C.H. Robinson(US:CHRW) ZACKSยท2025-05-01 14:20Core Viewpoint - C.H. Robinson Worldwide, Inc. (CHRW) reported mixed first-quarter 2025 results, with earnings exceeding expectations while revenues fell short [1] Financial Performance - Quarterly earnings per share (EPS) of $1.17 surpassed the Zacks Consensus Estimate of $1.02, reflecting a 36% year-over-year improvement [2] - Total revenues amounted to $4.04 billion, missing the Zacks Consensus Estimate of $4.31 billion, and decreased by 8.2% year over year due to the divestiture of the Europe Surface Transportation business, lower volume in North America truckload services, and reduced pricing in ocean services [2] - Adjusted gross profits increased by 2.3% year over year to $673.1 million, attributed to higher adjusted gross profit per transaction in truckload and LTL services [3] - The adjusted operating margin improved to 26.3%, up 700 basis points from the previous year, while operating expenses decreased by 6.5% year over year to $496.2 million [3] Segmental Results - North American Surface Transportation generated total revenues of $2.86 billion, down 4.4% year over year, due to lower truckload volume and market demand for freight, with adjusted gross profits growing 5.3% year over year to $418.32 million [4] - Global Forwarding revenues fell by 9.8% year over year to $774.88 million, primarily due to lower pricing in ocean services, with adjusted gross profits increasing by 2.5% year over year to $184.62 million [5] - Revenues from other sources decreased by 27.1% year over year to $403.43 million [5] - The transportation unit delivered an adjusted gross profit of $640.54 million, up 2.1% from the prior year [6] Profitability by Service Line - Adjusted gross profits for Truckload, LTL, Ocean, Air, and Customs grew by 1.9%, 5.2%, 2.2%, 7.5%, and 3.2% year over year, respectively, while other logistics services saw an 8% decline in adjusted gross profits [7] Cash Flow and Capital Expenditures - CHRW generated $106.5 million in cash from operations in the first quarter, compared to $33.3 million used in the prior-year quarter, driven by a $42.4 million increase in net income and a $136.8 million decrease in cash used by changes in net operating working capital [9] - The company returned $175 million to shareholders, including $77.5 million in cash dividends and $97.5 million through share repurchases [9] - Capital expenditures totaled $16.1 million in the reported quarter, with expectations for 2025 now between $65 million and $75 million, down from a prior range of $75-$85 million [10][11] Balance Sheet - At the end of the first quarter, CHRW had cash and cash equivalents of $129.94 million, down from $145.76 million at the end of the previous quarter, while long-term debt slightly increased to $922.08 million [8]