As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the transportation and logistics industry, including CSX (NASDAQ: CSX) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for transportation and logistics companies. The industry continues to invest in advanced technologies such as automated sorting systems and real-time tracking solutions to enhance operational efficiency. Companies that win in this space boast speed, reach, reliability, and last-mile efficiency while those who do not see their market shares diminish. Like other industrials companies, transportation and logistics companies are at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs influence profit margins.

The 30 transportation and logistics stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 3.5% below.

Thankfully, share prices of the companies have been resilient as they are up 5.2% on average since the latest earnings results.

CSX (NASDAQ: CSX)

Established as part of the Chessie System and Seaboard Coast Line Industries merger, CSX (NASDAQ: CSX) is a transportation company specializing in freight rail services.

CSX reported revenues of $3.42 billion, down 7% year on year. This print fell short of analysts’ expectations by 1.1%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 15.5% since reporting and currently trades at $31.54.

Read our full report on CSX here, it’s free.

Best Q1: Scorpio Tankers (NYSE: STNG)

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Scorpio Tankers reported revenues of $204.2 million, down 47.6% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $40.11.

Is now the time to buy Scorpio Tankers? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Werner (NASDAQ: WERN)

Conducting business in over a 100 countries, Werner (NASDAQ: WERN) offers full-truckload, less-than-truckload, and intermodal delivery services.

Werner reported revenues of $712.1 million, down 7.4% year on year, falling short of analysts’ expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts’ Logistics revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

As expected, the stock is down 5.1% since the results and currently trades at $26.25.

Read our full analysis of Werner’s results here.

United Parcel Service (NYSE: UPS)

Trademarking its recognizable UPS Brown color, UPS (NYSE: UPS) offers package delivery, supply chain management, and freight forwarding services.

United Parcel Service reported revenues of $21.55 billion, flat year on year. This print surpassed analysts’ expectations by 2.1%. It was a very strong quarter as it also produced a solid beat of analysts’ sales volume and EBITDA estimates.

The stock is flat since reporting and currently trades at $98.00.

Read our full, actionable report on United Parcel Service here, it’s free.

Universal Logistics (NASDAQ: ULH)

Founded in 1932, Universal Logistics (NASDAQ: ULH) is a provider of customized transportation and logistics solutions operating throughout the United States and in Mexico, Canada, and Colombia.

Universal Logistics reported revenues of $382.4 million, down 22.3% year on year. This result came in 4.5% below analysts' expectations. It was a disappointing quarter as it also logged a significant miss of analysts’ EBITDA and EPS estimates.

The stock is down 8.4% since reporting and currently trades at $24.65.

Read our full, actionable report on Universal Logistics here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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