Hub Group, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a decline in both revenue and profitability compared to the previous fiscal period. Total operating revenue for Q3 2024 was $986.9 million, down 4% from $1,024.8 million in Q3 2023. For the nine months ended September 30, 2024, operating revenue totaled $2.97 billion, an 8% decrease from $3.22 billion in the same period of 2023.
Operating expenses for Q3 2024 were $954.8 million, a reduction from $982.3 million in Q3 2023. Despite this decrease, operating income fell to $32.1 million in Q3 2024 from $42.6 million in Q3 2023. For the nine-month period, operating income was $108.8 million, down from $182.8 million in the prior year. Net income for Q3 2024 was $23.6 million, compared to $30.5 million in Q3 2023, while net income for the nine months ended September 30, 2024, was $79.7 million, down from $138.7 million in 2023.
The decline in revenue was primarily attributed to a 17% decrease in intermodal revenue per load within the Intermodal and Transportation Solutions (ITS) segment, despite a 12% increase in intermodal volume. The ITS segment reported revenue of $560 million for Q3 2024, down 6% from the previous year. The Logistics segment, however, saw a slight increase in revenue, driven by growth in final mile services.
On the balance sheet, total current assets decreased to $805.4 million as of September 30, 2024, from $849.2 million at the end of 2023. Total assets also declined to $2.83 billion from $2.94 billion. Current liabilities decreased to $617.9 million, while retained earnings increased to $2.01 billion.
Strategically, Hub Group completed the acquisition of Forward Air Final Mile for $257.2 million in December 2023, which contributed to an increase in headcount to 5,900 employees as of September 30, 2024. The company also initiated a share repurchase program, purchasing 824,149 shares for approximately $35 million during Q3 2024.
Cash provided by operating activities for the nine months ended September 30, 2024, was $193.8 million, a significant decrease from $322.7 million in 2023. The company reported a net cash decrease of $1.1 million in cash and cash equivalents for the nine months, ending with $186.1 million.
Overall, Hub Group's financial performance in 2024 reflects challenges in revenue generation and profitability, alongside strategic acquisitions aimed at enhancing its service offerings.
About Hub Group, Inc.
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