- **Revenue Growth**: Q3 revenue $934M, down 5% YoY but up 3% QoQ. Intermodal Mexico and refrigerated businesses grew 300% and 55%, respectively. 
- **Strategic Wins**: Acquired Marten Intermodal and SITH LLC, adding $150M annualized Final Mile revenue. 
- **Margin Improvement**: Adjusted operating margin 4.4% (up 10bps YoY). Managed Transportation productivity up 50% YoY. 
- **Cash Management**: Returned $36M to shareholders; net debt $136M (0.4x EBITDA). 
- **2026 Outlook**: Excited about Transcontinental Rail merger, Final Mile growth, and housing recovery. 
- **Risks**: Muted demand, delayed peak season, and competitive pressures in Brokerage. 


**【CEO Summary Section】**
- **Market Dynamics**: Delayed peak season in West Coast due to inventory pull-forward, with strong demand continuing into October. Rail services remain robust, and new integrated services (e.g., Louisville lane) are driving intermodal conversion and new customer wins.
- **Strategic Initiatives**: Excited about potential Transcontinental Rail merger, which could improve service performance and reduce transit times. Acquired Marten Transport's Intermodal division and SITH LLC, adding scale and Final Mile capabilities. 
- **Segment Performance**: 
  - **Intermodal**: Revenue per load up 2% due to mix, surcharges, and pricing balance. Mexico and refrigerated businesses grew 300% and 55%, respectively. 
  - **Dedicated**: Higher volumes offset by lost sites; cost reductions (e.g., equipment, third-party carriers) partially offset headwinds. 
  - **Logistics**: Brokerage down 13% YoY due to soft demand, but Final Mile onboardings ($150M annualized) and Managed Transportation automation (+50% productivity) offset losses. 

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Revenue: $934M (-5% YoY, +3% QoQ). 
  - Adjusted EPS: $0.49 (-6% YoY). 
  - Adjusted EBITDA: $88M. 
  - Free Cash Flow: $160M (9M trailing). 
- **Cost Management**: 
  - Purchase transportation costs down $56M YoY. 
  - Salaries stable; legacy headcount down 5%. 
  - General & Admin expenses down 9% YoY. 
- **Balance Sheet**: 
  - Net debt: $136M (0.4x EBITDA). 
  - Cash returned to shareholders: $36M (dividends & buybacks). 
- **Guidance**: 
  - Full-year EPS: $1.80-$1.90. 
  - Revenue: $3.6B-$3.7B. 
  - Tempered outlook due to muted demand and delayed Final Mile onboardings. 

**【Q&A Highlights】**
- **Rail Merger Impact**: Customers engaged in discussions; potential to gain share in 2026 bid season. Louisville lane example shows 2.5M load opportunity. 
- **Volume Trends**: October up 3% YoY; expecting peak to continue into November but normalize post-Thanksgiving. 
- **Cash Allocation**: Investing in IT, M&A (e.g., $50M+ in Q3), and shareholder returns. 
- **Restructuring**: Brokerage productivity up 7% YoY; focusing on high-margin areas. 
- **2026 Outlook**: Normalized seasonality, potential capacity tightening, and housing recovery could drive growth. 
- **Technology**: Automating processes in Final Mile, Managed Transportation, and driver communications to improve productivity. 
- **Risks**: Regulatory delays, demand weakness, and competitive dynamics in Dedicated and Brokerage. 


Hub Group, Inc. (HUBG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

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Selling, General and Administrative Expenses

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HUBG

HUBG fundamentals

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