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…
Earnings analysis · 10-Q
ULH earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.99
- Operating margin
- 11.9%
What stood out
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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.
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.