Expeditors International of Washington(EXPD) - 2025 Q2 - Quarterly Results

Earnings Release Overview Company Information & Contacts Expeditors International of Washington, Inc. released its Q2 2025 earnings, providing contact details for its executive leadership and investor relations - Expeditors International of Washington, Inc. (NYSE:EXPD) is headquartered in Bellevue, Washington[2] - Key contacts for the earnings release include Daniel R. Wall (President and CEO), Bradley S. Powell (Senior Vice President and CFO), and Geoffrey Buscher (Director - Investor Relations)[2] Second Quarter 2025 Key Financial Highlights Expeditors reported strong Q2 2025 financial performance, with growth across key metrics including EPS and revenues Second Quarter 2025 Key Financial Highlights (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | % Change | | :----------------------------------- | :------ | :------ | :------- | | Diluted Net Earnings Attributable to Shareholders per share (EPS) | $1.34 | $1.24 | 8% | | Net Earnings Attributable to Shareholders | $184 million | $175 million | 5% | | Operating Income | $248 million | $224 million | 11% | | Revenues | $2.7 billion | $2.4 billion | 9% | | Airfreight tonnage increase | 7% | - | - | | Ocean container volume increase | 7% | - | - | | Cash returned to shareholders (dividends & repurchases) | $335 million | - | - | Management Commentary Management highlighted strategic initiatives for operational excellence and adaptability in an unpredictable freight environment CEO's Strategic Outlook CEO Daniel R. Wall highlighted strategic initiatives for operational excellence and adaptability, driving growth across all segments - Strategic initiatives are maximizing operational excellence and positioning the company to quickly adapt to a highly unpredictable environment[3] - All businesses grew, including airfreight (due to tonnage growth and higher rates, tight capacity, technology shipments) and ocean (increased volumes, South Asia exports, tariff deadlines)[4][5] - Customs clearances increased in complexity, requiring greater skill, while road freight and warehousing also grew on strong volumes and new business[4][5] - The freight environment is expected to remain unpredictable, with resilience stemming from the global network's experience and expertise[6] CFO's Financial Review CFO reported 11% operating income growth from expense management, noting a higher tax rate and significant shareholder returns - Operating income increased by 11% due to close expense monitoring and limiting headcount growth to support additional business activity[9] - Net earnings grew at a lower rate than operating income due to an increased effective tax rate from 25.8% to 28.7%, driven by changes in foreign exchange rates and certain non-deductible expenses[9] - The Company returned $335 million to shareholders in common stock repurchases and dividends during the second quarter of 2025[9] Company Profile Business Description Expeditors is a global logistics company providing comprehensive freight forwarding, customs brokerage, and customized solutions - Expeditors is a global logistics company headquartered in Bellevue, Washington, employing professionals in 172 district offices and numerous branch locations across six continents[10] - Services include consolidation or forwarding of air and ocean freight, customs brokerage, vendor consolidation, cargo insurance, time-definite transportation, order management, warehousing and distribution, and customized logistics solutions[10] Financial Performance Summary Financial Results Q2 2025 revenues increased 9% and operating income 11% year-over-year, reflecting strong overall financial growth Three Months Ended June 30, 2025 vs 2024 (in thousands) | Metric | 2025 | 2024 | % Change | | :----------------------------------- | :--------- | :--------- | :------- | | Revenues | $2,651,885 | $2,439,001 | 9% | | Operating income | $247,736 | $223,919 | 11% | | Net earnings attributable to shareholders | $183,574 | $175,469 | 5% | | Diluted earnings attributable to shareholders per share | $1.34 | $1.24 | 8% | Six Months Ended June 30, 2025 vs 2024 (in thousands) | Metric | 2025 | 2024 | % Change | | :----------------------------------- | :--------- | :--------- | :------- | | Revenues | $5,318,304 | $4,645,679 | 14% | | Operating income | $513,594 | $438,695 | 17% | | Net earnings attributable to shareholders | $387,369 | $344,621 | 12% | | Diluted earnings attributable to shareholders per share | $2.82 | $2.41 | 17% | Condensed Consolidated Balance Sheets Total assets reached $4.79 billion as of June 30, 2025, with stable current assets, increased liabilities, and decreased equity Condensed Consolidated Balance Sheet (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total current assets | $3,651,576 | $3,659,775 | | Total assets | $4,786,481 | $4,754,458 | | Total current liabilities | $2,116,274 | $2,066,473 | | Total liabilities and equity | $4,786,481 | $4,754,458 | | Total shareholders' equity | $2,195,354 | $2,223,012 | Condensed Consolidated Statements of Earnings All service segments reported increased revenues in Q2 2025 and year-to-date, driving overall operating income growth Revenues by Service (Three Months Ended June 30, in thousands) | Service | 2025 | 2024 | | :-------------------------- | :--------- | :--------- | | Airfreight services | $951,787 | $860,323 | | Ocean freight and ocean services | $675,782 | $651,675 | | Customs brokerage and other services | $1,024,316 | $927,003 | | Total revenues | $2,651,885 | $2,439,001 | Operating Income (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :--------- | :--------- | | Operating income | $247,736 | $223,919 | | Net earnings attributable to shareholders | $183,574 | $175,469 | Revenues by Service (Six Months Ended June 30, in thousands) | Service | 2025 | 2024 | | :-------------------------- | :--------- | :--------- | | Airfreight services | $1,853,547 | $1,619,697 | | Ocean freight and ocean services | $1,457,447 | $1,222,461 | | Customs brokerage and other services | $2,007,310 | $1,803,521 | | Total revenues | $5,318,304 | $4,645,679 | Operating Income (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :-------------------------- | :--------- | :--------- | | Operating income | $513,594 | $438,695 | | Net earnings attributable to shareholders | $387,369 | $344,621 | Condensed Consolidated Statements of Cash Flows Net cash from operating activities significantly increased in Q2 2025, reflecting higher capital expenditures and substantial shareholder returns Cash Flow Summary (Three Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :----------------------------------- | :--------- | :--------- | | Net cash from operating activities | $179,212 | $126,769 | | Net cash from investing activities | $(15,851) | $(7,877) | | Net cash from financing activities | $(339,875) | $(207,393) | | Cash and cash equivalents at end of period | $1,156,162 | $1,271,853 | Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2025 | 2024 | | :----------------------------------- | :--------- | :--------- | | Net cash from operating activities | $521,834 | $383,673 | | Net cash from investing activities | $(28,847) | $(17,961) | | Net cash from financing activities | $(505,846) | $(582,31