Hub Group Reports Q4 Profit Decline Despite Intermodal Volume Growth
Hub Group has announced a decline in both quarterly and full-year profits for 2024, attributed primarily to lower revenue per load, even as intermodal volumes increased in a challenging freight market. The company’s full-year profit stood at $104 million, representing a significant drop of 37.9% from $167.53 million in 2023.
In its fourth-quarter results, Hub Group reported a net income of $24.37 million, or 40 cents per share, marking an 18.2% decrease from $29.79 million, or 46 cents per share, in the same period last year. Revenue for the quarter was $973.5 million, reflecting a 1% decline from $985 million in Q4 2023. For the entire year, the company’s revenue fell to $3.9 billion from $4.2 billion in the previous year.
Despite these challenges, quarterly results aligned with analysts’ expectations, and company executives expressed optimism regarding the outlook for 2025, especially following a January that exceeded forecasts.
The company’s fourth-quarter performance was bolstered by strong intermodal volume, surcharge revenue, and growth in final-mile services. However, this was counterbalanced by declines in brokerage, consolidation, fulfillment, and managed transportation revenue. The West Coast intermodal activity, in particular, exceeded expectations ahead of a broader market upswing, indicating potential for recovery in the upcoming year.
