C.H. Robinson(US:CHRW)2026-01-28 21:16Revenue 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].