EXPD Tops Q4 Earnings & Revenue Estimates, Announces Buyback Program

Core Insights - Expeditors International of Washington (EXPD) reported fourth-quarter 2025 earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.46, although this represents an 11.3% decrease year over year. Total revenues reached $2.86 billion, surpassing the Zacks Consensus Estimate of $2.8 billion but down 3.3% year over year due to weakness in ocean freight and services [1][8]. Financial Performance - Airfreight tonnage volume increased by 6% during the quarter, while ocean container volume decreased by 6%. Operating income fell by 17% year over year to $251 million, while total operating expenses decreased by 1.5% year over year to $2.61 billion [2]. - Airfreight Services revenues rose by 4.3% year over year to $1.1 billion, driven by growth in airfreight tonnage on exports from North and South Asia. Conversely, ocean freight and ocean services revenues plummeted by 32.7% year over year to $611.4 million, impacted by pricing volatility and lower volumes. Customs Brokerage and other services revenues increased by 15.5% year over year to $1.14 billion [3]. Shareholder Returns - In the fourth quarter of 2025, EXPD returned $150 million to shareholders through share buybacks. The company returned a total of $875 million to shareholders through share repurchases and dividends in 2025. Additionally, the board approved a new $3 billion share repurchase program, set to take effect after the current program expires. At the end of the fourth quarter, EXPD had cash and cash equivalents of $1.31 billion, up from $1.15 billion at the end of 2024 [4].