Copyright FreightWaves
Universal (NASDAQ: ULH) previously postponed its earnings release so it could further evaluate the potential impairments. It did not hold a quarterly call on Friday. Consolidated revenue of $397 million was 7% lower y/y. The company’s contract logistics unit reported $264 million in revenue, an 8% y/y increase. Revenue from value-added services increased 13% as total active projects increased 17% but revenue per program was off 4%. The period included $50 million in additional revenue from the acquisition of rail terminal operator, Parsec. The deal closed at the end of the 2024 third quarter. The unit recorded a 5.2% operating margin, which was more than 13 percentage points lower y/y. Headcount in value-added services, including full-time equivalents, was up 45% y/y. Value-added revenue per employee declined 22%. “Our contract logistics segment once again delivered favorable results and remains a central driver of our performance,” Phillips said. Intermodal revenue was down 17% y/y to $65 million as loads fell 2% and revenue per load (excluding fuel surcharges) was down 14%. The unit booked a $10.7 million adjusted operating loss, excluding the impairment. That compared to a $1.1 million loss in the year-ago quarter. “Although the reversal of performance trends in our intermodal franchise is taking longer to materialize, we continue to make operational improvements and will strive to return this business segment to profitability,” Phillips said. Strong demand for Universal’s specialized heavy-haul services is helping offset a weak trucking market. The company’s trucking unit reported $68 million in revenue, a 22% y/y decline. A 5.8% operating margin was 240 bps lower y/y. The company’s fourth-quarter guidance includes revenue of $365 million to $385 million, operating margins of 4% to 6%, and EBITDA margins between 12% and 14%. The consensus revenue estimate was $423 million at the time of the print. “We believe that Universal’s diversified service offerings continue to differentiate us in the market, and we remain focused on the execution of our strategy to drive long-term success,” Phillips said. Shares of ULH were off 2.1% at 10:28 a.m. EST on Friday compared to the S&P 500, which was down 0.5%. More FreightWaves articles by Todd Maiden:
