Latest news with #Intermodal
Yahoo
3 days ago
- Business
- Yahoo
Uber Freight still a negative EBITDA but it's improving
Uber Freight moved closer toward a positive EBITDA in the second quarter, but it isn't there yet. EBITDA at Uber Freight was negative $6 million, according to the company's second quarter earnings released Wednesday. That was an improvement from the negative $7 million in the first quarter. The results continue the streak where after posting positive EBITDA in the third and fourth quarters of 2022, Uber Freight has failed to bust through that breakeven point again. However, the last two quarters have shown significant improvement in its negative EBITDA numbers. Uber Freight's EBITDA in the fourth quarter of 2024 was negative $22 million. A year ago, it was negative $12 million before sliding to negative $19 million in the third quarter before the big decline at the end of the year. The small shifts led to a slight improvement in the EBITDA margin as a percent of revenue, rising to negative 0.5% from negative 0.6%. In the fourth quarter, that number was negative 1.7%. 'Uber Freight is seeing strong momentum across our business, driven by continued growth in Transportation Management and brokerage, as well as improved margins,' a company spokeswoman said. 'Our recent advancements in AI — including the launch of the industry's first scaled AI logistics network powered by a proprietary large language model — are helping shippers automate execution, gain proactive intelligence, and unlock new efficiencies. We're also seeing sustained strength in Intermodal, where volumes have grown significantly year-over-year as customers diversify their mode mix and benefit from our deep railroad partnerships.' More than in the past, the company's earnings report and conference call with analysts had nothing to say about its Freight division. There was no commentary in the earnings about the group's performance, just a report on its financial numbers. There usually are a few sentences of comments on the company's activities in the quarter; there were none this quarter. References to Uber Freight on the parent company's (NYSE: UBER) conference call with analysts are infrequent. There were none this quarter. More articles by John Kingston Each driver's payout in Lytx Illinois biometrics case will be between about $650 and $850 Uber Freight's best EBITDA in years gets little attention Uber Freight CEO vows focus on growing opportunities for carriers The post Uber Freight still a negative EBITDA but it's improving appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
JB Hunt Transport Services Inc (JBHT) Q2 2025 Earnings Call Highlights: Navigating Flat Revenue ...
Free Cash Flow: Over $225 million generated in the second quarter. Revenue: Flat on a consolidated GAAP basis compared to the prior-year quarter. Operating Income: Decreased by 4% year-over-year. Diluted Earnings Per Share: Less than 1% below the prior-year quarter. Cost Reduction Initiative: $100 million identified annual cost to eliminate. Net Capital Expenditures: Expected between $550 million and $650 million for 2025. Stock Repurchase: $319 million repurchased in the second quarter, a quarterly record. Intermodal Volume Growth: Up 6% year-over-year, with Eastern volume growing 15%. Dedicated Segment Sales: Approximately 275 trucks sold in new deals during the second quarter. Warning! GuruFocus has detected 5 Warning Signs with JBHT. Release Date: July 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. JB Hunt Transport Services Inc (NASDAQ:JBHT) achieved back-to-back years of record safety performance and low driver turnover metrics. The company completed Intermodal bid season with positive pricing for the first time in two years, gaining market share. JBHT generated over $225 million of free cash flow in the quarter, highlighting the strength and resiliency of its business. The company has identified $100 million in annual cost savings through efficiency, productivity, and asset utilization improvements. JBHT's balance sheet remains strong with minimal leverage, allowing for continued investment in growth and shareholder returns. Inflationary pressures, particularly in wages, insurance, and equipment costs, negatively impacted margins. Consolidated GAAP revenue was flat, and operating income decreased by 4% compared to the prior-year quarter. The company's brokerage business still requires work to rightsize the cost structure and grow with the right customers. Demand for big and bulky products in the Final Mile segment remains muted, affecting performance. The company did not achieve the desired rate increases in the Intermodal bid season to fully cover inflationary costs. Q: Darren, when considering the revenue per load cadence for the next four quarters, does the rest of the year and early next year look like 2Q, or is there anything that can change the dynamic of that driver? A: Darren Field, Executive Vice President, President of Intermodal, explained that mix can play a significant role, with current results reflecting customer noise around tariffs and imports. Core pricing is slightly positive, and they will be closely watching the highway market to adapt. Intermodal traditionally lags behind the truck market, but they aim to keep up faster as the year progresses. Q: Can you provide more detail on the $100 million cost savings initiative and how it will play out through the rest of '25 and beyond? A: John Kuhlow, CFO, stated that the $100 million initiative is a continuation of previous efforts and focuses on efficiency, productivity, asset utilization, and technology improvements. The savings will be proportionate to the level of spend within segments, with Dedicated sharing a fair proportion due to its large area of spend. Q: Can you provide insights into cost improvement initiatives specific to ICS? A: Nicholas Hobbs, COO, mentioned that ICS has been working on span and control to get more efficient with people, resulting in a $3 million reduction in operating expenses. The focus is on driving cost out through efficiency and productivity improvements. Q: Can you elaborate on the cost savings target and how much is volume dependent? A: John Kuhlow, CFO, explained that the cost savings target involves structural changes across salaries, benefits, equipment utilization, and more. While volume improvement will help, the focus is on removing structural costs from the system. Q: Are we at a point where year-over-year Intermodal margins can start improving, or do we need to wait for another pricing cycle? A: Darren Field, Executive Vice President, President of Intermodal, believes margins have stabilized and cost initiatives will help moving forward. While pricing hasn't kept up with cost pressures, growth and cost control are also factors that can help improve margins. Q: Can you discuss the impact of the dedicated customer loss that trickled into July on 2Q margins? A: Bradley Hicks, Executive Vice President - People, President of Highway Services, stated that the timing of the customer loss had no material impact on 2Q profitability. The business was in line with operating results, and the timing of the account closure was a minor factor. Q: How do you see peak season developing given customer uncertainty and tariffs? A: Spencer Frazier, Executive Vice President, Sales and Marketing, noted that peak season will vary for each customer due to changes in trade policy and sourcing strategies. The company is prepared with people and equipment to meet demand whenever it occurs. Q: Is the convergence of Intermodal and Dedicated EBIT cyclical or structural, and how do you see their trajectories in an upcycle? A: Brad Delco, Senior Vice President, Finance, explained that the convergence is more cyclical, with Dedicated closer to its margin target range. Both segments have strong secular trends, and the company is focused on growth and cost control to improve margins. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Malaysian Reserve
09-07-2025
- Business
- Malaysian Reserve
Magaya Closes Successful Second Quarter 2025
MIAMI, July 9, 2025 /PRNewswire/ — Magaya Corporation, the leading freight management platform for logistics service providers, today announced a successful close to the second quarter, with revenue base growth right on track for the second quarter and ahead of projections for the first half of the year. 'Uncertainty has become the new normal for logistics service providers,' said Gary Nemmers, CEO of Magaya. 'In 2025, change isn't slowing down, and neither can our customers. That's why we continue to invest in flexible, forward-thinking solutions that help businesses stay compliant, operate efficiently, and turn disruption into advantage.' Additional business highlights for Q2 2025 include: Added over 60 new customer logos in New Zealand, Malaysia, France, Mexico, Canada, and the United States, among several other countries. Announced a new strategic VAR partnership with FOB Logistics, solidifying Magaya's presence in Australia and New Zealand and reinforcing support for freight forwarders in the region. Achieved 100% of operating plan including solid customer retention goals. Exhibited at trade shows around the globe, from the NCBFAA Annual Conference in the USA to Intermodal in Brazil and Transport Logistic in Germany. Hosted Solid Gold, a standout event in Miami celebrating freight forwarders and logistics professionals. The event brought together industry leaders from around the world for a night of recognition and connection. Celebrated standout customers with the inaugural Golden MVP Awards, recognizing excellence in innovation, service, and partnership across the logistics industry. Earned a remarkable 17 badges across multiple Spring 2025 G2 Reports, including Grid Leader in four reports, Best Estimated ROI, Best Usability, and Fastest Implementation. 'As we move into the second half of the year, our focus remains on delivering meaningful innovation that drives real results,' said Gary Nemmers, CEO of Magaya. 'With technologies like AI advancing at a remarkable pace, we're committed to helping logistics service providers put that power to work, making smarter decisions faster than ever before and staying ahead in a world that refuses to sit still.' About MagayaMagaya, the number one freight management platform for logistics service providers, is Moving Freight Forward with a Digital Freight Platform that optimizes the entire origin-to-destination supply chain through flexible, interoperable, and modular cloud-based software. Whether used together as an integrated suite or independently, Magaya solutions enable businesses of all sizes to simplify complex logistics processes, enhance the customer experience, and grow revenues alongside profits. At Magaya, we are passionately devoted to our customers' success and don't hesitate to go the extra mile. There are no limits to your growth with Magaya. Visit to learn more.
Yahoo
29-06-2025
- Automotive
- Yahoo
Trucking market stalls in first half of 2025, despite tumultuous trade environment
Chart of the Week: Van Contract initial report of average base rate per mile, National Truckload Index (less estimated fuel costs above $1.20/gal) – USA SONAR: Contract rates for dry van truckload shipments (VCRPM1) are nearly unchanged from this point in 2024, despite the disruptive forces that rocked supply chains earlier this year. Spot rates (NTIL12), which appeared to be accelerating their rise at the end of 2024, are ending the first half of 2025 slightly below year-ago levels. Both rate indices suggest a trucking market that has stalled in its recovery. What are the takeaways from the first half, and what should we watch for in transportation markets over the next six months? After what looked like a straightforward path toward a much stronger freight market in 2025, transportation service providers are closing out the first half of the year in no better position than they were 12 months ago. While the trade war has played a role, it is not the sole driver of stagnation. Intermodal began reclaiming market share from truckload, which it had lost during the pandemic, early last summer. Long-haul truckload demand (LOTVI) has collapsed—down 25% year-over-year—as shippers have increasingly opted for slower but cheaper transcontinental shipping. Intermodal capacity has expanded significantly since 2020, and it is far easier to add containers into service. This dynamic is arguably the most significant and unforeseen development in the recent multi-year surface transportation downcycle. Shippers have also extended their order lead times to account for the unstable maritime sector, as attacks on vessels in the Red Sea have made ocean shipping less reliable. These longer lead times have given shippers more flexibility to move goods once they arrive in the U.S. Warehousing capacity has tightened and costs have risen as a result of this pull-forward strategy. In this environment, intermodal's slower transit becomes an advantage, effectively serving as rolling storage. Trucking has increasingly become a short-haul delivery mechanism—the only option for that final leg of freight movement. Erratic trade policy messaging and implementation have further prolonged and exacerbated these trends, keeping truckload demand depressed and surface transportation rates subdued. So far, we've focused on the direct impacts of geopolitical tensions and trade policy on supply chains. But at the end of the American economy is the consumer. Companies can stockpile all the goods they want, but if no one is buying them, it doesn't matter. The housing market has remained muted. This segment drives a significant share of consumption—not only through construction but also indirectly as people move and purchase furniture and appliances. Relatively high interest rates and sluggish hiring are largely to blame. Thirty-year mortgage rates were near 3% just a few years ago but have hovered just below 7% in recent months. While a 7% mortgage is not historically high, it is substantially higher than what many homeowners locked in previously, discouraging moves. Housing prices have also not been immune to the historic inflation of recent years, compounding the impact of rising rates. The job market is weakening, though not at a historic pace. Jobless claims have edged higher since January, and companies have slowed hiring. While the unemployment rate hasn't moved significantly, the deterioration trend is well established. Most economic headlines have centered on the collapse in consumer and business confidence indices. The University of Michigan's Index of Consumer Sentiment fell from 74 in December to 60.7 in June, up slightly from May's low of 52.2. Sentiment indices don't always track directly with activity, but when consumers and businesses feel uncertain, they tend to pull back, slowing the economy—and freight volumes—further. It is nearly impossible to predict what will happen with policy or geopolitical developments. But a few things are certain. The most important factor for transportation service providers is that capacity continues to exit the market, and new barriers to entry are emerging. While demand erosion has delayed a significant rebound in trucking, it hasn't changed the fact that capacity is steadily shrinking. Intermodal will continue to keep overall rates in check as long as urgency remains low. The transportation market has always needed a catalyst to flip, and these catalysts are often unpredictable. Still, the likelihood of a sharp shift continues to rise. While some dismiss this narrative as tired, the underlying math hasn't changed. If any economic clarity emerges or a stimulating event occurs in the second half of 2025, the shift could be sudden and significant. After more than three years of unwinding excess capacity, the market is increasingly vulnerable. Language requirement enforcement and increased vetting from government agencies will at bare minimum make it harder to get a CDL. Net revocations of trucking operating authorities are still averaging well above last year's levels, signaling that conditions remain unfavorable but are inching closer to an inflection point. The FreightWaves Chart of the Week is a chart selection from SONAR that provides an interesting data point to describe the state of the freight markets. A chart is chosen from thousands of potential charts on SONAR to help participants visualize the freight market in real time. Each week a Market Expert will post a chart, along with commentary, live on the front page. After that, the Chart of the Week will be archived on for future reference. SONAR aggregates data from hundreds of sources, presenting the data in charts and maps and providing commentary on what freight market experts want to know about the industry in real time. The FreightWaves data science and product teams are releasing new datasets each week and enhancing the client experience. To request a SONAR demo, click here. The post Trucking market stalls in first half of 2025, despite tumultuous trade environment appeared first on FreightWaves.
