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Universal Logistics Holdings, Inc. Reports Third Quarter 2025 Results

On November 6, 2025, Universal Logistics Holdings, Inc. (NASDAQ: ULH) released its financial performance for the third quarter of 2025, revealing both challenges and ongoing strengths across its business segments. With consolidated operating revenues amounting to $396.8 million, the company faced an operation loss of $(74.2) million, contributing to a net loss of $(74.8) million. Earnings per share stood at $(2.84).

Financial Highlights:

• - Operating Revenues: $396.8 million
• - Operating Loss: $(74.2) million
• - Net Loss: $(74.8) million
• - Earnings Per Share: $(2.84)

A significant driver of this loss was attributed to non-cash impairment charges, totalling $81.2 million, focused primarily on the intermodal reporting segment. In contrast, the same quarter last year delivered operating revenues of $426.8 million with an income from operations of $42.6 million, highlighting a stark year-over-year performance difference.

Impairment Charges Breakdown:

• - Goodwill Impairment: $58.0 million
• - Intangible Assets Impairment: $23.2 million

Excluding these charges, the adjusted income from operations, a non-GAAP measure, registered at $7.0 million. The adjusted operating margin was reported at 1.8%, compared to 10.9% for the third quarter of 2024.

The adjusted EBITDA for this quarter was $43.3 million, down from $76.6 million during the same quarter in the prior year, with the adjusted EBITDA margin sitting at 10.9%, lower than the 18.0% mark from the previous year.

Segment Analysis:

Contract Logistics:

• - Operating Revenues: $264.4 million
• - Operating Income: $13.7 million

Contract logistics proved to be one of the more favorable segments, gaining an increase of 7.8% in operating revenues. This segment's growth included contributions from the recent acquisition of Parsec, which brought in $50.2 million. However, operating income fell significantly compared to the previous year, decreasing to $13.7 million from $45.6 million.

Intermodal Services:

• - Operating Revenues: $64.7 million
• - Operating Loss: $(92.0) million

The intermodal segment faced a notable decline with revenues down 16.7%, reflecting a difficult operational climate, pushing the segment into a significant operating loss, which included the previously mentioned impairment charges.

Trucking:

• - Operating Revenues: $67.7 million
• - Operating Income**: $3.9 million

In the trucking segment, revenues fell by 22.2% year-over-year. Operating income also showed a decrease to $3.9 million from $7.1 million despite including brokerage services revenue of $17.3 million.

Dividend Declaration:

In positive news, Universal Logistics declared a cash dividend of $0.105 per share for its shareholders, payable to those recorded at close of business on December 1, 2025, with payment expected on January 2, 2026. This decision reflects the company’s commitment to providing shareholder value despite its operational hurdles.

Future Outlook:

Moving into the fourth quarter of 2025, Universal Logistics anticipates operating revenues to be between $365 million and $385 million, with expected operating margins ranging from 4% to 6%, and EBITDA margins estimated between 12% and 14%. Management remains focused on operational improvements and returning branches like intermodal to profitability.

President and CEO Tim Phillips confirmed, "Despite the challenges posed by the impairment charges in Q3 2025, our core business model remains robust. Our contract logistics segment continues to perform well, backed by high demand for our services, and we are dedicated to enhancing operational performance across all segments."

Universal Logistics Holdings, Inc. remains a vital part of the transportation and logistics landscape, boasting a diverse range of offerings that position it to adapt to changing market demands while pursuing sustainable growth strategies.