Hub Group — First and Second Quarter 2026 Earnings Summary

Financial Performance

• Consolidated operating revenue for the first half of 2026 is estimated to be in the range of $1.70 billion to $1.80 billion.
• The Company anticipates reporting an operating loss for the first half of 2026 before the impact of one-time charges; no range for operating income or loss is provided due to ongoing financial closing procedures.
• Operating results were negatively impacted by increased fuel, rail, and drayage costs, as well as excess capacity in the Logistics segment and incremental costs related to the accounting review and restatement.
• As of June 30, 2026, cash and cash equivalents were approximately $132 million, with restricted cash of approximately $28 million.
• Total debt as of June 30, 2026, was approximately $198 million, resulting in net debt of approximately $66 million after accounting for cash and cash equivalents.
• Capital expenditures for the six months ended June 30, 2026, are estimated at approximately $12 million.
• In August 2026, the Company borrowed $75 million under its $450 million revolving credit facility.

Guidance and Future Outlook

• Full-year 2026 consolidated operating revenue is estimated at approximately $3.6 billion to $3.8 billion.
• Full-year 2026 capital expenditures are estimated at approximately $40 million to $50 million.
• The Company expects to complete the restatement of financial statements and related filings (Form 10-K for 2025 and Forms 10-Q for Q1 and Q2 2026) in the fourth quarter of 2026.
• A new efficiency program initiated in the second quarter of 2026 focuses on yield management, warehousing consolidation, productivity enhancements, targeted cost reductions, and enhanced order-to-cash processes.

Business Segments and Product Lines

• Intermodal and Transportation Solutions (ITS): Revenue benefited from stable volume trends and tightening market capacity conditions supporting over-the-road conversion and pricing momentum; however, operating results were negatively impacted by higher fuel, rail, and drayage costs incurred prior to rate increases implemented in the third quarter of 2026.
• Logistics: Revenue performance was supported by new business in Final Mile, while Managed Transportation saw modest revenue declines due to lower customer activity. Brokerage revenue and volume declined as the Company focused on improving profitability, and Consolidation and Fulfillment revenue was negatively impacted by select customer attrition.
• The Logistics segment operating results for the first half of 2026 are expected to be negatively impacted by excess capacity in Consolidation and Fulfillment.

Market and Competitive Landscape

• Market conditions included tightening capacity conditions in the first half of 2026 which supported pricing momentum for ITS.
• The Company is actively managing excess capacity within its Consolidation and Fulfillment segment.

Risks and Challenges

• The Company expects to receive a Staff Delisting Determination letter from Nasdaq regarding its Class A common stock due to the delay in filing the Form 10-K for the year ended December 31, 2025.
• While trading is not expected to be immediately suspended, the Company faces the risk that its request for a stay from suspension or delisting may not be granted, or that its plan to regain compliance may not be accepted by the Nasdaq Hearings Panel.
• There is a risk that unanticipated delays could prevent the filing of delinquent periodic reports in the fourth quarter of 2026.
• The restatement process and delays in financial close or audit may materially impact the Company's business, financial condition, and results of operations.
• There is a risk regarding the Company's ability to maintain compliance with covenants in its revolving credit agreement.

Management Commentary and Tone

• David Yeager, Chairman and CEO, stated the finance and accounting team remains highly focused on completing the restatement process and becoming current with financial reporting obligations while continuing to execute the long-term strategy.
• Phil Yeager, President and Vice Chairman, emphasized a focus on driving growth, profitability, and operating cash flows, noting the execution of a new cost reduction program to improve yield and efficiency.
• Management indicated that more details on cost reduction initiatives will be provided when reporting final full-year 2025 results and restated financials.

Other Key Points

• On September 11, 2026, the Company amended its revolving credit agreement to extend the deadline for delivering audited annual financial statements for 2025 and unaudited quarterly financial statements for Q1, Q2, and Q3 2026 to November 30, 2026.
• The credit agreement amendment allows costs and expenses incurred on or prior to December 31, 2026, related to the accounting review and restatement process to be added back in the calculation of EBITDA for financial covenant purposes.
• Nasdaq granted an exception through September 14, 2026, to file the delinquent reports and regain compliance with Listing Rule 5250(c)(1).
• The Company intends to request a hearing before the Nasdaq Hearings Panel within seven calendar days of receiving the delisting determination to appeal the decision and stay any suspension or delisting action.
• The preliminary financial results presented are unaudited, subject to adjustment, and do not represent a comprehensive statement of financial results in accordance with GAAP.