C.H. Robinson Reports 2025 Third Quarter Results

EDEN PRAIRIE, Minn.--( BUSINESS WIRE)--C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended September 30, 2025.

With seven consecutive quarters of consistent outperformance through the disciplined execution of the strategy that we shared at our 2024 Investor Day, there is no doubt in our minds that we are on the right path to deliver sustainable outperformance.

Third Quarter Highlights:

(1) Adjusted operating margin and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

"The third quarter of 2025 was marked by a continued soft freight environment, with the Cass Freight Shipment Index declining year-over-year for the 12th consecutive quarter. The Cass index reading was the lowest third quarter reading since the financial crisis of 2009. And despite a fairly steady exit of trucking capacity over the past three years, truckload spot rates continue to bounce along the bottom due to low demand," said President and Chief Executive Officer, Dave Bozeman. "International freight has been impacted by global trade policies, which caused previous front-loading, a dislocation of shipments and a softer than normal peak season. Combined with excess vessel capacity, this caused ocean rates to decline substantially versus a year ago, consistent with the expectations that we laid out at our Investor Day in December. Ocean rates also declined substantially within the third quarter, causing our adjusted gross profit per ocean shipment to decline 27% from June to September. These factors led to unfavorable conditions for global transportation companies in the third quarter. We are not immune to the market, and the volume and rate dynamics in Global Forwarding are certainly headwinds we are facing."

"But this is a new C.H. Robinson, and we don’t use the macro environment as an excuse. We are a fundamentally different company than we were two years ago, illustrated by the company’s consistent outperformance versus the market," Bozeman added. "Our third quarter results provide another proof point of the disciplined execution of our strategy. In NAST, we grew our combined truckload and LTL volume by approximately 3.0% year-over-year and demonstrably grew market share versus a 7.2% decline in the Cass Freight Shipment Index. This was accomplished while expanding gross margins for the 8th consecutive quarter and further increasing productivity and operating leverage while growing volume. This resulted in a 39% adjusted operating margin in NAST and further progress toward our 40% mid-cycle adjusted operating margin target for NAST."

"In Global Forwarding, we expanded gross margins by 380 basis points year-over-year through improved revenue management discipline. We also continued to improve our productivity, which has now increased by more than 55% in Global Forwarding since the end of 2022. This improvement in our operating leverage enabled us to achieve our 30% mid-cycle adjusted operating margin target in the third quarter, despite the difficult market conditions."

"With seven consecutive quarters of consistent outperformance through the disciplined execution of the strategy that we shared at our 2024 Investor Day, there is no doubt in our minds that we are on the right path to deliver sustainable outperformance. Our model, with an industry-leading cost to serve, is highly scalable and we expect it will improve further as we harness the evolving power of AI to drive automation across the quote-to-cash lifecycle of a load. We’re still in the early innings of our Lean AI journey - call it third inning in NAST and first inning in Global Forwarding. Lean AI is our unique, disciplined approach to AI innovation that transforms supply chains. By combining the principles of Lean methodology in our Robinson operating model with the power of AI, Lean AI is designed to maximize value and minimize waste for better outcomes. It is uniquely enabled by our leading AI technology, our expert logisticians and our Lean operating model that drives continuous improvement," said Bozeman.

Summary of Third Quarter of 2025 Results Compared to the Third Quarter of 2024

(1) Adjusted gross profits, adjusted operating margin and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

Summary of 2025 Year-to-Date Results Compared to 2024

North American Surface Transportation (“NAST”) Results

Summarized financial results of our NAST segment are as follows (dollars in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Total revenues

2,965,694

2,934,617

1.1

8,752,341

8,924,839

(1.9

Adjusted gross profits (1)

444,139

420,664

5.6

1,294,711

1,237,431

4.6

Income from operations

172,878

148,767

16.2

480,540

398,764

20.5

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter total revenues for the NAST segment totaled $3.0 billion, an increase of 1.1% over the prior year, primarily driven by higher volumes in both our truckload and LTL services, partially offset by lower pricing in truckload services. NAST adjusted gross profits increased 5.6% in the quarter to $444.1 million. Adjusted gross profits in truckload increased 2.9% due to a 3.0% increase in volume. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, decreased approximately 1.5% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, decreased 1.5%, resulting in a flat truckload adjusted gross profit per mile. LTL adjusted gross profits increased 11.0% versus the year-ago period, driven by a 8.0% increase in adjusted gross profit per order and a 2.5% increase in LTL volume. Total NAST truckload and LTL volume increased 3.0% for the quarter and outpaced the market indices. Operating expenses decreased 0.2%, primarily due to cost optimization efforts and productivity improvements, partially offset by higher incentive compensation. Third quarter average employee headcount was down 7.3% year-over-year. Income from operations increased 16.2% to $172.9 million, and adjusted operating margin expanded 350 basis points to 38.9%.

Global Forwarding Results

Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Total revenues

786,347

1,141,190

(31.1

2,359,035

2,921,050

(19.2

Adjusted gross profits (1)

191,755

234,636

(18.3

563,964

598,748

(5.8

Income from operations

49,021

88,115

(44.4

143,294

160,649

(10.8

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Third quarter total revenues for the Global Forwarding segment decreased 31.1% to $786.3 million, primarily driven by lower pricing and volume in our ocean services. Adjusted gross profits decreased 18.3% in the quarter to $191.8 million. Ocean adjusted gross profits decreased 32.5%, driven by a 27.5% decrease in adjusted gross profit per shipment and a 7.0% decline in shipments. Air adjusted gross profits increased 5.4%, driven by a 17.0% increase in adjusted gross profit per metric ton shipped, partially offset by a 10.0% decline in metric tons shipped. Customs adjusted gross profits increased 28.6%, driven by a 30.5% increase in adjusted gross profit per transaction, partially offset by a 1.5% reduction in transaction volume. Operating expenses decreased 2.6%, primarily due to cost optimization efforts and productivity improvements and lower incentive compensation and claims expense, partially offset by current year restructuring charges related to workforce reductions. Third quarter average employee headcount decreased 6.7% year-over-year. Income from operations decreased 44.4% to $49.0 million, and adjusted operating margin declined 1,200 basis points to 25.6% in the quarter.

All Other and Corporate Results

Total revenues and adjusted gross profits for Robinson Fresh, Managed Solutions and Other Surface Transportation are summarized as follows (dollars in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Total revenues

384,805

568,834

(32.4

1,208,753

1,694,411

(28.7

Adjusted gross profits (1):

Robinson Fresh

40,195

36,708

9.5

122,243

110,327

10.8

Managed Solutions

29,988

27,949

7.3

86,841

85,637

1.4

Other Surface Transportation (2)

—

15,296

(100.0

4,637

48,248

(90.4

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

(2) Includes our Europe Surface Transportation business, which was divested as of February 1, 2025.

Third quarter Robinson Fresh adjusted gross profits increased 9.5% to $40.2 million due to an increase in integrated supply chain solutions for foodservice customers. Managed Solutions adjusted gross profits increased 7.3% due to an increase in freight under management.

Other Income Statement Items

Interest and other income/expense, net totaled $15.6 million of expense, consisting primarily of $15.8 million of interest expense, which decreased $6.3 million versus the third quarter of 2024 due to a lower average debt balance and lower variable interest rates.

The third quarter effective tax rate was 20.6%, down from 32.4% in the third quarter of 2024. The lower rate in the third quarter of 2025 was driven by the impact of non-recurring discrete items and the divestiture of our European Surface Transportation business in the prior year and stock-based compensation, partially offset by a reduced benefit from U.S. tax credits in the current year. For 2025, we expect our full-year effective tax rate to be 18% to 20%.

Diluted weighted average shares outstanding in the quarter were up 0.1% year-over-year.

Cash Flow Generation and Capital Distribution

Cash generated from operations totaled $275.4 million in the third quarter, compared to $108.1 million in the third quarter of 2024. The $167.4 million increase in cash flow from operations was primarily related to a $65.8 million increase in net income and a $144.5 million decrease in cash used by changes in net operating working capital, due to a $21.0 million sequential increase in net operating working capital in the third quarter of 2025 compared to a $165.5 million sequential increase in the third quarter of 2024.

In the third quarter of 2025, cash returned to shareholders totaled $189.6 million, with $74.7 million in cash dividends and $114.9 million in repurchases of common stock.

Capital expenditures totaled $18.6 million in the quarter. Capital expenditures for 2025 are expected to be $65 million to $75 million.

About C.H. Robinson

C.H. Robinson is the global leader in Lean AI supply chains. For more than a century, companies everywhere have looked to us to reimagine how goods move. Now, as we redefine what’s next for the industry, that same drive fuels our commitment to Building Tomorrow’s Supply Chains, Today™. Trusted by 83,000 customers and 450,000 contract carriers, we manage 37 million shipments annually, representing $23 billion in freight. We deliver tailored solutions across the world via truckload, less-than-truckload, ocean, air, and more. With our unique combination of human insight and Lean AI working as one, supply chains move faster, smarter, and more sustainably. As a responsible global citizen, we proudly contribute millions to the causes that matter most to our employees. For more information, visit us at chrobinson.com (Nasdaq: CHRW).

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability and achieving our long-term growth targets; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations or efficiently managing divestitures; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; risks associated with cybersecurity events; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay.

Conference Call Information:

C.H. Robinson Worldwide Third Quarter 2025 Earnings Conference Call

Wednesday, October 29, 2025; 5:30 p.m. Eastern Time

Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at chrobinson.com.

To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756

Adjusted Gross Profit by Service Line

(in thousands)

This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines.

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Adjusted gross profits (1):

Transportation

Truckload

273,885

279,564

(2.0

804,086

811,164

(0.9

LTL

158,251

143,228

10.5

458,848

430,187

6.7

Ocean

110,422

163,314

(32.4

333,659

392,831

(15.1

Air

35,515

33,607

5.7

102,786

95,045

8.1

Customs

36,358

28,266

28.6

98,376

81,013

21.4

Other logistics services

56,421

54,338

3.8

167,661

171,216

(2.1

Total transportation

670,852

702,317

(4.5

1,965,416

1,981,456

(0.8

Sourcing

35,225

32,936

6.9

106,980

98,935

8.1

Total adjusted gross profits

706,077

735,253

(4.0

2,072,396

2,080,391

(0.4

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

GAAP to Non-GAAP Reconciliation

(unaudited, in thousands)

Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Revenues:

Transportation

3,783,535

4,278,300

(11.6

11,252,110

12,482,818

(9.9

Sourcing

353,311

366,341

(3.6

1,068,019

1,057,482

1.0

Total revenues

4,136,846

4,644,641

(10.9

12,320,129

13,540,300

(9.0

Costs and expenses:

Purchased transportation and related services

3,112,683

3,575,983

(13.0

9,286,694

10,501,362

(11.6

Purchased products sourced for resale

318,086

333,405

(4.6

961,039

958,547

0.3

Direct internally developed software amortization

14,420

11,441

26.0

43,767

32,546

34.5

Total direct expenses

3,445,189

3,920,829

(12.1

10,291,500

11,492,455

(10.4

Gross profit

691,657

723,812

(4.4

2,028,629

2,047,845

(0.9

Plus: Direct internally developed software amortization

14,420

11,441

26.0

43,767

32,546

34.5

Adjusted gross profit

706,077

735,253

(4.0

2,072,396

2,080,391

(0.4

Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring, lease impairment charge and/or loss on divestiture is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring, lease impairment, and/or losses from divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring, lease impairment charge and/or loss on divestiture are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring, lease impairment charge and/or loss on divestiture are presented below:

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Total revenues

4,136,846

4,644,641

(10.9

12,320,129

13,540,300

(9.0

Income from operations

220,836

180,119

22.6

613,608

485,342

26.4

Operating margin

5.3

3.9

140 bps

5.0

3.6

140 bps

Adjusted gross profit

706,077

735,253

(4.0

2,072,396

2,080,391

(0.4

Income from operations

220,836

180,119

22.6

613,608

485,342

26.4

Adjusted operating margin

31.3

24.5

680 bps

29.6

23.3

630 bps

Adjusted gross profit

706,077

735,253

(4.0

2,072,396

2,080,391

(0.4

Adjusted income from operations

230,590

241,584

(4.6

636,285

574,941

10.7

Adjusted operating margin - excluding restructuring, lease impairment charge, and/or loss on divestiture

32.7

32.9

(20) bps

30.7

27.6

310 bps

GAAP to Non-GAAP Reconciliation

(unaudited, in thousands)

Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, lease impairment charge and/or loss on divestiture, adjusted net income and adjusted net income per share (diluted) are non-GAAP financial measures. These non-GAAP measures are calculated excluding the impact of restructuring, lease impairment, and/or losses from divestiture. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, lease impairment charge and/or loss on divestiture, adjusted net income and adjusted net income per share (diluted). The reconciliation of these non-GAAP measures are presented below (in thousands except per share data):

Non-GAAP Reconciliation:

NAST

Global Forwarding

All

Other and Corporate

Consolidated

Three Months Ended September 30, 2025

Income (loss) from operations

172,878

49,021

(1,063

)

220,836

Severance and other personnel expenses

1,199

8,403

126

9,728

Other selling, general, and administrative expenses

127

(176

)

Total adjustments to income (loss) from operations (1)

1,274

8,530

(50

)

9,754

Adjusted income (loss) from operations

174,152

57,551

(1,113

)

230,590

Adjusted gross profit

444,139

191,755

70,183

706,077

Adjusted income (loss) from operations

174,152

57,551

(1,113

)

230,590

Adjusted operating margin - excluding restructuring and loss on divestiture

39.2

30.0

N/M

32.7

NAST

Global Forwarding

All

Other and Corporate

Consolidated

Nine Months Ended September 30, 2025

Income (loss) from operations

480,540

143,294

(10,226

)

613,608

Severance and other personnel expenses

1,876

10,979

1,948

14,803

Other selling, general, and administrative expenses

127

7,672

7,874

Total adjustments to income (loss) from operations (2)

1,951

11,106

9,620

22,677

Adjusted income (loss) from operations

482,491

154,400

(606

)

636,285

Adjusted gross profit

1,294,711

563,964

213,721

2,072,396

Adjusted income (loss) from operations

482,491

154,400

(606

)

636,285

Adjusted operating margin - excluding lease impairment charge, restructuring, and loss on divestiture

37.3

27.4

N/M

30.7

Three Months Ended

September 30, 2025

Nine Months Ended

September 30, 2025

$ in 000's

per share

$ in 000's

per share

Net income and per share (diluted)

162,987

1.34

450,760

3.71

Lease impairment charge, pre-tax

—

6,259

0.05

Restructuring and related costs, pre-tax

9,930

0.07

13,811

0.11

(Gain) loss on divestiture, pre-tax

(176

)

—

2,607

0.02

Tax effect of adjustments

(2,449

)

(0.01

)

(4,480

)

(0.03

)

Adjusted net income and per share (diluted)

170,292

1.40

468,957

3.86

____________________________________________

(1) The three months ended September 30, 2025 includes severance and other personnel expenses of $9.7 million related to workforce reductions.

(2) The nine months ended September 30, 2025 includes severance and other personnel expenses of $14.8 million primarily related to workforce reductions and $7.9 million of other charges, which include a $6.3 million impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building.

Non-GAAP Reconciliation:

NAST

Global Forwarding

All

Other and Corporate

Consolidated

Three Months Ended September 30, 2024

Income (loss) from operations

148,767

88,115

(56,763

)

180,119

Severance and other personnel expenses

1,238

461

1,221

2,920

Other selling, general, and administrative expenses

560

855

57,130

58,545

Total adjustments to income (loss) from operations (1)

1,798

1,316

58,351

61,465

Adjusted income from operations

150,565

89,431

1,588

241,584

Adjusted gross profit

420,664

234,636

79,953

735,253

Adjusted income from operations

150,565

89,431

1,588

241,584

Adjusted operating margin - excluding restructuring and loss on

divestiture

35.8

38.1

2.0

32.9

NAST

Global Forwarding

All

Other and Corporate

Consolidated

Nine Months Ended September 30, 2024

Income (loss) from operations

398,764

160,649

(74,071

)

485,342

Severance and other personnel expenses

9,022

5,855

5,430

20,307

Other selling, general, and administrative expenses

6,214

2,448

60,630

69,292

Total adjustments to income (loss) from operations (2)

15,236

8,303

66,060

89,599

Adjusted income (loss) from operations

414,000

168,952

(8,011

)

574,941

Adjusted gross profit

1,237,431

598,748

244,212

2,080,391

Adjusted income (loss) from operations

414,000

168,952

(8,011

)

574,941

Adjusted operating margin - excluding restructuring and loss on

divestiture

33.5

28.2

N/M

27.6

Three Months Ended

September 30, 2024

Nine Months Ended

September 30, 2024

$ in 000's

per share

$ in 000's

per share

Net income and per share (diluted)

97,229

0.80

316,384

2.63

Restructuring and related costs, pre-tax

4,429

0.04

32,563

0.28

Loss on divestiture, pre-tax

57,036

0.47

57,036

0.47

Tax effect of adjustments

(3,176

)

(0.03

)

(9,922

)

(0.08

)

Adjusted net income and per share (diluted)

155,518

1.28

396,061

3.30

____________________________________________

(1) The three months ended September 30, 2024 includes severance and other personnel expenses of $2.9 million related to workforce reductions and $58.5 million of other charges, which includes a $57.0 million loss on the divestiture of our Europe Surface Transportation business.

(2) The nine months ended September 30, 2024 includes severance and other personnel expenses of $20.3 million related to workforce reductions and $69.3 million of other charges, which includes a $57.0 million loss on the divestiture of our Europe Surface Transportation business, an impairment of internally developed software, and charges related to reducing our facilities footprint including early termination or abandonment of office buildings under operating leases.

Condensed Consolidated Statements of Income

(unaudited, in thousands, except per share data)

Three Months Ended September 30,

Nine Months Ended September 30,

2025

2024

% change

2025

2024

% change

Revenues:

Transportation

3,783,535

4,278,300

(11.6

11,252,110

12,482,818

(9.9

Sourcing

353,311

366,341

(3.6

1,068,019

1,057,482

1.0

Total revenues

4,136,846

4,644,641

(10.9

12,320,129

13,540,300

(9.0

Costs and expenses:

Purchased transportation and related services

3,112,683

3,575,983

(13.0

9,286,694

10,501,362

(11.6

Purchased products sourced for resale

318,086

333,405

(4.6

961,039

958,547

0.3

Personnel expenses

349,302

361,559

(3.4

1,033,177

1,101,868

(6.2

Other selling, general, and administrative expenses

135,939

193,575

(29.8

425,611

493,181

(13.7

Total costs and expenses

3,916,010

4,464,522

(12.3

11,706,521

13,054,958

(10.3

Income from operations

220,836

180,119

22.6

613,608

485,342

26.4

Interest and other income/expense, net

(15,602

)

(36,282

)

(57.0

(57,679

)

(74,587

)

(22.7

Income before provision for income taxes

205,234

143,837

42.7

555,929

410,755

35.3

Provision for income taxes

42,247

46,608

(9.4

105,169

94,371

11.4

Net income

162,987

97,229

67.6

450,760

316,384

42.5

Net income per share (basic)

1.36

0.81

67.9

3.75

2.65

41.5

Net income per share (diluted)

1.34

0.80

67.5

3.71

2.63

41.1

Weighted average shares outstanding (basic)

119,887

119,860

—

120,363

119,542

0.7

Weighted average shares outstanding (diluted)

121,349

121,179

0.1

121,413

120,155

1.0

Business Segment Information

(unaudited, in thousands, except average employee headcount)

NAST

Global Forwarding

All Other and Corporate

Consolidated

Three Months Ended September 30, 2025

Total revenues

2,965,694

786,347

384,805

4,136,846

Adjusted gross profits (1)

444,139

191,755

70,183

706,077

Income (loss) from operations

172,878

49,021

(1,063

)

220,836

Depreciation and amortization

4,874

2,250

18,705

25,829

Total assets (2)

2,978,317

1,233,692

1,015,845

5,227,854

Average employee headcount

5,187

4,245

3,127

12,559

NAST

Global Forwarding

All Other and Corporate

Consolidated

Three Months Ended September 30, 2024

Total revenues

2,934,617

1,141,190

568,834

4,644,641

Adjusted gross profits (1)

420,664

234,636

79,953

735,253

Income (loss) from operations

148,767

88,115

(56,763

)

180,119

Depreciation and amortization

4,904

2,608

16,436

23,948

Total assets (2)

3,026,031

1,566,427

1,020,897

5,613,355

Average employee headcount

5,595

4,552

3,938

14,085

NAST

Global Forwarding

All Other and Corporate

Consolidated

Nine Months Ended September 30, 2025

Total revenues

8,752,341

2,359,035

1,208,753

12,320,129

Adjusted gross profits (1)

1,294,711

563,964

213,721

2,072,396

Income (loss) from operations

480,540

143,294

(10,226

)

613,608

Depreciation and amortization

14,498

6,577

55,262

76,337

Total assets (2)

2,978,317

1,233,692

1,015,845

5,227,854

Average employee headcount

5,234

4,380

3,339

12,953

NAST

Global Forwarding

All Other and Corporate

Consolidated

Nine Months Ended September 30, 2024

Total revenues

8,924,839

2,921,050

1,694,411

13,540,300

Adjusted gross profits (1)

1,237,431

598,748

244,212

2,080,391

Income (loss) from operations

398,764

160,649

(74,071

)

485,342

Depreciation and amortization

15,779

8,245

48,856

72,880

Total assets (2)

3,026,031

1,566,427

1,020,897

5,613,355

Average employee headcount

5,800

4,714

4,023

14,537

____________________________________________

(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.

(2) All cash and cash equivalents are included in All Other and Corporate.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)

September 30, 2025

December 31, 2024

Assets

Current assets:

Cash and cash equivalents

136,837

145,762

Receivables, net of allowance for credit loss

2,542,704

2,383,709

Contract assets, net of allowance for credit loss

177,623

200,332

Prepaid expenses and other

129,326

102,166

Assets held for sale

—

137,634

Total current assets

2,986,490

2,969,603

Property and equipment, net of accumulated depreciation and amortization

120,733

127,189

Right-of-use lease assets

291,051

334,738

Intangible and other assets, net of accumulated amortization

1,829,580

1,866,396

Total assets

5,227,854

5,297,926

Liabilities and stockholders’ investment

Current liabilities:

Accounts payable and outstanding checks

1,307,766

1,212,132

Accrued expenses:

Compensation

172,356

180,801

Transportation expense

139,180

153,274

Income taxes

24,108

9,326

Other accrued liabilities

168,458

173,318

Current lease liabilities

72,200

72,842

Current portion of debt

—

455,792

Liabilities held for sale

—

67,413

Total current liabilities

1,884,068

2,324,898

Long-term debt

1,183,150

921,857

Noncurrent lease liabilities

247,068

290,641

Noncurrent income taxes payable

42,776

23,472

Deferred tax liabilities

9,717

12,565

Other long-term liabilities

4,034

2,442

Total liabilities

3,370,813

3,575,875

Total stockholders’ investment

1,857,041

1,722,051

Total liabilities and stockholders’ investment

5,227,854

5,297,926

Condensed Consolidated Statements of Cash Flow

(unaudited, in thousands, except operational data)

Nine Months Ended September 30,

Operating activities:

2025

2024

Net income

450,760

316,384

Adjustments to reconcile net income to net cash provided by (used for) operating activities:

Depreciation and amortization

76,337

72,880

Provision for credit losses

6,571

3,755

Stock-based compensation

62,774

64,249

Deferred income taxes

30,564

(7,033

)

Excess tax benefit on stock-based compensation

(15,621

)

(5,509

)

Change in loss on disposal group

(569

)

48,232

Other operating activities

7,172

11,845

Changes in operating elements:

Receivables

(89,325

)

(398,059

)

Contract assets

23,035

(88,171

)

Prepaid expenses and other

(26,521

)

24,588

Right of use asset

42,475

5,884

Accounts payable and outstanding checks

79,171

77,397

Accrued compensation

(9,903

)

33,921

Accrued transportation expenses

(14,094

)

68,588

Accrued income taxes

49,418

10,634

Other accrued liabilities

(16,168

)

4,809

Lease liability

(49,701

)

(5,917

)

Other assets and liabilities

2,730

2,677

Net cash provided by operating activities

609,105

241,154

Investing activities:

Purchases of property and equipment

(16,615

)

(19,977

)

Purchases and development of software

(38,246

)

(39,122

)

Proceeds from divestiture

27,737

—

Net cash used for investing activities

(27,124

)

(59,099

)

Financing activities:

Proceeds from stock issued for employee benefit plans

112,076

79,914

Stock tendered for payment of withholding taxes

(57,982

)

(23,902

)

Repurchase of common stock

(240,257

)

—

Cash dividends

(227,053

)

(220,256

)

Proceeds from long-term borrowings

344,000

—

Payments on long-term borrowings

(512,000

)

(10,000

)

Proceeds from short-term borrowings

1,548,800

2,461,500

Payments on short-term borrowings

(1,575,800

)

(2,471,500

)

Net cash used for financing activities

(608,216

)

(184,244

)

Effect of exchange rates on cash and cash equivalents

6,534

(653

)

Net change in cash and cash equivalents, including cash and cash equivalents classified within assets held for sale

(19,701

)

(2,842

)

Plus: net decrease (increase) in cash and cash equivalents within assets held for sale

10,776

(10,978

)

Cash and cash equivalents, beginning of period

145,762

145,524

Cash and cash equivalents, end of period

136,837

131,704

As of September 30,

Operational Data:

2025

2024

Employees

12,314

13,956

CHRW-IR