“While Q1 was clearly a challenging quarter, we are not standing still,” Phillips said. “We are focused, making necessary adjustments, and believe the second half of 2025 will look markedly different.”

Looking ahead, Universal’s executives believe that as the automotive industry recovers, so will their freight volumes. In March, auto production increased by 67% compared to January, noted CFO Jude Beres. Meanwhile, automakers are actively reducing inventories—by about 40%—partly due to tariff concerns among consumers, with the average inventory days dropping from 116 last summer to around 70 today.

Beres added, “If tariffs don’t kill the entire industry, we’re really set up for some decent production in the back half of the year, which will drive our results.” The company is working closely with customers on tariff mitigation strategies like reshoring, leveraging its expanded U.S. footprint and increasing production at two U.S. assembly plants.

Universal is also promoting its manufacturing capabilities in Louisville, Kentucky, via its subsidiary Westport Machining, and offering storage and warehouse capacity near key U.S. ports and rail hubs. Phillips emphasized that the company is ready to help clients realign their supply chains and optimize their networks.

Outside of automotive, Universal is counting on its specialized heavy haul wind operations to contribute significantly in 2025. Despite trucking revenues falling 20% year-over-year, Phillips credited the company’s focus on high-yield, specialized freight for a 24% increase in revenue per load, excluding fuel surcharges.