Impact of Tariffs Affects Universal Logistics' Q2 Revenue and Earnings
Universal Logistics Holdings, a truckload transportation, intermodal, and logistics provider based in Warren, Michigan, reported a challenging quarter for its intermodal segment in Q2 2025. The company, which currently operates 87 value-added programs, including 20 rail terminals, saw a 13.5% year-over-year decrease in intermodal segment revenue to $68.9 million, accompanied by a nearly 13% drop in load volumes[1][3].
The decline was primarily due to tariff-related reductions in import volumes, especially impacting shipments from discount retailers between mid-May and June 2025, as some customers adjusted their sourcing strategies in response to these tariffs[1][3]. This downturn led to an operating loss of $5.7 million for the intermodal segment during the quarter[2].
The trucking segment also felt the impact, with a 29.9% year-over-year decrease in second-quarter revenue at $45.9 million. The decline was due to less demand for raw materials and goods such as wind turbines, which were impacted negatively in the first half of the year due to tariffs[1].
Despite these challenges, the company missed Wall Street analysts' forecasts for revenue of $398.5 million and earnings per share of 34 cents in the second quarter[1]. On a positive note, the company's contract logistics segment contributed $260.6 million in revenue during the second quarter[1].
Universal Logistics made a strategic move in September 2021 by acquiring rail terminal operator Parsec for $193.6 million. The integration of Parsec into Universal Logistics' operations is progressing smoothly and contributed $55 million in revenue during the quarter[1]. Parsec provides terminal management services at 20 rail yards across North America[1].
Company officials expect the cadence in the back half of the year to make up for the shortfall in the trucking market experienced in the first half[1]. They also see a clear runway for improvement in the wind side of the business for the next five years[1]. Universal Logistics employs more than 10,000 people and provides services across the U.S, Mexico, Canada, and Colombia[1].
[1]: Source: Universal Logistics Holdings Q2 2025 Earnings Release [2]: Source: Universal Logistics Holdings Q2 2025 Earnings Call Transcript [3]: Source: Universal Logistics Holdings Q2 2025 Earnings Call Presentation
The challenging quarter for Universal Logistics Holdings' intermodal segment, as reported in Q2 2025, could potentially be alleviated by adjusting financing options to support the recovery of intermodal volumes. In the meantime, the company's business strategy may focus on diversifying its client base and sourcing strategies to minimize future impacts from tariffs.
