In This Article:
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Total Operating Revenue: $382.4 million for Q1 2025.
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Net Income: $6 million or $0.23 per share.
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Operating Margin: 4.1% for the quarter.
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EBITDA: $51.7 million, down from $96.9 million in Q1 2024.
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Contract Logistics Revenue: $255.9 million with a 9.3% operating margin.
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Parsec Acquisition Revenue: $56.4 million contribution.
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Trucking Revenue: $55.6 million, down 20.2% year-over-year.
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Intermodal Revenue: $70.7 million with an operating loss of $10.7 million.
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Cash and Cash Equivalents: $20.6 million.
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Capital Expenditures: $52.6 million for the quarter.
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Dividend: $0.105 per share declared for the quarter.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Universal Logistics Holdings Inc (NASDAQ:ULH) reported $382.4 million in total operating revenue for the first quarter of 2025, showing resilience despite a challenging environment.
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The contract logistics segment contributed $255.9 million in revenue with a solid 9.3% operating margin, indicating strong performance in this area.
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The integration and optimization of the Parsec acquisition added $56.4 million in revenue, demonstrating successful expansion efforts.
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Revenue per load in the trucking segment, excluding fuel surcharges, increased by more than 24%, highlighting the effectiveness of focusing on specialized high-yield freight.
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The company is well-positioned geographically with facilities near major ports and rail networks, offering strategic advantages in logistics and storage solutions.
Negative Points
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Net income for the first quarter was $6 million, a significant decline from $52.5 million in the same period last year, reflecting financial challenges.
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The intermodal segment reported an operating loss of $10.7 million, impacted by a decrease in volumes and rate per load.
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Operating margin for the quarter was 4.1%, down from 15.3% in the previous year, indicating reduced profitability.
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The trucking segment saw a 20.2% decrease in revenues due to a 31.3% drop in volumes, showing weakness in this area.
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The company experienced a rough start to the year with a loss in January, impacting overall quarterly performance.
Q & A Highlights
Q: How are auto OEMs trending month to date, and what are the expectations for the rest of the year? A: Jude Beres, CFO, explained that the year started slow, with January being particularly challenging. However, there was significant improvement in February and March, with cross-stock tonnage and auto production increasing substantially. Tim Phillips, CEO, added that conversations with OEMs have been positive, with some facilities planning to ramp up production, indicating a favorable outlook for the rest of the year.