Hub Group (HUBG) investor relations material

Executive summary

• Third quarter 2025 revenue was $934 million, down 5% year-over-year, with net income rising 23% to $28.9 million, driven by cost controls and improved intermodal margins despite softer demand in freight markets.

• Adjusted diluted EPS was $0.49, with adjusted operating income of $41 million (4.4% margin), and adjusted EBITDA of $88 million.

• Acquisitions of Marten Transport Intermodal, SITH LLC, and EASO expanded scale in higher-margin, temperature-controlled, and cross-border segments, supporting growth and diversification.

• Cost reduction initiatives, automation, and technology investments drove productivity gains and margin resilience across business lines.

• Ended the quarter with $147 million in cash and net debt/EBITDA of 0.4x, well below the leverage target.

Financial highlights

• Q3 2025 revenue was $934 million, down 5% year-over-year; adjusted EPS was $0.49, and net income attributable to shareholders was $28.6 million.

• Adjusted operating income was $41 million (4.4% margin), up from 4.2% in Q3 2024; adjusted EBITDA was $88 million.

• Cash flow from operations for the first nine months was $160 million; capital expenditures for Q3 were $9 million, focused on technology and warehouse equipment.

• Returned $36 million to shareholders year-to-date via $23 million in dividends and $14 million in share repurchases.

• Net debt was $136 million, or 0.4x adjusted EBITDA, with $147 million in cash and restricted cash at quarter end.

Outlook and guidance

• Full-year 2025 EPS expected at $1.80–$1.90 and revenue at $3.6–$3.7 billion; Q4 guidance tempered due to muted demand and low visibility.

• Capital expenditures for the year expected to be under $50 million; effective tax rate projected at 24.5%.

• Sequentially lower adjusted EPS anticipated in Q4; achieving upper guidance range depends on a strong peak season finish.

• Management expects sufficient liquidity for growth, with $120 million in cash and $449 million in available credit.

• Risks include inflation, consumer spending shifts, competitive pricing, and macroeconomic uncertainty.