Hub Group reported third‑quarter 2025 financial results, posting GAAP net income of $29 million and diluted earnings per share of $0.47. Adjusted net income was $30 million and adjusted EPS $0.49, down 6.3% and 5.8% from the same quarter in 2024.
Consolidated revenue fell 5.4% year‑over‑year to $934 million, driven by softer demand in dedicated and logistics segments, while intermodal volume remained flat. Intermodal and Transportation Solutions (ITS) revenue was $561 million, essentially unchanged from the prior year, and generated operating income of $16 million (2.8% margin). Logistics revenue declined to $402 million, with operating income of $24 million (5.9% margin).
GAAP operating income was $39 million (4.2% of revenue) and adjusted operating income $41 million (4.4% of revenue). Adjusted EBITDA reached $88 million. Cash and restricted cash totaled $147 million, and net debt/EBITDA stood at 0.4×. The company returned $36 million to shareholders through dividends and share repurchases during the year to date.
The company highlighted the acquisition of Marten Intermodal for $51.8 million in cash, closing on September 30, 2025. The deal added approximately 1,200 refrigerated containers, positioning Hub Group as the second‑largest provider of temperature‑controlled intermodal solutions in North America and is expected to be accretive to earnings. The acquisition of SITH, LLC, a West Coast final‑mile provider, closed on September 8, 2025, further supporting the company’s final‑mile growth strategy.
Management emphasized continued focus on cost control, noting that purchase transportation and warehousing costs declined by $56 million year‑over‑year, improving the cost‑to‑revenue ratio by 180 basis points. General and administration expenses also fell, contributing to margin improvement.
Guidance for full‑year 2025 was revised to a midpoint of $3.65 billion in revenue, slightly below the previous $3.70 billion estimate, and GAAP diluted EPS guidance of $1.85, near the midpoint of the $1.80–$1.90 range. The company remains optimistic about intermodal profitability and the strategic benefits of the Marten Intermodal acquisition.
The company noted that intermodal profitability and revenue per load increased sequentially and year‑over‑year, offsetting the decline in dedicated and logistics revenue. The softer freight market continues to weigh on demand, but cost‑control measures and the new acquisitions are expected to support future performance.
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