ULH earnings analysis
What we found in ULH's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Universal Logistics delivered a materially improved second quarter, with revenue of $379.3 million, operating margin of 11.9% and diluted EPS of $0.99. However, the earnings improvement was heavily influenced by a $45.3 million real-estate disposal gain, while intermodal revenue declined 36.1% and its operating loss widened to $10.450 million. Liquidity and debt improved, but elevated claims costs, interest expense, macro freight weakness and an unresolved material weakness temper the outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Profitability rebounded sharply
- Second-quarter revenue was $379.3 million, down 3.7% from $393.8 million a year ago but up from approximately $368.0 million in Q1 2026. Diluted EPS was $0.99 versus $0.32 a year ago and $(0.13) in Q1, although the quarter included a $45.3 million property-disposal gain.
- Operating margin expanded
- Operating income increased 126.9% year over year to $45.137 million, lifting operating margin to 11.9% from 5.1% a year ago and 1.3% in Q1 2026. The result benefited from the $45.3 million Kearny Facility gain and improved execution.
- Contract logistics remained resilient
- Contract logistics revenue rose to $271.424 million from $260.556 million, while operating income increased to $24.599 million from $21.770 million. Management cited new and existing value-added programs, strong dedicated volumes and lower labor costs.
- Cash generation remained positive
- Operating cash flow was $73.852 million for the first 26 weeks, versus $110.023 million a year ago. Capital expenditures were $22.880 million, implying approximately $50.972 million of free cash flow, while planned remaining-2026 capital expenditures are approximately $80.0 million.
- Debt balance and liquidity improved
- Debt declined to $692.582 million at July 4, 2026 from $797.571 million at December 31, 2025, and the Real Estate Facility was repaid in full. The company reported $20.311 million of cash and $238.8 million of revolver availability and compliance with all debt covenants.
- Marketable securities monetized
- The company sold its remaining marketable-securities portfolio, reducing marketable securities from $10.351 million at year-end to $0. The transaction generated $10.637 million of proceeds during the first half of 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Intermodal losses deepened
- Intermodal revenue fell to $44.077 million from $68.914 million, and the segment's operating loss widened to $(10.450) million from $(5.676) million. Its operating margin deteriorated to (23.7)% from (8.2)% as lower volumes and rates pressured the fixed-cost base.
- Claims severity and litigation risk
- Insurance and claims expense increased 130.6% year over year to $17.523 million in the quarter, while the company cited higher reserves for auto-liability claims involving third-party broker carriers. The filing also highlights the May 14, 2026 Supreme Court decision that may increase broker-selection claims.
- Material weakness remains open
- Management disclosed that disclosure controls were not effective as of July 4, 2026 because a material weakness over complex accounting analyses and estimates remained outstanding. The weakness previously resulted in a material misstatement of September 27, 2025 interim financial statements that was corrected on March 9, 2026.
- Interest-rate exposure persists
- Total borrowings were approximately $695.5 million at July 4, 2026, including approximately $273.5 million of variable-rate debt. A 100-basis-point increase in rates would raise annual interest expense by approximately $2.7 million.
- Asset-utilization pressure
- The company reported $3.886 million of non-cash impairment expense for tractors with a $9.4 million carrying value and estimated fair value of $5.5 million. This indicates continued asset-utilization pressure in a soft freight environment.
- Union contract renewals
- Approximately 37% of employees were covered by collective bargaining agreements, and contracts covering approximately 27% of those unionized employees expire in 2026. Management warned that negotiations could increase labor costs or cause work stoppages and disruptions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.99
- Operating margin
- 11.9%
- Segment
- Contract logistics revenue $271.424 million, up 4.2% year over year; operating income $24.599 million and margin 9.1%.
- Segment
- Intermodal revenue $44.077 million, down 36.1% year over year; operating loss $(10.450) million and margin (23.7%).
- Segment
- Trucking revenue $63.822 million, down 0.4% year over year; operating income $2.855 million and margin 4.5%.
What they said about what is next.
No quantitative revenue or EPS guidance was provided. Management expects 2026 capital expenditures to be approximately $80.0 million for the remainder of the year and believes liquidity will fund working capital, planned capital expenditures, debt service and dividends for at least the next twelve months.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 14, 2026
- Universal Logistics Holdings, Inc. reported Q1 2026 revenues of $367.6 million, a decline of 3.9% compared to Q1 2025, with a significant net loss of $(3.5) million or $(0.13) per share, missing expectations. The…
- 10-K · March 16, 2026
- Universal Logistics positions itself as a vertically integrated transportation and logistics provider focused on strategic acquisitions, outsourcing trends, and deeper penetration of the automotive market (automotive…
- 10-Q · May 8, 2025
- Universal Logistics reported a 22.3% year-over-year revenue decline to $382,390,000 for the thirteen weeks ended March 29, 2025, with operating income falling 79.1% to $15,680,000 and net income down 88.5% to…
- 10-K · March 17, 2025
- Universal Logistics completed the acquisition of Parsec on September 30, 2024 (Parsec employs ~2,100 people and operates at over 20 rail yards) and emphasizes growth via strategic M&A, deeper penetration in automotive…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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