Universal Logistics slips to Q1 loss as intermodal collapse deepens

Universal Logistics Holdings swung to a nonaccomplishment successful the archetypal 4th arsenic continued weakness successful its intermodal conception dragged down wide performance, contempt humble maturation successful its declaration logistics business.

The Warren, Michigan-based logistics supplier reported Q1 2026 gross of $367.6 million, down from $382.4 cardinal a twelvemonth earlier, alongside a nett nonaccomplishment of $3.5 million, oregon $(0.13) per share, compared to nett income of $6 million, oregon $0.23 per share, successful Q1 2025.

Universal’s (NASDAQ: ULH) operating income besides fell sharply to $4.8 million, with operating borderline compressing to 1.3%, down from 4.1% past year.

CEO Tim Phillips pointed to ongoing softness successful intermodal markets arsenic the superior operator down the anemic quarter.

“Our first-quarter show reflects a dilatory commencement to the twelvemonth driven chiefly by continued weakness successful our intermodal segment, including little volumes and pricing pressure,” Phillips said successful a quality release.

Universal’s intermodal conception saw the steepest decline, with gross falling 32.3% twelvemonth implicit twelvemonth to $47.9 cardinal arsenic some volumes and pricing deteriorated.

Load volumes dropped 23.3%, portion gross per load declined much than 10%, pushing the conception to an operating nonaccomplishment of $13.1 cardinal and a antagonistic borderline of 27.4%.

The institution said the betterment successful intermodal is taking longer than expected, though it is implementing operational changes aimed astatine restoring profitability.

In contrast, Universal’s declaration logistics conception continued to supply a buffer against broader marketplace softness.

Revenue successful the conception roseate 5.3% twelvemonth implicit twelvemonth to $269.5 million, driven by dedicated proscription and value-added services.

However, profitability declined, with operating income falling to $17.5 cardinal and margins narrowing to 6.5%, suggesting rising costs and little ratio crossed programs.

The trucking conception besides posted declines, with gross down 9.7% to $50.2 cardinal amid little volumes and pricing pressure.

Brokerage activity, embedded wrong trucking, generated $16.7 cardinal successful revenue, down from $20.3 cardinal a twelvemonth earlier.

Operating income successful trucking fell to conscionable $0.6 million, reflecting tighter margins crossed the segment.

Universal’s EBITDA declined to $40.7 million, down from $51.7 cardinal past year, with EBITDA borderline falling to 11.1%.

The institution ended the 4th with $17.9 cardinal successful currency and $754.7 cardinal successful debt, portion superior expenditures totaled $9.6 million.

Despite the weaker quarter, the institution declared a quarterly dividend of 10.5 cents per share, signaling assurance successful its longer-term outlook.