- Universal Logistics Holdings (ULH, Financial) reports a severe 88.6% drop in net income in Q1 2025.
- Operating revenues fell 22.3% to $382.4 million, with operating income plummeting to $15.7 million.
- The company declared a quarterly dividend of $0.105 per share, payable on July 1, 2025.
Universal Logistics Holdings, Inc. (NASDAQ: ULH) reported a significant downturn in its financial performance for the first quarter of 2025. Operating revenues decreased by 22.3% to $382.4 million from $491.9 million in the same quarter last year. Operating income saw a sharp decline, falling by $59.4 million to $15.7 million.
Net income for the quarter dropped dramatically to $6.0 million, or $0.23 per share, a stark contrast to the $52.5 million, or $1.99 per share, reported in Q1 2024. This represents an 88.6% decrease in net income year-over-year.
The company's segments faced widespread challenges. The Contract Logistics segment reported a revenue decline of 18.4% to $255.9 million, coupled with a fall in operating margins to 9.3% from 26.0% a year earlier. The Intermodal segment's revenues decreased by 9.8% to $70.7 million and posted an increased operating loss of $10.7 million. Similarly, the Trucking segment saw revenues fall 20.2% to $55.6 million.
Despite these setbacks, Universal Logistics Holdings maintained its dividend policy. The Board of Directors declared a quarterly dividend of $0.105 per share, which will be payable on July 1, 2025, to shareholders of record as of June 2, 2025.
At the end of the first quarter, the company had $20.6 million in cash and $12.0 million in marketable securities, while carrying a substantial debt load of $740.0 million. CEO Tim Phillips highlighted the challenges faced by the company, including lower auto production and weakness in the freight market, but expressed confidence in recovering through strategic actions and customer acquisition.
