Hub Group, Inc. (HUBG) Q1 2025 Earnings Call

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WEBVTT 00:00:00.031 -- 00:00:02.552 of investor relations. 00:00:02.675 -- 00:00:06.200 I'd like to start by thanking our thousands of team members across North America for 00:00:06.200 -- 00:00:09.785 their efforts to support our customers and our Hub Group family through this dynamic 00:00:09.785 -- 00:00:11.508 market. 00:00:11.508 -- 00:00:15.874 These efforts drove a 40 basis point improvement in operating margins during the quarter 00:00:15.874 -- 00:00:20.939 and are setting us up for success, both in the current market and long term. 00:00:20.939 -- 00:00:24.445 Our customers have taken different approaches to managing through the implementation 00:00:24.445 -- 00:00:28.693 of tariffs, with the majority taking a wait-and-see approach, while others pulled forward 00:00:28.693 -- 00:00:32.860 inventory depending on their end markets, product types, and origin of their finished 00:00:32.860 -- 00:00:34.764 goods. 00:00:34.764 -- 00:00:38.891 It remains unclear what the near and long-term impacts will be as many of our customers 00:00:38.891 -- 00:00:42.858 have diversified their vendor base and supply chains to ensure fluidity through these 00:00:42.858 -- 00:00:45.273 potential disruptions. 00:00:45.273 -- 00:00:49.457 However, this has also created an increased focus for our customers to drive savings 00:00:49.457 -- 00:00:53.841 in their supply chain, which is supporting over-the-road conversions to intermodal and 00:00:53.841 -- 00:00:59.505 increasing the pipeline for our consolidation and managed transportation solutions. 00:00:59.747 -- 00:01:03.791 There will likely be a near-term impact to import volumes to the West Coast, but the 00:01:03.791 -- 00:01:08.776 magnitude remains uncertain as our volumes have remained steady. 00:01:08.776 -- 00:01:12.419 W...