# Hub Group, Inc. (HUBG) Informational only - not investment advice. CIK: 0000940942 SIC: 4731 Arrangement of Transportation of Freight & Cargo SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [SIC Major Group 47](/major-group/47/) > [SIC 4731 Arrangement of Transportation of Freight & Cargo](/industry/4731/) Latest 10-K filed: 2025-02-25 SEC page: https://www.sec.gov/edgar/browse/?CIK=940942 Filing source: https://www.sec.gov/Archives/edgar/data/940942/000095017025026866/hubg-20241231.htm ## At a glance FY2024 · period end 2024-12-31 · filed 2025-02-25 · accession 0000950170-25-026866 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000940942.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 3,946,390,000 USD | 2024 | verified | | Net income | 103,993,000 USD | 2024 | verified | | Assets | 2,868,343,000 USD | 2024 | verified | | Free cash flow | 143,572,000 USD | 2024 | computed | | Net margin | 2.64% | 2024 | computed | | Operating margin | 3.55% | 2024 | computed | | Revenue YoY | -6.10% | 2024 | computed | | ROE | 6.32% | 2024 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2024 revenue ÷ FY2023 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | HUBG | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 2.6% | 3.8% | 36 | 15 | | Operating margin | 3.6% | 5.4% | 31 | 14 | | Revenue growth | -6.1% | 9.8% | 7 | 15 | | FCF margin | 3.6% | 4.8% | 31 | 14 | | ROE | 6.3% | 9.9% | 31 | 14 | | ROA | 3.6% | 3.2% | 53 | 16 | | Liabilities / equity | 0.74 | 2.57 | 8 | 14 | | Current ratio | 1.33 | 1.27 | 57 | 15 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 47 SIC Major Group 47, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 3946390000 | USD | 2024 | 2025-02-25 | | Net income | 103993000 | USD | 2024 | 2025-02-25 | | Assets | 2868343000 | USD | 2024 | 2025-02-25 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-02-25. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000940942.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | 2,750,449,000 | 3,123,063,000 | 3,683,593,000 | 3,668,117,000 | 3,495,644,000 | 4,232,383,000 | 5,340,490,000 | 4,202,585,000 | 3,946,390,000 | | Net income | | | 70,949,000 | 74,805,000 | 135,153,000 | 201,740,000 | 107,171,000 | 73,559,000 | 171,474,000 | 356,948,000 | 167,528,000 | 103,993,000 | | Operating income | | | 117,030,000 | 96,557,000 | 72,669,000 | 124,919,000 | 152,420,000 | 105,826,000 | 238,457,000 | 474,721,000 | 212,231,000 | 140,291,000 | | Diluted EPS | | | 1.97 | 2.20 | 4.05 | 6.01 | 3.20 | 2.19 | 2.53 | 5.32 | 2.62 | 1.70 | | Operating cash flow | 117,417,000 | | | 102,473,000 | 125,220,000 | 210,839,000 | 254,509,000 | 174,954,000 | 252,835,000 | 458,163,000 | 422,158,000 | 194,419,000 | | Capital expenditures | | | 83,042,000 | 107,409,000 | 74,541,000 | 199,791,000 | 94,847,000 | 115,306,000 | 132,952,000 | 219,140,000 | 140,068,000 | 50,847,000 | | Dividends paid | | | | | | | | | | 0.00 | 0.00 | 30,246,000 | | Share buybacks | 13,791,000 | 18,024,000 | 28,823,000 | 100,000,000 | | | 24,998,000 | 0.00 | 0.00 | 75,000,000 | 143,770,000 | 68,273,000 | | Assets | | | 1,301,146,000 | 1,360,259,000 | 1,670,941,000 | 1,924,898,000 | 1,991,574,000 | 2,105,396,000 | 2,437,294,000 | 2,810,081,000 | 2,936,047,000 | 2,868,343,000 | | Stockholders' equity | | | 647,840,000 | 628,179,000 | 769,872,000 | 980,834,000 | 1,075,279,000 | 1,157,923,000 | 1,340,314,000 | 1,599,602,000 | 1,634,645,000 | 1,644,997,000 | | Cash and cash equivalents | | | 207,749,000 | 127,404,000 | 28,557,000 | 61,435,000 | 168,729,000 | 124,506,000 | 159,784,000 | 286,642,000 | 187,270,000 | 98,248,000 | | Free cash flow | | | | -4,936,000 | 50,679,000 | 11,048,000 | 159,662,000 | 59,648,000 | 119,883,000 | 239,023,000 | 282,090,000 | 143,572,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | 2.72% | 4.33% | 5.48% | 2.92% | 2.10% | 4.05% | 6.68% | 3.99% | 2.64% | | Operating margin | | | | 3.51% | 2.33% | 3.39% | 4.16% | 3.03% | 5.63% | 8.89% | 5.05% | 3.55% | | Return on equity | | | 10.95% | 11.91% | 17.56% | 20.57% | 9.97% | 6.35% | 12.79% | 22.31% | 10.25% | 6.32% | | Return on assets | | | 5.45% | 5.50% | 8.09% | 10.48% | 5.38% | 3.49% | 7.04% | 12.70% | 5.71% | 3.63% | | Liabilities / equity | | | 1.01 | 1.17 | 1.17 | 0.96 | 0.85 | 0.82 | 0.82 | 0.76 | 0.80 | 0.74 | | Current ratio | | | 1.74 | 1.49 | 1.26 | 1.12 | 1.26 | 1.27 | 1.30 | 1.53 | 1.29 | 1.33 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/HUBG/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2025-11-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000940942.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q1 | 2022-03-31 | | | 2.58 | reported discrete quarter | | 2022-Q2 | 2022-06-30 | | | 3.03 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 2.61 | reported discrete quarter | | 2022-Q4 | 2022-12-31 | 1,285,503,000 | 79,274,000 | | derived Q4 = FY annual - nine-month YTD | | 2023-Q1 | 2023-03-31 | 1,152,265,000 | 61,780,000 | 1.88 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 1,040,462,000 | 46,505,000 | 1.44 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 1,024,835,000 | 30,459,000 | 0.97 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 985,023,000 | 28,785,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 999,493,000 | 27,053,000 | 0.44 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 986,495,000 | 29,015,000 | 0.47 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 986,892,000 | 23,603,000 | 0.39 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 973,510,000 | 24,322,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 915,216,000 | 26,847,000 | 0.44 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 905,648,000 | 25,247,000 | 0.42 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 934,496,000 | 28,554,000 | 0.47 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from HUBG's latest 10-K: [/company/HUBG/business/](/company/HUBG/business/). ## Risk Factors Verbatim Item 1A Risk Factors from HUBG's latest 10-K: [/company/HUBG/risk-factors/](/company/HUBG/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/940942/000119312525266623/hubg-20250930.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2025-11-05 Report date: 2025-09-30 Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements Statements in this section and other parts of this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements, provided pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that might cause the actual performance of the Company 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 the Company's business is included in filings it makes with the SEC from time to time, including those discussed under the “Risk Factors” section in the 2024 10-K and subsequent filings. The Company assumes no obligation to update any such forward-looking statements. EXECUTIVE SUMMARY We are a leading supply chain solutions provider in North America that offers comprehensive transportation and logistics management services focused on reliability, visibility and value for our customers. Our service offerings include a full range of freight transportation and logistics services, some of which are provided by assets we own and operate, and some of which are provided by third parties with whom we contract. Our services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, dedicated and regional trucking. Other services include full outsource logistics solutions, transportation management services, freight consolidation, warehousing and fulfillment, final mile delivery, parcel and international services. We service a large and diversified customer base in a broad range of industries, including retail, consumer products and durable goods. We believe our strategy to offer multi-modal supply chain management solutions serves to strengthen and deepen our relationships with our customers and allows us to provide a more cost effective and higher service solution. We concluded we have two reportable segments, Intermodal and Transportation Solutions (“ITS”) and Logistics, which are based primarily on the services each segment provides. Intermodal and Transportation Solutions. Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery as well as high service local and regional trucking transportation using equipment dedicated to their needs. In the first nine months of 2025, approximately 83% of our drayage services was provided by our own fleet. We arrange for the movement of our customers’ freight in one of our approximately 51,000 containers. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of September 30, 2025, our trucking transportation operation consisted of approximately 2,300 tractors, 3,100 employee drivers and 4,700 trailers. We also contract for services with approximately 500 independent owner-operators. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. Logistics. Our Logistics segment offers a wide range of non-asset-based services including transportation management, freight brokerage services, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, cross-docking, consolidation and fulfillment services and final mile delivery. Logistics includes our brokerage business which consists of a full range of trucking transportation services, including dry van, expedited, less-than-truckload (“LTL”), refrigerated and flatbed, all of which is provided by third-party carriers with whom we contract. We leverage proprietary technology along with collaborative relationships with third-party service providers to deliver cost savings and performance-enhancing supply chain services to our clients. Our transportation management offering also serves as a source of volume for our ITS segment. Many of the customers for these solutions are consumer goods companies who sell into the retail channel. Our final mile delivery offering provides residential final mile delivery and installation of appliances and big and bulky goods. Final mile operates through a network of independent service providers in company, customer and third-party facilities throughout the continental United States. Our business operates or has access to approximately 7 million square feet of warehousing and cross-dock space across North America, to which our customers ship their goods to be stored and distributed to destinations including residences, retail stores and other commercial locations. These services offer our customers shipment visibility, transportation cost savings, high service and compliance with retailers’ increasingly stringent supply chain requirements. 18 We are focused on several margin enhancement projects including network optimization, matching of inbound and outbound loads, reducing empty miles, improving our recovery of accessorial costs, increasing our driver and asset utilization, reducing repositioning costs, providing holistic solutions and improving low profit freight. Hub’s top 50 customers represent approximately 68% of revenue for the nine months ended September 30, 2025, while one customer accounted for more than 10% of our revenue in both segments for both the nine months ended September 30, 2025 and 2024. We use various performance indicators to manage our business. We closely monitor profit levels for our customers. We also evaluate on-time performance, customer service, cost per load and daily sales outstanding by customer account. Vendor cost changes and vendor service levels are also monitored closely. The following table includes the one customer that represented 10% or more of our revenue by segment for the nine months ending September 30, 2025 and 2024, respectively: [[GREPCENT_TABLE]] [["","Nine Months Ended"],["Customer A","September 30,"],["","2025","","2024"],["ITS","15%","","19%"],["Logistics","16%","","16%"],["Total operating revenue","16%","","18%"]] [[/GREPCENT_TABLE]] Uncertainties and risks to our outlook include inflation, increased healthcare costs, a slowdown in consumer spending (driven by, among other factors, tariffs, inflation, increases in interest rates, an economic recession and geopolitical concerns), a shift by consumers to spending on services at the expense of goods, an increase of retailers’ inventory levels, the ability of customers to pay our accounts receivable, a significant increase in transportation supply in the marketplace, aggressive pricing actions by our competitors and any inability to pass cost increases, such as transportation and warehouse costs, through to our customers, economic factors such as the impact of potentially increasing tariffs between trading partners, all of which could have a materially negative impact on our revenue, profitability and cash flow in 2025. Exiting of truckload capacity, retail inventory levels declining leading to restocking demand, a return of typical shipping peak season demands and a stronger used tractor market could have a materially positive impact on our revenue, profitability and cash flows in 2025. RESULTS OF OPERATIONS Three Months Ended September 30, 2025 Compared to the Three Months Ended September 30, 2024 The following table summarizes our operating revenue by segment (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended"],["Operating Revenue","September 30,"],["","2025","","","2024"],["Intermodal and Transportation Solutions","$","561,487","","","$","559,968"],["Logistics","","402,399","","","","460,847"],["Inter-segment eliminations","","(29,390",")","","","(33,923",")"],["Total operating revenue","$","934,496","","","$","986,892"]] [[/GREPCENT_TABLE]] The following table summarizes our operating income by segment (in thousands): [[GREPCENT_TABLE]] [["","Three Months Ended"],["Operating Income","September 30,"],["","2025","","","2024"],["Intermodal and Transportation Solutions","$","15,868","","","$","13,516"],["Logistics","","23,575","","","","18,583"],["Total operating income","$","39,443","","","$","32,099"]] [[/GREPCENT_TABLE]] Total consolidated operating revenue decreased 5% to $934 million in 2025 from $987 million in 2024. Intermodal and Transportation Solutions (“ITS”) revenue remained relatively consistent, increasing slightly to $561 million primarily due to steady intermodal volume and higher intermodal revenue per load, partially offset by lower dedicated revenue, and lower fuel revenue. ITS operating income increased 17% to $16 million, or 3% of revenue, compared to $14 million, or 2% of revenue, in the prior year primarily due to lower purchased transportation costs, as well as the higher intermodal revenue per load. 19 Logistics revenue decreased 13% to $402 million from $461 million in prior year primarily due to lower volume and revenue per load in our brokerage business, softened demand in final mile and managed transportation businesses, and lower customer activity in consolidation and fulfillment. Logistics operating income increased 27% to $24 million, or 6% of revenue in 2025, as compared to $19 million, or 4% of revenue in 2024. This increase was primarily related to continued cost controls, exiting of unprofitable business, and favorable mix between our lines of business. Additionally, there was a decrease in warehouse transfer costs and a reduction in our overall warehouse costs following the completion of our warehouse space consolidation efforts as part of our Network Alignment Initiative in 2024. The following is a summary of operating results and certain items in the condensed consolidated statements of income as a percentage of revenue (in thousands): [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/940942/000095017025026866/hubg-20241231.htm Complete FY 2024 MD&A: /company/HUBG/mda/fy2024/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2025-02-25 Report date: 2024-12-31 Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXECUTIVE SUMMARY We are a leading supply chain solutions provider in North America that offers comprehensive transportation and logistics management services focused on reliability, visibility and value for our customers. Our service offerings include a full range of freight transportation and logistics services, some of which are provided using assets we own and operate, and some of which are provided by third parties with whom we contract. Our services include intermodal, truckload, less-than-truckload, flatbed, temperature-controlled, dedicated and regional trucking. Other services include full outsource logistics solutions, transportation management services, consolidation and fulfillment services, final mile delivery, parcel and international services. We service a large and diversified customer base in a broad range of industries, including retail, consumer products and durable goods. We believe our strategy to offer multi-modal supply chain management solutions serves to strengthen and deepen our relationships with our customers and allows us to provide a more cost effective and higher service solution. We concluded we have two reportable segments - Intermodal and Transportation Solutions (“ITS”), and Logistics, which are based primarily on the services each segment provides. Intermodal and Transportation Solutions. Our ITS segment offers high service, nationwide door-to-door intermodal transportation, providing value, visibility and reliability in both transcontinental and local lanes by combining rail transportation with local trucking. This segment includes our trucking operations which provides our customers with local pickup and delivery as well as high service local and regional trucking transportation using equipment dedicated to their needs. In 2024, approximately 73% of our drayage services was provided by our own fleet. We arrange for the movement of our customers’ freight in one of our approximately 50,000 containers. We contract with railroads to provide transportation for the long-haul portion of the shipment between rail terminals. Drayage between origin or destination and rail terminals are provided by our own trucking operations and third parties with whom we contract. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. As of December 31, 2024, our trucking transportation operation consisted of approximately 2,300 tractors, 3,200 employee drivers and 4,700 trailers. We also contract for services with approximately 500 independent owner-operators. These assets and contractual services are used to support drayage for our intermodal service offering and to serve our customers who require high service local and regional trucking transportation using equipment dedicated to their needs. Our dedicated service operation offers fleets of equipment and drivers to each customer on a contract basis, as well as the management and infrastructure to operate according to the customer’s high service expectations. Logistics. Our Logistics segment offers a wide range of non-asset-based services including transportation management, freight brokerage services, shipment optimization, load consolidation, mode selection, carrier management, load planning and execution, cross-docking, consolidation and fulfillment services and final mile delivery. Logistics includes our brokerage business which consists of a full range of trucking transportation services, including dry van, expedited, less-than-truckload (“LTL”), refrigerated and flatbed, all of which is provided by third-party carriers with whom we contract. We leverage proprietary technology along with collaborative relationships with third-party service providers to deliver cost savings and performance-enhancing supply chain services to our clients. Our transportation management offering also serves as a source of volume for our ITS segment. Many of the customers for these solutions are consumer goods companies who sell into the retail channel. Our final mile delivery offering provides residential final mile delivery and installation of appliances and big and bulky goods. Final mile operates through a network of independent service providers in company, customer and third-party facilities throughout the continental United States. Our business operates or has access to approximately 7 million square feet of warehousing and cross-dock space across North America, to which our customers ship their goods to be stored and distributed to destinations including residences, retail stores and other commercial locations. These services offer our customers shipment visibility, transportation cost savings, high service and compliance with retailers’ increasingly stringent supply chain requirements. We are focused on several margin enhancement projects including network optimization, matching of inbound and outbound loads, reducing empty miles, improving our recovery of accessorial costs, increasing our driver and asset utilization, reducing repositioning costs, providing holistic solutions and improving low profit freight. Hub’s top 50 customers represent approximately 68% of revenue for fiscal 2024 while one customer accounted for more than 10% of our annual revenue in 2024 in both segments. We use various performance indicators to manage our business. We closely monitor profit levels for our customers. We also evaluate on-time performance, customer service, cost per load and daily sales outstanding by customer account. Vendor cost changes and vendor service levels are also monitored closely. 22 Uncertainties and risks to our outlook include inflation, increased healthcare costs, a slowdown in consumer spending (driven by, among other factors, rising inflation, tariffs, increases in interest rates, an economic recession and geopolitical concerns), a shift by consumers to spending on services at the expense of goods, an increase of retailers’ inventory levels, the ability of customers to pay our accounts receivable, a significant increase in transportation supply in the marketplace, aggressive pricing actions by our competitors and any inability to pass cost increases, such as transportation and warehouse costs, through to our customers, economic factors such as the impact of potentially increasing tariffs between trading partners, all of which could have a materially negative impact on our revenue, profitability and cash flow in 2025. Exiting of truckload capacity, retail inventory levels declining leading to restocking demand, a return of typical shipping peak season demands and a stronger used tractor market could have a materially positive impact on our revenue, profitability and cash flows in 2025. Strategic Transactions On October 23, 2024, we entered into an investment agreement with Corporación Interamericana de Logística, S.A. de C.V. and certain associated entities (commonly known as “EASO”), to acquire a controlling interest in EASO. The estimated fair value of total consideration transferred was approximately $55 million for a 51% equity stake in EASO. On December 20, 2023, we acquired 100% of the equity interests of Forward Air Final Mile (“FAFM”). Total consideration for the transaction was approximately $257.2 million in cash. On August 22, 2022, we acquired 100% of the equity interests of TAGG. Total consideration for the transaction was approximately $103.4 million in cash. RESULTS OF OPERATIONS Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 The following table summarizes our operating revenue by segment (in thousands): [[GREPCENT_TABLE]] [["","Years Ended"],["Operating Revenue","December 31,"],["","2024","","","2023"],["Intermodal and Transportation Solutions","$","2,243,440","","","$","2,495,663"],["Logistics","","1,829,450","","","","1,820,856"],["Inter-segment eliminations","","(126,500",")","","","(113,934",")"],["Total operating revenue","$","3,946,390","","","$","4,202,585"]] [[/GREPCENT_TABLE]] The following table summarizes our operating income by segment (in thousands): [[GREPCENT_TABLE]] [["","Years Ended"],["Operating Income","December 31,"],["","2024","","","2023"],["Intermodal and Transportation Solutions","$","56,952","","","$","107,117"],["Logistics","","83,339","","","","105,114"],["Total operating income","$","140,291","","","$","212,231"]] [[/GREPCENT_TABLE]] Total consolidated operating revenue decreased 6% to $3.9 billion in 2024 from $4.2 billion in 2023. Intermodal and Transportation Solutions (“ITS”) revenue decreased 10% to $2.2 billion primarily due to a 15% decline in intermodal revenue per load (primarily due to lower prices, lower fuel surcharges, accessorial revenue and mix), partially offset by a 5% increase in intermodal volumes and a 1% growth in dedicated revenues due to customers onboarded in late 2023. ITS operating income decreased to $57 million, 2.5% of revenue, as compared to $107 million, 4.3% of revenue in the prior year due to lower customer rates in intermodal, lower accessorial income and more normalized bonus expense for employees. These headwinds were partially offset by lower drayage costs and lower equipment costs. 23 Logistics revenue remained consistent at $1.8 billion primarily driven by lower revenue per load in our brokerage service line, lower volumes in our brokerage business and lower revenue in our managed transportation and consolidation and fulfillment services. This was partially offset by growth in our final mile business due to the FAFM acquisition in late 2023. Logistics operating income was 4.6% of revenue in 2024 compared to 5.8% in 2023. Lower revenue was partially offset by lower purchased transportation costs and a change of business mix between our lines of business. Operating income was $83 million as compared to $105 million last year driven by lower yields in brokerage and we incurred approximately $13 million of incremental costs related to warehouse consolidation to provide better customer service, our network alignment initiative within consolidation and fulfillment. The following is a summary of operating results and certain items in the consolidated statements of income as a percentage of revenue (in thousands): [[GREPCENT_TABLE]] [["","Years Ended"],["","December 31,"],["","2024","","2023"],["Operating revenue","$","3,946,390","","100.0%","","$","4,202,585","","100.0%"],["Operating expenses:"],["Purchased transportation and warehousing","","2,930,562","","74.2%","","","3,145,595","","74.8%"],["Salaries and benefits","","577,464","","14.6%","","","553,326","","13.2%"],["Depreciation and amortization","","141,469","","3.6%","","","143,523","","3.4%"],["Insurance and claims","","44,180","","1.1%","","","49,040","","1.2%"],["General and administrative","","113,698","","2.9%","","","105,705","","2.5%"],["Gain on sale of assets, net","","(1,274",")","0.0%","","","(6,835",")","-0.2%"],["Total operating expenses","","3,806,099","","96.4%","","","3,990,354","","94.9%"],["Operating income","$","140,291","","3.6%","","$","212,231","","5.1%"]] [[/GREPCENT_TABLE]] CONSOLIDATED OPERATING EXPENSES Purchased Transportation and Warehousing Purchased transportation and warehousing costs decreased 7% to $2.9 billion in 2024 from $3.1 billion in 2023. As a percentage of revenue, purchased transportation and warehousing costs decreased to 74.2% in 2024 versus 74.8% in 2023 due to cost control initiatives. Purchased transportation and warehousing costs declined as compared to prior year due to lower volumes in brokerage, and reductions in third party carrier costs, partially offset by network alignment costs. Salaries and Benefits Salaries and benefits increased to $577 million in 2024 from $553 million in 2023. As a percentage of revenue, salari [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2024 MD&A: /company/HUBG/mda/fy2024/ All MD&A years: /company/HUBG/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2023 MD&A](/company/HUBG/mda/fy2023/): filed 2024-02-27; accession 0000950170-24-021432 (https://www.sec.gov/Archives/edgar/data/940942/000095017024021432/hubg-20231231.htm) - [FY 2022 MD&A](/company/HUBG/mda/fy2022/): filed 2023-02-24; accession 0000950170-23-004358 (https://www.sec.gov/Archives/edgar/data/940942/000095017023004358/hubg-20221231.htm) - [FY 2021 MD&A](/company/HUBG/mda/fy2021/): filed 2022-02-25; accession 0000950170-22-002100 (https://www.sec.gov/Archives/edgar/data/940942/000095017022002100/hubg-20211231.htm) - [FY 2020 MD&A](/company/HUBG/mda/fy2020/): filed 2021-02-26; accession 0001564590-21-009409 (https://www.sec.gov/Archives/edgar/data/940942/000156459021009409/hubg-10k_20201231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 4731 Arrangement of Transportation of Freight & Cargo) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/HUBG.md · JSON record: /company/HUBG.json · verified financials: /company/HUBG/financials.json / /company/HUBG/financials.csv · machine TOC for the whole site: /llms.txt