Hub Group Q2 2024 Financial Results:
Reduced Earnings in the Trucking Sector

Hub Group Q2 2024 Financial Results: Trucking Sector Performance Overview

Revenue and Earnings

Hub Group Q2 2024 results show a revenue of $986 million, a 5.2% decrease from the previous year’s $1.04 billion. The net income for Q2 was $29 million, translating to $0.47 per diluted share, compared to $47 million and $0.72 per share in Q2 2023.

Trucking Sector Insights

The Intermodal and Transportation Solutions (ITS) segment reported revenues of $561 million, down from $615 million in the previous year. This decline was despite higher intermodal volumes and dedicated trucking revenue, affected by lower revenue per load, accessorial, and fuel revenues. The operating income for this segment was $14 million, compared to $32 million in Q2 2023.

Key Financial Metrics

Operating income for Hub Group Q2 2024 was $40 million, representing 4% of the total revenue. This is a decrease from $62 million, or 6%, in the previous year. The EBITDA for the quarter was $89 million, with a net debt/EBITDA ratio of 0.3x. Hub Group maintained a strong balance sheet with $220 million in cash and cash equivalents.

Operational Highlights

During Q2 2024, the company successfully reduced purchased transportation and warehousing costs by $36 million year-over-year. Salaries and benefits remained steady at $142 million. Depreciation and amortization saw a slight increase due to the Final Mile acquisition, which also contributed to higher insurance, claims, and general administrative expenses.

Shareholder Returns and Outlook

Q2 saw the company return $48 million to shareholders through dividends and stock repurchases. The company projects 2024 earnings per share to range between $1.75 and $2.05, with revenue between $4.0 billion and $4.3 billion. Capital expenditures for the full year are expected to be between $45 million and $65 million.

Looking Ahead

The Hub Group Q2 2024 financial results reflect challenges in the freight market, impacting revenue and profitability. Despite these challenges, increased intermodal volumes and strategic cost management demonstrate the company’s resilience and ongoing commitment to growth in the trucking sector.

For more detailed information, please visit the Hub Group Q2 2024 Financial Results page.