Following my coverage on C.H. Robinson Worldwide (NASDAQ: CHRW ) in May, in which I recommended a hold rating as the valuation was not cheap enough yet, this post is to provide an update on my thoughts onI take a fundamentals-based approach to value investing.I disagree with the common misconception held by many investors that low multiple stocks must be cheap. I look for companies that offer the best long-term durability at the most affordable prices. Consequently, I have a propensity to be drawn to compan ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number: 000-23189 C.H. ROBINSON WORLDWIDE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Delaware 41-1883630 (I.R.S. Employer Identification No.) 14701 Charlson Road Eden Prairie, MN 55347 (Address of principal executive offices, including zip code) 952-937-8500 Registrant's telephone number, including area code Secur ...

Key Takeaways CHRW's Q2 EPS of $1.29 beat estimates and rose 12.2% year over year on higher gross profit per transaction.Revenues fell 7.7% to $4.13B due to the Europe Surface divestiture and weaker ocean service pricing.For 2025, CHRW continues to expect capital expenditures between $65 million and $75 million.C.H. Robinson Worldwide, Inc. (CHRW) reported mixed second-quarter 2025 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.Quarterly earnings per share of ...

C. H. Robinson Worldwide (CHRW) Q2 2025 Earnings Call July 30, 2025 05:00 PM ET Company ParticipantsChuck Ives - Senior Director of Investor RelationsDave Bozeman - President, CEO & DirectorMichael Castagnetto - President - North American Surface TransportationArun Rajan - Chief Strategy & Innovation OfficerDamon Lee - CFOBen Mohr - Transports Equity ResearchJ. Bruce Chan - DirectorJeffrey Kauffman - Partner - Transportation & LogisticsJonathan Chappell - Senior MDConference Call ParticipantsChris Wetherbee ...

Financial Data and Key Metrics Changes - The company reported a 21% year-over-year increase in Q2 income from operations, demonstrating strong financial performance despite market challenges [9] - Total AGP (Adjusted Gross Profit) increased by $5.8 million year-over-year, driven by a 3% increase in North American Surface Transportation (NAST) and a 1.9% increase in Global Forwarding [30] - Operating expenses declined by $32 million or 6.3% year-over-year, reflecting effective cost management strategies [30] Business Line Data and Key Metrics Changes - In North American Surface Transportation (NAST), the company outgrew the market in both truckload and LTL (Less Than Truckload), achieving a gross margin improvement of 80 basis points year-over-year [16][18] - Truckload volume remained flat year-over-year, while LTL volume increased by approximately 1.5%, both outperforming the CAS freight shipment index, which declined by 3.4% [16][17] - Global Forwarding continued to win new business and improve yield through revenue management disciplines, optimizing expenses and increasing productivity [8][9] Market Data and Key Metrics Changes - The freight market remains challenging, with fluid trade policies creating uncertainty for over 83,000 customers globally [10] - Tariff increases, such as the 145% tariff on Chinese goods, have led to reduced import volumes for some customers, impacting overall market dynamics [10][11] - Despite approaching the traditional retail peak season, the industry may not see typical peak volumes as retailers manage inventories more strategically [11] Company Strategy and Development Direction - The company is focused on a transformation journey that emphasizes a lean operating model, market share growth, and margin expansion, leveraging AI for automation [5][7][14] - Strategic initiatives include enhancing digital solutions for customers, such as tariff impact analysis tools and compliance platforms, to improve supply chain efficiency [12][13] - The company aims to decouple headcount growth from volume growth, enhancing operational leverage and maintaining a disciplined cost structure [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current market cycle and emphasized the importance of continuous improvement and productivity gains [14][36] - The company is well-positioned for a market rebound, with a focus on leveraging technology and operational discipline to drive future growth [56][57] - Management acknowledged the ongoing challenges in the market but remains optimistic about the company's trajectory and the potential for further margin expansion [34][38] Other Important Information - The company ended Q2 with approximately $1.22 billion in liquidity and a net debt to EBITDA leverage of 1.4 times, indicating strong financial health [33] - Share repurchases and dividends totaled approximately $161 million in Q2, reflecting a commitment to returning value to shareholders [33] Q&A Session Summary Question: Thoughts on NAST margins and future potential - Management feels confident about productivity gains and believes there is potential for further margin improvement, especially with ongoing technology enhancements [44][46][49] Question: Ability to replicate success in an upcycle - Management reassured that the company is fundamentally different now, with improved processes and technology that will support continued success in a market rebound [54][56][59] Question: Insights on trucker capacity and broker technology - Management noted that while there has been a democratization of freight brokerage technology, their data and scale provide a competitive advantage in matching freight to carriers [62][64] Question: Q3 trends and headcount considerations - Management indicated that Q3 is typically flat compared to Q2, but they expect to continue improving productivity without necessarily increasing headcount [72][75] Question: Operating margin targets and potential ceilings - Management expressed confidence in achieving mid-cycle operating margin targets and emphasized that there is no cap on potential improvements [81][90] Question: Appetite for M&A and inorganic growth - Management confirmed a disciplined approach to capital allocation, focusing on organic growth opportunities while remaining open to potential M&A when the right opportunity arises [95][99]

Q2 2025 Earnings Presentation 2024 INVESTOR DAY July 30, 2025 Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation 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, b ...

C.H. Robinson Reports 2025 Second Quarter Results Eden Prairie, MN, July 30, 2025 - C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (Nasdaq: CHRW) today reported financial results for the quarter ended June 30, 2025. Second Quarter Highlights: C.H. Robinson 14701 Charlson Rd. Eden Prairie, MN 55347 www.chrobinson.com FOR INQUIRIES, CONTACT: Chuck Ives, Senior Director of Investor Relations Email: chuck.ives@chrobinson.com FOR IMMEDIATE RELEASE "In the second quarter, NAST outgrew the market again in both tr ...

Key Takeaways CHRW's Q2 EPS is expected at $1.17, up 1.74% year over year, despite a 1.68% cut in estimates.Revenues are projected to decline 5.87% to $4.22B due to lower volumes and divestiture impacts.CHRW holds a Zacks Rank #3 and an Earnings ESP of -2.27%, not suggesting a likely earnings beat.C.H. Robinson Worldwide, Inc. (CHRW)  is scheduled to report second-quarter 2025 results on July 30, after market close.C.H. Robinson has an encouraging earnings surprise history. The company’s earnings outpaced t ...

Industry Overview - The Zacks Transportation-Services industry is currently facing challenges such as dull freight rates, high inflation, and ongoing supply-chain disruptions, along with tariff-related uncertainties and geopolitical issues [1][4][7] - Companies in this industry provide logistics, leasing, and maintenance services, focusing on global logistics management and third-party logistics solutions [3] Current Trends - Supply-chain disruptions and weak freight rates continue to negatively impact the industry, with the Cass Freight Shipments Index declining by 2.4% year over year in June, marking a deterioration for 11 consecutive months [4] - The industry is experiencing significant inflation, particularly in labor and freight costs, prompting companies to implement cost-cutting measures to improve productivity and efficiency [5] - Despite economic recovery, the industry's earnings outlook is negative, with a 31.2% decrease in earnings estimates for 2025 since August 2024 [10] Financial Performance - The Zacks Transportation-Services industry has underperformed the S&P 500, declining by 12.8% over the past year, while the S&P 500 appreciated by 12.2% [12] - The industry is currently trading at a forward price-to-sales ratio of 1.32X, significantly lower than the S&P 500's 5.26X and the sector's 1.45X [15] Company Highlights - Expeditors International of Washington (EXPD) has a Zacks Rank 2 (Buy) and has consistently beaten earnings estimates by an average of 13.3% over the last four quarters, despite facing weak volumes [17] - C.H. Robinson Worldwide (CHRW) holds a Zacks Rank 3 (Hold) and has surpassed earnings estimates by an average of 14.5% in the past four quarters, with a strong liquidity position [21] - Matson (MATX), also with a Zacks Rank 3, has implemented effective cost-management actions and has beaten earnings estimates in three of the last four quarters, with an average beat of 9.7% [24]

Core Viewpoint - C.H. Robinson Worldwide (CHRW) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a strong trend of surpassing expectations in recent quarters [1]. Group 1: Earnings Performance - C.H. Robinson has consistently exceeded earnings estimates, with an average surprise of 11.37% over the last two quarters [2]. - In the last reported quarter, the company achieved earnings of $1.17 per share, surpassing the Zacks Consensus Estimate of $1.02 per share by 14.71% [3]. - In the previous quarter, the company reported earnings of $1.21 per share against an expected $1.12 per share, resulting in a surprise of 8.04% [3]. Group 2: Earnings Estimates and Predictions - Earnings estimates for C.H. Robinson have been trending higher, influenced by its history of earnings surprises [6]. - The company currently has an Earnings ESP of +0.40%, indicating a bullish outlook from analysts regarding its earnings prospects [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong possibility of another earnings beat [9]. Group 3: Earnings ESP Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [8]. - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [9].