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C.H. Robinson Worldwide (CHRW) reported $3.91 billion in revenue for the quarter ended December 2025, representing a year-over-year decline of 6.5%. EPS of $1.23 for the same period compares to $1.21 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $3.96 billion, representing a surprise of -1.18%. The company delivered an EPS surprise of +9.73%, with the consensus EPS estimate being $1.12.While investors scrutinize revenue and earnings changes year-over-year and how they compare w ...

Financial Data and Key Metrics Changes - In Q4 2025, total revenue and adjusted gross profit (AGP) declined approximately 7% and 4% year-over-year, respectively [32][39] - The AGP decline was primarily driven by a 13% year-over-year decline in Global Forwarding's AGP due to a significant drop in ocean rates [32][39] - Personnel expenses in Q4 were $337 million, including $15.2 million of restructuring charges, while excluding these charges, personnel expenses were down 8.2% year-over-year [33][34] - The effective tax rate for Q4 was 18.1%, with a full-year tax rate of 18.7% expected to be in the range of 18%-20% for 2026 [38] Business Line Data and Key Metrics Changes - In North American Surface Transportation (NAST), truckload volume rose approximately 3% year-over-year, while LTL volume increased approximately 0.5% year-over-year, reflecting market share gains [14][32] - Global Forwarding expanded gross margins by 100 basis points year-over-year through improved revenue management [7] - NAST AGP margin improved by 20 basis points year-over-year despite market pressures [6] Market Data and Key Metrics Changes - The Cass Freight Shipment Index declined year-over-year for the thirteenth consecutive quarter, marking the lowest Q4 reading since the financial crisis of 2009 [4] - Spot market costs for truckload capacity spiked during the last five weeks of Q4 due to seasonal capacity decline and winter storms [4][17] - Dry van load-to-truck ratios increased to approximately 10 to 1, compared to 6 to 1 during the same period in 2024 [17] Company Strategy and Development Direction - The company is focused on controlling what it can, including providing differentiated service and solutions, executing with discipline, and continuously improving its business model [5][8] - The Lean AI strategy aims to enhance automation and improve customer outcomes while maintaining industry-leading operating margins [9][30] - The company is committed to building a scalable model that leverages AI to drive automation across its operations [9][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in Q4, including weak global freight demand and rising costs [4][32] - The company remains confident in its ability to execute strategic initiatives and improve operating leverage when freight demand eventually increases [9][22] - Management emphasized the importance of their lean operating model in navigating market challenges and driving sustainable growth [42][43] Other Important Information - The company generated $305.4 million in cash from operations in Q4 and ended the quarter with approximately $1.49 billion of liquidity [39][40] - The company returned approximately $207.7 million of cash to shareholders in Q4 through share repurchases and dividends [40] Q&A Session Summary Question: Can you provide perspective on Q1 and AGP growth? - Management noted that December was challenging due to ocean rate normalization and that cost pressures carried into January, but they remain committed to demonstrating outperformance in Q1 [50][51] Question: What are the expectations for operating margins in NAST for 2027? - Management indicated they are on a good trajectory to reach mid-cycle margins of 40% for NAST, with decisions on margin expansion versus growth to be made based on market conditions [53][54] Question: How does the company balance headcount reductions with maintaining service quality? - Management stated that headcount is not a KPI and emphasized engineering the business to focus on customer service while optimizing organizational structure [82]

Financial Data and Key Metrics Changes - The company reported a total revenue decline of approximately 7% year-over-year in Q4 2025, with adjusted gross profit (AGP) down about 4% year-over-year [32][39] - The AGP decline was primarily driven by a 13% year-over-year decrease in Global Forwarding's AGP due to falling ocean rates and market imbalances [32][33] - Personnel expenses in Q4 were $337 million, including $15.2 million in restructuring charges, while excluding these charges, personnel expenses were down 8.2% year-over-year [33][34] - The company generated $305.4 million in cash from operations in Q4 and ended the quarter with approximately $1.49 billion in liquidity [39][40] Business Line Data and Key Metrics Changes - In North American Surface Transportation (NAST), total volume grew by 1% year-over-year, with truckload volume increasing by approximately 3% [6][12] - Global Forwarding expanded gross margins by 100 basis points year-over-year through improved revenue management [7] - The company achieved double-digit productivity increases in NAST for the full year and a high single-digit productivity increase in Global Forwarding [7][19] Market Data and Key Metrics Changes - The Cass Freight Shipment Index declined year-over-year for the thirteenth consecutive quarter, marking the lowest Q4 reading since the financial crisis of 2009 [4][12] - Spot market costs for truckload capacity spiked during the last five weeks of Q4 due to seasonal capacity declines and winter storms [4][17] - The dry van load-to-truck ratio increased to approximately 10 to 1, compared to 6 to 1 during the same period in 2024 [17] Company Strategy and Development Direction - The company is focused on a Lean AI strategy, which combines lean operating models with advanced technology to improve service and operational efficiency [9][30] - The management emphasized the importance of controlling internal factors, such as service differentiation and cost management, to navigate challenging market conditions [5][8] - The company aims to continue expanding its operating leverage and market share, particularly when freight demand eventually increases [9][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in the company's ability to manage through it better than in the past [4][32] - The company expects Q1 to be seasonally weaker compared to Q4, with a typical decline in the Cass Freight Shipment Index of about 2.3% [21] - Management remains optimistic about the future, indicating that the next two years could be more exciting than the previous two [46] Other Important Information - The company returned approximately $207.7 million to shareholders in Q4 through share repurchases and dividends [40] - The effective tax rate for Q4 was 18.1%, with expectations for the full year tax rate in 2026 to be between 18% and 20% [38] Q&A Session Summary Question: Insights on Q1 performance and AGP growth - Management noted that December was challenging due to ocean rate normalization and that spot rate cost pressures carried into January, but they remain committed to demonstrating outperformance in Q1 [48][51] Question: Long-term margin and volume growth expectations - Management discussed the importance of balancing margin expansion with market share growth, indicating that they are on track to achieve mid-cycle margin targets [49][54] Question: Understanding the Lean Operating Model - Management explained that their Lean AI strategy integrates people, technology, and a unique operating model, which allows for rapid innovation and competitive advantage [65][67] Question: Managing headcount reductions while maintaining service quality - Management clarified that headcount is not a KPI and emphasized their focus on engineering the business to optimize service without compromising quality [81]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue and adjusted gross profit (AGP) declined approximately 7% and 4% year-over-year, respectively [30][31] - The AGP decline was primarily driven by a 13% year-over-year decline in Global Forwarding's AGP due to a significant drop in ocean rates [30][31] - Personnel expenses were $337 million, including $15.2 million of restructuring charges, while excluding these charges, personnel expenses were down 8.2% year-over-year [31][32] - The company generated $305.4 million in cash from operations in Q4 and ended the quarter with approximately $1.49 billion of liquidity [37][38] Business Line Data and Key Metrics Changes - In North American Surface Transportation (NAST), total volume grew by 1% and truckload volume increased by approximately 3% year-over-year, contrasting with a 7.6% decline in the Cass Freight Shipment Index [5][12] - Global Forwarding expanded gross margins by 100 basis points year-over-year through improved revenue management [6] - The LTL business delivered year-over-year volume growth for the eighth consecutive quarter, reflecting consistent outperformance versus the broader LTL market [14] Market Data and Key Metrics Changes - The Cass Freight Shipment Index declined year-over-year for the thirteenth consecutive quarter, marking the lowest Q4 reading since the financial crisis of 2009 [3][12] - Spot market costs for truckload capacity spiked during the last five weeks of Q4 due to seasonal capacity decline and winter storms [3][17] - Dry van load-to-truck ratios increased to approximately 10 to 1, compared to 6 to 1 during the same period in 2024 [17] Company Strategy and Development Direction - The company is focused on controlling what it can, including providing differentiated service and solutions, executing with discipline, and continuously improving its business model [4][8] - The Lean AI strategy aims to enhance automation and improve customer outcomes while maintaining industry-leading operating margins [9][28] - The company is committed to building a scalable model that leverages AI to drive automation across its operations [9][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macro environment in Q4, characterized by weak global freight demand and rising costs [3][4] - The company remains confident in its ability to execute strategic initiatives and improve operating leverage when freight demand eventually increases [9][20] - Management emphasized the importance of their Lean AI strategy in navigating market conditions and driving sustainable, profitable growth [39][42] Other Important Information - The company returned approximately $207.7 million to shareholders in Q4 through share repurchases and dividends [38] - The effective tax rate for Q4 was 18.1%, with expectations for the full year tax rate in the range of 18%-20% for 2026 [35] Q&A Session Summary Question: Can you provide perspective on Q1 and AGP growth? - Management noted that December was challenging due to ocean rate normalization and that cost pressures carried into January, but they remain committed to demonstrating outperformance in Q1 [46][48] Question: What are the expectations for operating margins in 2027? - Management indicated that they are on a good trajectory to reach mid-cycle margins and will make decisions on whether to expand margins or reinvest in growth based on market conditions [47][51] Question: How does the company balance headcount reductions with maintaining service quality? - Management clarified that headcount is not a KPI and emphasized that productivity improvements come from process changes rather than simply reducing headcount [81][82]

C.H. Robinson Worldwide (CHRW) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.12 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +9.73%. A quarter ago, it was expected that this trucking company would post earnings of $1.29 per share when it actually produced earnings of $1.4, delivering a surprise of +8.53%.Over the last four quarte ...

Q4 2025 Earnings Presentation 2024 INVESTOR DAY January 28, 2026 Safe Harbor Statement 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 ...

Revenue Performance - Total revenues for Q4 2025 decreased 6.5% to $3.9 billion, primarily due to the divestiture of the Europe Surface Transportation business and lower pricing and volume in ocean services [8]. - Full year 2025 total revenues decreased 8.4% to $16.2 billion, driven by the divestiture of the Europe Surface Transportation business and lower pricing in ocean services [10]. - Total revenues for the fourth quarter of 2025 were $371.3 million, a decrease of 25.4% compared to $498.0 million in the fourth quarter of 2024 [13]. - For the three months ended December 31, 2025, total revenues decreased by 6.5% to $3.91 billion compared to $4.18 billion in the same period of 2024 [29]. - Total revenues for the three months ended December 31, 2025, were $3,912,634, a slight decrease from $4,184,656 in the same period of 2024, representing a year-over-year decline of approximately 6.5% [31]. Profitability Metrics - Adjusted gross profit margin for North American Surface Transportation (NAST) increased by 20 basis points to 14.6% despite a challenging macro environment [5]. - Adjusted income from operations for Q4 2025 increased 7.1% to $197.4 million, while income from operations decreased 1.3% to $181.4 million [5]. - Adjusted gross profits for Global Forwarding decreased 12.7% to $178.0 million, with ocean adjusted gross profits down 22.0% [12]. - Total adjusted gross profits for the fourth quarter were $657.0 million, a decrease of 4.0% from $684.6 million in the fourth quarter of 2024 [23]. - Adjusted income from operations for the twelve months ended December 31, 2025 was $833.7 million, reflecting an increase of 18.8% from $669.1 million in 2024 [29]. - Adjusted net income per share (diluted) for the twelve months ended December 31, 2025 was $5.09, up from $4.51 in 2024 [26]. - The adjusted operating margin for the consolidated results for the twelve months ended December 31, 2025 was 30.5%, compared to 27.5% in 2024 [27]. Cash Flow and Shareholder Returns - Cash generated by operations increased by $37.5 million to $305.4 million, and cash returned to shareholders increased 150.7% to $207.7 million [5]. - Cash generated from operations totaled $305.4 million in the fourth quarter, up from $267.9 million in the fourth quarter of 2024, reflecting a $37.5 million increase [16]. - Cash returned to shareholders in the fourth quarter amounted to $207.7 million, including $133.3 million in stock repurchases and $74.3 million in dividends [17]. - Net cash provided by operating activities for the twelve months ended December 31, 2025, was $914,519, compared to $509,084 in 2024, an increase of approximately 79.5% [35]. Income and Expenses - Net income for Q4 2025 totaled $136.3 million, down 8.7% from a year ago, with diluted EPS of $1.12 decreasing 8.2% [8]. - Income from operations for the three months ended December 31, 2025 was $181.4 million, a slight decrease of 1.3% from $183.8 million in 2024 [29]. - Total costs and expenses for the three months ended December 31, 2025 were $3.73 billion, down 6.7% from $4.00 billion in the same period of 2024 [29]. - The provision for income taxes for the twelve months ended December 31, 2025 increased by 19.3% to $135.4 million from $113.5 million in 2024 [29]. Tax and Capital Expenditures - The effective tax rate for the fourth quarter was 18.1%, up from 11.4% in the same quarter of 2024, influenced by non-recurring items and lower U.S. tax credits [15]. - The company expects a full-year effective tax rate for 2026 to be between 18% and 20% [15]. - Capital expenditures for the fourth quarter were $15.7 million, with expectations for 2026 capital expenditures between $75 million and $85 million [17]. Workforce and Assets - Average employee headcount decreased to 12,733 in 2025 from 14,386 in 2024, a reduction of approximately 11.5% [31]. - Total assets as of December 31, 2025, were $5,058,381, down from $5,297,926 in 2024, a decrease of about 4.5% [33]. - Long-term debt increased to $1,089,438 as of December 31, 2025, from $921,857 in 2024, representing an increase of about 18.2% [33]. - Cash and cash equivalents at the end of the period increased to $160,871 from $145,762 in 2024, a rise of approximately 10.5% [35]. Other Financial Metrics - Severance and other personnel expenses for the twelve months ended December 31, 2025 totaled $30.0 million, primarily related to workforce reductions [26]. - The company reported an adjusted gross profit of $2.73 billion for the twelve months ended December 31, 2025, compared to $2.77 billion in 2024 [27]. - The company reported a loss from operations of $10,658 for the twelve months ended December 31, 2025, compared to a profit of $669,141 in 2024 [31]. - The company made acquisitions net of cash acquired amounting to $11,864 during the twelve months ended December 31, 2025 [35].

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)---- $CHRW #CHRobinson--C.H. Robinson Reports 2025 Fourth Quarter Results. ...

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