Dive Brief:
- Hub Group expects to report an operating loss for H1 2026 as it continues its work to restate its financial results dating back to 2023 after discovering an accounting misstep earlier this year, the company said in a Sept. 14 announcement.
- In disclosing preliminary Q1 and Q2 financial results, the company said its operating results for the first half of 2026 were negatively impacted from costs tied to its work to restate its financials and by increased costs in fuel, rail and drayage.
- Hub Group said it would not provide a range of operating income or loss due to its ongoing accounting review and financial restatement work. The company, however, projected first half 2026 consolidated operating revenue to range between $1.7 billion and $1.8 billion, based on revenue trends.
Dive Insight:
Hub Group continues operating normally as it continues to work on restating its financials, which could wrap up in December and involves reviewing finances back to 2023.
The company said its intermodal and transportation solutions business benefited from stable volume trends and tightening market capacity during H1. This supported over-the-road conversion and pricing momentum, according to the release.
The Oak Brook, Illinois-based company also said logistics revenues benefited from new business in its final mile business.
That stability and growth appear to be smoothing out volatility elsewhere. Consolidated revenue in the first half of 2025 was $1.82 billion if the underlying, initial quarterly data remains intact following the fiscal review. The accounting error for the year as a whole was a $77 million understatement in purchased transportation costs and accounts payable.
Declining revenues were part of that potentially flat revenue year over year, the company said. During H1 2026 managed transportation saw modest revenue decline due to lower customer activity. The company also said brokerage revenue and volume declined as it focused on improving profitability. Revenue for its consolidation and fulfillment unit was negatively impacted by select customer attrition when compared to the prior year, Hub Group said.
While Hub Group’s H1 revenue performance may remain flat year over year, other carriers, including J.B. Hunt Transport Services and Schneider National, reported revenue gains through the first six months of 2026. J.B. Hunt’s H1 revenues increased 7.1% year over year to $5.5 billion, while Schneider National’s revenues through the first six months of the year rose 5% YoY to $2.97 billion.
Meanwhile, Hub Group is also working on reducing costs. During a call with analysts in May 2025, executives discussed an initiative to reduce costs by $40 million through efficiency efforts.
The company also said in its Sept. 14 press release that it launched a new efficiency program in Q2 this year. The effort includes, “incremental initiatives focused on yield management across all services, consolidation of warehousing space, productivity enhancements with drivers and warehouse team members, targeted cost reductions and enhanced order to cash processes.”
