05-08-2025
Expeditors Reports Second Quarter 2025 EPS of $1.34
BELLEVUE, Wash.--(BUSINESS WIRE)--Expeditors International of Washington, Inc. (NYSE:EXPD) today announced second quarter 2025 financial results including the following comparisons to the same quarter of 2024:
Diluted Net Earnings Attributable to Shareholders per share (EPS 1) increased 8% to $1.34
Net Earnings Attributable to Shareholders increased 5% to $184 million
Operating Income increased 11% to $248 million
Revenues increased 9% to $2.7 billion
Airfreight tonnage increased 7% and ocean container volume increased 7%
Cash returned to shareholders in the form of dividends and share repurchases was $335 million
'Throughout the Expeditors global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence,' said Daniel R. Wall, President and Chief Executive Officer. 'Our focus on growth and execution puts us in a strong position to quickly adapt to this highly unpredictable environment. We are working with each of our regions and districts to increase efficiency and further optimize customer service to drive organic growth and boost profitability.
'We continued to grow all of our businesses during another quarter in which on-and-off tariffs and geopolitical uncertainty prompted many of our customers to re-evaluate their supply chains in anticipation of higher tariffs. Average buy and sell rates, for both air and ocean, remained highly volatile. We once again processed a substantial increase in customs clearances requiring greater skill as they have become more complex, while also growing air tonnage and ocean volumes.
'Our airfreight business increased on growth in tonnage and higher rates in most regions, as capacity remained tight despite new government limits on de minimis shipments, and particularly as customers sought to ship technology and other high-value inventory ahead of trade deadlines. Our ocean business also grew largely on increased volumes, particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines. Ocean rates softened throughout the quarter, with demand unable to match increased ocean capacity. Our other businesses within the customs brokerage segment, including road freight and warehousing and distribution, also grew on strong volumes and new business, as we worked with a mix of current and new customers to navigate the unpredictable and changing state of global supply chains.
'Looking ahead, we continue to expect the freight environment to remain unpredictable. Our resilience comes from the experience and expertise of our global network. Our customers have become accustomed to this unsettled environment and have come to trust that we can help them navigate uncertainty. This has not come without enormous extra effort and diligence from all our employees over the past months, and we are deeply appreciative.'
Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, 'We continued to watch expenses closely during the quarter, increasing operating income by 11%. As many costs have increased, we have been careful to limit headcount growth only in support of additional business activity, and to make essential investments to further strengthen our critical information systems.'
Mr. Powell noted that the Company's second quarter net earnings grew at a lower rate than operating income as our effective tax rate increased from 25.8% a year ago to 28.7% during the most recent quarter, driven by changes in foreign exchange rates and certain non-deductible expenses. Mr. Powell further commented that the Company returned $335 million to shareholders in common stock repurchases and dividends during the second quarter of 2025.
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; 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 ability to produce organic growth and boost profitability as a result of strategic initiatives to maximize operational performance; our ability to continue to process an increasing number of more complex customs clearances; our ability to secure higher air tonnage and ocean volumes; our ability to carefully add headcount and keep other costs in check while continuing to generate efficiency that meets our historical expectations; the alignment of our variable compensation structure with performance; our ability to enhance and bolster our network security; our ability to take market share; our ability to offer cross-border customs expertise; our ability to offer solutions to address the ever shifting tariff changes and customer sourcing decisions; our ability to find solutions to keep cargo moving for our customers during highly uncertain market conditions; our ability to leverage the strength of our carrier relationships; 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, the removal of the de minimis exemption, 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.
During the three and six months ended June 30, 2025 we repurchased 2.0 million and 3.5 million shares of common stock at an average price of $112.05 and $114.31 per share. During the three and six months ended June 30, 2024 we repurchased 0.9 million and 3.9 million shares of common stock at an average price of $116.88 and $119.43 per share.
Employee Full-time Equivalents
as of June 30,
2025
2024
North America
7,214
6,847
Europe
4,040
3,812
North Asia
2,306
2,238
South Asia
1,934
1,717
Middle East, Africa and India
1,463
1,391
Latin America
877
754
Information Systems
1,419
1,291
Corporate
413
413
Total
19,666
18,463
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Second quarter year-over-year
percentage increase in:
2025
Airfreight
kilos
Ocean freight
FEU
April
9%
12%
May
4%
7%
June
7%
4%
Quarter
7%
7%
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Investors may submit written questions via e-mail to: investor@ Questions received by the end of business on August 8, 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)
June 30, 2025
December 31, 2024
Assets:
Current Assets:
Cash and cash equivalents
$
1,156,162
$
1,148,320
Accounts receivable, less allowance for credit loss of $7,575 at June 30, 2025 and $6,878 at December 31, 2024
2,005,094
1,997,840
Deferred contract costs
309,371
349,343
Other
180,949
164,272
Total current assets
3,651,576
3,659,775
Property and equipment, less accumulated depreciation and amortization $651,685 at June 30, 2025 and $615,533 at December 31, 2024
469,714
449,404
Operating lease right-of-use assets
565,367
551,652
Goodwill
7,927
7,927
Deferred federal and state income taxes, net
75,943
70,671
Other assets, net
15,954
15,029
Total assets
$
4,786,481
$
4,754,458
Liabilities:
Current Liabilities:
Accounts payable
$
1,118,283
$
1,036,749
Accrued liabilities, primarily salaries and related costs
468,426
451,921
Contract liabilities
385,414
441,927
Current portion of operating lease liabilities
113,626
106,736
Federal, state and foreign income taxes
30,525
29,140
Total current liabilities
2,116,274
2,066,473
Noncurrent portion of operating lease liabilities
472,924
462,201
Shareholders' Equity:
Common stock, par value $0.01 per share. Issued and outstanding: 135,134 shares at June 30, 2025 and 138,003 shares at December 31, 2024
1,351
1,380
Additional paid-in capital
—
—
Retained earnings
2,380,278
2,455,132
Accumulated other comprehensive loss
(186,275
)
(233,500
)
Total shareholders' equity
2,195,354
2,223,012
Noncontrolling interest
1,929
2,772
Total equity
2,197,283
2,225,784
Total liabilities and equity
$
4,786,481
$
4,754,458
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
Three months ended June 30,
Six months ended June 30,
2025
2024
2025
2024
Revenues:
Airfreight services
$
951,787
$
860,323
$
1,853,547
$
1,619,697
Ocean freight and ocean services
675,782
651,675
1,457,447
1,222,461
Customs brokerage and other services
1,024,316
927,003
2,007,310
1,803,521
Total revenues
2,651,885
2,439,001
5,318,304
4,645,679
Operating Expenses:
Airfreight services
698,402
645,168
1,346,896
1,182,759
Ocean freight and ocean services
483,475
478,121
1,057,376
892,104
Customs brokerage and other services
571,480
516,119
1,125,760
997,825
Salaries and related
471,336
426,431
929,273
839,593
Rent and occupancy
65,741
59,597
130,084
120,849
Depreciation and amortization
13,847
14,979
28,451
30,140
Selling and promotion
9,928
7,998
18,502
14,777
Other
89,940
66,669
168,368
128,937
Total operating expenses
2,404,149
2,215,082
4,804,710
4,206,984
Operating income
247,736
223,919
513,594
438,695
Other Income (Expense):
Interest income
9,183
11,904
18,367
26,782
Other, net
1,050
98
1,889
3,626
Other income, net
10,233
12,002
20,256
30,408
Earnings before income taxes
257,969
235,921
533,850
469,103
Income tax expense
74,050
60,770
145,832
123,552
Net earnings
183,919
175,151
388,018
345,551
Less net earnings (losses) attributable to the noncontrolling interest
345
(318
)
649
930
Net earnings attributable to shareholders
$
183,574
$
175,469
$
387,369
$
344,621
Diluted earnings attributable to shareholders per share
$
1.34
$
1.24
$
2.82
$
2.41
Basic earnings attributable to shareholders per share
$
1.35
$
1.24
$
2.83
$
2.43
Weighted average diluted shares outstanding
136,631
141,716
137,537
142,928
Weighted average basic shares outstanding
136,266
141,013
137,045
142,104
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three months ended
June 30,
Six months ended
June 30,
2025
2024
2025
2024
Operating Activities:
Net earnings
$
183,919
$
175,151
$
388,018
$
345,551
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable
1,051
1,644
1,812
2,038
Deferred income tax benefit
(7,523
)
(6,917
)
(7,447
)
(4,623
)
Stock compensation expense
27,267
25,704
38,816
38,076
Depreciation and amortization
13,847
14,979
28,451
30,140
Other, net
4,474
1,885
6,765
3,870
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
(57,984
)
(286,085
)
50,165
(346,627
)
Increase in accounts payable and accrued liabilities
61,885
211,692
43,466
295,283
(Increase) decrease in deferred contract costs
(21,617
)
(122,258
)
54,356
(186,320
)
Increase (decrease) in contract liabilities
16,961
135,067
(72,327
)
204,375
Decrease in income taxes payable, net
(44,668
)
(29,854
)
(14,328
)
(7,168
)
Decrease in other, net
1,600
5,761
4,087
9,078
Net cash from operating activities
179,212
126,769
521,834
383,673
Investing Activities:
Purchase of property and equipment
(15,875
)
(7,943
)
(29,027
)
(18,124
)
Other, net
24
66
180
163
Net cash from investing activities
(15,851
)
(7,877
)
(28,847
)
(17,961
)
Financing Activities:
Proceeds (payments) on borrowings on lines of credit, net
92
1,259
287
(15,983
)
Proceeds from issuance of common stock
5,132
6,449
18,175
14,478
Repurchases of common stock
(231,116
)
(102,300
)
(408,470
)
(462,824
)
Dividends paid
(104,139
)
(102,638
)
(104,139
)
(102,638
)
Payments for taxes related to net share settlement of equity awards
(9,844
)
(10,163
)
(10,353
)
(15,348
)
Distribution to noncontrolling interest
—
—
(1,346
)
—
Net cash from financing activities
(339,875
)
(207,393
)
(505,846
)
(582,315
)
Effect of exchange rate changes on cash and cash equivalents
14,156
(10,102
)
20,701
(24,427
)
Change in cash and cash equivalents
(162,358
)
(98,603
)
7,842
(241,030
)
Cash and cash equivalents at beginning of period
1,318,520
1,370,456
1,148,320
1,512,883
Cash and cash equivalents at end of period
$
1,156,162
$
1,271,853
$
1,156,162
$
1,271,853
Taxes Paid:
Income taxes
$
125,277
$
96,739
$
165,901
$
133,603
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EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES
Business Segment Information
(In thousands)
(Unaudited
For the three months ended June 30, 2025:
Revenues
$
877,325
108,128
66,904
636,785
359,531
449,712
155,458
(1,958
)
2,651,885
Directly related cost of transportation and other expenses 1
$
454,354
67,428
40,945
507,413
277,355
293,878
113,243
(1,259
)
1,753,357
Salaries and related costs
$
266,018
20,205
11,030
36,686
28,567
88,913
19,917
—
471,336
Other operating expenses 2
$
31,859
16,726
9,745
36,820
28,117
41,878
15,015
(704
)
179,456
Operating income
$
125,094
3,769
5,184
55,866
25,492
25,043
7,283
5
247,736
Identifiable assets at period end
$
2,554,090
186,248
105,069
523,858
354,318
789,514
286,466
(13,082
)
4,786,481
Capital expenditures
$
6,146
257
274
4,545
1,189
1,928
1,536
—
15,875
Depreciation and amortization
$
7,896
499
253
1,176
622
2,791
610
—
13,847
Equity
$
1,475,449
57,602
37,810
192,012
119,338
191,551
162,159
(38,638
)
2,197,283
For the three months ended June 30, 2024:
Revenues
$
779,170
110,723
45,314
637,351
287,943
409,455
170,349
(1,304
)
2,439,001
Directly related cost of transportation and other expenses 1
$
423,102
65,374
24,640
512,146
223,238
262,451
128,949
(492
)
1,639,408
Salaries and related costs
$
238,974
19,976
8,860
35,955
24,463
80,088
18,115
—
426,431
Other operating expenses 2
$
24,701
14,363
5,691
34,807
18,621
39,625
12,237
(802
)
149,243
Operating income
$
92,393
11,010
6,123
54,443
21,621
27,291
11,048
(10
)
223,919
Identifiable assets at period end
$
2,566,053
173,764
93,967
626,892
336,598
738,068
284,672
(31,673
)
4,788,341
Capital expenditures
$
2,948
575
129
355
1,955
1,094
887
—
7,943
Depreciation and amortization
$
9,106
535
278
1,098
419
2,784
759
—
14,979
Equity
$
1,546,936
32,700
41,135
163,913
129,886
151,165
153,155
(40,463
)
2,178,427
For the six months ended June 30, 2025:
Revenues
$
1,731,774
224,613
129,293
1,331,793
724,108
872,507
308,330
(4,114
)
5,318,304
Directly related cost of transportation
and other expenses 1
$
906,271
140,621
77,380
1,061,907
558,850
565,594
222,091
(2,682
)
3,530,032
Salaries and related costs
$
524,107
39,797
21,468
77,047
56,639
170,462
39,753
—
929,273
Other operating expenses 2
$
54,407
31,554
19,659
74,566
51,402
85,237
30,043
(1,463
)
345,405
Operating income
$
246,989
12,641
10,786
118,273
57,217
51,214
16,443
31
513,594
Identifiable assets at period end
$
2,554,090
186,248
105,069
523,858
354,318
789,514
286,466
(13,082
)
4,786,481
Capital expenditures
$
14,553
483
499
5,050
2,063
3,084
3,295
—
29,027
Depreciation and amortization
$
16,834
996
504
2,232
1,192
5,437
1,256
—
28,451
Equity
$
1,475,449
57,602
37,810
192,012
119,338
191,551
162,159
(38,638
)
2,197,283
For the six months ended June 30, 2024:
Revenues
$
1,530,713
217,573
89,806
1,182,292
515,662
807,772
304,455
(2,594
)
4,645,679
Directly related cost of transportation and other expenses 1
$
827,051
132,084
49,104
938,620
387,262
516,970
222,741
(1,144
)
3,072,688
Salaries and related costs
$
472,287
38,882
17,707
70,897
47,380
157,660
34,780
—
839,593
Other operating expenses 2
$
47,096
28,541
13,608
67,125
36,616
79,141
24,036
(1,460
)
294,703
Operating income
$
184,279
18,066
9,387
105,650
44,404
54,001
22,898
10
438,695
Identifiable assets at period end
$
2,566,053
173,764
93,967
626,892
336,598
738,068
284,672
(31,673
)
4,788,341
Capital expenditures
$
8,476
1,974
282
637
2,099
3,312
1,344
—
18,124
Depreciation and amortization
$
18,126
1,032
567
2,191
967
5,754
1,503
—
30,140
Equity
$
1,546,936
32,700
41,135
163,913
129,886
151,165
153,155
(40,463
)
2,178,427
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 Other operating expenses totals rent and occupancy, depreciation and amortization, selling and promotion and other as shown in the consolidated statements of earnings.
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