Universal Logistics Holds Steady in Financial Performance with Solid Q4 Results

Universal Logistics Holdings Reports Fourth Quarter 2024 Financial Results

Universal Logistics Holdings, Inc. (NASDAQ: ULH) has announced its consolidated financial results for the fourth quarter of 2024, reflecting a net income of $20.2 million, or $0.77 per diluted share. This represents a decline from last year’s net income of $21.4 million, which calculated to $0.81 per diluted share. However, the total operating revenues increased significantly to $465.1 million, marking a 19% rise compared to the $390.9 million reported in the same quarter last year.

Yearly Performance

For the entire fiscal year 2024, Universal achieved an impressive net income of $129.9 million, or $4.93 per diluted share, alongside total operating revenues of $1.85 billion. These results indicate a substantial improvement from the previous year, where net income was $92.9 million, translating to $3.53 per diluted share on revenues totaling $1.66 billion.

Tim Phillips, the CEO of Universal Logistics, commented positively on the fourth quarter results, referring it as a strong finish to an overall successful year. He highlighted the contract logistics segment as the backbone of their continued success, alongside the effective integration of their recent acquisition, Parsec.

Segment Breakdown

Contract Logistics

The contract logistics segment excelled, reporting an operating revenue of $307.4 million—a remarkable 52.7% increase from the previous year’s $201.3 million. This boost was largely driven by a significant $51.3 million from their specialty development project in Stanton, TN, and an additional $59.5 million stemming from the Parsec acquisition. The operating income hit $39.1 million, reflecting a 12.7% operating margin despite a slight decrease from 15.9% year-on-year.

Intermodal Services

Conversely, the intermodal services segment faced challenges, experiencing a 15.9% decline in operating revenues to $73.1 million. The number of load volumes decreased sharply by 15.3%, which adversely affected the profitability, driving the operating margin into a loss at $(9.7) million. Nevertheless, there was still revenue generated from identified fuel surcharges, which amounted to $9.1 million.

Trucking Segment

In contrast, the trucking segment experienced an increase in operating revenues by 11.5%, reaching $83.8 million. The segment benefitted from a substantial surge in average revenue per load, growing 30.5% primarily due to their niche heavy-haul services. The operating income for this segment was $5.8 million resulting in an operating margin of 6.9%, a notable improvement from the previous year.

Dividend Announcement

In light of the positive results, Universal's Board of Directors also announced a quarterly cash dividend of $0.105 per share. This payment will benefit shareholders recorded by the end of business on March 3, 2025, with disbursements slated for April 1, 2025.

Financial Position

As of the end of December 2024, Universal Logistics holds $19.4 million in cash and cash equivalents, along with $11.6 million in marketable securities, maintaining a healthy financial position despite an outstanding debt of approximately $762.6 million. The year marked total capital expenditures of $37.4 million.

Tim Phillips reiterated commitment toward continued growth and improvement across all segments, emphasizing the organization’s focus on enhancing efficiencies and maintaining rigorous cost control. The company is looking ahead, prepared to adapt and thrive in an ever-evolving market landscape.

Conclusion

With this solid quarterly performance, Universal Logistics is setting the stage for a promising outlook while remaining focused on long-term strategies for sustainability and growth. The company invites investors and analysts to join their upcoming quarterly earnings conference call for further insights on their financial position and future strategies.