Universal Logistics Holdings Reports 22.3% Revenue Decline in Q1 2025

Universal Logistics Holdings, Inc. reported a significant decline in financial performance for the first quarter of 2025, with total operating revenues of $382.4 million, down 22.3% from $491.9 million in the same period last year. The decrease was attributed to lower revenues across both transportation and logistics operations, including a notable drop in brokerage services, which fell from $59.6 million to $20.3 million. The company’s net income also saw a sharp decline, dropping to $6.0 million from $52.5 million, reflecting an 88.5% decrease year-over-year. Earnings per share were reported at $0.23, compared to $1.99 in the prior year.

Operating expenses decreased by 12.0% to $366.7 million, primarily due to a reduction in purchased transportation and equipment rent, which fell by 36.0% to $79.7 million. However, direct personnel and related benefits increased by 16.8% to $164.5 million, driven by higher headcount following the acquisition of Parsec. The company also reported a significant increase in depreciation and amortization expenses, which rose by 71.4% to $35.5 million, reflecting investments in equipment and facilities.

In terms of strategic developments, Universal Logistics completed the acquisition of Parsec, contributing $56.4 million to revenues in the first quarter. The company also expanded its value-added services, managing 87 programs compared to 71 in the previous year. Despite these efforts, the overall performance was impacted by the completion of a specialty development project in Stanton, TN, which had generated $95.3 million in revenue in the prior year.

Operationally, the company reported a decrease in load volumes across its segments, with the trucking segment experiencing a 31.3% decline in load volumes, although the average operating revenue per load increased by 24.3%. The intermodal segment also faced challenges, with a 9.8% decrease in revenues attributed to fewer loads and lower average revenue per load. The company’s total debt stood at $740.0 million as of March 29, 2025, down from $762.6 million at the end of 2024, with $74.6 million available under its revolving credit facility.

Looking ahead, Universal Logistics anticipates that cash generated from operations, along with available credit, will be sufficient to meet its liquidity needs. However, the company remains cautious about the potential impact of inflationary pressures and geopolitical developments on its operations. The management is actively working to enhance internal controls and financial reporting processes to address previously identified weaknesses, aiming to improve overall operational efficiency and financial performance in the future.