Universal Logistics Reverses First-Quarter Loss on Kearny Sale

The Tip Desk · July 31, 2026 · 3 min read

GAAP earnings were $0.99 a share after a $45.3 million gain on Kearny property, while adjusted diluted earnings were $0.16 a share.

Universal Logistics Holdings (ULH) reported GAAP earnings of $0.99 a share for the second quarter of 2026, reversing a $0.13 a share loss in the first quarter, as a $45.3 million gain on the sale of real property in Kearny, New Jersey, more than offset a $3.9 million tractor impairment and $12.3 million of legal charges.

Those items, which increased operating income by $29.1 million in aggregate and sit in the company’s other non-reportable segment, lifted GAAP income from operations to $45.1 million from $4.8 million in the first quarter. Consolidated operating revenues were $379.3 million.

Excluding the Kearny gain, the impairment and the legal charges, adjusted income from operations was $16.0 million, or $0.16 a share on an adjusted diluted basis, with an adjusted operating margin of 4.2%. Adjusted EBITDA was $49.2 million.

Chief Executive Tim Phillips said second-quarter results reflected improved execution across the transportation and logistics portfolio, with contract logistics and trucking delivering solid results and intermodal making progress that he said positioned the business to benefit from a continued recovery in freight markets. He said the recovery remains in its early stages.

Contract logistics, which includes value-added and dedicated services, was the profit engine. Segment operating revenues were $271.4 million. Operating income was $24.6 million, and the segment’s operating margin was 9.1%. Dedicated fuel surcharges in the segment were $10.5 million. The company managed 79 value-added programs at quarter-end.

Intermodal remained the drag. Segment operating revenues were $44.1 million, down from $47.9 million in the first quarter. The year-over-year decline reflected lower load volumes, continued softness in demand and pricing pressure. Load volumes fell 34.0% from a year earlier, and average operating revenue per load excluding fuel surcharges declined an additional 6.3%. The segment posted an operating loss of $10.4 million, narrower than the $13.1 million loss in the first quarter. Operating margin in the segment was (23.7)%. Intermodal fuel surcharges were $7.1 million and other accessorial charges totaled $5.2 million. Average tractors in the segment were 1,017.

Trucking operating revenues were $63.8 million. Operating income was $2.9 million and the segment’s operating margin was 4.5%. Brokerage services contributed $18.8 million of trucking revenue. Trucking fuel surcharges were $5.6 million. Load volumes in trucking declined 15.7% from a year earlier, while average operating revenue per load excluding fuel surcharges increased 15.5%. Average tractors were 520.

The board declared a cash dividend of $0.105 a share, payable October 1, 2026, to holders of record on September 1, 2026.

As of July 4, 2026, Universal held $20.3 million of cash and cash equivalents and $695.5 million of total outstanding borrowings, a decrease of $59.2 million during the quarter. About $238.8 million remained available under a $500 million revolving credit facility. Capital expenditures totaled $67.7 million, including a $55.0 million non-cash expenditure related to a previously disclosed property exchange.