Expeditors International of Washington, Inc. reported fourth‑quarter 2025 results on February 24, 2026, delivering revenue of $2.86 billion—slightly below the consensus estimate of $2.89 billion—while earnings per share rose to $1.49, a $0.03 (2.1 %) beat over the $1.46 estimate. The company’s operating income fell 17 % to $251 million and net earnings attributable to shareholders dropped 15 % to $201 million, reflecting the sharp contraction in ocean freight revenue and the impact of strategic investments.
Airfreight tonnage grew 6 % year‑over‑year, supporting a modest lift in air freight revenue. In contrast, ocean freight revenue plunged 32.7 % as carriers faced capacity constraints and pricing pressure. Customs brokerage and other fee‑based services drove a 15.5 % increase in revenue to $1.14 billion, underscoring the company’s shift toward higher‑margin, non‑asset‑based services.
Operating income and net earnings declined in line with the heavy loss in ocean freight, but the company’s EPS beat was largely attributable to disciplined cost management and the higher margin mix from customs brokerage and other services. The company’s non‑asset structure helped maintain profitability despite the downturn in traditional freight volumes.
"While we knew comparisons to 2024 were going to be tough, I am quite pleased with the increased business we are taking on, including customs, Transcon, warehousing & distribution, and order management. This shows that our strategy to diversify the breadth of our portfolio is making a difference," said President and CEO Daniel R. Wall. "Expenses were higher than we would like, driven primarily by strategic headcount additions to address higher‑growth opportunities, particularly in customs brokerage, as well as investments in technology. We believe these investments are critical to our long‑term growth and expect them to generate attractive returns over time," added Senior Vice President and Chief Financial Officer David A. Hackett.
The company returned $150 million to shareholders in Q4 2025 through dividends and share repurchases and announced a new $3 billion share repurchase program. These actions reinforce management’s commitment to shareholder value while the company continues to invest in technology and AI to support future growth.
Management reiterated its focus on growth diversification, pricing optimization, and further alignment of its cost structure with current market conditions, while emphasizing continued investment in artificial intelligence and other customer‑vertical solutions. Investors reacted largely uncommonly, with the market remaining largely unchanged after the announcement, reflecting the company’s ability to navigate a challenging freight environment while maintaining a resilient, fee‑based business model.
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