Expeditors International of Washington, Inc. (NYSE: EXPD) today announced fourth quarter 2025 financial results, including the following comparisons to the same quarter of 2024:

• Diluted Net Earnings Attributable to Shareholders per share (EPS¹) decreased 11% to $1.49
• Net Earnings Attributable to Shareholders decreased 15% to $201 million
• Operating Income decreased 17% to $251 million
• Revenues decreased 3% to $2.9 billion
• Airfreight tonnage increased 6% and ocean container volume decreased 6%
• Returned $150 million and $875 million to shareholders in dividends and share repurchases during the fourth quarter and full year of 2025, respectively
• Our Board of Directors approved a new $3 billion share repurchase program

Daniel R. Wall, President and Chief Executive Officer, commented:

"While we knew comparisons to 2024 were going to be tough given the current ocean environment, 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. We are focused on growing in every region, product, and customer segment to achieve a healthy balance of revenue, which ultimately creates unlimited opportunities for our employees. In 2026, we will continue to focus on growth diversification, pricing optimization, and further alignment of our cost structure with current market conditions. Finally, we will also make strategic investments in high-return opportunities, such as artificial intelligence (AI) and other customer vertical solutions where we see the most growth potential.”

Comparing Q4 2025 to Q4 2024

Airfreight services: “Air freight gross margins declined modestly on lower per-kilo profitability despite an increase in tonnage. That increase, both year-over-year and compared to Q3 2025, was driven by export volumes from North and South Asia, primarily by customers continuing to invest in technology. During the quarter, a surge in e‑commerce and tech demand pushed buy rates higher, further pressuring margins.”

Ocean freight and ocean services: “Ocean sell rates began declining in the latter part of 2024 and fell more sharply in the third and fourth quarters of 2025, particularly out of North and South Asia. Average revenue-per-container fell 41% compared to the fourth quarter of 2024, and fell 17% compared to the third quarter of 2025, as capacity continued to increase and lower volumes added further pressure. These impacts were partially offset by higher order management volumes from customers seeking greater control over their supply chains, as well as increased demand for freight forwarding and ancillary ocean services. Ocean rates may remain soft in 2026, as capacity is likely to increase further as vessels resume transit via the Suez Canal. We will continue to adjust our ocean operating costs to more properly align with current market conditions.”

Customs brokerage and other services: “Demand for customs brokerage remained strong, reflecting both the complexity and volume of work required to support our customers. We are beginning to realize meaningful benefits from investments we have made in advanced technology to reduce the time required to file customs entries. In addition, we continue to invest in technology solutions, including AI, to further enhance our productivity. Each of our other products in this category achieved double‑digit growth year‑over‑year, led by Transcon road freight and warehousing and distribution, both of which continued to benefit from volume growth tied to ongoing customer investments in global AI hyperscaler infrastructure.

“I would like to extend a special thank you to our operations team for their exceptional performance in a challenging and fast-changing environment. Their dedication enabled us to support customers with comprehensive solutions, while volumes grew across all products.”

David A. Hackett, Senior Vice President and Chief Financial Officer, added:

“We are pleased with our results considering the weakness in the ocean business, coupled with the approximate two percentage point decline in margins in our air business in Q4 2025. While we are not providing future guidance, we have seen air margins recover much of this two percent decline in 2026 through the date of this release.

“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. Excluding transportation‑related costs, operating expenses increased less than one percent sequentially compared to the third quarter of 2025.”

Mr. Hackett noted that the Company returned $150 million in dividends and share repurchases during the fourth quarter, and $875 million in share repurchases and dividends in all of 2025. Mr. Hackett also noted that on February 23, 2026, the Board of Directors authorized a new share repurchase program that permits the repurchase of up to $3 billion of the Company's common stock, effective upon the expiration of the current program, which will occur when the outstanding shares of common stock reach 130 million.

About Expeditors International of Washington, Inc.

Expeditors is a global logistics company headquartered in Bellevue, Washington. The Company employs trained professionals in 172 district offices and numerous branch locations located on six continents linked into a seamless worldwide network through an integrated information management system. Services include the 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.

Disclaimer on Forward-Looking Statements:

Certain statements contained in this news release are “forward-looking statements,” based on management’s views with respect to future events and underlying assumptions that involve risks and uncertainties. These forward-looking statements include statements regarding new business and diverse areas of growth; growth in all of our regions, products, and customer segmentation to create balanced revenue; pricing optimization; strategic investments in high-return opportunities; inflation; continued changes in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets; the demand for our customs brokerage and other products; geopolitical uncertainty; national policy changes on tariffs and other similar measures; new capacity in the marketplace; longer ocean transit times; e-commerce demand in the air market; and volatile rates. Future financial performance could differ materially because of factors such as: our ability to benefit from the significant investments being made by our technology customers in artificial intelligence infrastructure; the ability of our customs brokerage business to continue to deliver strong growth from high demand for our services; our ability to deliver differentiated performance because of our customer service culture and compensation model; our ability to align our operating cost structure with a lower growth environment; our ability to continue to process an increasing number of more complex customs clearances; our ability to find solutions to keep cargo moving for our customers during highly uncertain market conditions; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. Geopolitical risks, port actions, other labor disruptions, tariffs, and the current uncertainty in the global economy could have the effect of heightening many of the other risks described in Item 1A of our Annual Report on Form 10-K, including, without limitation, those related to the success of our strategy and desire to maintain historical unitary profitability, our ability to attract and retain customers, our ability to manage costs, interruptions to our information technology systems, the ability of third-party providers to perform, and potential litigation and contingencies, including risks associated with tax audits, as updated by our reports on Form 10-Q, filed with the Securities and Exchange Commission. These and other factors are discussed in the Company’s regulatory filings with the Securities and Exchange Commission, including those in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and the Company’s most recent Form 10-Q. The forward-looking statements contained in this news release speak only as of this date and the Company does not assume any obligation to update them except as required by law.

During the three and twelve months ended December 31, 2025, we repurchased 0.3 million and 5.6 million shares of common stock at an average price of $149.47 and $118.01 per share, respectively. During the three and twelve months ended December 31, 2024, we repurchased 2.0 million and 7.1 million shares of common stock at an average price of $120.14 and $119.47 per share, respectively. In addition, during 2025 and 2024, we paid cash dividends of $1.54 and $1.46 per share, respectively.

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