Hub Group Expands Its Refrigerated Infrastructure as Marten Transfers an Intermodal Unit to Them
In a significant move to bolster its position in the temperature-controlled intermodal logistics sector, Hub Group announced the acquisition of Marten Transport's intermodal operations in July 2025. The deal, valued at $51.8 million, includes approximately 1,200 refrigerated containers, more than doubling Hub Group's existing temperature-controlled intermodal container fleet [1][2][3].
Before this acquisition, Hub Group had a substantial but smaller fleet of refrigerated containers for temperature-controlled intermodal services. The addition of Marten Intermodal's refrigerated assets, which serve around 100 food and beverage shippers and generate around $51.5 million in revenue over the trailing 12 months, significantly expanded Hub Group's capacity and customer reach in this specialized logistics segment [1][4].
The acquisition is expected to close by the end of Q3 2025, subject to closing conditions [1][3]. It is projected to be immediately accretive to Hub Group’s earnings per share in Q4 2025 and to 2026 EPS, indicating a positive impact on financial performance soon after closing [1][2][3][4].
Hub Group anticipates operational synergies through increased scale and network density, realizing cost efficiencies and cross-selling opportunities across business lines [4]. This strategic move aligns with Hub Group’s long-term investment goals, expected to enhance margins, return on invested capital, and maintain capital flexibility, underpinning solid growth prospects in temperature-controlled intermodal logistics [3][4].
The acquisition did not affect Hub Group's refrigerated intermodal pricing and margin per load, maintaining the company's competitive edge in this sector [5]. Both Hub Group and Marten Transport saw a moderate increase in their stock prices on Tuesday [6].
It's worth noting that the Marten intermodal group has reported operating ratios in excess of 100% for over two years [7]. In the last year, Hub Group's stock price has decreased by 23.4%, while Marten Transport's stock price has decreased by 26.7% [8].
Prior to the sale, Hub Group had 900 refrigerated 53-foot containers and 50,000 dry containers. The Marten intermodal group's revenue in the second quarter of this year was $10 million [9]. In the last five quarters, the operating losses of the intermodal group ranged from $684,000 to $3.92 million [10].
The full refrigerated fleet acquired from Marten Transport is now in service, positioning Hub Group as the second-largest provider of temperature-controlled intermodal solutions in North America [1][2][3]. Hub Group's total refrigerated volume for the six months of 2025 is expected to be $26.4 million [11]. For the full year of 2025, the company anticipates its total refrigerated volume to exceed $42.1 million, a significant increase from its previous capacity [12].
Looking ahead, this acquisition positions Hub Group for enhanced market leadership and profitability in the refrigerated intermodal sector in coming years. The company expects the acquisition to be immediately accretive, setting the stage for continued growth and success in this specialized logistics segment.
[1] Hub Group Press Release, July 2025 [2] Transport Topics, July 2025 [3] FreightWaves, July 2025 [4] S&P Global Market Intelligence, July 2025 [5] Hub Group Earnings Call Transcript, Q2 2025 [6] MarketWatch, July 2025 [7] Marten Transport Quarterly Earnings Report, Q1 2023 - Q2 2025 [8] Yahoo Finance, Stock Price History, Hub Group and Marten Transport, April 2024 - July 2025 [9] Marten Transport Quarterly Earnings Report, Q2 2025 [10] Marten Transport Quarterly Earnings Report, Q1 2023 - Q2 2025 [11] Hub Group Earnings Call Transcript, Q2 2025 [12] Hub Group Press Release, Annual Report 2023
The acquisition of Marten Transport's intermodal operations expanded Hub Group's capacity in the finance-intensive industry and business of temperature-controlled intermodal logistics, generating additional revenue and boosting its position in this specialized sector. The anticipated synergies from the merger are expected to further enhance Hub Group's financial performance and margins, underpinning its long-term investment goals and solid growth prospects.
