Operating margins have compressed to 4.2% in 2025Q3, reflecting an inability to scale expenses efficiently against a 5.3% year-over-year revenue decline.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 3.73B | 3.95B | 4.2B | 5.34B | 4.23B | 3.5B | 3.67B | 3.68B | 4.03B | 3.57B | 3.53B | 3.57B | 3.37B | 3.12B | 2.75B | 1.83B | 1.51B | 1.86B | 1.66B | 1.61B | 1.53B | 1.43B | 1.36B | 1.34B | 1.32B | 1.38B | 162.41M | 138.33M | 129.85M | 91.56M |
| Revenue Growth % | -5.79% | -6.1% | -21.31% | 26.18% | 21.08% | -4.7% | -0.42% | -8.71% | 12.93% | 1.34% | -1.27% | 5.85% | 8% | 13.54% | 50.05% | 21.36% | -18.79% | 12.21% | 3.02% | 5.1% | 7.34% | 4.94% | 1.79% | 1.24% | -4.7% | 752.37% | 17.41% | 6.53% | 41.82% | - |
| Cost of Goods Sold | 1.91B | 577.46M | 3.7B | 4.45B | 3.63B | 3.07B | 3.15B | 3.24B | 3.58B | 3.12B | 3.11B | 3.2B | 3B | 2.77B | 2.44B | 1.62B | 1.33B | 1.63B | 1.43B | 1.39B | 1.34B | 1.25B | 1.19B | 1.17B | 1.14B | 1.21B | 1.14B | 1.01B | 933.5M | 662.5M |
| COGS % of Revenue | - | 14.63% | 88.02% | 83.34% | 85.83% | 87.83% | 85.79% | 87.9% | 88.66% | 87.27% | 88.29% | 89.63% | 89% | 88.6% | 88.64% | 88.36% | 87.71% | 87.41% | 85.99% | 86.43% | 87.66% | 87.42% | 87.45% | 87.81% | 86.44% | 87.48% | 699.22% | 728.38% | 718.88% | 723.54% |
| Gross Profit | 1.82B | 3.37B | 503.66M | 889.5M | 599.64M | 425.44M | 521.07M | 445.6M | 457.52M | 454.79M | 412.69M | 370.44M | 371.02M | 356.07M | 312.55M | 213.43M | 185.69M | 234.31M | 232.32M | 218.42M | 189.02M | 179.55M | 170.68M | 162.81M | 178.96M | 173.28M | -973.22M | -869.27M | -803.64M | -570.94M |
| Gross Margin % | 48.68% | 85.37% | 11.98% | 16.66% | 14.17% | 12.17% | 14.21% | 12.1% | 11.34% | 12.73% | 11.71% | 10.37% | 11% | 11.4% | 11.36% | 11.64% | 12.29% | 12.59% | 14.01% | 13.57% | 12.34% | 12.58% | 12.55% | 12.19% | 13.56% | 12.52% | -599.22% | -628.38% | -618.88% | -623.54% |
| Gross Profit Growth % | - | 568.88% | -43.38% | 48.34% | 40.95% | -18.35% | 16.94% | -2.6% | 0.6% | 10.2% | 11.41% | -0.16% | 4.2% | 13.92% | 46.44% | 14.94% | -20.75% | 0.86% | 6.37% | 15.55% | 5.28% | 5.19% | 4.83% | -9.02% | 3.28% | 117.8% | -11.96% | -8.17% | -40.76% | - |
| Operating Expenses | 1.67B | 3.23B | 291.43M | 414.78M | 361.18M | 319.61M | 368.65M | 320.68M | 360.97M | 330.95M | 295.67M | 264.33M | 254.37M | 243.71M | 218.09M | 143.55M | 130.16M | 138.85M | 141.58M | 141.18M | 134.64M | 138.95M | 146.39M | 151.67M | 165.01M | 154.88M | 132.28M | 111.93M | 96.36M | 63.64M |
| OpEx % of Revenue | - | 81.81% | 6.93% | 7.77% | 8.53% | 9.14% | 10.05% | 8.71% | 8.95% | 9.26% | 8.39% | 7.4% | 7.54% | 7.8% | 7.93% | 7.83% | 8.61% | 7.46% | 8.54% | 8.77% | 8.79% | 9.74% | 10.77% | 11.36% | 12.51% | 11.19% | 81.45% | 80.91% | 74.21% | 69.5% |
| Selling, General & Admin | 131.16M | 113.7M | 152.73M | 368.82M | 323.72M | 288.37M | 340.17M | 304.06M | 273.57M | 249.09M | 218.95M | 194.49M | 192.11M | 181.97M | 212.49M | 139.76M | 125.98M | 41.23M | 41.42M | 39.93M | 36.85M | 39.22M | 45.65M | 46.82M | 53.61M | 46.84M | 38.23M | 32.88M | 27.48M | 17.15M |
| SG&A % of Revenue | - | 2.88% | 3.63% | 6.91% | 7.65% | 8.25% | 9.27% | 8.25% | 6.78% | 6.97% | 6.21% | 5.45% | 5.69% | 5.82% | 7.72% | 7.62% | 8.34% | 2.22% | 2.5% | 2.48% | 2.41% | 2.75% | 3.36% | 3.51% | 4.06% | 3.38% | 23.54% | 23.77% | 21.16% | 18.73% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.88M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | 0.33% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2.45M | 3.11B | 138.7M | 45.96M | 37.47M | 31.24M | 28.48M | 58K | 724K | 819K | -2.56M | -257K | -28K | -30K | 5.6M | 3.79M | 4.17M | 3.96M | 100.17M | 101.25M | 97.79M | 99.73M | 100.74M | 104.85M | 111.4M | 108.04M | 94.05M | 79.04M | 68.88M | 46.49M |
| Operating Income | 142.66M | 140.29M | 212.23M | 474.72M | 238.46M | 105.83M | 152.42M | 124.92M | 96.55M | 123.83M | 117.03M | 83.88M | 113.75M | 112.36M | 94.46M | 69.88M | 55.53M | 95.46M | 90.74M | 77.24M | 54.38M | 40.6M | 24.3M | 11.14M | 10.55M | 18.4M | 30.13M | 26.41M | 33.49M | 27.93M |
| Operating Margin % | 3.83% | 3.55% | 5.05% | 8.89% | 5.63% | 3.03% | 4.16% | 3.39% | 2.39% | 3.47% | 3.32% | 2.35% | 3.37% | 3.6% | 3.43% | 3.81% | 3.68% | 5.13% | 5.47% | 4.8% | 3.55% | 2.85% | 1.79% | 0.83% | 0.8% | 1.33% | 18.55% | 19.09% | 25.79% | 30.5% |
| Operating Income Growth % | - | -33.9% | -55.29% | 99.08% | 125.33% | -30.57% | 22.02% | 29.38% | -22.03% | 5.81% | 39.53% | -26.26% | 1.23% | 18.95% | 35.17% | 25.84% | -41.83% | 5.2% | 17.48% | 42.03% | 33.95% | 67.1% | 118.07% | 5.62% | -42.67% | -38.94% | 14.12% | -21.16% | 19.95% | - |
| EBITDA | 330.58M | 332.85M | 396.68M | 628.45M | 369.09M | 229.5M | 269.31M | 208.83M | 158.72M | 168.55M | 154.07M | 113.26M | 135.05M | 133.94M | 110.8M | 78.45M | 63.73M | 102.83M | 97.94M | 85.41M | 64.41M | 52.43M | 35.09M | 22.62M | 27.54M | 31.02M | 40.22M | 34.06M | 39.18M | 30.71M |
| EBITDA Margin % | 8.87% | 8.43% | 9.44% | 11.77% | 8.72% | 6.57% | 7.34% | 5.67% | 3.93% | 4.72% | 4.37% | 3.17% | 4% | 4.29% | 4.03% | 4.28% | 4.22% | 5.53% | 5.91% | 5.31% | 4.21% | 3.67% | 2.58% | 1.69% | 2.09% | 2.24% | 24.76% | 24.62% | 30.17% | 33.54% |
| EBITDA Growth % | -0.22% | -16.09% | -36.88% | 70.27% | 60.82% | -14.78% | 28.96% | 31.57% | -5.83% | 9.39% | 36.04% | -16.14% | 0.83% | 20.88% | 41.23% | 23.1% | -38.02% | 5% | 14.67% | 32.61% | 22.85% | 49.4% | 55.16% | -17.87% | -11.21% | -22.88% | 18.07% | -13.07% | 27.59% | - |
| D&A (Non-Cash Add-back) | 187.92M | 192.56M | 184.45M | 153.73M | 130.63M | 123.68M | 116.89M | 83.91M | 62.17M | 44.71M | 37.04M | 29.38M | 21.3M | 21.57M | 16.34M | 8.57M | 8.2M | 7.37M | 7.2M | 8.17M | 10.03M | 11.83M | 10.8M | 11.48M | 16.99M | 12.62M | 10.08M | 7.66M | 5.69M | 2.79M |
| EBIT | 149.58M | 147.01M | 222.64M | 475.46M | 219.28M | 105.44M | 157.22M | 126.34M | 72.67M | 97.65M | 117.03M | 83.65M | 116.65M | 112.46M | 94.94M | 70.15M | 55.98M | 96.43M | 93.34M | 77.24M | 47.9M | 40.6M | -1.13B | 23.7M | 13.95M | 13.49M | 27.34M | 98.8M | 96.7M | 27.9M |
| Net Interest Income | -7.64M | -7.58M | -3.42M | -6.63M | -7.3M | -9.34M | -8.89M | -8.25M | -6.41M | -3.28M | -2.89M | -1.75M | -1.16M | -1.07M | -490K | 65K | 55K | 1.05M | 2.37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5.07M | 6.89M | 10.01M | 874K | 5K | 403K | 2.1M | 1.36M | 349K | 346K | 83K | 32K | 82K | 134K | 118K | 119K | 146K | 1.15M | 2.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 12.71M | 14.46M | 13.44M | 7.51M | 7.31M | 9.75M | 10.99M | 9.61M | 6.75M | 3.63M | 2.97M | 1.78M | 1.25M | 1.21M | 638K | 54K | 91K | 102K | 108K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -5.79M | -7.75M | -3.03M | -6.76M | -7.55M | -9.73M | -8.55M | -8.19M | -5.74M | -2.41M | -5.45M | -2.01M | -1.19M | -1.1M | -162K | 211K | 354K | 864K | 2.49M | 2.27M | 807K | -10.6M | -7.4M | -8.6M | -9.8M | -5.67M | -10.51M | -11.21M | -17.7M | -16.63M |
| Pretax Income | 136.87M | 132.55M | 209.2M | 467.96M | 230.91M | 96.1M | 143.87M | 116.72M | 90.94M | 121.42M | 111.58M | 81.87M | 112.56M | 111.26M | 94.3M | 70.09M | 55.88M | 96.33M | 93.23M | 79.51M | 55.19M | 30M | 16.89M | 2.54M | 751K | 7.83M | 18.38M | 15.21M | 15.87M | 11.34M |
| Pretax Margin % | 3.67% | 3.36% | 4.98% | 8.76% | 5.46% | 2.75% | 3.92% | 3.17% | 2.25% | 3.4% | 3.16% | 2.29% | 3.34% | 3.56% | 3.43% | 3.82% | 3.7% | 5.18% | 5.62% | 4.94% | 3.6% | 2.1% | 1.24% | 0.19% | 0.06% | 0.57% | 11.32% | 10.99% | 12.22% | 12.38% |
| Income Tax | 31.34M | 28.5M | 41.68M | 111.01M | 59.44M | 22.54M | 36.7M | 29.06M | -44.22M | 46.62M | 40.63M | 30.31M | 43.45M | 43.3M | 36.12M | 26.64M | 21.62M | 37.08M | 33.43M | 31.8M | 22.24M | 12.72M | 8.46M | 1.04M | 308K | 3.21M | 7.54M | 6.3M | 6.35M | 4.29M |
| Effective Tax Rate % | 22.9% | 21.5% | 19.92% | 23.72% | 25.74% | 23.46% | 25.51% | 24.9% | -48.62% | 38.39% | 36.42% | 37.02% | 38.6% | 38.92% | 38.3% | 38% | 38.69% | 38.5% | 35.86% | 40% | 40.3% | 42.4% | 50.1% | 41% | 41.01% | 41% | 41% | 41.41% | 40% | 37.87% |
| Net Income | 105.02M | 103.99M | 167.53M | 356.95M | 171.47M | 73.56M | 107.17M | 201.74M | 135.15M | 74.81M | 70.95M | 51.56M | 69.11M | 67.95M | 58.18M | 43.46M | 34.27M | 59.24M | 59.8M | 48.69M | 32.95M | 17.28M | 8.43M | 1.5M | 443K | 4.62M | 9.4M | 8.9M | 9.5M | 7M |
| Net Margin % | 2.82% | 2.64% | 3.99% | 6.68% | 4.05% | 2.1% | 2.92% | 5.48% | 3.35% | 2.09% | 2.01% | 1.44% | 2.05% | 2.18% | 2.11% | 2.37% | 2.27% | 3.18% | 3.61% | 3.02% | 2.15% | 1.21% | 0.62% | 0.11% | 0.03% | 0.33% | 5.79% | 6.43% | 7.32% | 7.64% |
| Net Income Growth % | -3.17% | -37.92% | -53.07% | 108.16% | 133.11% | -31.36% | -46.88% | 49.27% | 80.67% | 5.43% | 37.61% | -25.4% | 1.7% | 16.8% | 33.87% | 26.83% | -42.16% | -0.93% | 22.83% | 47.78% | 90.67% | 104.97% | 462.75% | 238.15% | -90.41% | -50.91% | 5.67% | -6.32% | 35.71% | - |
| Net Income (Continuing) | 105.53M | 104.04M | 167.53M | 356.95M | 171.47M | 73.56M | 107.17M | 87.66M | 120.01M | 57.65M | 70.95M | 51.56M | 69.11M | 67.95M | 58.18M | 43.46M | 34.27M | 59.24M | 59.8M | 47.7M | 29.18M | 17.28M | 6.91M | 1.5M | 443K | 2.68M | 9.4M | 8.9M | 9.5M | 7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 114.08M | 15.14M | 17.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 981K | 3.77M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 53.14M | 46.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 352K | 759K | 5.97M | 6.79M | 10.71M |
| EPS (Diluted) | 1.74 | 1.70 | 2.62 | 5.32 | 2.53 | 1.10 | 1.60 | 3.01 | 4.05 | 2.20 | 1.97 | 1.40 | 1.87 | 1.83 | 1.57 | 1.16 | 0.91 | 1.58 | 1.53 | 1.19 | 0.80 | 0.46 | 0.27 | 0.05 | 0.02 | 0.08 | 0.30 | 0.29 | 0.37 | 0.34 |
| EPS Growth % | -1.7% | -35.11% | -50.75% | 110.28% | 130% | -31.25% | -46.84% | -25.68% | 84.09% | 11.68% | 40.71% | -25.13% | 2.19% | 16.56% | 35.34% | 27.47% | -42.41% | 3.27% | 28.57% | 48.75% | 73.91% | 70.37% | 440% | 233.33% | -80.08% | -74.9% | 3.45% | -21.62% | 8.82% | - |
| EPS (Basic) | - | 1.72 | 2.65 | 5.37 | 2.56 | 1.11 | 1.61 | 3.02 | 4.07 | 2.21 | 1.98 | 1.41 | 1.88 | 1.83 | 1.58 | 1.17 | 0.92 | 1.59 | 1.55 | 1.22 | 0.83 | 0.49 | 0.27 | 0.05 | 0.02 | 0.08 | 0.31 | 0.29 | 0.37 | 0.34 |
| Diluted Shares Outstanding | 60.32M | 61.1M | 63.95M | 67.12M | 67.78M | 67.09M | 66.96M | 67.12M | 66.7M | 67.9M | 71.94M | 73.46M | 73.96M | 74.37M | 74.13M | 74.77M | 75.05M | 74.97M | 78.26M | 81.65M | 82.78M | 75.11M | 62.44M | 59.92M | 61.73M | 61.33M | 62.18M | 61.91M | 52.05M | 41.48M |
| Basic Shares Outstanding | 60.07M | 60.62M | 63.32M | 66.42M | 66.87M | 66.36M | 66.57M | 66.79M | 66.44M | 67.68M | 71.75M | 73.18M | 73.66M | 74.11M | 73.83M | 74.45M | 74.73M | 74.35M | 77.32M | 79.92M | 79.72M | 70.4M | 62.44M | 59.92M | 61.66M | 61.33M | 61.67M | 61.38M | 51.35M | 41.18M |
| Dividend Payout Ratio | - | 29.08% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 9.83% | 111.47% | 122.91% | 220.22% | 15.71% |
Freight recession volume sensitivity
As indicated by recent quarterly filings, Hub Group has experienced a consistent decline in top-line performance, with revenue growth rates remaining negative for ten consecutive quarters, culminating in a 5.3% year-over-year contraction in 2025Q3 as the company struggles against broader freight market headwinds.
The persistent negative growth trajectory suggests that the company is failing to capture sufficient volume to offset pricing pressures in the intermodal segment. Investors should monitor whether this trend reflects a structural loss of market share to over-the-road trucking alternatives or merely a cyclical trough in the broader logistics environment.
Based on the provided financial data, Hub Group exhibits extreme volatility in reported gross margins, which fluctuated from as low as 7.3% in 2024Q3 to an anomalous 84.2% in 2025Q2, suggesting significant inconsistencies in how purchased transportation costs are classified across different reporting periods.
This erratic margin profile complicates fundamental analysis and makes it difficult to assess the company's true pricing power. The lack of stability in these figures warrants further investigation into whether management is shifting accounting methodologies to mask underlying margin compression in the core intermodal business.
According to the income statement, Hub Group's operating margin has compressed to 4.2% in 2025Q3, demonstrating a clear inability to scale operating expenses efficiently as revenue declines, which indicates that the company's fixed cost base remains a significant burden during periods of lower freight volume.
The inability to maintain operating margins above 5% in recent quarters suggests that the company lacks the necessary operating leverage to protect profitability during downturns. This may imply that the current asset-right model is not providing the expected flexibility to pivot costs in alignment with falling demand.
As reported in financial statements, Hub Group consistently incurs stock-based compensation expenses exceeding $4.5 million per quarter, which represents a meaningful portion of net income and suggests that reported EPS figures may be artificially supported by equity-based incentives rather than pure operational cash generation.
The reliance on stock-based compensation as a recurring expense item may indicate that management is attempting to preserve cash at the expense of shareholder dilution. Analysts should scrutinize the impact of these non-cash charges on the quality of earnings, particularly given the company's thin net profit margins.
While management emphasizes diversification, the data suggests that Hub Group remains highly vulnerable to a prolonged freight recession, as evidenced by the 20.5% EPS growth in 2025Q3 occurring despite a 5.3% revenue decline, which may indicate unsustainable cost-cutting rather than genuine operational improvement.
Short-sellers may focus on the potential for margin collapse if the company is forced to reinvest in its aging trailing equipment fleet while truckload rates remain depressed. The current earnings profile appears fragile and may not be representative of a sustainable recovery in the absence of a broader industry rebound.
Quick answers to the most common questions about buying HUBG stock.
For fiscal year 2024, Hub Group, Inc. (HUBG) reported total revenue of $3.95B. This represents a 4210.0% increase compared to $91.6M in 1996.
Hub Group, Inc. (HUBG) is profitable, generating $104.0M in net income for the fiscal year ending 2024 with a net profit margin of 2.6%.
Hub Group, Inc. (HUBG) reported an operating income of $140.3M, resulting in an operating profit margin of 3.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Hub Group, Inc. (HUBG) generated $3.37B in gross profit for the year, representing a gross profit margin of 85.4%. This demonstrates the company's core pricing power and production efficiency.