw revenues decrease by 13.5% year-over-year to $68.9 million, with load volumes declining nearly 13%.
- The decline was partially attributed to tariff-related import volume drops, especially from discount retailers, from mid-May to June, while some customers adapted their sourcing strategies.

Trucking Segment Challenges:
- The Trucking segment reported revenues of $64.1 million, down nearly 30% year-over-year, due to a 22.6% drop in load volumes and an 8.9% decrease in revenue per load.
- The decrease was primarily due to the decline in automotive production and a soft freight market, despite efforts to focus on specialized freight and wind energy business.

Contract Logistics Segment Stability:
- The Contract Logistics segment maintained revenues at $260.6 million, down slightly from the prior year, and contributed $55 million in revenue through the Parsec acquisition.
- Segment stability was preserved by the integration of Parsec, the maintenance of 87 value-added programs, and a focus on new contract opportunities.

Automotive and Class 8 Market Uncertainty:
- Two major automotive customers experienced severe volume declines, one down 30% and the other down 70% year-over-year, impacting Class 8 demand.
- Challenges stem from tariffs on steel and aluminum, a soft trucking backdrop, and potential delays in new orders due to pending regulatory changes.