Hub Group, Inc.

What they do

Hub Group provides freight transportation and logistics services through two reportable segments: Intermodal and Transportation Solutions (ITS), which includes intermodal and dedicated trucking, and Logistics, which includes brokerage, consolidation, fulfillment, final mile, and full outsource logistics. The company uses both owned assets and contracted third-party services, and serves a diversified customer base across retail, consumer products, automotive, and durable goods industries.

Revenue drivers

• Intermodal and Transportation Solutions (ITS) — ITS generated approximately 57% of total revenue in 2024. It provides intermodal rail transportation and dedicated trucking services, with revenue dependent on volume and rate per load.
• Logistics — This segment includes brokerage (truckload, LTL, flatbed, temperature-controlled), consolidation, fulfillment, and final mile services. Full year 2025 Logistics revenue is expected to be approximately $1.6 billion.
• Dedicated trucking — Part of ITS, dedicated trucking provides contracted trucking services. Revenue declined in Q4 2025 due to lost customer sites earlier in the year.
• Brokerage — Within Logistics, brokerage arranges third-party truckload and LTL transportation. Q4 2025 volumes declined 10% year-over-year with revenue per load down 4%.

Recent performance

Full year 2024 revenue was $3.95 billion, with net income of $104.0 million and diluted EPS of $1.70. Quarterly revenue declined from $973.5 million in Q4 2024 to $905.6 million in Q2 2025, then rose to $934.5 million in Q3 2025. For full year 2025, the company expects revenue of approximately $3.7 billion. In the preliminary Q4 2025 results, intermodal volumes increased 1% year-over-year, but brokerage volumes fell 10% year-over-year. The company delayed its full earnings release due to a restatement of quarterly financials for 2025.

Strategy

Hub Group's stated strategy includes deepening customer relationships, acquiring and developing new service offerings, investing in assets such as containers and tractors, and building a leading information technology platform. The company emphasizes converting truck freight to intermodal to improve fuel efficiency and reduce environmental footprint. Management also highlights disciplined capital allocation, as seen in the Marten Intermodal acquisition, and returning cash to shareholders via dividends and buybacks.

Risks

• Customer concentration — The 10 largest customers accounted for approximately 44% of total revenue in 2024, and one customer exceeded 10% of annual revenue in each of the last three years.
• Dependence on railroads — The company relies primarily on two railroads for intermodal services; any reduction in rail service, rate increases, or capacity constraints could materially hurt operations.
• Restatement of financials — Errors in first nine months of 2025 understated purchased transportation costs and accounts payable by $77 million, requiring restatement of quarterly reports.
• Economic and demand cyclicality — A significant portion of revenue depends on consumer end markets, and shipping demand is seasonal, especially around the December holidays, making results sensitive to economic downturns.

Outlook

Management introduced preliminary 2026 guidance with expected revenue of $3.65 billion to $3.95 billion and capital expenditures of $35 million to $45 million. For 2025, they expect revenue of approximately $3.7 billion, with full-year operating cash flow of about $194 million. The company expects to report full financial results after completing the restatement, and the correction is not expected to impact cash or operating cash flows.