Universal Logistics Posts $394 Million in Third-Quarter Revenue, Cuts Revolving Commitments
Key Facts
Universal Logistics Holdings reported consolidated operating revenue of $394.0 million in the third quarter of 2026, along with operating income of $32.8 million and net income of $18.1 million, according to a company statement via PR Newswire. Basic and diluted earnings per share were $0.69. The results followed a second quarter in which the company posted revenue of $379.3 million, operating income of $45.1 million, net income of $26.2 million and earnings per share of $0.99. Revenue therefore increased between the two quarters, while operating income, net income and earnings per share declined. The company also declared a quarterly cash dividend of $0.105 per share.
Third-quarter figures show that higher revenue was not accompanied by a comparable improvement in earnings from the previous quarter. Operating income fell from $45.1 million in the second quarter to $32.8 million in the third quarter, while net income dropped from $26.2 million to $18.1 million. Earnings per share declined from $0.99 to $0.69. Revenue, meanwhile, rose from $379.3 million to $394.0 million. The information provided did not include a year-over-year comparison for third-quarter results, so the comparison here is limited to the previous quarter.
On debt, net debt stood at $678.1 million in the third quarter, compared with operating debt of $500.5 million. The leverage ratio under the credit agreement was 1.98 times. These figures put the debt level alongside the decline in quarterly earnings, as the company amended its revolving credit facility. Under the filing with the U.S. Securities and Exchange Commission, the maturity date was extended from September 30, 2027, to September 30, 2029. The amendment reduced total revolving commitments from $500.0 million to $350.0 million.
The agreement allows borrowers to request an increase in revolving commitments of up to $150.0 million, subject to specified conditions and commitments from participating lenders. It also amended the leverage-based pricing tiers, which determine borrowing interest margins and fees on unused commitments. The facilities are also subject to financial covenants, including leverage and fixed-charge coverage ratios. Amending the facility term extends its maturity date, while reducing commitments lowers the total revolving financing available under the agreement. Any additional increase remains subject to participating lenders’ approval and satisfaction of the specified conditions.
Second-quarter results showed mixed performance across the company’s segments ahead of the third-quarter results announcement. Contract logistics revenue rose 4.2% year over year to $271.4 million, compared with $260.6 million in the same period a year earlier. By contrast, intermodal revenue fell 36.0% to $44.1 million, from $68.9 million a year earlier. The company attributed the segment’s decline to lower freight volumes, weak demand and pricing pressure. Commenting on second-quarter results, Chief Executive Tim Phillips said, "Our second-quarter results reflect improved execution across our portfolio of transportation and logistics services." He added that the freight market recovery remains in its early stages.
The dividend announced by the company on October 29, 2026, was $0.105 per share, the same amount declared for the second quarter. The second-quarter dividend was payable to shareholders of record on September 1, with payment expected on October 1. The information provided did not specify the record date or payment date for the new dividend. The company also said in its filing that any future cash dividends are subject to a quarterly decision by the board after reviewing the financial position, results, capital requirements and legal or contractual restrictions. ULH shares closed at $17.04 on October 28, according to EL7 data.