Universal Logistics Holdings, Inc. Q1 FY2025 earnings call

• CEO Tim Phillips thanked employees for their commitment. • Contract logistics segment contributed $255.9M, on track for over $1.1B in 2025, integrating Parsec with 87 value-added programs. • Trucking segment saw revenue drop but revenue per load excluding fuel surcharges increased over 24%, with strong demand in specialized heavy haul wind. • Unimodal segment had revenue decline and operating loss, but new intermodal sales team is gaining traction. • Monitoring impact of tariffs, engaging with customers on manufacturing and storage solutions.

Universal reported total operating revenue of $382.4 million for the first quarter of 2025. The contract logistics segment contributed $255.9 million in revenue with a 9.3% operating margin. The trucking segment had revenues of $55.6 million, down 20.2% year-over-year, with a 3.9% operating margin. The unimodal segment had revenues of $70.7 million and an operating loss of $10.7 million.

• Second quarter 2025 expected top-line revenues between $390 million and $410 million, operating margins between 5% and 7%, and EBITDA margins in the 14% to 16% range. • Full year capital expenditures for equipment expected to be in the $100 million to $125 million range, real estate between $55 million and $65 million, and interest between $48 million and $51 million.

• Uncertainty around tariffs and their impact on business. • Customer wait-and-see approach due to tariff policy. • Potential for import drops starting in early May and its impact on operations.

Q: How were auto OEMs trending month-to-date and their expectations for the rest of the year?

A: Started slow in January, rebounded in February and March with auto production up significantly. Had collaborative conversations with OEMs, two facilities expecting ramped production.

Q: Are you seeing a wait-and-see approach from customers regarding tariffs?

A: Yes, customers are strategizing on sourcing and are in a wait-and-see mode.

Q: Geographical dispersion of facilities for metering and warehousing around ports?

A: Nationally positioned in ports like LA, Long Beach, Oakland, Seattle, Portland, east coast ports, and rail cities like Chicago, Dallas, with presence in major manufacturing areas.

Q: Scenarios for potential abrupt drop in imports starting May?

A: Looking at potential 15% reduction in imports starting mid to late May and analyzing impact.

Q: Impact of flatbed market tightening on heavy haul business?

A: Heavy haul wind business expanded, but open deck division pricing relatively stable with no great upward lift in flatbed transportation.