Universal Logistics Holdings, Inc. (ULH): Business Model Canvas [Dec-2025 Updated]

As a finance vet who's seen a few freight cycles, looking at Universal Logistics Holdings, Inc.'s (ULH) model right now tells a clear story: they are hunkering down in a soft market by doubling down on high-margin specialization. Honestly, their Q3 2025 revenue of $264.4 million from Contract Logistics shows where the real stability is, especially when you see their asset-light structure relies on a massive network of owner-operators. If you want to know how they manage that concentrated customer base-where the Top 10 accounted for 56% of 2024 revenue-and fund their capital needs, check out the full nine blocks below. It's a masterclass in managing variable costs when the market is tight.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Universal Logistics Holdings, Inc. (ULH) relies on to move freight. These partnerships are the engine room, providing the variable capacity and essential infrastructure that underpins their service delivery across contract logistics, intermodal, and trucking segments.

The reliance on external capacity remains a defining feature. For instance, as of December 31, 2024, the agent network totaled approximately 177 agents. This network is crucial for coordinating operations, especially in the trucking segment, where they compete with other motor carriers for owner-operators and agents. While specific 2025 owner-operator counts aren't public, historical context shows that as of December 31, 2020, Universal engaged, on average, the full-time equivalency of 1,233 individuals on a contract basis across various services.

The intermodal segment is inherently tied to Class I railroads. While specific volume agreements aren't disclosed, the segment's performance reflects this dependency. For the third quarter of 2025, operating revenues in the intermodal segment were $64.7 million, a decrease of 16.7% year-over-year. This segment also recorded an operating loss of $(92.0) million for Q3 2025, which included $81.2 million in non-cash impairment charges related to the segment.

Strategic partnerships with large customers are financially significant. The concentration risk is notable, as sales to the top 10 customers, which includes General Motors (GM), totaled 56% of revenue for the fiscal year ended December 31, 2024. Furthermore, the domestic automotive industry remains a bedrock, accounting for 47% of total revenues for the fiscal year ended December 31, 2024. The contract logistics segment, which houses dedicated services often supporting automotive customers, posted operating revenues of $264.4 million in the third quarter of 2025.

Universal Logistics Holdings, Inc. also depends on providing capacity to other transportation companies. A significant percentage of revenue results from this activity, though the exact figure for 2025 isn't itemized separately from the overall revenue base of $396.8 million reported for the third quarter of 2025.

Here's a quick look at the most recent concrete figures related to these key relationships:

The company's ability to secure and manage these external resources directly impacts its cost structure. For example, the trucking segment's operating margin for Q3 2025 was 5.8%, compared to 8.2% the prior year, reflecting market pressures on capacity utilization and pricing.

Financing for rolling stock-tractors and trailers-is a critical, though often behind-the-scenes, partnership requirement. While specific financing partners aren't named, capital expenditure guidance from early 2024 indicated an anticipation of investing between $480 million and $500 million for 2024, with roughly $200 million or so allocated for rolling stock, which suggests ongoing, substantial capital needs supported by external financing relationships.

The structure of capacity sourcing involves several layers:

• Network of owner-operators and agents for capacity
• Company equipment and third-party capacity providers (broker carriers) in intermodal operations
• Agent and company-managed terminals utilizing owner-operators and broker carriers in trucking
• Union and non-union employee drivers, owner-operators, and contract drivers for dedicated services

To be fair, the Q3 2025 consolidated operating revenue was $396.8 million, which shows the scale these partnerships must support, even amidst a soft freight market.

Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Key Activities

You're looking at the core engine of Universal Logistics Holdings, Inc. (ULH) operations right now, focusing on what they actually do to generate revenue and manage costs as of late 2025. The Contract Logistics segment is definitely the cornerstone, which is why you see those numbers front and center.

Operating the high-margin Contract Logistics segment is a primary activity. For the third quarter of 2025, this segment brought in operating revenues of $264.4 million. That segment's income from operations was $13.7 million, translating to an operating margin of 5.2% for the quarter.

Also key is the management of their service footprint. This involves running a complex network of specialized services. As of the end of the second quarter 2025, Universal Logistics Holdings, Inc. managed 87 value-added programs. That network included 20 rail terminal operations, a significant increase from 68 programs at the end of the second quarter 2024.

Another critical activity involves specialized transportation execution. You see this in their heavy-haul capabilities, which are definitely used for large-scale projects, notably for wind energy components. While the specific revenue tied only to wind energy isn't broken out, the capability itself is a core function within their Trucking segment.

Brokerage services for non-asset-based freight movements are also a distinct activity, often reported within the Trucking segment. For the third quarter 2025, revenues from brokerage services totaled $17.3 million. That compares to $24.3 million in the same period last year, showing a shift in the mix of freight handled.

Finally, you can't talk about key activities without mentioning the constant push for operational efficiency and cost rationalization initiatives. The results show the pressure here; for instance, the Contract Logistics operating margin dropped from 18.6% in Q3 2024 to 5.2% in Q3 2025, partly due to the roll-off of a specialty development project. On a consolidated basis, the adjusted operating margin for Q3 2025 was 1.8%, down from 10.9% the prior year, which definitely signals intense focus on rationalizing costs across the board.

• Managing 87 value-added programs as of Q2 2025.
• Operating 20 rail terminal locations as of Q2 2025.
• Generating $17.3 million in brokerage revenue in Q3 2025.
• Focusing on cost rationalization against a backdrop of consolidated adjusted operating margin of 1.8% in Q3 2025.

Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Key Resources

You're looking at the core assets Universal Logistics Holdings, Inc. (ULH) relies on to execute its business strategy as of late 2025. Honestly, the strength here is less about owning everything outright and more about the scale of the network they manage.

The asset-light model utilizing a large network of independent contractors is central to how ULH scales capacity without massive capital outlay on owned trucks and drivers. While the company does employ a dedicated fleet, a significant portion of their operational flexibility comes from this network. As of December 31, 2024, ULH engaged, on average, the full-time equivalency of 88 individuals on a contract basis during that year, supplementing the direct employee base. This structure is complemented by an agent network, which historically has solicited a notable portion of freight volume.

The physical footprint-the network of facilities across the U.S., Mexico, Canada, and Colombia-is substantial and geographically diverse, supporting cross-border and domestic supply chains. As of the end of the third quarter of 2025, Universal managed 87 value-added programs, which included 20 dedicated rail terminal operations. This is up from 71 active programs at the end of the first quarter of 2024. Back at the end of 2024, the company reported operating 52 company-managed terminal locations across these geographies.

The human capital is anchored by a direct workforce of over 10,000 employees. Specifically, as of December 31, 2024, the total employee count stood at 10,821. Looking closer at the Contract Logistics Segment for the thirteen weeks ended March 29, 2025, the average number of value-added direct employees was 7,250. That's a lot of people supporting the operation.

The owned assets, particularly the dedicated fleet and specialized heavy-haul equipment, provide critical control over high-value or specialized lanes. These assets are key for the Contract Logistics segment's value-added services. Here's a breakdown of the dedicated fleet components as previously reported:

The technology platform, including the new CRM solution rollout, is an essential, though less quantifiable, resource. This platform underpins the coordination across the asset-light network, the value-added programs, and the intermodal operations. The successful integration and adoption of the new CRM solution, which you are tracking, will directly impact customer relationship management efficiency.

• Value-added programs managed (Q3 2025): 87
• Rail terminal operations managed (Q3 2025): 20
• Total employees (as of Dec 31, 2024): 10,821

Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Value Propositions

You're looking at how Universal Logistics Holdings, Inc. (ULH) actually makes money by solving tough supply chain problems for its customers. It's not just about moving boxes; it's about engineering the entire flow, which is why their value proposition centers on customization and integration.

Customized, Scalable Supply Chain and Logistics Solutions

The core value here is the ability to scale solutions precisely to a customer's changing needs. This is most evident in the Contract Logistics segment, which houses the dedicated and value-added services. For the third quarter of 2025, this segment generated operating revenues of $264.4 million. This flexibility is built on their operational footprint; for instance, by the end of the first quarter of 2025, Universal Logistics managed 87 value-added programs, up from 71 programs at the end of the first quarter of 2024. That's a tangible measure of their customized service depth.

Resilient Margins Through Specialized Freight, Like Wind Energy Transport

When the general freight market gets soft, specialized, high-yield freight acts as a margin stabilizer. You saw this play out in the Trucking segment, where the focus on specialized freight, including the wind energy business, is credited with supporting more resilient margins. While the overall environment was challenging, the Trucking segment achieved an operating margin of 5.2% in the second quarter of 2025. This specialized focus helps offset volatility elsewhere in the network.

Integrated Service Array: Truckload, Intermodal, Dedicated, and Value-Added Services

ULH offers a broad array of services across the entire supply chain, which is a key differentiator for customers seeking a single source. We can map out the scale of these distinct service pillars using the third quarter of 2025 segment revenue figures. This shows you where the current operational weight is:

Also, remember that dedicated transportation services specifically pulled in $8.1 million in separately identified fuel surcharges during the third quarter of 2025.

Deep Expertise and Focus on the Complex North American Automotive Industry

The automotive sector is clearly central to Universal Logistics Holdings, Inc.'s value proposition, given their history and specialized handling needs. Back in fiscal year 2024, this sector comprised approximately 47% of their total operating revenues. Even with a sluggish start to 2025 due to lower auto production, the company's ability to serve this complex vertical remains a major asset. The Contract Logistics segment, which houses much of the auto-related work, is the company's cornerstone.

Single-Source Provider for Complex, Multi-Mode Transportation Needs

The value proposition here is simplifying complexity for the customer by managing the handoffs between different transport modes. This is what the integrated suite of services delivers. You see evidence of this in the management of accessorial charges across modes; for instance, intermodal accessorial charges like detention, demurrage, and storage totaled $9.0 million in the third quarter of 2025. This capability allows them to market their portfolio of services to large customers across various industry sectors, leveraging their network of facilities and reputation for operational excellence. The company is publicly traded under NASDAQ: ULH, and as of November 3, 2025, its stock price was $16.04 with a market cap of $422M.

Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Customer Relationships

You're looking at how Universal Logistics Holdings, Inc. (ULH) manages its connections with the companies that rely on its logistics services. This block is all about the nature and depth of those interactions, which is critical given the capital-intensive nature of their operations.

Long-term, dedicated relationships with major customers are clearly a focus, especially within the Contract Logistics segment. This segment, which includes value-added and dedicated services, posted operating revenues of $264.4 million in the third quarter of 2025. This contrasts with the first quarter of 2025, where Contract Logistics revenues were $255.9 million. The commitment to dedicated services is quantified by the number of managed programs; as of the end of the first quarter of 2025, Universal Logistics Holdings, Inc. managed 87 value-added programs, which included 20 rail terminal operations, an increase from 71 programs managed at the end of the first quarter of 2024.

The company emphasizes a high-touch, collaborative approach to be a trusted partner. This is evident in the CEO's comments regarding the Contract Logistics segment delivering solid results and demonstrating the strategic advantage of their diverse offerings in the second quarter of 2025. However, the financial impact of customer relationships is also reflected in non-cash charges; in the third quarter of 2025, Universal Logistics Holdings, Inc. recorded $23.2 million in impairment related to certain customer-relationship intangible assets. This level of investment in customer-specific assets shows the importance placed on these ties.

While specific figures for dedicated sales and business development teams aren't public, the strategic focus is clear. Universal Logistics Holdings, Inc. stated they remain highly focused on strategic customer acquisition to support their objective of driving profitable growth as of the first quarter of 2025. Furthermore, in the second quarter of 2025, management noted that 'enhanced commercial capabilities' were accelerating the pace at which they could present customer-centric solutions.

Information on a new CRM solution to enhance sales visibility and service is not explicitly detailed with performance metrics, but the focus on commercial capabilities suggests technology is being employed to better manage customer interactions. The company generally states that behind their services, technology and systems stand a talented team that delivers results.

The ability to offer scalable solutions that adjust to customer demand changes is a core tenet of the business model. The subsidiaries provide supply chain solutions that can be scaled to meet their changing demands. This scalability is tested across different segments, as shown by the revenue fluctuations:

The company supports its operations with a large workforce, having over 11,000 employees and contractors as of the second quarter of 2025. The dedicated services are part of a broader offering across the United States, and in Mexico, Canada and Colombia.

• Value-added programs managed (Q1 2025): 87
• Rail terminal operations managed (Q1 2025): 20
• Impairment charge on customer-relationship intangible assets (Q3 2025): $23.2 million

Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Channels

You're looking at how Universal Logistics Holdings, Inc. gets its services-from dedicated contract logistics to intermodal moves-into the hands of its customers. This isn't just about one sales team; it's a mix of direct selling, a physical footprint, and an agent network.

Direct sales force targeting large enterprise accounts

The core of Universal Logistics Holdings, Inc.'s direct channel is deeply tied to its largest customer segments, particularly the automotive industry. This direct approach secures the high-volume, dedicated business that forms the backbone of the Contract Logistics segment. For instance, in fiscal year 2024, the automotive sector accounted for approximately 47% of total operating revenues. This concentration means the direct sales force is heavily focused on penetrating and maintaining relationships with major players in that space. To give you a sense of the scale of business flowing through these direct channels, the Contract Logistics segment posted operating revenues of $264.4 million in the third quarter of 2025, compared to $245.2 million for the same period last year. Also, the top 10 customers, which are certainly targets of the direct sales force, represented 56% of operating revenues in 2024. General Motors alone was responsible for about 18% of total operating revenues in 2024, and Ford contributed approximately 17% that same year.

Network of operating subsidiaries and field offices

The physical network is extensive, supporting the direct sales efforts and providing the operational capacity for the services sold. Universal Logistics Holdings, Inc. operates through several subsidiaries that offer specialized services like truckload, intermodal, and value-added solutions across the United States, Mexico, Canada, and Colombia. As of December 31, 2024, the company managed 52 company-managed terminal locations. Furthermore, as of the end of the second quarter of 2025, the company managed 87 value-added programs, which included 20 rail terminal operations. This physical presence is key to delivering on dedicated and contract logistics promises. Here's a quick look at the network footprint data we have:

Independent agents and contractors acting as local sales channels

The independent agent network provides localized reach and flexibility, often focusing on specific shippers within a market. This channel is a significant source of freight volume. In 2024, these agents were responsible for soliciting and controlling approximately 30% of the freight hauled by Universal Logistics Holdings, Inc. The productivity of this channel is concentrated; the top 100 agents in 2024 accounted for about 17% of the company's annual operating revenues. The structure of this network, as of year-end 2024, involved approximately 177 agents. Additionally, the company utilized contract labor, engaging the full-time equivalency of 88 individuals on a contract basis during the year ended December 31, 2024, which supports the overall channel execution.

Digital platforms for freight visibility and management

Universal Logistics Holdings, Inc. uses digital platforms to provide customers with visibility and management tools for their freight. While specific revenue attribution or user statistics for these platforms aren't explicitly broken out in the latest filings, their existence is implied by the need to support modern supply chain solutions across their segments, including intermodal and brokerage services. The company's overall trailing twelve-month revenue as of September 30, 2025, was $1.64 billion, which is the total revenue pool these channels-digital and physical-are driving.

• Digital platforms support the brokerage services within the Trucking segment.
• Brokerage services revenue in Q2 2025 was $18.4 million.
• Brokerage services revenue in Q1 2025 was $18.0 million.
• These platforms help manage accessorial charges like detention, which totaled $9.0 million in Q3 2025 for the Intermodal segment.

Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Customer Segments

You're looking at the core of Universal Logistics Holdings, Inc.'s (ULH) business-who they serve and how concentrated that service base is. Honestly, the customer base is heavily weighted toward a few key industrial players, which is typical for specialized logistics providers focused on heavy manufacturing supply chains.

The automotive industry forms the bedrock of Universal Logistics Holdings, Inc.'s revenue base. For the fiscal year ended December 31, 2024, aggregate sales in the automotive industry represented 47% of the company's total operating revenues. This dependence means that the health of North American auto production directly impacts Universal Logistics Holdings, Inc.'s top line.

Customer concentration is a significant factor you need to watch. For the full year 2024, the group of Top 10 customers accounted for approximately 56% of Universal Logistics Holdings, Inc.'s operating revenues. This level of concentration means the loss of any single major account could materially affect financial results.

Here is a look at the key customer groups and the revenue dependency based on the latest full-year data available:

Universal Logistics Holdings, Inc. serves a mix of heavy industry clients beyond just automotive. The customer portfolio is largely concentrated across several core industrial sectors:

• Companies in steel and other metals and manufacturing.
• Railroad clients, supported by the Q4 2024 acquisition of Parsec.
• Retail and consumer goods sectors.
• Energy sector clients requiring specialized heavy-haul transport.

The focus on specialized transport is evident in service offerings. For instance, the trucking segment saw strong results in 2024, driven by demand for specialized, heavy-haul services, such as the wind business. As of the end of the second quarter of 2025, the company managed 87 value-added programs, up from 68 at the end of the second quarter of 2024, indicating growth in dedicated customer solutions within these segments.

To be fair, the automotive dependency is evolving. While automotive was 47% of revenue in 2024, Ford accounted for 17% of 2024 revenue, while General Motors was 18%. This shows a degree of diversification even within the primary vertical. Finance: draft 13-week cash view by Friday.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Cost Structure

You're looking at the major drains on Universal Logistics Holdings, Inc.'s (ULH) cash flow, which is defintely where the rubber meets the road in logistics. The cost structure here is heavily weighted toward variable operational expenses, but the fixed asset base requires significant, planned investment.

Variable costs for purchased transportation, which primarily means driver and contractor compensation, are the single largest operating expense category, though we don't have a specific dollar amount for the full year 2025 yet. What we do see clearly are the capital needs to support the fleet and operational footprint.

Fuel costs are a major component of the variable spend. To manage this volatility, Universal Logistics Holdings, Inc. collects fuel surcharge revenue, which offsets a portion of the expense. Here's a look at the separately identified fuel surcharge revenue across key segments for the first three quarters of 2025:

• Trucking Segment Fuel Surcharges (Q1 2025): $3.5 million
• Trucking Segment Fuel Surcharges (Q2 2025): $3.4 million
• Trucking Segment Fuel Surcharges (Q3 2025): $3.6 million
• Dedicated Transportation Fuel Surcharges (Q2 2025): $7.3 million
• Dedicated Transportation Fuel Surcharges (Q3 2025): $8.1 million
• Intermodal Segment Fuel Surcharges (Q1 2025): $8.2 million
• Intermodal Segment Fuel Surcharges (Q3 2025): $7.6 million

The cost base also includes high fixed costs related to facilities and technology infrastructure, necessary to run the contract logistics and dedicated operations across the network. These costs provide the operational leverage when volumes are high, but they become a drag when utilization dips, as seen in the Q3 2025 operating loss of $(74.2) million on revenues of $396.8 million, which included significant non-cash impairment charges.

Interest expense is a non-operating cost tied directly to the debt load. The projection you mentioned is between $48 million and $51 million for the full year 2025. For a concrete data point, the net interest expense reported for the second quarter of 2025 was $8,852 thousand, or $8.852 million.

Universal Logistics Holdings, Inc. (ULH) - Canvas Business Model: Revenue Streams

You're looking at how Universal Logistics Holdings, Inc. pulls in its money as of late 2025. It's all about the services they provide, broken down by segment. The numbers below are from the third quarter of 2025.

The Contract Logistics segment is definitely the biggest earner, which makes sense given its focus on value-added and dedicated services. This segment brought in $264.4 million in operating revenues for the third quarter of 2025. That revenue stream included $8.1 million from separately identified fuel surcharges from dedicated transportation services for the quarter. So, the core contract work is the engine here.

Here's a quick look at how the main operating segments stacked up in Q3 2025:

The Trucking segment contributed $67.7 million in operating revenues for the third quarter of 2025. Within that trucking revenue, you have to pull out the Brokerage services revenue, which totaled $17.3 million in the quarter. That's a significant chunk of the trucking total.

The Intermodal transportation fees segment generated $64.7 million in operating revenues for the third quarter of 2025. This segment's revenue stream is also subject to variable charges, which is important to track. Specifically, the intermodal segment's revenues for the quarter included:

• Revenue from separately identified fuel surcharges: $7.6 million
• Other accessorial charges (like detention, demurrage, and storage): $9.0 million

When you look at the total operating revenues for Universal Logistics Holdings, Inc. in the third quarter of 2025, it was $396.8 million. That total is the sum of these core services plus any other minor streams, but the three segments listed above make up the vast majority of the top line. Finance: draft 13-week cash view by Friday.