Core Insights - C.H. Robinson Worldwide, Inc. (CHRW) is experiencing benefits from effective cost-cutting measures and strong liquidity, although it faces challenges from a freight recession [1][2][7]. Group 1: Financial Performance - The company reported significant year-over-year improvements in gross and operating margins in Q4 2024, despite the freight recession [2]. - Operating expenses decreased by 2% year-over-year to $500.8 million, with personnel expenses also down by 2.1% to $354.4 million due to cost optimization and productivity gains [3]. - Cash returned to shareholders in the first nine months of 2024 totaled $282.8 million, including $218.9 million in dividends and $63.9 million in share repurchases [4]. Group 2: Liquidity and Market Position - C.H. Robinson has maintained a strong liquidity position, with a current ratio of 1.28 at the end of 2024, indicating sufficient assets to meet short-term obligations [5]. - The company's shares have increased by 26.2% over six months, contrasting with a 22.3% decline in the Transportation-Services industry [6]. Group 3: Market Challenges - The logistics industry is facing significant economic challenges, including a prolonged freight recession and disruptions from severe weather events, which have contributed to a 3.2% year-over-year decline in shipments [9][10]. - The company must navigate inherent volatility in the logistics sector, which is affected by seasonal market tightness and geopolitical factors, complicating pricing and procurement strategies [10].

Core Viewpoint - C.H. Robinson Worldwide reported mixed fourth-quarter 2024 results, with earnings exceeding estimates but revenues falling short, indicating potential challenges in the market [2][3]. Financial Performance - Quarterly earnings per share were $1.21, surpassing the Zacks Consensus Estimate of $1.12, and reflecting a 142% year-over-year improvement [2]. - Total revenues amounted to $4.18 billion, missing the Zacks Consensus Estimate of $4.47 billion, and decreased by 0.9% year over year due to lower volume and pricing in truckload services, partially offset by higher pricing in ocean services [3]. - Adjusted gross profits increased by 10.7% year over year to $684.6 million, driven by higher adjusted gross profit per transaction in truckload and ocean services [3]. Segmental Results - North American Surface Transportation revenues were $2.80 billion, down 6.6% year over year, attributed to lower truckload volume and pricing due to an oversupply of truckload capacity [5]. - Global Forwarding revenues grew by 24.7% year over year to $883.96 million, supported by higher pricing in ocean services, with adjusted gross profits rising by 25.6% to $203.8 million [6]. - Revenues from other sources decreased by 2.8% year over year to $497.98 million [6]. Operating Metrics - Adjusted operating margin improved to 26.8%, an increase of 940 basis points from the previous year, while operating expenses decreased by 2.0% to $500.8 million [4]. - The transportation unit delivered an adjusted gross profit of $684.62 million, up 10.7% from the prior year, with notable growth in ocean (28.2%) and air (44.8%) services [7]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the fourth quarter were $145.76 million, up from $131.70 million in the prior quarter, while long-term debt decreased to $921.85 million from $1.41 billion [8]. - Cash generated from operations was $267.9 million, significantly higher than $47.3 million in the prior-year quarter, driven by an increase in net income and changes in net operating working capital [9]. Shareholder Returns and Capital Expenditures - The company returned $82.8 million to shareholders, including $74.5 million in dividends and $8.3 million in share repurchases, with capital expenditures totaling $15.2 million in the reported quarter [10]. - Expected capital expenditures for 2025 are projected to be between $75 million and $85 million [11]. Market Outlook - Estimates for C.H. Robinson have trended upward over the past month, indicating a positive outlook for the stock [12][14]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [14].

[Part I - Business and Risk Factors](index=5&type=section&id=Part%20I) [Business Overview](index=5&type=section&id=Item%201.%20Business) C.H. Robinson is a major global logistics provider with $17.7 billion in 2024 revenues, operating through NAST and Global Forwarding segments, leveraging its Navisphere® technology to connect customers and carriers for diverse logistics services, with transportation accounting for 95% of adjusted gross profits - In 2024, C.H. Robinson generated consolidated total revenues of **$17.7 billion**, managed approximately **37 million shipments**, and connected **83,000 customers** with **450,000 carriers** via its proprietary technology platform[16](index=16&type=chunk)[18](index=18&type=chunk) - The company's business is structured into two primary reportable segments: North American Surface Transportation (NAST) and Global Forwarding, with other segments reported under 'All Other and Corporate'[20](index=20&type=chunk) - Transportation services accounted for approximately **95% of adjusted gross profits** in 2024, with sourcing services (Robinson Fresh) making up the remaining **5%**[34](index=34&type=chunk)[37](index=37&type=chunk) Adjusted Gross Profits by Transportation Mode (in thousands) | | 2024 | 2023 | 2022 | | :--- | :--- | :--- | :--- | | Truckload | $1,072,691 | $1,039,079 | $1,561,310 | | LTL | $572,169 | $550,373 | $632,116 | | Ocean | $519,970 | $420,883 | $729,839 | | Air | $135,901 | $123,470 | $198,166 | | Customs | $107,480 | $97,096 | $107,691 | | Other Logistics Services | $225,599 | $255,735 | $251,547 | | **Total** | **$2,633,810** | **$2,486,636** | **$3,480,669** | [Human Capital and Sustainability](index=12&type=section&id=Human%20Capital%20and%20Sustainability) As of December 31, 2024, the company employed 13,781 people globally, focusing on talent development and a performance-driven culture, while also exceeding its 2025 Scope 1 and 2 carbon intensity reduction goal two years early - As of December 31, 2024, the company had **13,781 employees** in **38 countries**, with **9,523** in North America[67](index=67&type=chunk)[70](index=70&type=chunk) - Employee turnover in 2024 was **23%**, with a voluntary turnover rate of **13%**, which is noted as being lower than industry peers[73](index=73&type=chunk) - The company's equity compensation program grants equity to about **10% of employees**, and **32%** of eligible employees participate in the employee stock purchase plan[83](index=83&type=chunk) - The company met and exceeded its science-aligned goal to reduce Scope 1 and 2 carbon intensity by **40% by 2025**, achieving this milestone in 2023[88](index=88&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks including economic downturns, intense competition, reliance on technology and cybersecurity, international operational challenges, staffing issues, potential AI liabilities, customer concentration, and various regulatory and legal exposures - Economic downturns pose a significant risk, potentially leading to decreased freight volumes, increased customer credit risk, and failures of transportation providers[102](index=102&type=chunk)[104](index=104&type=chunk) - The company is heavily reliant on its proprietary and third-party technology, making it vulnerable to cybersecurity events like ransomware and phishing, which could cause material service outages and reputational damage[110](index=110&type=chunk)[111](index=111&type=chunk)[113](index=113&type=chunk) - A significant portion of revenue is derived from top customers; in 2024, the top 100 customers accounted for **34% of consolidated total revenues**, with the largest single customer representing **2%**[118](index=118&type=chunk) - The company is subject to claims arising from transportation operations, including accidents involving third-party carriers, and maintains an umbrella liability policy of **$125 million** with a retention of up to **$10 million**[126](index=126&type=chunk)[127](index=127&type=chunk) - The sourcing business is exposed to product liability risks, such as contamination and recalls, and carries product liability insurance of **$125 million** and product recall/contamination insurance of **$30 million**[128](index=128&type=chunk) [Cybersecurity](index=23&type=section&id=Item%201C.%20Cybersecurity) The company's cybersecurity program, managed by a CISO and global team, aligns with NIST standards, undergoes regular audits, and is overseen by the Board's Audit Committee, supported by an ERM program and cybersecurity risk insurance - Cybersecurity is managed by a global team led by the Chief Information Security Officer, with oversight from the Board's Audit Committee, which receives quarterly updates[139](index=139&type=chunk)[148](index=148&type=chunk) - The company's cybersecurity framework is aligned with NIST standards and undergoes regular independent assessments, including SOC 2 Type 2 audits for key applications[146](index=146&type=chunk) - Processes are in place to manage risks from third-party technology, and the company maintains a cybersecurity risk insurance policy to limit financial exposure from incidents[144](index=144&type=chunk)[145](index=145&type=chunk) [Part II - Financial Information](index=25&type=section&id=Part%20II) [Stockholder Matters and Equity Purchases](index=25&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) C.H. Robinson's common stock trades on Nasdaq, with **6,763,445 shares** remaining for repurchase authorization as of December 31, 2024, though Q4 2024 purchases were solely for tax obligations under stock incentive plans - As of December 31, 2024, **6,763,445 shares** remained available for repurchase under the company's authorized plan[161](index=161&type=chunk) Issuer Purchases of Equity Securities (Q4 2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | | :--- | :--- | :--- | :--- | | October 2024 | 2,182 | $109.27 | — | | November 2024 | 10,184 | $106.69 | — | | December 2024 | 67,479 | $103.58 | — | | **Fourth quarter 2024** | **79,845** | **$104.13** | **—** | - The shares purchased in Q4 2024 were shares surrendered to satisfy statutory tax withholding obligations under stock incentive plans, not open market repurchases[162](index=162&type=chunk) [Management's Discussion and Analysis (MD&A)](index=28&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2024, total revenues increased slightly to **$17.7 billion**, net income rose significantly to **$465.7 million**, and adjusted gross profits grew **6.2%** to **$2.8 billion**, despite mixed market conditions and one-time restructuring and divestiture charges Consolidated Financial Highlights (2024 vs. 2023) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $17,725M | $17,596M | 0.7% | | Adjusted Gross Profits | $2,765M | $2,605M | 6.2% | | Income from Operations | $669.1M | $514.6M | 30.0% | | Net Income | $465.7M | $325.1M | 43.2% | | Diluted EPS | $3.86 | $2.72 | 41.9% | | Adjusted Operating Margin | 24.2% | 19.8% | 440 bps | - Market conditions in 2024 were mixed: the North American surface transportation market was soft with excess carrier capacity, while the global forwarding market experienced volatility and elevated rates due to geopolitical factors like the Red Sea conflict[168](index=168&type=chunk)[169](index=169&type=chunk) - The company recorded significant one-time expenses in 2024, including a **$44.5 million** loss on the divestiture of its Europe Surface Transportation business and **$45.7 million** in charges from its 2024 Restructuring Program[172](index=172&type=chunk)[180](index=180&type=chunk)[373](index=373&type=chunk) [Segment Performance](index=32&type=section&id=Segment%20Performance) In 2024, NAST operating income grew **15.5%** to **$531.3 million**, Global Forwarding operating income surged **147.6%** to **$212.5 million** due to favorable ocean conditions, while the All Other and Corporate segment reported a wider operating loss of **$74.6 million**, impacted by divestiture NAST Segment Performance (2024 vs. 2023) | Metric (NAST) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $11,728M | $12,471M | (6.0)% | | Adjusted Gross Profits | $1,641M | $1,594M | 3.0% | | Income from Operations | $531.3M | $460.0M | 15.5% | Global Forwarding Segment Performance (2024 vs. 2023) | Metric (Global Forwarding) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,805M | $2,998M | 26.9% | | Adjusted Gross Profits | $802.5M | $689.4M | 16.4% | | Income from Operations | $212.5M | $85.8M | 147.6% | All Other and Corporate Segment Performance (2024 vs. 2023) | Metric (All Other & Corp) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,192M | $2,128M | 3.0% | | Adjusted Gross Profits | $321.3M | $321.4M | 0.0% | | Loss from Operations | $(74.6)M | $(31.2)M | N/M | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated **$509.1 million** in operating cash flow in 2024, used cash for **$74.3 million** in capital expenditures, **$294.8 million** in dividends, and **$204.0 million** in net debt repayments, with total debt at **$1.38 billion** as of year-end 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Cash from Operating Activities | $509,084 | $731,946 | | Cash used for Investing Activities | $(74,288) | $(82,787) | | Cash used for Financing Activities | $(416,099) | $(717,833) | - Total debt as of December 31, 2024, was **$1.38 billion**, down from **$1.58 billion** at year-end 2023[200](index=200&type=chunk)[304](index=304&type=chunk) - The company paid **$294.8 million** in cash dividends in 2024 and made no share repurchases[202](index=202&type=chunk)[207](index=207&type=chunk) - Anticipated capital expenditures for 2025 are projected to be between **$75 million** and **$85 million**[205](index=205&type=chunk) [Financial Statements and Notes](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Deloitte & Touche LLP issued an unqualified opinion on the consolidated financial statements, identifying Revenue Recognition as a critical audit matter, while notes detail 2024 restructuring charges of **$45.7 million** and a **$44.5 million** loss from the Europe Surface Transportation business divestiture - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the financial statements and internal control over financial reporting[240](index=240&type=chunk)[241](index=241&type=chunk)[251](index=251&type=chunk) - The critical audit matter identified was Revenue Recognition, specifically the estimation of revenue for shipments that were in-transit or completed but not yet invoiced at the end of the reporting period, which amounted to **$200.3 million** as of Dec 31, 2024[244](index=244&type=chunk)[245](index=245&type=chunk) - The 2024 Restructuring Program resulted in **$45.7 million** in charges, primarily for severance, impairment of software, and rationalization of facilities[371](index=371&type=chunk)[373](index=373&type=chunk) - The company entered an agreement to sell its Europe Surface Transportation business, classifying it as held for sale and recognizing a total pre-tax loss of **$44.5 million** in 2024 related to the divestiture[377](index=377&type=chunk)[378](index=378&type=chunk) [Controls and Procedures](index=73&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2024, with no material changes during Q4 2024 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2024[385](index=385&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended December 31, 2024[386](index=386&type=chunk) - Management's report confirms that the company maintained effective internal control over financial reporting as of December 31, 2024, based on the COSO framework[390](index=390&type=chunk) [Part III - Corporate Governance and Executive Compensation](index=75&type=section&id=Part%20III) [Directors, Compensation, and Related Party Transactions](index=75&type=section&id=Items%2010-14) This section incorporates by reference details on directors, executive compensation, and related party transactions from the 2025 Proxy Statement, also noting equity compensation plan details including **7,364,576 securities** to be issued and **3,328,769** available for future issuance - Information regarding directors, executive compensation, security ownership, and auditor fees is incorporated by reference from the company's 2025 Annual Meeting Proxy Statement[395](index=395&type=chunk)[398](index=398&type=chunk)[400](index=400&type=chunk)[402](index=402&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2024) | Plan Category | Number of Securities to Be Issued Upon Exercise | Weighted Average Exercise Price | Number of Securities Remaining Available for Future Issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 7,204,664 | $79.83 | 3,328,769 | | Equity compensation plans not approved by security holders | 159,912 | — | — | | **Total** | **7,364,576** | **$79.83** | **3,328,769** |

Core Insights - The article compares C.H. Robinson Worldwide (CHRW) and Expeditors International (EXPD) to determine which stock offers better value for investors [1] Group 1: Zacks Rank and Analyst Outlook - C.H. Robinson Worldwide has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to Expeditors International, which has a Zacks Rank of 3 (Hold) [3] Group 2: Valuation Metrics - CHRW has a forward P/E ratio of 20.19, while EXPD has a forward P/E of 21.32, suggesting that CHRW may be undervalued relative to EXPD [5] - The PEG ratio for CHRW is 1.13, indicating a better valuation considering expected earnings growth, whereas EXPD has a PEG ratio of 3.81 [5] - CHRW's P/B ratio is 6.68, compared to EXPD's P/B of 6.69, showing similar valuations based on book value [6] Group 3: Value Grades - Based on various valuation metrics, CHRW holds a Value grade of B, while EXPD has a Value grade of D, indicating that CHRW is the superior value option at this time [6]

Group 1 - The article discusses the upgrade of C.H. Robinson Worldwide's rating from sell to hold due to improvements in the macro environment [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a critique of the misconception that low multiple stocks are inherently cheap, highlighting the importance of valuation in investment decisions [1] Group 2 - The article does not contain any disclosures related to stock positions or business relationships with the companies mentioned [2] - It clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [3]

Company Overview - C.H. Robinson Worldwide Inc. is a third-party logistics company based in Minnesota, providing freight transportation services and logistic solutions across various industries [11] - The company operates as an asset-light transportation provider, offering services ranging from specific shipment commitments to comprehensive integrated relationships [11] Investment Ratings - C.H. Robinson is currently rated as 2 (Buy) on the Zacks Rank, indicating a favorable investment outlook [11] - The company has a VGM Score of B, reflecting a combination of value, growth, and momentum characteristics [11][12] Financial Metrics - C.H. Robinson has a Value Style Score of B, supported by attractive valuation metrics, including a forward P/E ratio of 20.75 [12] - Over the last 60 days, six analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.06 to $4.84 per share [12] - The company has demonstrated an average earnings surprise of 21.7%, indicating strong performance relative to expectations [12]

Core Viewpoint - C.H. Robinson Worldwide, Inc. (CHRW) reported mixed fourth-quarter 2024 results, with earnings exceeding expectations while revenues fell short [1][2]. Financial Performance - Quarterly earnings per share (EPS) reached $1.21, surpassing the Zacks Consensus Estimate of $1.12 and reflecting a 142% year-over-year increase [1]. - Total revenues amounted to $4.18 billion, missing the Zacks Consensus Estimate of $4.47 billion and showing a 0.9% decline year over year due to lower truckload volume and pricing, partially offset by higher ocean services pricing [2]. - Adjusted gross profits increased by 10.7% year over year to $684.6 million, driven by higher adjusted gross profit per transaction in truckload and ocean services [2]. Segmental Results - North American Surface Transportation reported total revenues of $2.80 billion, down 6.6% year over year, attributed to lower truckload volume and pricing, with adjusted gross profits growing 6.2% to $403.8 million [4]. - Global Forwarding's total revenues rose 24.7% year over year to $883.96 million, benefiting from higher pricing in ocean services, with adjusted gross profits increasing 25.6% to $203.8 million [5]. - Revenues from other sources decreased 2.8% year over year to $497.98 million, falling short of expectations [6]. Operating Metrics - Adjusted operating margin improved to 26.8%, a 940 basis point increase from the previous year, while operating expenses decreased by 2% year over year to $500.8 million [3]. - The transportation unit delivered an adjusted gross profit of $684.62 million, up 10.7% from the prior year, with varying growth rates across service lines [7]. Cash Flow and Shareholder Returns - CHRW generated $267.9 million in cash from operations in the fourth quarter, significantly higher than $47.3 million in the prior-year quarter, driven by increased net income and changes in net operating working capital [9]. - The company returned $82.8 million to shareholders, including $74.5 million in cash dividends and $8.3 million through share repurchases [10]. Balance Sheet - At the end of the fourth quarter, cash and cash equivalents stood at $145.76 million, up from $131.70 million in the prior quarter, while long-term debt decreased to $921.85 million from $1.41 billion [8]. Outlook - Capital expenditures for 2025 are projected to be between $75 million and $85 million [11].

分组1 - C.H. Robinson Worldwide (CHRW) reported quarterly earnings of $1.21 per share, exceeding the Zacks Consensus Estimate of $1.12 per share, and showing a significant increase from $0.50 per share a year ago, representing an earnings surprise of 8.04% [1][2] - The company posted revenues of $4.18 billion for the quarter ended December 2024, which was 6.42% below the Zacks Consensus Estimate and a slight decrease from $4.22 billion in the same quarter last year [2] - C.H. Robinson has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates two times during the same period [2][6] 分组2 - The stock has gained approximately 6.3% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $4.51 billion, while for the current fiscal year, the estimate is $4.82 on revenues of $18.38 billion [7] - The Transportation - Services industry, to which C.H. Robinson belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8]

Q4 2024 Earnings Presentation 2024 INVESTOR DAY January 29, 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 ...

Full-Year Key Metrics: 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 C.H. Robinson Reports 2024 Fourth Quarter Results Eden Prairie, MN, January 29, 2025 - C.H. Robinson Worldwide, Inc. ("C.H. Robinson") (Nasdaq: CHRW) today reported financial results for the quarter ended December 31, 2024. Fourth Quarter Highlights: Adjusted operating margin, adjuste ...