Universal Logistics Reports 19% Gain in Q4 Revenue
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Universal Logistics Holdings experienced a 19% year-over-year increase in revenue but a slight dip in net income for the fourth quarter of 2024, the company reported Feb. 6.
The Warren, Mich.-based asset-light transportation and logistics company posted net income of $20.2 million, or 77 cents a diluted share, for the three months ending Dec. 31. That compared with $21.4 million, 81 cents, during the same time the previous year. Total operating revenue increased to $465.1 million from $390.9 million.
“Universal notched another solid performance during the fourth quarter, making the full-year 2024 our second-best financial performance in company history,” CEO Tim Phillips said. “Our contract logistics segment continues to be the cornerstone of our success, and we remain committed to making smart investments in this space.”
Wall Street analysts for Q4 had forecast 93 cents per share and revenue of $427.3 million, according to Zacks Consensus Estimate.
“Strong demand for our specialized, heavy-haul services has also enabled our trucking segment to produce solid results during the quarter and throughout all of 2024,” Phillips said. “While we are proud of our many successes, we remain focused on improving underperforming operations, gaining efficiencies and maintaining a high level of cost control. 2024 was an exciting and challenging year for Universal, and I am deeply thankful for the talented team.”
Universal Logistics announced at the end of the third quarter that it had acquired terminal management services company Parsec. Phillips pointed to the acquisition as an example of where the company has been investing in the contract logistics space.
For Q4, the company’s Trucking segment saw revenue increase 11.5% to $83.8 million from $75.2 million the previous year. The result included $22.8 million of brokerage services. Load volumes declined 17% year over year, but average operating revenue per load increased 30.5%. This gain was driven primarily by the specialty and heavy-haul wind business, Universal said. Income from operations rose 132% to $5.8 million from $2.5 million the prior year.
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Revenue in the company’s Intermodal segment decreased 15.9% to $73.1 million from $86.9 million the prior year as load volumes declined 15.3%, and average operating revenue per load declined by 2.2% year over year. Intermodal segment revenue included accessorial charges, such as detention, demurrage and storage, which totaled $8.6 million. The unit’s Q4 operating loss widened to $9.7 million compared with a loss of $1 million the prior year.
Contract logistics segment revenue increased 52.7% to $307.4 million from $201.3 million the prior year. The result included $51.3 million attributable to a specialty development project in Stanton, Tenn., which was completed during the quarter. Also included was an additional $59.5 million from the Parsec acquisition. Income from operations increased 21.8% to $39.1 million from $32.1 million.
For the full year, Universal reported net income of $129.9 million, $4.93, on revenue of $1.85 billion, compared with net income of $92.9 million, $3.53 a share, on revenue of $1.66 billion in 2023.
Universal ranks No. 27 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 43 on the TT Top 100 list of the largest logistics companies.
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