Universal Logistics Holdings lowered its full-year 2025 guidance amid a sluggish automotive production market and challenges in intermodal sales.
The company released its fourth-quarter results after the market closed on Thursday and held an earnings call Friday.
Officials said on the call that they expect total revenues of $1.7 billion to $1.8 billion and operating margins in the 7% to 9% range for 2025.
In the third quarter, the company’s full-year guidance for 2025 called for revenues between $1.8 billion and $1.9 billion, and operating margins between 10% and 12%.
“The tick down in our operating margin guidance includes … the roll off of a specialty development program that was completed in 2024, the additional depreciation and amortization expenses, expense increases due to recent acquisitions, softness in our automotive customers, production expectations for the first quarter and continued headwinds in our intermodal segment, specifically in Southern California,” Jude Beres, Universal Logistics CFO, said during the call before the market opened.
For the first quarter of 2025, company officials forecast revenues between $390 million and $410 million and operating margins in the 6.5% to 7.5% range.
Universal Logistics (Nasdaq: ULH) is a Warren, Michigan-based truckload transportation, intermodal and logistics provider. The company provides services across the U.S, Mexico, Canada and Colombia and has more than 10,000 employees.
In the fourth quarter, the company reported a 19% year-over-year increase in total revenue to $465.1 million.
The company also reported earnings per share of 77 cents in the fourth quarter, a decrease of 4.9% from the same period in 2023.
Universal Logistics beat Wall Street analysts’ revenue estimates of $435.7 million in the fourth quarter but missed on EPS expectations of 92 cents per share.
“I’m pleased with Universal’s overall performance,” CEO Tim Phillips said during the call with analysts. “Results continue to vary across reporting segments. Our contract logistics business continues to be standout performers, 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.”
Universal Logistics offers specialized transportation services for oversized and heavy cargo like wind turbine components, including blades and towers.
In the trucking segment, fourth-quarter revenue increased 11.5% year over year to $83.8 million.
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