Expeditors Reports Third Quarter 2025 EPS of $1.64

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

1Diluted earnings attributable to shareholders per share.

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

Daniel R. Wall, President and Chief Executive Officer, made the following comments:

“Despite the ongoing challenges in our marketplace due to geopolitical dynamics, as well as supply and demand shifts, we believe our culture of intense focus on the needs of our customers and our carrier partners provides an ideal platform to showcase the breadth of our global solutions. We also believe that while the freight environment remains unpredictable, our continued focus on fee-based services will help balance the performance of our overall product portfolio.”

Comparing Q3 2025 to Q3 2024

Airfreight services: “During the quarter we grew airfreight tonnage on exports, particularly from North and South Asia. We continued to expand our business in our strategic verticals, particularly in our leading areas of technology, pharmaceuticals, and aviation. We also continue to benefit from the significant investments being made by our technology customers in artificial intelligence infrastructure. With our long history of expertise in handling high-value technologies, we believe we are very well positioned to support our customers as they rapidly build out AI infrastructure around the globe.

“Previously tight air capacity eased during the quarter, after expiration of the de minimis exception for goods entering the U.S., which had prompted some shippers to accelerate orders earlier in the year in anticipation of higher tariffs. That extra capacity led to slightly lower sell and buy rates during the quarter.”

Ocean freight and ocean services: “Pricing volatility coupled with slightly lower volumes led to significantly lower revenues in the quarter for this business. In the first half of the year, U.S. importers accelerated shipments in advance of expected tariffs. Volumes declined in the third quarter, primarily related to retail customers and, as additional capacity came on-line, sell and buy rates declined substantially. Despite these market challenges, we remained disciplined and efficient while adjusting our ocean business for slower market growth, as we recognize that the ocean capacity/demand imbalance could continue for some time.”

Customs brokerage and other services: “All of our businesses within this category continued to generate strong growth. The products and services within this group tend to be more stable than our air and ocean businesses. Our customs brokerage business continues to deliver strong growth given the high demand for our services due to the dynamic trade environment. Our Transcon road freight and warehousing and distribution services also benefitted from strong AI infrastructure demand.”

Customs Brokerage in Focus

“Companywide, we continue to perform at a high level because of our uniquely talented and experienced people. I must, however, especially commend our customs brokerage group because of the extra intensity around tariffs. The increase in volume and complexity of entries continues to test our customs group. We are investing in and exploring ways to further enhance our productivity in this area, including enhancements from AI and other technology solutions. Due to the constantly evolving landscape, we will continuously invest in productivity tools for this business.”

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

“We delivered consistent profitability across our portfolio of businesses in the quarter, especially given the volatility in the ocean market and tough comparisons to prior-year results. Our strong customer service culture and our unique compensation structure, which aligns executive compensation to both operating income and shareholder interests, allow us to deliver differentiated performance.

“We are focused on aligning our operating cost structure with a lower growth environment, while continuing to make strategic investments in high return areas to drive sustainable, profitable and capital efficient growth.”

Mr. Hackett noted that the Company repurchased $212 million in common stock during the third quarter and returned $725 million in the form of share repurchases and dividends for the year-to-date period.

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 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; port actions and other labor disruptions; new capacity in the marketplace; longer ocean transit times; e-commerce demand in the air market; changing de minimis laws; and volatile rates. Future financial performance could differ materially because of factors such as: our focus on fee-based services to help balance the performance of our overall product portfolio; our ability to benefit from the significant investments being made by our technology customers in artificial intelligence infrastructure; the relative stability of our customs brokerage and other services businesses; 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 make investments in high return areas to drive sustainable, profitable and capital efficient growth; 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.

Expeditors International of Washington, Inc.

Third Quarter 2025 Earnings Release, November 4, 2025

Financial Summary for three and nine months ended September 30, 2025 and 2024 (Unaudited)

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

Three months ended September 30,

Nine months ended September 30,

2025

2024

% Change

2025

2024

% Change

Revenues

2,894,751

3,000,131

(4)%

8,213,055

7,645,810

Directly related cost of transportation and other expenses 1

1,939,657

2,093,964

(7)%

5,469,689

5,166,652

Salaries and other operating expenses 2

667,052

604,643

10%

1,941,730

1,738,939

12%

Operating income

288,042

301,524

(4)%

801,636

740,219

Net earnings attributable to shareholders

222,256

229,574

(3)%

609,625

574,195

Diluted earnings attributable to shareholders per share

1.64

1.63

4.46

4.04

10%

Basic earnings attributable to shareholders per share

1.65

1.63

4.47

4.06

10%

Diluted weighted average shares outstanding

135,285

141,027

136,790

142,288

Basic weighted average shares outstanding

134,956

140,417

136,346

141,540

1Directly 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.

2Salaries 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 nine months ended September 30, 2025 we repurchased 1.8 million and 5.3 million shares of common stock at an average price of $119.65 and $116.10 per share. During the three and nine months ended September 30, 2024 we repurchased 1.2 million and 5.1 million shares of common stock at an average price of $118.47 and $119.21 per share.

Employee Full-time Equivalents as of September 30,

2025

2024

North America

7,404

6,920

Europe

4,193

3,838

North Asia

2,306

2,271

South Asia

1,996

1,776

Middle East, Africa and India

1,478

1,386

Latin America

891

780

Information Systems

1,483

1,303

Corporate

419

416

Total

20,170

18,690

Third quarter year-over-year percentage increase (decrease) in:

2025

Airfreight

kilos

Ocean freight

FEU

July

August

(4)%

September

(6)%

Quarter

(3)%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 7, 2025 will be considered in management's 8-K “Responses to Selected Questions.”

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands, except per share data)

(Unaudited)

September 30, 2025

December 31, 2024

Assets:

Current Assets:

Cash and cash equivalents

1,190,167

1,148,320

Accounts receivable, less allowance for credit loss of $7,797 at September 30, 2025 and $6,878 at December 31, 2024

2,045,284

1,997,840

Deferred contract costs

263,491

349,343

Other

175,605

164,272

Total current assets

3,674,547

3,659,775

Property and equipment, less accumulated depreciation and amortization of $647,057 at September 30, 2025 and $615,533 at December 31, 2024

465,006

449,404

Operating lease right-of-use assets

539,486

551,652

Goodwill

7,927

Deferred federal and state income taxes, net

77,499

70,671

Other assets, net

15,117

15,029

Total assets

4,779,582

4,754,458

Liabilities:

Current Liabilities:

Accounts payable

1,146,062

1,036,749

Accrued liabilities, primarily salaries and related costs

427,219

451,921

Contract liabilities

334,541

441,927

Current portion of operating lease liabilities

111,174

106,736

Federal, state and foreign income taxes payable

28,762

29,140

Total current liabilities

2,047,758

2,066,473

Noncurrent portion of operating lease liabilities

449,186

462,201

Shareholders’ Equity:

Common stock, par value $0.01 per share. Issued and outstanding: 134,019 shares at September 30, 2025 and 138,003 shares at December 31, 2024

1,340

1,380

Additional paid-in capital

—

Retained earnings

2,468,131

2,455,132

Accumulated other comprehensive loss

(189,069

)

(233,500

)

Total shareholders’ equity

2,280,402

2,223,012

Noncontrolling interest

2,236

2,772

Total equity

2,282,638

2,225,784

Total liabilities and equity

4,779,582

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 September 30,

Nine months ended September 30,

2025

2024

2025

2024

Revenues:

Airfreight services

1,020,258

986,950

2,873,805

2,606,647

Ocean freight and ocean services

746,120

1,017,618

2,203,567

2,240,079

Customs brokerage and other services

1,128,373

995,563

3,135,683

2,799,084

Total revenues

2,894,751

3,000,131

8,213,055

7,645,810

Operating Expenses:

Airfreight services

766,783

740,356

2,113,679

1,923,115

Ocean freight and ocean services

542,304

783,827

1,599,680

1,675,931

Customs brokerage and other services

630,570

569,781

1,756,330

1,567,606

Salaries and related

490,437

450,308

1,419,710

1,289,901

Rent and occupancy

68,308

61,024

198,392

181,873

Depreciation and amortization

14,248

15,774

42,699

45,914

Selling and promotion

9,657

7,589

28,159

22,366

Other

84,402

69,948

252,770

198,885

Total operating expenses

2,606,709

2,698,607

7,411,419

6,905,591

Operating income

288,042

301,524

801,636

740,219

Other Income:

Interest income

8,491

9,917

26,858

36,699

Other, net

1,640

973

3,529

4,599

Other income, net

10,131

10,890

30,387

41,298

Earnings before income taxes

298,173

312,414

832,023

781,517

Income tax expense

75,095

82,488

220,927

206,040

Net earnings

223,078

229,926

611,096

575,477

Less net earnings attributable to the noncontrolling interest

822

352

1,471

1,282

Net earnings attributable to shareholders

222,256

229,574

609,625

574,195

Diluted earnings attributable to shareholders per share

1.64

1.63

4.46

4.04

Basic earnings attributable to shareholders per share

1.65

1.63

4.47

4.06

Weighted average diluted shares outstanding

135,285

141,027

136,790

142,288

Weighted average basic shares outstanding

134,956

140,417

136,346

141,540

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.

AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Three months ended September 30,

Nine months ended September 30,

2025

2024

2025

2024

Operating Activities:

Net earnings

223,078

229,926

611,096

575,477

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

Provisions for losses (recoveries) on accounts receivable

839

(582

)

2,651

1,456

Deferred income tax benefit

(1,565

)

(1,057

)

(9,012

)

(5,680

)

Stock compensation expense

18,046

9,760

56,862

47,836

Depreciation and amortization

14,248

15,774

42,699

45,914

Other, net

1,616

162

8,381

4,032

Changes in operating assets and liabilities:

(Increase) decrease in accounts receivable

(37,828

)

(301,167

)

12,337

(647,794

)

(Decrease) increase in accounts payable and accrued liabilities

(16,747

)

107,535

26,719

402,818

Decrease (increase) in deferred contract costs

48,449

(30,657

)

102,805

(216,977

)

(Decrease) increase in contract liabilities

(53,358

)

50,527

(125,685

)

254,902

Increase in income taxes payable, net

21,740

20,331

7,412

13,163

Increase in other, net

(17,150

)

(10,580

)

(13,063

)

(1,502

)

Net cash from operating activities

201,368

89,972

723,202

473,645

Investing Activities:

Purchase of property and equipment

(11,098

)

(12,291

)

(40,125

)

(30,415

)

Other, net

924

(225

)

1,104

(62

)

Net cash from investing activities

(10,174

)

(12,516

)

(39,021

)

(30,477

)

Financing Activities:

Proceeds (payments) on borrowings on lines of credit, net

1,989

10,445

2,276

(5,538

)

Proceeds from issuance of common stock

61,187

53,256

79,362

67,734

Repurchases of common stock

(212,294

)

(140,031

)

(620,764

)

(602,855

)

Dividends paid

—

(104,139

)

(102,638

)

Payments for taxes related to net share settlement of equity awards

—

(10,353

)

(15,348

)

Distribution to noncontrolling interest

(491

)

—

(1,837

)

—

Net cash from financing activities

(149,609

)

(76,330

)

(655,455

)

(658,645

)

Effect of exchange rate changes on cash and cash equivalents

(7,580

)

20,194

13,121

(4,233

)

Change in cash and cash equivalents

34,005

21,320

41,847

(219,710

)

Cash and cash equivalents at beginning of period

1,156,162

1,271,853

1,148,320

1,512,883

Cash and cash equivalents at end of period

1,190,167

1,293,173

1,190,167

1,293,173

Taxes Paid:

Income taxes

53,528

63,046

219,429

196,649

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 September 30, 2025:

Revenues

928,858

122,842

68,098

721,353

406,104

487,889

161,835

(2,228

)

2,894,751

Directly related cost of transportation and other expenses 1

478,767

77,749

42,337

584,631

318,614

318,393

120,771

(1,605

)

1,939,657

Salaries and related costs

275,595

21,978

11,162

41,158

29,957

91,301

19,286

—

490,437

Other operating expenses 2

29,668

14,941

8,900

38,723

24,478

47,005

13,531

(631

)

176,615

Operating income

144,828

8,174

5,699

56,841

33,055

31,190

8,247

288,042

Identifiable assets at period end

2,580,473

192,957

104,334

463,689

341,607

819,342

292,545

(15,365

)

4,779,582

Capital expenditures

5,619

253

240

812

1,172

1,312

1,690

—

11,098

Depreciation and amortization

7,818

506

244

1,442

693

2,950

595

—

14,248

Equity

1,513,585

53,799

41,622

205,772

133,471

264,690

164,295

(94,596

)

2,282,638

For the three months ended September 30, 2024:

Revenues

854,679

114,264

61,981

914,417

445,308

433,660

177,145

(1,323

)

3,000,131

Directly related cost of transportation and other expenses 1

443,930

67,626

38,973

763,781

369,905

279,235

131,098

(584

)

2,093,964

Salaries and related costs

245,133

20,489

9,824

42,490

29,261

83,728

19,383

—

450,308

Other operating expenses 2

8,319

14,772

8,781

44,076

22,046

43,189

13,900

(748

)

154,335

Operating income

157,297

11,377

4,403

64,070

24,096

27,508

12,764

301,524

Identifiable assets at period end

2,611,417

192,370

108,985

727,724

376,283

863,840

319,627

(29,329

)

5,170,917

Capital expenditures

9,299

198

101

296

839

1,548

—

12,291

Depreciation and amortization

8,961

569

279

1,774

502

2,819

870

—

15,774

Equity

1,628,893

35,825

42,670

221,519

124,387

182,515

164,665

(41,304

)

2,359,170

UNITED

STATES

OTHER

NORTH

AMERICA

LATIN

AMERICA

NORTH

ASIA

SOUTH

ASIA

EUROPE

MIDDLE

EAST,

AFRICA

AND

INDIA

ELIMI-

NATIONS

CONSOLI-

DATED

For the nine months ended September 30, 2025:

Revenues

2,660,632

347,455

197,391

2,053,146

1,130,212

1,360,396

470,165

(6,342

)

8,213,055

Directly related cost of transportation and other expenses 1

1,385,038

218,370

119,717

1,646,538

877,464

883,987

342,862

(4,287

)

5,469,689

Salaries and related costs

799,702

61,775

32,630

118,205

86,596

261,763

59,039

—

1,419,710

Other operating expenses 2

84,075

46,495

28,559

113,289

75,880

132,242

43,574

(2,094

)

522,020

Operating income

391,817

20,815

16,485

175,114

90,272

82,404

24,690

801,636

Identifiable assets at period end

2,580,473

192,957

104,334

463,689

341,607

819,342

292,545

(15,365

)

4,779,582

Capital expenditures

20,172

736

739

5,862

3,235

4,396

4,985

—

40,125

Depreciation and amortization

24,652

1,502

748

3,674

1,885

8,387

1,851

—

42,699

Equity

1,513,585

53,799

41,622

205,772

133,471

264,690

164,295

(94,596

)

2,282,638

For the nine months ended September 30, 2024:

Revenues

2,385,392

331,837

151,787

2,096,709

960,970

1,241,432

481,600

(3,917

)

7,645,810

Directly related cost of transportation and other expenses 1

1,270,981

199,710

88,077

1,702,401

757,167

796,205

353,839

(1,728

)

5,166,652

Salaries and related costs

717,420

59,371

27,531

113,387

76,641

241,388

54,163

—

1,289,901

Other operating expenses 2

55,415

43,313

22,389

111,201

58,662

122,330

37,936

(2,208

)

449,038

Operating income

341,576

29,443

13,790

169,720

68,500

81,509

35,662

740,219

Identifiable assets at period end

2,611,417

192,370

108,985

727,724

376,283

863,840

319,627

(29,329

)

5,170,917

Capital expenditures

17,775

2,172

383

933

2,938

4,860

1,354

—

30,415

Depreciation and amortization

27,087

1,601

846

3,965

1,469

8,573

2,373

—

45,914

Equity

1,628,893

35,825

42,670

221,519

124,387

182,515

164,665

(41,304

)

2,359,170

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.

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