Hub Group, Inc., a supply chain solutions provider, offers transportation and logistics management services in North America. It operates in two segments, ...
Hub Group, Inc. (NASDAQ: HUBG) is a leading supply chain solutions provider in North America, delivering comprehensive transportation and logistics management services. Founded in 1971 by Phillip C. Yeager, the company has grown into a multi-billion-dollar enterprise with a workforce of approximately 6,500 employees. The company is currently led by ...Hub Group, Inc. (NASDAQ: HUBG) is a leading supply chain solutions provider in North America, delivering comprehensive transportation and logistics management services. Founded in 1971 by Phillip C. Yeager, the company has grown into a multi-billion-dollar enterprise with a workforce of approximately 6,500 employees. The company is currently led by CEO Phillip D. Yeager, grandson of the founder, who took the helm in 2022, continuing a legacy of innovation and service excellence.
Hub Group operates through two primary business segments. The Intermodal and Transportation Solutions (ITS) segment offers intermodal and dedicated trucking services, including freight transportation, truckload, less-than-truckload, flatbed, temperature-controlled, and dedicated and regional trucking. The Logistics segment provides transportation management, freight brokerage, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, warehousing, fulfillment, cross-docking, and final mile delivery services. This dual-segment structure enables Hub Group to offer end-to-end logistics solutions that optimize supply chain efficiency and reduce costs for clients.
The company's extensive asset base includes a fleet of approximately 2,300 tractors, 3,200 employee drivers, 500 independent owner-operators, and 4,700 trailers, as well as about 50,000 dry containers and 900 refrigerated containers. These assets support a broad range of industries, including retail, consumer products, automotive, and durable goods. Hub Group's services are designed to enhance supply chain resilience and uncover cost-saving opportunities, leveraging over 50 years of industry expertise and data-driven insights.
Financially, Hub Group demonstrates solid performance with a market capitalization of approximately $2.9 billion as of recent data. The company maintains a gross profit margin of 58.2%, an operating margin of 4.0%, and a net profit margin of 2.9%, reflecting operational efficiency. With a price-to-earnings ratio of 35.4 and an enterprise value-to-EBITDA of 12.7, the company is positioned for growth. The dividend payout ratio is 27.9%, with a dividend yield of 1.0%, indicating a commitment to returning value to shareholders.
Hub Group's strategic focus includes innovation in intermodal transportation, expansion of logistics capabilities, and investment in technology to improve supply chain visibility and optimization. The company is dedicated to sustainability and operational excellence, aiming to deliver value-driven solutions to its customers. With a history of steady growth since its IPO in 1996, Hub Group continues to strengthen its market presence in the integrated freight and logistics industry, driven by a customer-centric approach and a robust asset base.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.9B
-6.1%
+3.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$104.0M
-37.9%
+13.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+85.4%
+612.3%
-95.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+3.6%
-29.6%
+11.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.6%
-33.9%
+9.6%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$143.6M
-49.1%
-61.4%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+3.6%
-45.8%
-62.6%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
30.9%
-12.2%
+6.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
1.33x
+2.8%
+4.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: "
Phillip Yeager: "
Kevin Beth: "
Scott Group: " Wolfe Research
Bascome Majors: " Susquehanna Financial Group
Unknown Analyst: "
J. Bruce Chan: " Stifel, Nicolaus & Company
Jonathan Chappell: " Evercore ISI Institutional Equities
Brian Ossenbeck: " JPMorgan Chase & Co
Brady Lierz: " Stephens Inc.
Daniel Moore: " Robert W. Baird & Co.
Elliot Alper: " TD Cowen
Michael Triano: " UBS Investment Bank
Brandon Oglenski: " Barclays Bank PLC
Operator: Hello, and welcome to the Hub Group Third Quarter 2025 Earnings Conference Call. Phil Yeager, Hub's President, Chief Executive Officer and Vice Chairman; and Kevin Beth, Chief Financial Officer and Treasurer, are joining the call. [Operator Instructions] Statements made on this call and in other reference documents on our website that are not historical facts are forward-looking statements. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of Hub Group to differ materially from those expressed or implied by this discussion and therefore, should be viewed with caution. Further information on the risks that may affect Hub Group's business is included in the filings with the SEC, which are on our website. In addition, on today's call, non-GAAP financial measures will be used. Reconciliations between GAAP and non-GAAP financial measures are included in our earnings release and quarterly earnings presentation. As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to your host, Phil Yeager. You may now begin.
Phillip Yeager: Good afternoon, and thank you for joining Hub Group's third quarter earnings call. Joining me today is Kevin Beth, our Chief Financial Officer, and Garrett Holland, our Senior Vice President of Investor Relations. Before we begin our review of the current market and Hub Group's performance, I wanted to thank all of our team members across North America for their constant effort and focus on delivering for our customers and organizations in this evolving environment. I'd like to begin by discussing near-term market conditions and our current viewpoint on supply and demand dynamics. International shipping volume was pulled forward in the third quarter, but we did not see that inventory materially begin to impact domestic shipping until following the Labor Day holiday. This has led to a delayed West Coast peak season from what we originally anticipated. Strong West Coast shipping demand in September continued through October, and our customers are indicating that will be maintained into November, which is much closer to typical seasonality. We believe that the recently established regulatory requirements in our industry will be a positive catalyst to balance the supply of capacity and with active enforcement and demand strength should lead to improving market conditions over time. These factors, along with our investments in our …
