Expeditors Reports Fourth Quarter 2025 EPS of $1.49

BELLEVUE, Wash.--( BUSINESS WIRE)--Expeditors International of Washington, Inc. (NYSE: EXPD) today announced fourth quarter 2025 financial results, including the following comparisons to the same quarter of 2024:

Daniel R. Wall, President and Chief Executive Officer, commented:

"While we knew comparisons to 2024 were going to be tough given the current ocean environment, I am quite pleased with the increased business we are taking on, including customs, Transcon, warehousing & distribution, and order management. This shows that our strategy to diversify the breadth of our portfolio is making a difference. We are focused on growing in every region, product, and customer segment to achieve a healthy balance of revenue, which ultimately creates unlimited opportunities for our employees. In 2026, we will continue to focus on growth diversification, pricing optimization, and further alignment of our cost structure with current market conditions. Finally, we will also make strategic investments in high-return opportunities, such as artificial intelligence (AI) and other customer vertical solutions where we see the most growth potential.”

Comparing Q4 2025 to Q4 2024

Airfreight services: “Air freight gross margins declined modestly on lower per-kilo profitability despite an increase in tonnage. That increase, both year-over-year and compared to Q3 2025, was driven by export volumes from North and South Asia, primarily by customers continuing to invest in technology. During the quarter, a surge in e‑commerce and tech demand pushed buy rates higher, further pressuring margins.”

Ocean freight and ocean services: “Ocean sell rates began declining in the latter part of 2024 and fell more sharply in the third and fourth quarters of 2025, particularly out of North and South Asia. Average revenue-per-container fell 41% compared to the fourth quarter of 2024, and fell 17% compared to the third quarter of 2025, as capacity continued to increase and lower volumes added further pressure. These impacts were partially offset by higher order management volumes from customers seeking greater control over their supply chains, as well as increased demand for freight forwarding and ancillary ocean services. Ocean rates may remain soft in 2026, as capacity is likely to increase further as vessels resume transit via the Suez Canal. We will continue to adjust our ocean operating costs to more properly align with current market conditions.”

Customs brokerage and other services: “Demand for customs brokerage remained strong, reflecting both the complexity and volume of work required to support our customers. We are beginning to realize meaningful benefits from investments we have made in advanced technology to reduce the time required to file customs entries. In addition, we continue to invest in technology solutions, including AI, to further enhance our productivity. Each of our other products in this category achieved double‑digit growth year‑over‑year, led by Transcon road freight and warehousing and distribution, both of which continued to benefit from volume growth tied to ongoing customer investments in global AI hyperscaler infrastructure.

“I would like to extend a special thank you to our operations team for their exceptional performance in a challenging and fast-changing environment. Their dedication enabled us to support customers with comprehensive solutions, while volumes grew across all products.”

David A. Hackett, Senior Vice President and Chief Financial Officer, added:

“We are pleased with our results considering the weakness in the ocean business, coupled with the approximate two percentage point decline in margins in our air business in Q4 2025. While we are not providing future guidance, we have seen air margins recover much of this two percent decline in 2026 through the date of this release.

“Expenses were higher than we would like, driven primarily by strategic headcount additions to address higher‑growth opportunities, particularly in customs brokerage, as well as investments in technology. We believe these investments are critical to our long‑term growth and expect them to generate attractive returns over time. Excluding transportation‑related costs, operating expenses increased less than one percent sequentially compared to the third quarter of 2025.”

Mr. Hackett noted that the Company returned $150 million in dividends and share repurchases during the fourth quarter, and $875 million in share repurchases and dividends in all of 2025. Mr. Hackett also noted that on February 23, 2026, the Board of Directors authorized a new share repurchase program that permits the repurchase of up to $3 billion of the Company's common stock, effective upon the expiration of the current program, which will occur when the outstanding shares of common stock reach 130 million.

About Expeditors International of Washington, Inc.

Expeditors is a global logistics company headquartered in Bellevue, Washington. The Company employs trained professionals in 172 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution and customized logistics solutions.

Disclaimer on Forward-Looking Statements:

Certain statements contained in this news release are “forward-looking statements,” based on management’s views with respect to future events and underlying assumptions that involve risks and uncertainties. These forward-looking statements include statements regarding new business and diverse areas of growth; growth in all of our regions, products, and customer segmentation to create balanced revenue; pricing optimization; strategic investments in high-return opportunities; inflation; continued changes in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets; the demand for our customs brokerage and other products; geopolitical uncertainty; national policy changes on tariffs and other similar measures; new capacity in the marketplace; longer ocean transit times; e-commerce demand in the air market; and volatile rates. Future financial performance could differ materially because of factors such as: our ability to benefit from the significant investments being made by our technology customers in artificial intelligence infrastructure; the ability of our customs brokerage business to continue to deliver strong growth from high demand for our services; our ability to deliver differentiated performance because of our customer service culture and compensation model; our ability to align our operating cost structure with a lower growth environment; our ability to continue to process an increasing number of more complex customs clearances; our ability to find solutions to keep cargo moving for our customers during highly uncertain market conditions; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. Geopolitical risks, port actions, other labor disruptions, tariffs, and the current uncertainty in the global economy could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform, and potential litigation and contingencies, including risks associated with tax audits, as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company’s regulatory filings with the Securities and Exchange Commission, including those in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and the Company’s most recent Form 10-Q. The forward-looking statements contained in this news release speak only as of this date and the Company does not assume any obligation to update them except as required by law.

1 Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements in this release.

Expeditors International of Washington, Inc.

Fourth quarter 2025 Earnings Release, February 24, 2026

Financial Summary for the three and twelve months ended December 31, 2025 and 2024 (Unaudited)

(in 000's of US dollars except share data)

Three months ended December 31,

Twelve months ended December 31,

2025

2024

% Change

2025

2024

% Change

Revenues

2,855,954

2,954,705

11,069,009

10,600,515

Directly related cost of transportation and other expenses 1

1,932,392

2,020,066

7,402,081

7,186,718

Salaries and other operating expenses 2

672,652

633,535

2,614,382

2,372,474

Operating income

250,910

301,104

(17

1,052,546

1,041,323

Net earnings attributable to shareholders

200,707

235,878

(15

810,332

810,073

—

Diluted earnings attributable to shareholders per share

1.49

1.68

(11

5.95

5.72

Basic earnings attributable to shareholders per share

1.50

1.69

(11

5.97

5.75

Diluted weighted average shares outstanding

134,630

139,992

136,249

141,722

Basic weighted average shares outstanding

134,195

139,357

135,810

140,992

1 Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services, and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.

2 Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion, and Other as shown in the Condensed Consolidated Statements of Earnings.

During the three and twelve months ended December 31, 2025, we repurchased 0.3 million and 5.6 million shares of common stock at an average price of $149.47 and $118.01 per share, respectively. During the three and twelve months ended December 31, 2024, we repurchased 2.0 million and 7.1 million shares of common stock at an average price of $120.14 and $119.47 per share, respectively. In addition, during 2025 and 2024, we paid cash dividends of $1.54 and $1.46 per share, respectively.

Employee Full-time Equivalents as of December 31,

2025

2024

North America

7,507

6,999

Europe

4,217

3,882

North Asia

2,321

2,280

South Asia

2,038

1,827

Middle East, Africa and India

1,493

1,389

Latin America

884

796

Information Systems

1,493

1,326

Corporate

406

418

Total

20,359

18,917

Fourth quarter year-over-year

percentage increase (decrease):

2025

Airfreight

kilos

Ocean freight

FEU

October

(8)%

November

(7)%

December

(4)%

Quarter

(6)%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 27, 2025 will be considered in management's 8-K “Responses to Selected Questions.”

____________________

NOTE: See Disclaimer on Forward-Looking Statements in this release.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

December 31, 2025

December 31, 2024

Assets:

Current Assets:

Cash and cash equivalents

1,314,285

1,148,320

Accounts receivable, less allowance for credit loss of $7,241 and $6,878 at December 31, 2025 and 2024, respectively

2,021,889

1,997,840

Deferred contract costs

283,281

349,343

Other

136,167

164,272

Total current assets

3,755,622

3,659,775

Property and equipment, less accumulated depreciation and amortization of $651,087 and $615,533 at December 31, 2025 and 2024, respectively

462,122

449,404

Operating lease right-of-use assets

550,162

551,652

Goodwill

7,927

Deferred income tax asset, net

101,671

70,671

Other assets, net

16,134

15,029

Total assets

4,893,638

4,754,458

Liabilities:

Current Liabilities:

Accounts payable

1,123,429

1,036,749

Accrued expenses, primarily salaries and related costs

448,055

451,921

Contract liabilities

358,386

441,927

Current portion of operating lease liabilities

110,891

106,736

Federal, state and foreign income taxes payable

32,046

29,140

Total current liabilities

2,072,807

2,066,473

Noncurrent portion of operating lease liabilities

459,698

462,201

Deferred income tax liability, net

3,040

—

Commitments and contingencies

Shareholders’ Equity:

Preferred stock, none issued

—

Common stock, par value $0.01 per share. Issued and outstanding: 133,884 shares and 138,003 shares at December 31, 2025 and 2024, respectively

1,339

1,380

Additional paid-in capital

—

Retained earnings

2,538,455

2,455,132

Accumulated other comprehensive loss

(184,161

)

(233,500

)

Total shareholders’ equity

2,355,633

2,223,012

Noncontrolling interest

2,460

2,772

Total equity

2,358,093

2,225,784

Total liabilities and equity

4,893,638

4,754,458

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

Three months ended December 31,

Twelve months ended December 31,

2025

2024

2025

2024

Revenues:

Airfreight services

1,109,077

1,063,026

3,982,882

3,669,673

Ocean freight and ocean services

611,393

908,435

2,814,960

3,148,514

Customs brokerage and other services

1,135,484

983,244

4,271,167

3,782,328

Total revenues

2,855,954

2,954,705

11,069,009

10,600,515

Operating Expenses:

Airfreight services

866,314

808,437

2,979,993

2,731,552

Ocean freight and ocean services

430,167

681,021

2,029,847

2,356,952

Customs brokerage and other services

635,911

530,608

2,392,241

2,098,214

Salaries and related

496,222

472,753

1,915,932

1,762,654

Rent and occupancy

65,499

59,140

263,891

241,013

Depreciation and amortization

14,070

15,176

56,769

61,090

Selling and promotion

11,940

10,965

40,099

33,331

Other

84,921

75,501

337,691

274,386

Total operating expenses

2,605,044

2,653,601

10,016,463

9,559,192

Operating income

250,910

301,104

1,052,546

1,041,323

Other Income:

Interest income

8,857

10,007

35,715

46,706

Other, net

2,273

2,172

5,802

6,771

Other income (expense), net

11,130

12,179

41,517

53,477

Earnings before income taxes

262,040

313,283

1,094,063

1,094,800

Income tax expense

61,088

77,127

282,015

283,167

Net earnings

200,952

236,156

812,048

811,633

Less net earnings attributable to the noncontrolling interest

245

278

1,716

1,560

Net earnings attributable to shareholders

200,707

235,878

810,332

810,073

Diluted earnings attributable to shareholders per share

1.49

1.68

5.95

5.72

Basic earnings attributable to shareholders per share

1.50

1.69

5.97

5.75

Weighted average diluted shares outstanding

134,630

139,992

136,249

141,722

Weighted average basic shares outstanding

134,195

139,357

135,810

140,992

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended

December 31,

Twelve months ended

December 31,

2025

2024

2025

2024

Operating Activities:

Net earnings

200,952

236,156

812,048

811,633

Adjustments to reconcile net earnings to net cash from operating activities:

Provisions for losses on accounts receivable

946

1,991

3,597

3,447

Deferred income tax (benefit) expense

(4,700

)

542

(13,712

)

(5,138

)

Stock compensation expense

12,369

16,528

69,231

64,364

Depreciation and amortization

14,070

15,176

56,769

61,090

Other, net

6,773

(7,391

)

15,154

(3,359

)

Changes in operating assets and liabilities:

Decrease (Increase) in accounts receivable

29,465

116,178

41,802

(531,616

)

(Decrease) increase in accounts payable and accrued expenses

(6,130

)

(143,508

)

20,589

259,310

(Increase) decrease in deferred contract costs

(21,653

)

69,292

81,152

(147,685

)

Increase (decrease) in contract liabilities

25,519

(75,349

)

(100,166

)

179,553

Increase in income taxes payable, net

19,687

13,225

27,099

26,388

Increase (decrease) in other, net

6,001

6,876

(7,062

)

5,374

Net cash from operating activities

283,299

249,716

1,006,501

723,361

Investing Activities:

Purchase of property and equipment

(12,976

)

(10,051

)

(53,101

)

(40,466

)

Other, net

7,294

8,398

(57

)

Net cash from investing activities

(5,682

)

(10,046

)

(44,703

)

(40,523

)

Financing Activities:

Payments on borrowings on lines of credit, net

(5,989

)

(14,520

)

(3,713

)

(20,058

)

Proceeds from issuance of common stock

8,815

1,523

88,177

69,257

Repurchases of common stock

(46,542

)

(252,206

)

(667,306

)

(855,061

)

Dividends Paid

(103,298

)

(101,449

)

(207,437

)

(204,087

)

Payments for taxes related to net share settlement of equity awards

—

(10,353

)

(15,348

)

Distributions to noncontrolling interest

)

—

(1,845

)

—

Net cash from financing activities

(147,022

)

(366,652

)

(802,477

)

(1,025,297

)

Effect of exchange rate changes on cash and cash equivalents

(6,477

)

(17,871

)

6,644

(22,104

)

Change in cash and cash equivalents

124,118

(144,853

)

165,965

(364,563

)

Cash and cash equivalents at beginning of period

1,190,167

1,293,173

1,148,320

1,512,883

Cash and cash equivalents at end of period

1,314,285

1,148,320

1,314,285

1,148,320

Taxes Paid:

Income taxes

45,606

60,521

265,035

257,170

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Business Segment Information

(In thousands)

(Unaudited)

UNITED

STATES

OTHER

NORTH

AMERICA

LATIN

AMERICA

NORTH

ASIA

SOUTH

ASIA

EUROPE

MIDDLE

EAST,

AFRICA

AND

INDIA

ELIMI-

NATIONS

CONSOLI-

DATED

For the three months ended December 31, 2025:

Revenues

923,194

123,157

65,048

684,367

424,977

468,852

168,606

(2,247

)

2,855,954

Directly related cost of transportation and other expenses 1

495,548

76,673

38,592

563,609

337,134

299,677

122,734

(1,575

)

1,932,392

Salaries and related

267,176

21,816

12,139

41,742

31,926

99,685

21,738

—

496,222

Other operating expenses 2

32,076

16,304

8,989

36,998

26,918

42,753

13,062

(670

)

176,430

Operating income

128,394

8,364

5,328

42,018

28,999

26,737

11,072

)

250,910

Identifiable assets at period end

2,681,989

163,328

101,107

460,856

379,262

818,822

299,375

(11,101

)

4,893,638

Capital expenditures

8,219

109

124

153

1,202

1,960

1,209

—

12,976

Depreciation and amortization

7,433

499

245

1,402

714

2,859

918

—

14,070

Equity

1,574,358

37,914

37,821

219,503

145,078

271,816

167,652

(96,049

)

2,358,093

For the three months ended December 31, 2024:

Revenues

866,606

97,443

63,212

837,644

430,161

459,487

201,591

(1,439

)

2,954,705

Directly related cost of transportation and other expenses 1

462,106

48,715

38,336

681,226

341,281

296,273

152,643

(514

)

2,020,066

Salaries and related

257,491

20,110

10,806

44,814

29,542

88,369

21,621

—

472,753

Other operating expenses 2

9,143

16,550

9,065

43,121

25,605

43,789

14,435

(926

)

160,782

Operating income (loss)

137,866

12,068

5,005

68,483

33,733

31,056

12,892

301,104

Identifiable assets at period end

2,565,372

171,872

104,172

582,331

338,759

753,064

270,356

(31,468

)

4,754,458

Capital expenditures

6,474

221

104

317

1,301

1,117

517

—

10,051

Depreciation and amortization

9,153

519

258

1,067

547

2,704

928

—

15,176

Equity

1,500,901

43,155

42,535

228,747

119,823

174,536

156,748

(40,661

)

2,225,784

UNITED

STATES

OTHER

NORTH

AMERICA

LATIN

AMERICA

NORTH

ASIA

SOUTH

ASIA

EUROPE

MIDDLE

EAST,

AFRICA

AND

INDIA

ELIMI-

NATIONS

CONSOLI-

DATED

For the twelve months ended December 31, 2025:

Revenues

3,583,826

470,612

262,439

2,737,513

1,555,189

1,829,248

638,771

(8,589

)

11,069,009

Directly related cost of transportation and other expenses 1

1,880,586

295,043

158,309

2,210,147

1,214,598

1,183,664

465,596

(5,862

)

7,402,081

Salaries and related

1,066,878

83,591

44,769

159,947

118,522

361,448

80,777

—

1,915,932

Other operating expenses 2

116,151

62,799

37,548

150,287

102,798

174,995

56,636

(2,764

)

698,450

Operating income

520,211

29,179

21,813

217,132

119,271

109,141

35,762

1,052,546

Identifiable assets at period end

2,681,989

163,328

101,107

460,856

379,262

818,822

299,375

(11,101

)

4,893,638

Capital expenditures

28,391

845

863

6,015

4,437

6,356

6,194

—

53,101

Depreciation and amortization

32,085

2,001

993

5,076

2,599

11,246

2,769

—

56,769

Equity

1,574,358

37,914

37,821

219,503

145,078

271,816

167,652

(96,049

)

2,358,093

For the twelve months ended December 31, 2024:

Revenues

3,251,998

429,280

214,999

2,934,353

1,391,131

1,700,919

683,191

(5,356

)

10,600,515

Directly related cost of transportation and other expenses 1

1,733,087

248,425

126,413

2,383,627

1,098,448

1,092,478

506,482

(2,242

)

7,186,718

Salaries and related

974,911

79,481

38,337

158,201

106,183

329,757

75,784

—

1,762,654

Other operating expenses 2

64,558

59,863

31,454

154,322

84,267

166,119

52,371

(3,134

)

609,820

Operating income

479,442

41,511

18,795

238,203

102,233

112,565

48,554

1,041,323

Identifiable assets at period end

2,565,372

171,872

104,172

582,331

338,759

753,064

270,356

(31,468

)

4,754,458

Capital expenditures

24,249

2,393

487

1,250

4,239

5,977

1,871

—

40,466

Depreciation and amortization

36,240

2,120

1,104

5,032

2,016

11,277

3,301

—

61,090

Equity

1,500,901

43,155

42,535

228,747

119,823

174,536

156,748

(40,661

)

2,225,784

2 Other operating expenses totals rent and occupancy, depreciation and amortization, selling and promotion, and other as shown in the consolidated statements of earnings.