Universal Logistics Reports 19% Gain in Q4 Revenue
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Universal Logistics Holdings experienced a 19% year-over-year increase in revenue but a slight dip in net income for the fourth quarter of 2024, the company reported Feb. 6.
The Warren, Mich.-based asset-light transportation and logistics company posted net income of $20.2 million, or 77 cents a diluted share, for the three months ending Dec. 31. That compared with $21.4 million, 81 cents, during the same time the previous year. Total operating revenue increased to $465.1 million from $390.9 million.
"Universal notched another solid performance during the fourth quarter, making the full-year 2024 our second best financial performance in company history," CEO Tim Phillips said in a release accompanying the earnings report.
During a call with investors, Phillips said, “Our results demonstrated how Universal’s diverse service offerings continue to set us apart in the transportation and logistics industry. Against the persistently weak freight backdrop, our comprehensive logistics solutions have once again driven exceptional performance.”
Universal Logistics announced at the end of the third quarter that it had acquired terminal management services company Parsec. Phillips pointed to the acquisition as an example of where the company has been investing in the contract logistics space.
“Parsec had its highest Q4 revenue in its history and its highest lift volume since COVID,” Phillips said. “The acquisition has allowed Universal to build new customer relationships and will continue to provide opportunities of cross-sell on our other services. We are extremely pleased with the early performance of this acquisition and believe there are further synergies to be recognized going forward. The Parsec acquisition was truly transformational for Universal.”
Wall Street analysts for Q4 had forecast 93 cents per share and revenue of $427.3 million, according to Zacks Consensus Estimate.
For Q4, the company’s trucking segment saw revenue increase 11.5% to $83.8 million from $75.2 million the previous year. The result included $22.8 million of brokerage services. Load volume declined 17% year over year, but average operating revenue per load increased 30.5%. This gain was driven primarily by the specialty and heavy-haul wind business, Universal said. Income from operations rose 132% to $5.8 million from $2.5 million the prior year.
Revenue in the company’s Intermodal segment decreased 15.9% to $73.1 million from $86.9 million the prior year as load volumes declined 15.3%, and average operating revenue per load declined by 2.2% year over year. Intermodal segment revenue included accessorial charges, such as detention, demurrage and storage, which totaled $8.6 million. The unit’s Q4 operating loss widened to $9.7 million compared with a loss of $1 million the prior year.
“While I’m pleased with Universal’s overall performance, results continue to vary across reporting segments,” Phillips said. “Our contract logistics business continues to be a standout performer, consistently achieving double-digit operating margins and serving as the cornerstone of our success. Our trucking segment has also delivered strong results. Despite ongoing weakness in the truckload market, demand for our specialized heavy-haul wind business remains robust, driving trucking to its highest operating margin in over two years. We expect this momentum to continue.”
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Contract logistics segment revenue increased 52.7% to $307.4 million from $201.3 million the prior year. The result included $51.3 million attributable to a specialty development project in Stanton, Tenn., which was completed during the quarter. Also included was an additional $59.5 million from the Parsec acquisition. Income from operations increased 21.8% to $39.1 million from $32.1 million.
“Our intermodal segment remains a challenge, performing below expectations,” Phillips said. “That said, we are highly focused on reducing costs and improving efficiencies, and our efforts are yielding results. The fourth quarter was the second straight quarter of positive [earnings before interest, taxes, depreciation and amortization] contributions from the intermodal segment, indicating our cost control efforts have been effective.”
For the full year, Universal reported net income of $129.9 million, $4.93, on revenue of $1.85 billion, compared with net income of $92.9 million, $3.53, on revenue of $1.66 billion in 2023.
Universal ranks No. 27 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 43 on the TT Top 100 list of the largest logistics companies.
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