UNIVERSAL LOGISTICS HOLDINGS, INC.
For the period ended Jul 4, 2026. Filed Aug 13, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 4, 2026 · Filed Aug 13, 2026
ULH$27.12-8.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-04-04; filed 2026-05-14.
0001193125-26-224068
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-07-04; filed 2026-08-13.
0001193125-26-349294
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 121 current paragraphs.
44 unchanged; 24 reworded; 48 added; 7 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 4 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (48)
Current report
Thirteen Weeks Ended July 4, 2026 Compared to Thirteen Weeks Ended June 28, 2025
Current report
During the second quarter of 2026, the gain on the sale of certain real property and improved segment execution favorably impacted our operating margins. The favorable impact was partially offset by a non-cash asset impairment expense and charges related to developments in outstanding legal matters during the period.
Current report
General and administrative expense was $16.0 million for the thirteen weeks ended July 4, 2026, compared to $14.0 million in the prior year period. The increase was primarily attributable to a reserve increase related to an outstanding legal matter during the period.
Current report
Insurance and claims expense was $17.5 million for the thirteen weeks ended July 4, 2026, compared to $7.6 million in the prior year period. The increase was primarily attributable to an increase in reserves for auto liability claims related to ongoing matters, including those involving third-party broker carriers.
Current report
Gain on Disposal of Property and Equipment
Current report
Gain on disposal of property and equipment was $45.3 million for the thirteen weeks ended July 4, 2026, compared to $0.0 million in the prior year period. The increase was primarily attributable to the gain recognized on the sale of property located in Kearny, New Jersey to an affiliate.
Current report
Impairment Expense
Current report
Impairment expense was $3.9 million for the thirteen weeks ended July 4, 2026, compared to $0.0 million in the prior year period. The increase was attributable to a non-cash impairment charge related to a group of tractors that are no longer expected to be utilized in operations.
Current report
Other non-operating income was $0.0 million for the thirteen weeks ended July 4, 2026, compared to $0.1 million in the prior year period. The activity in other non-operating income is not material.
Current report
Income Tax Expense
Current report
Twenty-six Weeks Ended July 4, 2026 Compared to Twenty-six Weeks Ended June 28, 2025
Current report
Operating revenues decreased by $29.3 million, or 3.8%, to $746.9 million for the twenty-six weeks ended July 4, 2026, from $776.2 million for the twenty-six weeks ended June 28, 2025. The decrease was primarily attributable to lower rates and volumes in our intermodal segment. The decrease was partially offset by an increase in our contract logistics segment, primarily driven by an increase in our revenue from value-added programs and strong dedicated transportation volumes.
Current report
Included in operating revenues for the twenty-six weeks ended July 4, 2026, were separately identified fuel surcharges of $43.2 million, compared to $41.1 million in the prior year period.
Current report
Purchased Transportation and Equipment Rent
Current report
Direct Personnel and Related Benefits
Current report
Operating Supplies and Expenses
Current report
Commission Expense
Current report
Commission expense was $8.7 million for both the twenty-six week periods ended July 4, 2026 and June 28, 2025.
Current report
Occupancy Expense
Current report
Occupancy expense was $31.8 million for the twenty-six weeks ended July 4, 2026, compared to $23.1 million in the prior year period. The change was primarily attributable to additional properties being leased under our contract logistics segment.
Current report
General and Administrative Expense
Current report
General and administrative expense was $31.1 million for the twenty-six weeks ended July 4, 2026, compared to $27.2 million in the prior year period. The increase was primarily attributable to a reserve increase related to an outstanding legal matter during the period.
Current report
Insurance and Claims Expense
Current report
Insurance and claims expense was $25.1 million for the twenty-six weeks ended July 4, 2026, compared to $14.6 million in the prior year period. The increase was primarily attributable to an increase in reserves for auto liability claims related to ongoing matters, including those involving third-party broker carriers.
Current report
Depreciation and Amortization
Current report
Gain on Disposal of Property and Equipment
Current report
Gain on disposal of property and equipment was $45.7 million for the twenty-six weeks ended July 4, 2026, compared to $0.0 million in the prior year period. The increase was primarily attributable to the gain recognized on the sale of our property located in Kearny, New Jersey to an affiliate.
Current report
Impairment Expense
Current report
Impairment expense was $3.9 million for the twenty-six weeks ended July 4, 2026, compared to $0.0 million in the prior year period. The increase was attributable to a non-cash impairment charge related to a group of tractors that are no longer expected to be utilized in operations.
Current report
Interest Expense, Net
Current report
Net interest expense was $20.3 million for the twenty-six weeks ended July 4, 2026, compared to $17.1 million in the prior year period. The increase reflects an increase in average interest rates on our outstanding borrowings. As of July 4, 2026, total outstanding borrowings were approximately $695.5 million, compared to $798.6 million as of June 28, 2025.
Current report
Other Non-Operating Income
Current report
Income Tax Expense
Current report
Income tax expense was $7.3 million for the twenty-six weeks ended July 4, 2026, compared to income tax expense of $4.9 million in the prior year period. The increase in income tax expense can be attributed to increases in pre-tax income. Our effective income tax rate was 24.3% for the twenty-six weeks ended July 4, 2026, compared to 25.5% in the prior year period. The change in effective tax rate was due to a change in the mix of operating profits and losses between foreign and domestic tax jurisdictions.
Current report
Thirteen Weeks Ended July 4, 2026 Compared to Thirteen Weeks Ended June 28, 2025
Current report
Twenty-six Weeks Ended July 4, 2026 Compared to Twenty-six Weeks Ended June 28, 2025
Current report
Contract Logistics
Current report
Operating revenues in our contract logistics segment were $541.0 million for the twenty-six weeks ended July 4, 2026, compared to $516.4 million in the prior year period. The change was primarily attributable to certain new value-added programs, increases in certain existing value-added program volumes, and strong dedicated transportation volumes. These increases were partially offset by fewer programs in our value-added rail services operations. Included in contract logistics segment revenues for the twenty-six weeks ended July 4, 2026, were separately identified fuel surcharges of $18.4 million, compared to $16.0 million in the prior year period.
Current report
Income from operations in the contract logistics segment was $42.1 million for the twenty-six weeks ended July 4, 2026, compared to $45.6 million in the prior year period. Operating margin in the contract logistics segment was 7.8% for the current year period, compared to 8.8% in the prior year period. The change in operating margin was primarily attributable to an increase in occupancy expense.
Showing the first 40 of 48 passages. Open the source sections for the rest.
Removed paragraphs (7)
Previous report
Operating Revenues
Previous report
During the first quarter of 2026, lower freight demand, softer automotive production and continued cost pressures in labor adversely affected our operating margins.
Previous report
Operating Revenues
Previous report
General and administrative expense was $14.6 million for the thirteen weeks ended April 4, 2026, compared to $13.2 million in the prior year period. The change was primarily attributable to increases in salaries, wages and benefits.
Previous report
Insurance and claims expense was $7.6 million for the thirteen weeks ended April 4, 2026, compared to $7.0 million in the prior year period. The change was primarily attributable to an increase in auto liability insurance premiums and claims expense.
Previous report
Income Tax (Benefit) Expense
Previous report
Net cash provided by operating activities was $33.4 million for the thirteen weeks ended April 4, 2026. Net cash provided by investing activities was $2.0 million and primarily reflected the proceeds from the sales of marketable securities and equipment, which was partially offset by capital expenditures. Net cash used in financing activities was $50.4 million and primarily reflected net borrowings, equipment financing activity, dividend payments and other financing transactions.
Reworded paragraphs (24)
Previous wording
During the first quarter of 2026, we continued to operate in a challenging environment in certain parts of our business, particularly in intermodal and certain industrial and automotive end markets. Freight demand remained uneven, customer activity levels remained below historical levels in certain markets, and elevated labor, insurance, equipment, maintenance and borrowing costs continued to pressure margins.
Current wording
During the first half of 2026, we continued to operate in a challenging environment in certain parts of our business, particularly in intermodal and certain industrial and automotive end markets. Freight demand remained uneven, customer activity levels remained below historical levels in certain markets, and elevated labor, insurance, equipment, maintenance and borrowing costs continued to pressure margins.
Previous wording
The following table sets forth operating revenues from each of these service categories for the thirteen weeks ended April 4, 2026 and March 29, 2025, expressed as a percentage of total operating revenues.
Current wording
The following table sets forth operating revenues from each of these service categories for the thirteen weeks and twenty-six weeks ended July 4, 2026 and June 28, 2025, expressed as a percentage of total operating revenues:
Previous wording
The following table sets forth selected items derived from our consolidated statements of income for the thirteen weeks ended April 4, 2026 and March 29, 2025, expressed as a percentage of total operating revenues. The period-to-period discussion that follows should be read together with the table and focuses on the primary drivers of changes in revenues, operating expenses and profitability.
Current wording
The following tables set forth selected items derived from our consolidated statements of income for the thirteen weeks ended July 4, 2026 and June 28, 2025, expressed as a percentage of total operating revenues. The period-to-period discussion that follows should be read together with the table and focuses on the primary drivers of changes in revenues, operating expenses and profitability.
Previous wording
Operating revenues decreased by $14.8 million, or 3.9%, to $367.6 million for the thirteen weeks ended April 4, 2026, from $382.4 million for the thirteen weeks ended March 29, 2025. The decrease was primarily attributable to lower freight demand in our intermodal and trucking segments, continued softness in certain industrial and automotive end markets, and lower fuel surcharge revenue. The decrease was partially offset by an increase in our contract logistics segment, primarily driven by an increase in our revenue from value-added programs.
Current wording
Operating revenues decreased by $14.5 million, or 3.7%, to $379.3 million for the thirteen weeks ended July 4, 2026, from $393.8 million for the thirteen weeks ended June 28, 2025. The decrease was primarily attributable to lower rates and volumes in our intermodal segment. The decrease was partially offset by an increase in our contract logistics segment, primarily driven by an increase in our revenue from value-added programs and strong dedicated transportation volumes.
Previous wording
Included in operating revenues for the thirteen weeks ended April 4, 2026, were separately identified fuel surcharges of $18.4 million, compared to $20.9 million in the prior year period.
Current wording
Included in operating revenues for the thirteen weeks ended July 4, 2026, were separately identified fuel surcharges of $24.8 million, compared to $20.2 million in the prior year period.
Previous wording
Purchased transportation and equipment rent generally increases or decreases in proportion to the revenues generated through owner-operators and third-party capacity providers. Purchased transportation and equipment rent was $60.7 million for the thirteen weeks ended April 4, 2026, compared to $79.7 million in the prior year period. The decrease was primarily attributable to lower transactional transportation volumes and a decrease in the mix of owner-operators versus employee drivers in certain intermodal operations.
Current wording
Purchased transportation and equipment rent generally increases or decreases in proportion to the revenues generated through owner-operators and third-party capacity providers. Purchased transportation and equipment rent was $67.0 million for the thirteen weeks ended July 4, 2026, compared to $81.5 million in the prior year period. The decrease was primarily attributable to lower transactional transportation volumes and a decrease in the mix of owner-operators versus employee drivers in certain intermodal operations.
Previous wording
Direct personnel and related benefits expense was $176.2 million for the thirteen weeks ended April 4, 2026, compared to $164.5 million in the prior year period. Trends in direct personnel and related benefits are generally correlated with operating facility requirements, headcount levels and labor utilization in our contract logistics segment, including value-added services and dedicated transportation, as well as the use of employee drivers in certain intermodal operations. The increase in the current year period was primarily attributable to certain new contract logistics programs.
Current wording
Direct personnel and related benefits expense was $164.8 million for the thirteen weeks ended July 4, 2026, compared to $168.0 million in the prior year period. Trends in direct personnel and related benefits are generally correlated with operating facility requirements, headcount levels and labor utilization in our contract logistics segment, including value-added services and dedicated transportation, as well as the use of employee drivers in certain intermodal operations. The decrease in the current year period was primarily attributable to fewer programs in our value-added rail services operations.
Previous wording
Operating supplies and expenses include items such as fuel, maintenance, utilities, communications, equipment repairs, cost of materials and other operating costs. Operating supplies and expenses were $48.3 million for the thirteen weeks ended April 4, 2026, compared to $51.3 million in the prior year period. The decrease was primarily attributable to a decrease in maintenance and professional fees.
Current wording
Operating supplies and expenses include items such as fuel, maintenance, utilities, communications, equipment repairs, cost of materials and other operating costs. Operating supplies and expenses were $56.3 million for the thirteen weeks ended July 4, 2026, compared to $50.4 million in the prior year period. The increase was primarily attributable to an increase in fuel expense on company tractors.
Previous wording
Commission expense was $4.2 million for the thirteen weeks ended April 4, 2026, compared to $4.3 million in the prior year period. The change was primarily attributable to decreases in revenue generated through our agent-based trucking operations.
Current wording
Commission expense was $4.5 million for the thirteen weeks ended July 4, 2026, compared to $4.4 million in the prior year period. The change was primarily attributable to increases in revenue generated through our agent-based trucking operations.
Previous wording
Occupancy expense was $15.6 million for the thirteen weeks ended April 4, 2026, compared to $11.3 million in the prior year period. The change was primarily attributable to additional properties being leased.
Current wording
Occupancy expense was $16.3 million for the thirteen weeks ended July 4, 2026, compared to $11.8 million in the prior year period. The change was primarily due to additional properties being leased under our contract logistics segment.
Previous wording
Net interest expense was $9.7 million for the thirteen weeks ended April 4, 2026, compared to $8.2 million in the prior year period. The change reflects increases in average borrowings outstanding as well as an increase in average interest rates on our outstanding borrowings. As of April 4, 2026, total outstanding borrowings were approximately $754.7 million, compared to $740.0 million as of March 29, 2025.
Current wording
Net interest expense was $10.6 million for the thirteen weeks ended July 4, 2026, compared to $8.9 million in the prior year period. The change reflects an increase in average interest rates on our outstanding borrowings. As of July 4, 2026, total outstanding borrowings were approximately $695.5 million, compared to $798.6 million as of June 28, 2025.
Previous wording
During the thirteen weeks ended April 4, 2026, we had an income tax benefit of $(1.1) million, compared to income tax expense of $2.0 million in the prior year period. The change is primarily attributed to a decrease in pre-tax income. Our effective income tax rate was 24.2% for the thirteen weeks ended April 4, 2026, compared to 25.1% in the prior year period.
Current wording
Income tax expense was $8.4 million for the thirteen weeks ended July 4, 2026, compared to income tax expense of $2.9 million in the prior year period. The increase in income tax expense can be attributed to increases in pre-tax income. Our effective income tax rate was 24.3% for the thirteen weeks ended July 4, 2026, compared to 25.7% in the prior year period. The change in effective tax rate was due to a change in the mix of operating profits and losses between foreign and domestic tax jurisdictions.
Previous wording
Depreciation and amortization expense was $35.6 million for the thirteen weeks ended April 4, 2026, compared to $35.5 million in the prior year period. Depreciation expense increased $2.8 million and amortization expense decreased $2.7 million. The increase in depreciation expense is primarily attributable to incremental fixed asset additions. The decrease in amortization is due to the previous impairment of certain customer-relationship intangible assets in our intermodal segment in the third quarter of 2025.
Current wording
Depreciation and amortization expense was $68.8 million for the twenty-six weeks ended July 4, 2026, compared to $71.7 million in the prior year period. Depreciation expense increased $2.6 million and amortization expense decreased $5.4 million. The increase in depreciation expense is primarily attributable to incremental fixed asset additions. The decrease in amortization is due to the previous impairment of certain customer-relationship intangible assets in our intermodal segment in the third quarter of 2025.
Previous wording
Other non-operating income was $0.3 million for the thirteen weeks ended April 4, 2026, compared to $0.6 million in the prior year period. The decrease can be attributed to a decrease in dividends and gains on marketable equity securities.
Current wording
Other non-operating income was $0.3 million for the twenty-six weeks ended July 4, 2026, compared to $0.7 million in the prior year period. The activity in other non-operating income is not material.
Previous wording
We report our financial results in three reportable segments: contract logistics, intermodal and trucking. This presentation reflects the manner in which management evaluates the business, including the economic characteristics and operating performance of each segment. The following tables summarize information about our reportable segments for the thirteen weeks ended April 4, 2026 and March 29, 2025 (in thousands):
Current wording
We report our financial results in three reportable segments: contract logistics, intermodal and trucking. This presentation reflects the manner in which management evaluates the business, including the economic characteristics and operating performance of each segment. The following tables summarize information about our reportable segments for the thirteen week and twenty-six week periods ended July 4, 2026 and June 28, 2025 (in thousands):
Previous wording
Operating revenues in our contract logistics segment were $269.5 million for the thirteen weeks ended April 4, 2026, compared to $255.9 million in the prior year period. The change was primarily attributable to certain new value-added programs and increases in certain existing value-added program volumes. Included in contract logistics segment revenues for the thirteen weeks ended April 4, 2026, were separately identified fuel surcharges from dedicated transportation services of $7.9 million, compared to $8.6 million in the prior year period.
Current wording
Operating revenues in our contract logistics segment were $271.4 million for the thirteen weeks ended July 4, 2026, compared to $260.6 million in the prior year period. The change was primarily attributable to certain new value-added programs, increases in certain existing value-added program volumes, and strong dedicated transportation volumes. These increases were partially offset by fewer programs in our value-added rail services operations. Included in contract logistics segment revenues for the thirteen weeks ended July 4, 2026, were separately identified fuel surcharges of $10.5 million, compared to $7.3 million in the prior year period.
Previous wording
Income from operations in the contract logistics segment was $17.5 million for the thirteen weeks ended April 4, 2026, compared to $23.9 million in the prior year period. Operating margin in the contract logistics segment was 6.5% for the current year period, compared to 9.3% in the prior year period. The change in operating margin was primarily attributable to an increase in labor costs.
Current wording
Income from operations in the contract logistics segment was $24.6 million for the thirteen weeks ended July 4, 2026, compared to $21.8 million in the prior year period. Operating margin in the contract logistics segment was 9.1% for the current year period, compared to 8.4% in the prior year period. The change in operating margin was primarily attributable to a decrease in labor costs.
Previous wording
Operating revenues in our intermodal segment were $47.9 million for the thirteen weeks ended April 4, 2026, compared to $70.7 million in the prior year period. The change was primarily attributable to decreases in load volumes and average operating revenue per load. Included in intermodal segment revenues for the thirteen weeks ended April 4, 2026, were separately identified fuel surcharges of $5.4 million, compared to $8.2 million in the prior year period. Intermodal segment revenues also included detention, demurrage and storage charges of $7.2 million, compared to $8.1 million in the prior year period.
Current wording
Operating revenues in our intermodal segment were $44.1 million for the thirteen weeks ended July 4, 2026, compared to $68.9 million in the prior year period. The change was primarily attributable to decreases in load volumes and average operating revenue per load, excluding fuel surcharges. Included in intermodal segment revenues for the thirteen weeks ended July 4, 2026, were separately identified fuel surcharges of $7.1 million, compared to $8.2 million in the prior year period. Intermodal segment revenues also included detention, demurrage and storage charges of $5.2 million, compared to $9.2 million in the prior year period.
Previous wording
The loss from operations in the intermodal segment was $(13.1) million for the thirteen weeks ended April 4, 2026, compared to $(10.7) million in the prior year period. Operating margin in the intermodal segment was (27.4)% for the current year period, compared to (15.1)% in the prior year period.
Current wording
The loss from operations in the intermodal segment was $(10.4) million for the thirteen weeks ended July 4, 2026, compared to a loss from operations of $(5.7) million in the prior year period. Operating margin in the intermodal segment was (23.7)% for the current year period, compared to (8.2)% in the prior year period. The change in operating margin is primarily attributable to the impact of lower revenues on the segment’s fixed cost base.
Previous wording
Operating revenues in our trucking segment were $50.2 million for the thirteen weeks ended April 4, 2026, compared to $55.6 million in the prior year period. The change was primarily attributable to decreases in load volumes and average operating revenue per load. Included in trucking segment revenues for the thirteen weeks ended April 4, 2026, were brokerage revenues of $16.2 million, compared to $18.0 million in the prior year period, and separately identified fuel surcharges of $3.6 million, compared to $3.5 million in the prior year period.
Current wording
Operating revenues in our trucking segment were $63.8 million for the thirteen weeks ended July 4, 2026, compared to $64.1 million in the prior year period. The decrease was primarily attributable to a decrease in load volumes, which was mostly offset by an increase in the average operating revenue per load, excluding fuel surcharges. Included in trucking segment revenues for the thirteen weeks ended July 4, 2026, were brokerage revenues of $18.8 million, compared to $18.4 million in the prior year period, and separately identified fuel surcharges of $5.6 million, compared to $3.4 million in the prior year period.
Previous wording
Income from operations in the trucking segment was $0.6 million for the thirteen weeks ended April 4, 2026, compared to $2.2 million in the prior year period. Operating margin in the trucking segment was 1.1% for the current year period, compared to 3.9% in the prior year period.
Current wording
Income from operations in the trucking segment was $2.9 million for the thirteen weeks ended July 4, 2026, compared to $3.3 million in the prior year period. Operating margin in the trucking segment was 4.5% for the current year period, compared to 5.2% in the prior year period. The decrease in operating margin is due to a decrease in higher margin specialized heavy-haul services.
Previous wording
As of April 4, 2026, we had cash and cash equivalents of approximately $17.9 million and approximately $286.1 million of availability under our revolving credit facility. Total outstanding borrowings were approximately $754.7 million, including borrowings under our revolving credit facility, equipment financing arrangements, a term loan facility secured by real estate and approximately $189.4 million of CTL financing.
Current wording
As of July 4, 2026, we had cash and cash equivalents of approximately $20.3 million and approximately $238.8 million of availability under our revolving credit facility. Total outstanding borrowings were approximately $695.5 million, including borrowings under our revolving credit facility, equipment financing arrangements, and approximately $185.3 million of CTL debt. The CTL debt is generally non-recourse to the Company and its subsidiaries, except for customary limited-recourse obligations under indemnity and guaranty agreements relating to environmental matters, lease-term compliance, and certain representations, warranties, and covenants.
Previous wording
Capital expenditures were $9.6 million for the thirteen weeks ended April 4, 2026. Capital expenditures primarily consisted of investments in transportation equipment, terminal facilities and expenditures in support of value-added programs.
Current wording
In June 2026, we received a real property facility located in Newark, New Jersey with a fair value of $55.6 million as partial consideration in connection with the sale of a real property facility in Kearny, New Jersey. See Note 11 in the Notes to Consolidated Financial Statements (Unaudited) for further information. Excluding the property exchange, capital expenditures for the twenty-six weeks ended July 4, 2026 were $22.9 million and consisted primarily of investments in transportation equipment, terminal facilities and expenditures in support of value-added programs.
Previous wording
For the remainder of 2026, we currently expect capital expenditures to be approximately $75.0 million. Actual spending may vary based on customer demand, equipment availability, pricing, timing of value-added opportunities, market conditions and liquidity considerations.
Current wording
For the remainder of 2026, we currently expect capital expenditures to be approximately $80.0 million. Actual spending may vary based on customer demand, equipment availability, pricing, timing of value-added opportunities, market conditions and liquidity considerations.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Depreciation and amortization expense was $33.2 million for the thirteen weeks ended July 4, 2026, compared to $36.2 million in the prior year period. Depreciation expense decreased $0.2 million and amortization expense decreased $2.8 million. The decrease in depreciation expense is primarily attributable to certain fixed assets becoming fully depreciated. The decrease in amortization is due to the previous impairment of certain customer-relationship intangible assets in our intermodal segment in the third quarter of 2025.
Current report — wording carried from elsewhere
The following tables set forth selected items derived from our consolidated statements of income for the twenty-six weeks ended July 4, 2026 and June 28, 2025, expressed as a percentage of total operating revenues. The period-to-period discussion that follows should be read together with the table and focuses on the primary drivers of changes in revenues, operating expenses and profitability:
Current report — wording carried from elsewhere
Purchased transportation and equipment rent generally increases or decreases in proportion to the revenues generated through owner-operators and third-party capacity providers. Purchased transportation and equipment rent was $127.7 million for the twenty-six weeks ended July 4, 2026, compared to $161.3 million in the prior year period. The decrease was primarily attributable to lower transactional transportation volumes and a decrease in the mix of owner-operators versus employee drivers in certain intermodal operations.
Current report — wording carried from elsewhere
Direct personnel and related benefits expense was $341.0 million for the twenty-six weeks ended July 4, 2026, compared to $332.5 million in the prior year period. Trends in direct personnel and related benefits are generally correlated with operating facility requirements, headcount levels and labor utilization in our contract logistics segment, including value-added services and dedicated transportation, as well as the use of employee drivers in certain intermodal operations. The increase in the current year period was primarily attributable to certain new contract logistics programs, partially offset by fewer programs in our value-added rail services operations.
Current report — wording carried from elsewhere
Operating supplies and expenses include items such as fuel, maintenance, utilities, communications, equipment repairs, cost of materials and other operating costs. Operating supplies and expenses were $104.6 million for the twenty-six weeks ended July 4, 2026, compared to $101.7 million in the prior year period. The increase was primarily attributable to an increase in fuel expense on company tractors.