Universal Logistics is betting big on specialized freight, as hauling components for the wind business in the energy sector shows promise in an otherwise soft freight market, several executives said in a recent Q2 earnings call.
“Our focus on specialized freight, including our wind energy business, continues to support more resilient margins even in a depressed market,” CEO Tim Phillips said. “In the current freight environment, Universal Logistics’ revenue decreased by 14.8% year over year to $393.8 million as trucking volumes sank 22.6% during the quarter, according to its earnings report released July 24.
The company has been investing in its wind franchise where it hauls blades, towers and components, CFO Jude Marcus Beres said in the call.
The strong demand in wind is a continued trend the company highlighted back in Q1, with the CEO saying its heavy haul wind operations were a strategic differentiator for its trucking segment.
Universal Logistics’ revenue per load, excluding fuel surcharges, increased by more than 24% YOY in Q1, Phillips said, labeling it a sign that the company’s strategy of emphasizing specialized high-yield freight is gaining traction.
Growth in demand for wind energy-related transport hauls seems to be a growing trend among other companies, with Landstar System also reporting its heavy haul service being positive for the company. Landstar’s CEO said the demand for infrastructure related to AI, such as data centers, along with wind energy, are contributing to the need for flatbed and bulk trucking services.
Even with strong demand, Universal Logistics’ wind franchise was negatively impacted in the first half of the year due to tariffs.
“A lot of those components are imported but I think the cadence that we’re seeing in the back half of the year should make up for the shortfall in that business that we experienced in the first half,” Beres said.
Most of the headwinds in the wind business will be manageable and start to improve in the coming quarters, Beres said, due in part to clarity the company gained with the passing of the “One Big Beautiful Bill.” The tax package from Congress enhances multiple areas for trucking businesses and tax-reduction benefits, according to some trucking groups.
Looking ahead, Universal Logistics plans to expand into other heavy haul opportunities to support various industries, Phillips said.
“We’re pretty bullish on the specialized and we’ll continue to focus on building that product out,” he said.
