[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]

Financial Performance - Total revenues decreased by 0.9% year-over-year to $4.2 billion in Q4 2024 [10] - Adjusted gross profits increased by 10.7% year-over-year to $685 million in Q4 2024 [10] - Income from operations increased by 71.1% year-over-year to $184 million in Q4 2024 [10] - Net income per share increased by 369.2% year-over-year to $1.22 in Q4 2024 [10] - Adjusted income from operations increased by 79% year-over-year in Q4 [5] Segment Results - North American Surface Transportation (NAST) adjusted gross profits increased by 6.2% year-over-year in Q4 2024 [13] - Global Forwarding (GF) adjusted gross profits increased by 25.6% year-over-year in Q4 2024 [13] - All Other & Corporate adjusted gross profits increased by 1.2% year-over-year in Q4 2024 [13] - NAST truckload adjusted gross profit increased 9.5% year-over-year [17] - Ocean volume grew 3.5% year-over-year & air tonnage grew 15.5% year-over-year in Global Forwarding [16] Strategic Initiatives - The company is focused on deploying a new operating model to improve service, gain market share, streamline processes, and optimize costs [11]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Fourth Quarter 2024 Highlights](index=1&type=section&id=Fourth%20Quarter%20Highlights) Q4 2024 profitability surged, with gross profits up **10.4%** to **$672.9 million** and income from operations increasing **71.1%** Q4 2024 Key Financial Metrics | Metric | Q4 2024 Value | YoY Change | | :--- | :--- | :--- | | Gross Profits | $672.9 million | +10.4% | | Income from Operations | $183.8 million | +71.1% | | Adjusted Operating Margin | 26.8% | +940 bps | | Diluted EPS | $1.22 | +369.2% | | Adjusted EPS | $1.21 | +142.0% | | Cash Generated by Operations | $267.9 million | +$220.6 million | - The significant increase in profitability was attributed to **disciplined execution**, a focus on **quality of volume**, and improvements in **gross profit margin**, **productivity improvements**, and **operating leverage**[5](index=5&type=chunk) [Full-Year 2024 Key Metrics](index=1&type=section&id=Full-Year%20Key%20Metrics) Full-year 2024 gross profits increased **5.8%** to **$2.7 billion**, income from operations rose **30.0%**, but cash from operations declined Full-Year 2024 Key Financial Metrics | Metric | Full-Year 2024 Value | YoY Change | | :--- | :--- | :--- | | Gross Profits | $2.7 billion | +5.8% | | Income from Operations | $669.1 million | +30.0% | | Adjusted Operating Margin | 24.2% | +440 bps | | Diluted EPS | $3.86 | +41.9% | | Adjusted EPS | $4.51 | +36.7% | | Cash Generated by Operations | $509.1 million | -$222.9 million | - The decrease in cash from operations was attributed to an increase in **net operating working capital**, which was related to **higher ocean rates**[5](index=5&type=chunk) [Management Commentary](index=2&type=section&id=Management%20Commentary) [CEO's Perspective](index=2&type=section&id=CEO's%20Perspective) CEO Bozeman attributed Q4 financial improvement to the **new operating model**, driving **disciplined execution** and **productivity gains** across segments - The **new Robinson operating model** is credited with enabling **disciplined execution**, leading to higher **quality of volume**, greater **productivity improvements**, and expanded **profit margins**[6](index=6&type=chunk) - In the NAST segment, **dynamic costing/pricing tools** and **revenue management practices** improved **gross profit margins** both year-over-year and sequentially, despite rising transportation costs[6](index=6&type=chunk) - The Global Forwarding business achieved **over 15% productivity improvement** for the full year by **decoupling headcount growth from volume growth**, reducing average headcount by **more than 10%** while growing ocean and air shipments[7](index=7&type=chunk) - Over **2023** and **2024**, the company delivered compounded **productivity growth of 30% or more** in both Global Forwarding and NAST, which are viewed as **evergreen improvements**[7](index=7&type=chunk) [Consolidated Financial Performance](index=4&type=section&id=Consolidated%20Financial%20Performance) [Fourth Quarter 2024 Performance Summary](index=4&type=section&id=Summary%20of%20Fourth%20Quarter%20of%202024%20Results) Q4 2024 revenues decreased **0.9%** to **$4.2 billion**, but adjusted gross profits rose **10.7%**, leading to a **71.1%** increase in income from operations Q4 2024 vs Q4 2023 Financial Results | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $4.2 billion | $4.2 billion | -0.9% | | Adjusted Gross Profits | $684.6 million | $618.6 million | +10.7% | | Operating Expenses | $500.8 million | $511.0 million | -2.0% | | Income from Operations | $183.8 million | $107.4 million | +71.1% | | Net Income | $149.3 million | $31.0 million | +382.1% | | Diluted EPS | $1.22 | $0.26 | +369.2% | | Adjusted EPS | $1.21 | $0.50 | +142.0% | - Personnel expenses decreased by **2.1%** to **$354.4 million**, primarily due to **cost optimization** and **productivity improvements**, with average employee headcount declining by **9.5%**[10](index=10&type=chunk) - The effective tax rate dropped to **11.4%** from **55.3%** in the prior year's quarter, driven by **non-recurring discrete items**, **higher U.S. tax credits**, and **increased tax benefits from stock-based compensation**[10](index=10&type=chunk) [Full-Year 2024 Performance Summary](index=5&type=section&id=Summary%20of%202024%20Year-to-Date%20Results) Full-year 2024 revenues increased **0.7%** to **$17.7 billion**, adjusted gross profits grew **6.2%**, and income from operations rose **30.0%** Full-Year 2024 vs 2023 Financial Results | Metric | Full-Year 2024 | Full-Year 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $17.7 billion | $17.6 billion | +0.7% | | Adjusted Gross Profits | $2.8 billion | $2.6 billion | +6.2% | | Operating Expenses | $2.1 billion | $2.1 billion | +0.3% | | Income from Operations | $669.1 million | $514.6 million | +30.0% | | Net Income | $465.7 million | $325.1 million | +43.2% | | Diluted EPS | $3.86 | $2.72 | +41.9% | | Adjusted EPS | $4.51 | $3.30 | +36.7% | - Personnel expenses decreased by **0.6%** due to **cost optimization**, with average employee headcount declining by **10.3%**[12](index=12&type=chunk) - Other SG&A expenses increased by **2.5%**, primarily due to a **$44.5 million** **loss on the planned divestiture of the Europe Surface Transportation business**[12](index=12&type=chunk) [Segment Performance](index=6&type=section&id=Segment%20Performance) [North American Surface Transportation (NAST)](index=6&type=section&id=North%20American%20Surface%20Transportation%20(NAST)) Q4 2024 NAST revenues decreased **6.6%** to **$2.8 billion**, but adjusted gross profits rose **6.2%**, leading to a **38.1%** increase in income from operations NAST Q4 2024 Financial Results (in thousands) | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $2,802,700 | $3,000,650 | -6.6% | | Adjusted Gross Profits | $403,764 | $380,157 | +6.2% | | Income from Operations | $132,528 | $95,958 | +38.1% | - Truckload adjusted gross profits increased **9.5%** due to a **17.0%** increase in adjusted gross profit **per shipment**, which offset a **6.5%** decrease in truckload shipments[13](index=13&type=chunk) - LTL adjusted gross profits increased **4.5%**, driven by a **2.5%** increase in volume and a **2.0%** increase in adjusted gross profit **per order**[13](index=13&type=chunk) [Global Forwarding](index=7&type=section&id=Global%20Forwarding) Q4 2024 Global Forwarding revenues increased **24.7%** to **$884.0 million**, adjusted gross profits grew **25.6%**, leading to a **129.6%** surge in income from operations Global Forwarding Q4 2024 Financial Results (in thousands) | Metric | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $883,968 | $708,814 | +24.7% | | Adjusted Gross Profits | $203,801 | $162,322 | +25.6% | | Income from Operations | $51,827 | $22,576 | +129.6% | - Ocean adjusted gross profits increased **27.7%**, driven by a **23.5%** increase in adjusted gross profit **per shipment** and a **3.5%** increase in shipments[14](index=14&type=chunk) - Air adjusted gross profits surged **45.4%**, driven by a **26.0%** increase in adjusted gross profit **per metric ton** and a **15.5%** increase in **metric tons** shipped[14](index=14&type=chunk) [All Other and Corporate](index=8&type=section&id=All%20Other%20and%20Corporate) Q4 2024 All Other and Corporate saw mixed results, with Robinson Fresh adjusted gross profits up **15.7%**, while Managed Solutions and Other Surface Transportation declined All Other and Corporate Adjusted Gross Profits Q4 2024 (in thousands) | Division | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Robinson Fresh | $35,983 | $31,093 | +15.7% | | Managed Solutions | $28,133 | $28,846 | -2.5% | | Other Surface Transportation | $12,942 | $16,205 | -20.1% | - The increase in Robinson Fresh adjusted gross profits was due to an increase in **integrated supply chain solutions** for retail and foodservice customers[16](index=16&type=chunk) - The decrease in Other Surface Transportation was primarily due to a **19.4%** decrease in Europe truckload adjusted gross profits[16](index=16&type=chunk) [Financial Position and Cash Flow](index=8&type=section&id=Financial%20Position%20and%20Cash%20Flow) [Other Income Statement Items](index=8&type=section&id=Other%20Income%20Statement%20Items) Q4 2024 net interest and other expense decreased to **$15.4 million**, with the effective tax rate dropping to **11.4%** from **55.3%** - Interest expense decreased by **$2.8 million** versus Q4 **2023**, attributed to a **lower average debt balance** and **lower variable interest rates**[17](index=17&type=chunk) - The Q4 effective tax rate was **11.4%**, down from **55.3%** in the prior year. The company expects a full-year effective tax rate of **18% to 20%** for **2025**[18](index=18&type=chunk) [Cash Flow Generation and Capital Distribution](index=9&type=section&id=Cash%20Flow%20Generation%20and%20Capital%20Distribution) Q4 2024 cash from operations increased by **$220.6 million** to **$267.9 million**, and **$82.8 million** was returned to shareholders - Cash from operations increased by **$220.6 million** in Q4 **2024** compared to Q4 **2023**, driven by a **$118.3 million** increase in net income and an **$81.3 million** **positive change in net operating working capital**[19](index=19&type=chunk) - In Q4 **2024**, the company returned **$82.8 million** to shareholders, consisting of **$74.5 million** in dividends and **$8.3 million** in stock buybacks[20](index=20&type=chunk) - Capital expenditures for **2025** are projected to be in the range of **$75 million to $85 million**[20](index=20&type=chunk) [Financial Statements and Reconciliations](index=11&type=section&id=Financial%20Statements%20and%20Reconciliations) [Adjusted Gross Profit by Service Line](index=11&type=section&id=Adjusted%20Gross%20Profit%20by%20Service%20Line) Q4 2024 total adjusted gross profits increased **10.7%** to **$684.6 million**, driven by strong Air, Ocean, and Sourcing performance Adjusted Gross Profits by Service Line - Q4 2024 (in thousands) | Service Line | Q4 2024 | Q4 2023 | % Change | | :--- | :--- | :--- | :--- | | Truckload | $261,527 | $243,839 | +7.3% | | LTL | $141,982 | $136,602 | +3.9% | | Ocean | $127,139 | $99,191 | +28.2% | | Air | $40,856 | $28,224 | +44.8% | | Customs | $26,467 | $23,730 | +11.5% | | Sourcing | $32,269 | $27,635 | +16.8% | | **Total** | **$684,623** | **$618,623** | **+10.7%** | [GAAP to Non-GAAP Reconciliation](index=12&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) The company reconciles GAAP to non-GAAP measures, adjusting Q4 2024 gross profit from **$672.9 million** to **$684.6 million** for restructuring and divestiture impacts - Adjusted gross profit is calculated by excluding the **amortization of internally developed software** from GAAP gross profit. In Q4 **2024**, this amortization was **$11.8 million**[27](index=27&type=chunk) - Adjusted operating margin for Q4 **2024** was **26.8%**, a **940 basis points** increase from **17.4%** in Q4 **2023**. Excluding restructuring and loss on divestiture, the margin was **26.9%**, a **1,020 basis points** increase[27](index=27&type=chunk) - For Q4 **2024**, adjustments to net income included pre-tax **restructuring costs** of **$13.2 million** and a pre-tax **gain on divestiture** of **$12.6 million**[28](index=28&type=chunk) [Condensed Consolidated Financial Statements](index=15&type=section&id=Condensed%20Consolidated%20Financial%20Statements) Consolidated financial statements show Q4 net income up **382.1%** to **$149.3 million**, total assets at **$5.30 billion**, and full-year operating cash flow at **$509.1 million** [Statements of Income](index=15&type=section&id=Statements%20of%20Income) Condensed Consolidated Statements of Income (in thousands) | Metric | Q4 2024 | Q4 2023 | Full-Year 2024 | Full-Year 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $4,184,656 | $4,221,887 | $17,724,956 | $17,596,443 | | Income from Operations | $183,799 | $107,429 | $669,141 | $514,607 | | Net Income | $149,306 | $30,973 | $465,690 | $325,129 | | Diluted EPS | $1.22 | $0.26 | $3.86 | $2.72 | [Balance Sheets](index=18&type=section&id=Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $2,969,603 | $2,880,694 | | Total Assets | $5,297,926 | $5,225,280 | | Total Current Liabilities | $2,324,898 | $2,051,993 | | Total Liabilities | $3,575,875 | $3,806,583 | | Total Stockholders' Investment | $1,722,051 | $1,418,697 | [Statements of Cash Flow](index=19&type=section&id=Statements%20of%20Cash%20Flow) Condensed Consolidated Statements of Cash Flow (in thousands) | Metric | Twelve Months Ended Dec 31, 2024 | Twelve Months Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $509,084 | $731,946 | | Net Cash Used for Investing Activities | ($74,288) | ($82,787) | | Net Cash Used for Financing Activities | ($416,099) | ($717,833) | | Cash and Cash Equivalents, End of Period | $145,762 | $145,524 |

Earnings Report and Estimates - C H Robinson (CHRW) is scheduled to report fourth-quarter 2024 results on Jan 29, after market close [1] - The Zacks Consensus Estimate for CHRW's fourth-quarter 2024 earnings per share has been revised upward by 1 8% in the past 60 days to $1 12, implying a 124% surge from the year-ago actuals [2] - The Zacks Consensus Estimate for revenues is pegged at $4 47 billion, indicating a 5 9% increase from fourth-quarter 2023 actuals [2] - CHRW has surpassed the Zacks Consensus Estimate in three of the past four quarters, with an average beat of 10 3% [3] Revenue and Segment Performance - Revenues from the service line transportation segment are estimated at $4 17 billion, up 6% from the fourth-quarter 2023 actuals [4] - Revenues from the sourcing segment are forecasted at $380 8 million [4] - North American Surface Transportation's fourth-quarter revenues are estimated at $3 billion, a 0 3% increase from the year-ago reported figure [5] - Revenues from the Global Forwarding segment are anticipated to be $878 million, implying a 23 3% increase from the year-ago reported figure [5] Operational Efficiency and Earnings Potential - CHRW's operational efficiency, driven by robust cost-cutting initiatives, is expected to bolster the company's bottom-line performance [6] - The company has an Earnings ESP of +5 71%, with the Most Accurate Estimate pegged at $1 18, 6 cents above the Zacks Consensus Estimate [8] - CHRW currently holds a Zacks Rank 2, increasing the odds of an earnings beat [8] Other Transportation Stocks - JetBlue Airways (JBLU) has an Earnings ESP of +5 02% and a Zacks Rank 3, with fourth-quarter 2024 results scheduled for release on Jan 28 [11] - JBLU has surpassed the Zacks Consensus Estimate in each of the preceding four quarters, with an average beat of 62 8% [11] - Southwest Airlines (LUV) has an Earnings ESP of +6 78% and a Zacks Rank 2, with fourth-quarter results set for release on Jan 30 [12] - The Zacks Consensus Estimate for LUV's fourth-quarter 2024 earnings has moved north by 32 2% in the past 90 days [12] - LUV's earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters, delivering an average surprise of 111 6% [12]

Stock Performance - CHRW shares have gained 17.5% in the past six months, outperforming its industry and the S&P 500 [1] - The stock has shown an impressive run on the bourse this year [1] Investment Ratings - CHRW has a Zacks Rank 2 (Buy) and a VGM Score of B, indicating strong investment potential [4] - Stocks with a VGM Score of A or B combined with a Zacks Rank 1 or 2 offer the best investment opportunities [4] Earnings Estimates - The Zacks Consensus Estimate for Q1 2025 earnings has increased by 3% in the past 90 days [5] - The Zacks Consensus Estimate for 2025 earnings has risen by 5.8% in the past 90 days [5] Earnings Surprise History - CHRW has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 10.3% [6] Earnings Growth Expectations - CHRW's Q1 2025 earnings are expected to grow 19.8% year over year [7] - CHRW's 2025 earnings are expected to grow 10.9% year over year [7] Shareholder Returns - CHRW has made uninterrupted dividend payments for over 25 years [8] - In the first nine months of 2024, CHRW returned $282.8 million to shareholders, including $218.9 million in dividends and $63.9 million in share repurchases [8] Operational Focus - CHRW is focused on cost-cutting measures and improving productivity to mitigate high expenses and weaker-than-expected demand [9] Peer Comparison - American Airlines (AAL) has a Zacks Rank 1 and an expected earnings growth rate of 16% for the current year [10][11] - AAL has an average earnings surprise beat of 124.4% and its shares have risen 16.4% in the past year [11] - United Airlines (UAL) has a Zacks Rank 2 and an expected earnings growth rate of 1.3% for the current year [10][11] - UAL has an average earnings surprise beat of 26.9% and its shares have surged 122.9% in the past year [12] Investment Potential - CHRW has performed well in the past year and has the potential to sustain its momentum in the future [13]