Hub Group Reports 8% Revenue Decline in Q2 2025, Acquires EASO for $55 Million

Hub Group, Inc. reported a decline in financial performance for the second quarter of 2025, with operating revenue decreasing by 8% to $905.6 million compared to $986.5 million in the same period of 2024. The company's net income also fell to $25.0 million, down from $29.0 million year-over-year. For the first half of 2025, total operating revenue was $1.82 billion, a decrease from $1.99 billion in the prior year, while net income for the period was $52.2 million, compared to $56.1 million in 2024. The decline in revenue was attributed to lower volumes and pricing pressures in both the Intermodal and Transportation Solutions (ITS) and Logistics segments.

In terms of operational metrics, the ITS segment saw a revenue decrease of 6% to $528.2 million, primarily due to a mix of intermodal pricing declines and lower dedicated revenue, although there was an increase in volume. Conversely, the Logistics segment experienced a more significant revenue drop of 12% to $404.3 million, driven by reduced brokerage volumes and exiting unprofitable business lines. Despite the revenue declines, ITS operating income increased by 6% to $14.4 million, while Logistics operating income fell to $20.0 million, reflecting lower margins and vendor settlement costs.

Strategically, Hub Group has been active in expanding its capabilities through acquisitions. The company completed the acquisition of a controlling interest in EASO, a logistics provider in Mexico, for approximately $55 million. This acquisition is expected to enhance Hub Group's intermodal and transportation solutions, particularly in cross-border trade, which has seen increased activity due to nearshoring trends. The integration of EASO is ongoing, and its financial results are included in Hub Group's ITS segment.

As of June 30, 2025, Hub Group's total assets were reported at $2.80 billion, a decrease from $2.87 billion at the end of 2024. The company maintained a strong liquidity position with $137.0 million in cash and cash equivalents, alongside $20.0 million in restricted investments. The headcount increased to 6,310 employees, reflecting the addition of EASO personnel. Looking ahead, Hub Group anticipates challenges from inflation, increased competition, and potential economic slowdowns, but remains focused on margin enhancement projects and operational efficiencies to drive future growth. The company has also initiated a share repurchase program, with $141.5 million remaining under the authorization to buy back shares.