Universal Logistics Swings to $117.9M Q3 Loss on $43.2M Goodwill Impairment
Universal Logistics Holdings (NASDAQ: ULH), a third-party logistics provider, posted a net loss of $117.9 million for the quarter ending September 27, reversing a $26.5 million profit in the prior-year period.
Universal Logistics Holdings, Inc. (NASDAQ: ULH), a third-party logistics and transportation services provider, reported a net loss of $117.9 million for the quarter ending September 27, 2025, a sharp reversal from net income of $26.5 million in the same quarter a year earlier. The loss was driven by a $43.2 million goodwill impairment charge recorded during the period. Read more earnings reports.
Revenue for the quarter fell 7.1% to $396.8 million from $426.8 million in the third quarter of fiscal 2024. For the nine months ending September 27, the company posted revenue of $1.17 billion, down 15.1% from $1.38 billion in the prior-year period.
Operating expenses for the quarter totaled $514.2 million, up sharply from $384.2 million a year earlier, largely due to the goodwill impairment. Excluding the impairment, operating expenses were $471.0 million. The company reported an operating loss of $117.4 million for the quarter compared to operating income of $42.6 million in the prior-year period.
For the nine-month period, Universal Logistics posted a net loss of $103.6 million, compared to net income of $109.7 million in the first nine months of fiscal 2024. Operating losses for the nine months totaled $81.8 million versus operating income of $164.8 million a year earlier.
Labor and related expenses for the quarter rose to $176.6 million from $132.1 million in the prior-year quarter. Interest expense increased to $12.8 million from $8.5 million. The company recorded a tax benefit of $8.6 million in the third quarter compared to a tax expense of $8.7 million a year earlier.
On the balance sheet, total assets stood at $1.77 billion as of September 27, down from $1.79 billion at year-end 2024. Goodwill declined to $105.6 million from $206.8 million at the end of fiscal 2024, reflecting the impairment charge. Total stockholders' equity fell to $534.9 million from $647.0 million at the end of fiscal 2024.
The company reported long-term debt of $718.9 million as of September 27, up from $670.3 million at the end of fiscal 2024. Total debt, including current portions, stood at $824.2 million versus $759.1 million at year-end.
Cash and cash equivalents increased to $27.4 million from $19.4 million at the end of fiscal 2024. Cash from operations for the nine months totaled $135.9 million, up substantially from $52.6 million in the prior-year period. The company used $181.8 million in investing activities and generated $56.0 million from financing activities during the nine months.
Universal Logistics reported diluted earnings per share of negative $4.48 for the quarter, compared to positive $1.01 in the third quarter of fiscal 2024. For the nine-month period, diluted EPS was negative $3.93 versus positive $4.17 a year earlier. Weighted average diluted shares outstanding were 26.3 million for both periods.
| Metric | Q3 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 |
|---|---|---|---|---|
| Revenue | $396.8M | $426.8M | $1,173.0M | $1,380.9M |
| Operating Income (Loss) | ($117.4M) | $42.6M | ($81.8M) | $164.8M |
| Net Income (Loss) | ($117.9M) | $26.5M | ($103.6M) | $109.7M |
| Diluted EPS | ($4.48) | $1.01 | ($3.93) | $4.17 |
| Goodwill Impairment | $43.2M | — | $43.2M | — |
Property, plant, and equipment rose to $831.8 million as of September 27 from $742.4 million at year-end 2024. Intangible assets declined to $111.4 million from $150.9 million. Current assets totaled $429.0 million compared to $409.8 million at the end of fiscal 2024.
Accounts receivable fell to $277.6 million from $293.6 million at year-end, while accounts payable increased to $67.6 million from $60.0 million. Current liabilities rose to $324.3 million from $304.6 million at the end of fiscal 2024.
The company had 26.3 million common shares outstanding as of September 27, up slightly from 26.3 million at the end of fiscal 2024. Retained earnings fell to $511.1 million from $623.0 million at year-end.