Hub Group restates prior quarters, flags leadership exits
The transportation-services provider disclosed a $77 million understatement of purchased transportation costs and accounts payable.
The transportation-services provider Hub Group (HUBG) restated three quarters of 2025 results and announced the departures of its chief financial officer and chief operating officer. The company said it understated purchased transportation costs and accounts payable by $77 million in the first three quarters of 2025, though the adjustment had no expected impact on total cash or operating cash flows.
The restatement emerged as Hub Group reported softer demand across its logistics and brokerage units. Full-year 2025 revenue is expected to reach approximately $3.7 billion, down from $3.9 billion in 2024 and in line with prior guidance. Fourth-quarter intermodal volume rose 1% year-over-year, slowing from a 3% sequential gain disclosed earlier, while revenue per load held flat. Brokerage volumes fell 10% in the quarter, outpacing a 4% decline in revenue per load.
Dedicated revenue continued to decline due to lost customer sites earlier in the year, though the company said operational improvements partially offset the drop. The logistics segment, which is expected to generate about $1.6 billion in full-year operating revenue, faced softer demand in the fourth quarter, even as new business wins provided some support.
Capital expenditures totaled $45 million for 2025, down from the prior year, and the company guided 2026 spending to a range of $35 million to $45 million. Net debt fell to $116 million at year-end, a $50 million reduction from December 31, 2024, as cash and restricted cash reached approximately $140 million.
Hub Group returned $44 million to shareholders in 2025, including $30 million in dividends and $14 million in stock repurchases, leaving $142 million remaining under its buyback authorization. The company also introduced a preliminary 2026 revenue outlook of $3.65 billion to $3.95 billion.
Leadership changes announced alongside the results included the departures of CFO Kevin Beth and COO Brian Meents, with Todd Heeter named interim CFO. The company said it had enhanced financial reporting processes and internal accounting controls. Nasdaq issued a deficiency notice on March 19, 2026, due to the delayed filing of its 2025 Form 10-K.