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:

• Diluted Net Earnings Attributable to Shareholders per share (EPS¹) increased 1% to $1.64
• Net Earnings Attributable to Shareholders decreased (3)% to $222 million
• Operating Income decreased (4)% to $288 million
• Revenues decreased (4)% to $2.9 billion
• Airfreight tonnage increased 4% and ocean container volume decreased (3)%
• Cash returned to shareholders in the form of share repurchases was $212 million; $725 million has been returned to shareholders in the form of share repurchases and dividends so far in 2025

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			7%
Directly related cost of transportation and other expenses 1		$	1,939,657			$	2,093,964			(7)%		$	5,469,689			$	5,166,652			6%
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			8%
Net earnings attributable to shareholders		$	222,256			$	229,574			(3)%		$	609,625			$	574,195			6%
Diluted earnings attributable to shareholders per share		$	1.64			$	1.63			1%		$	4.46			$	4.04			10%
Basic earnings attributable to shareholders per share		$	1.65			$	1.63			1%		$	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		6%		3%
August		3%		(4)%
September		2%		(6)%
Quarter		4%		(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				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 expenses1		$	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 expenses2		$	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				8				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 expenses1		$	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 expenses2		$	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				9				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				10				—				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 expenses1		$	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 expenses2		$	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				39				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 expenses1		$	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 expenses2		$	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				19				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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251103198353/en/

Daniel R. Wall

President and Chief Executive Officer

(206) 674-3455

David A. Hackett

Senior Vice President and Chief Financial Officer

(206) 288-8794

Geoffrey Buscher

Director - Investor Relations

(206) 892-4510

Source: Expeditors International of Washington, Inc.