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.

¹Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements in this release.

Expeditors International of Washington, Inc. Fourth quarter 2025 Earnings Release, February 24, 2026 Financial Summary for the three and twelve months ended December 31, 2025 and 2024 (Unaudited) (in 000's of US dollars except share data)

	Three months ended December 31,						Twelve months ended December 31,
	2025		2024		% Change		2025		2024		% Change
Revenues	$	2,855,954	$	2,954,705	(3	)%	$	11,069,009	$	10,600,515	4	%
Directly related cost of transportation and other expenses ¹	$	1,932,392	$	2,020,066	(4	)%	$	7,402,081	$	7,186,718	3	%
Salaries and other operating expenses ²	$	672,652	$	633,535	6	%	$	2,614,382	$	2,372,474	10	%
Operating income	$	250,910	$	301,104	(17	)%	$	1,052,546	$	1,041,323	1	%
Net earnings attributable to shareholders	$	200,707	$	235,878	(15	)%	$	810,332	$	810,073	—	%
Diluted earnings attributable to shareholders per share	$	1.49	$	1.68	(11	)%	$	5.95	$	5.72	4	%
Basic earnings attributable to shareholders per share	$	1.50	$	1.69	(11	)%	$	5.97	$	5.75	4	%
Diluted weighted average shares outstanding		134,630		139,992				136,249		141,722
Basic weighted average shares outstanding		134,195		139,357				135,810		140,992

¹Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services, and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.
²Salaries and other operating expenses totals Salaries and related, Rent and occupancy, Depreciation and amortization, Selling and promotion, and Other as shown in the Condensed Consolidated Statements of Earnings.

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.

	Employee Full-time Equivalents as of December 31,
	2025		2024
North America		7,507		6,999
Europe		4,217		3,882
North Asia		2,321		2,280
South Asia		2,038		1,827
Middle East, Africa and India		1,493		1,389
Latin America		884		796
Information Systems		1,493		1,326
Corporate		406		418
Total		20,359		18,917

	Fourth quarter year-over-year percentage increase (decrease):
2025	Airfreight kilos	Ocean freight FEU
October	4%	(8)%
November	5%	(7)%
December	8%	(4)%
Quarter	6%	(6)%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 27, 2025 will be considered in management's 8-K "Responses to Selected Questions."

____________________

NOTE: See Disclaimer on Forward-Looking Statements in this release.

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited)

	December 31, 2025			December 31, 2024
Assets:
Current Assets:
Cash and cash equivalents	$	1,314,285		$	1,148,320
Accounts receivable, less allowance for credit loss of $7,241 and $6,878 at December 31, 2025 and 2024, respectively		2,021,889			1,997,840
Deferred contract costs		283,281			349,343
Other		136,167			164,272
Total current assets		3,755,622			3,659,775
Property and equipment, less accumulated depreciation and amortization of $651,087 and $615,533 at December 31, 2025 and 2024, respectively		462,122			449,404
Operating lease right-of-use assets		550,162			551,652
Goodwill		7,927			7,927
Deferred income tax asset, net		101,671			70,671
Other assets, net		16,134			15,029
Total assets	$	4,893,638		$	4,754,458
Liabilities:
Current Liabilities:
Accounts payable	$	1,123,429		$	1,036,749
Accrued expenses, primarily salaries and related costs		448,055			451,921
Contract liabilities		358,386			441,927
Current portion of operating lease liabilities		110,891			106,736
Federal, state and foreign income taxes payable		32,046			29,140
Total current liabilities		2,072,807			2,066,473
Noncurrent portion of operating lease liabilities		459,698			462,201
Deferred income tax liability, net		3,040			—
Commitments and contingencies
Shareholders' Equity:
Preferred stock, none issued		—			—
Common stock, par value $0.01 per share. Issued and outstanding: 133,884 shares and 138,003 shares at December 31, 2025 and 2024, respectively		1,339			1,380
Additional paid-in capital		—			—
Retained earnings		2,538,455			2,455,132
Accumulated other comprehensive loss		(184,161	)		(233,500	)
Total shareholders' equity		2,355,633			2,223,012
Noncontrolling interest		2,460			2,772
Total equity		2,358,093			2,225,784
Total liabilities and equity	$	4,893,638		$	4,754,458

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited)

	Three months ended December 31,				Twelve months ended December 31,
	2025		2024		2025		2024
Revenues:
Airfreight services	$	1,109,077	$	1,063,026	$	3,982,882	$	3,669,673
Ocean freight and ocean services		611,393		908,435		2,814,960		3,148,514
Customs brokerage and other services		1,135,484		983,244		4,271,167		3,782,328
Total revenues		2,855,954		2,954,705		11,069,009		10,600,515
Operating Expenses:
Airfreight services		866,314		808,437		2,979,993		2,731,552
Ocean freight and ocean services		430,167		681,021		2,029,847		2,356,952
Customs brokerage and other services		635,911		530,608		2,392,241		2,098,214
Salaries and related		496,222		472,753		1,915,932		1,762,654
Rent and occupancy		65,499		59,140		263,891		241,013
Depreciation and amortization		14,070		15,176		56,769		61,090
Selling and promotion		11,940		10,965		40,099		33,331
Other		84,921		75,501		337,691		274,386
Total operating expenses		2,605,044		2,653,601		10,016,463		9,559,192
Operating income		250,910		301,104		1,052,546		1,041,323
Other Income:
Interest income		8,857		10,007		35,715		46,706
Other, net		2,273		2,172		5,802		6,771
Other income (expense), net		11,130		12,179		41,517		53,477
Earnings before income taxes		262,040		313,283		1,094,063		1,094,800
Income tax expense		61,088		77,127		282,015		283,167
Net earnings		200,952		236,156		812,048		811,633
Less net earnings attributable to the noncontrolling interest		245		278		1,716		1,560
Net earnings attributable to shareholders	$	200,707	$	235,878	$	810,332	$	810,073
Diluted earnings attributable to shareholders per share	$	1.49	$	1.68	$	5.95	$	5.72
Basic earnings attributable to shareholders per share	$	1.50	$	1.69	$	5.97	$	5.75
Weighted average diluted shares outstanding		134,630		139,992		136,249		141,722
Weighted average basic shares outstanding		134,195		139,357		135,810		140,992

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three months ended December 31,						Twelve months ended December 31,
	2025			2024			2025			2024
Operating Activities:
Net earnings	$	200,952		$	236,156		$	812,048		$	811,633
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable		946			1,991			3,597			3,447
Deferred income tax (benefit) expense		(4,700	)		542			(13,712	)		(5,138	)
Stock compensation expense		12,369			16,528			69,231			64,364
Depreciation and amortization		14,070			15,176			56,769			61,090
Other, net		6,773			(7,391	)		15,154			(3,359	)
Changes in operating assets and liabilities:
Decrease (Increase) in accounts receivable		29,465			116,178			41,802			(531,616	)
(Decrease) increase in accounts payable and accrued expenses		(6,130	)		(143,508	)		20,589			259,310
(Increase) decrease in deferred contract costs		(21,653	)		69,292			81,152			(147,685	)
Increase (decrease) in contract liabilities		25,519			(75,349	)		(100,166	)		179,553
Increase in income taxes payable, net		19,687			13,225			27,099			26,388
Increase (decrease) in other, net		6,001			6,876			(7,062	)		5,374
Net cash from operating activities		283,299			249,716			1,006,501			723,361
Investing Activities:
Purchase of property and equipment		(12,976	)		(10,051	)		(53,101	)		(40,466	)
Other, net		7,294			5			8,398			(57	)
Net cash from investing activities		(5,682	)		(10,046	)		(44,703	)		(40,523	)
Financing Activities:
Payments on borrowings on lines of credit, net		(5,989	)		(14,520	)		(3,713	)		(20,058	)
Proceeds from issuance of common stock		8,815			1,523			88,177			69,257
Repurchases of common stock		(46,542	)		(252,206	)		(667,306	)		(855,061	)
Dividends Paid		(103,298	)		(101,449	)		(207,437	)		(204,087	)
Payments for taxes related to net share settlement of equity awards		—			—			(10,353	)		(15,348	)
Distributions to noncontrolling interest		(8	)		—			(1,845	)		—
Net cash from financing activities		(147,022	)		(366,652	)		(802,477	)		(1,025,297	)
Effect of exchange rate changes on cash and cash equivalents		(6,477	)		(17,871	)		6,644			(22,104	)
Change in cash and cash equivalents		124,118			(144,853	)		165,965			(364,563	)
Cash and cash equivalents at beginning of period		1,190,167			1,293,173			1,148,320			1,512,883
Cash and cash equivalents at end of period	$	1,314,285		$	1,148,320		$	1,314,285		$	1,148,320
Taxes Paid:
Income taxes	$	45,606		$	60,521		$	265,035		$	257,170

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES

Business Segment Information (In thousands) (Unaudited)

	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMI- NATIONS			CONSOLI- DATED
For the three months ended December 31, 2025:
Revenues	$	923,194		123,157		65,048		684,367		424,977		468,852		168,606		(2,247	)		2,855,954
Directly related cost of transportation and other expenses¹	$	495,548		76,673		38,592		563,609		337,134		299,677		122,734		(1,575	)		1,932,392
Salaries and related	$	267,176		21,816		12,139		41,742		31,926		99,685		21,738		—			496,222
Other operating expenses²	$	32,076		16,304		8,989		36,998		26,918		42,753		13,062		(670	)		176,430
Operating income	$	128,394		8,364		5,328		42,018		28,999		26,737		11,072		(2	)		250,910
Identifiable assets at period end	$	2,681,989		163,328		101,107		460,856		379,262		818,822		299,375		(11,101	)		4,893,638
Capital expenditures	$	8,219		109		124		153		1,202		1,960		1,209		—			12,976
Depreciation and amortization	$	7,433		499		245		1,402		714		2,859		918		—			14,070
Equity	$	1,574,358		37,914		37,821		219,503		145,078		271,816		167,652		(96,049	)		2,358,093
For the three months ended December 31, 2024:
Revenues	$	866,606		97,443		63,212		837,644		430,161		459,487		201,591		(1,439	)		2,954,705
Directly related cost of transportation and other expenses¹	$	462,106		48,715		38,336		681,226		341,281		296,273		152,643		(514	)		2,020,066
Salaries and related	$	257,491		20,110		10,806		44,814		29,542		88,369		21,621		—			472,753
Other operating expenses²	$	9,143		16,550		9,065		43,121		25,605		43,789		14,435		(926	)		160,782
Operating income (loss)	$	137,866		12,068		5,005		68,483		33,733		31,056		12,892		1			301,104
Identifiable assets at period end	$	2,565,372		171,872		104,172		582,331		338,759		753,064		270,356		(31,468	)		4,754,458
Capital expenditures	$	6,474		221		104		317		1,301		1,117		517		—			10,051
Depreciation and amortization	$	9,153		519		258		1,067		547		2,704		928		—			15,176
Equity	$	1,500,901		43,155		42,535		228,747		119,823		174,536		156,748		(40,661	)		2,225,784

	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMI- NATIONS			CONSOLI- DATED
For the twelve months ended December 31, 2025:
Revenues	$	3,583,826		470,612		262,439		2,737,513		1,555,189		1,829,248		638,771		(8,589	)		11,069,009
Directly related cost of transportation and other expenses¹	$	1,880,586		295,043		158,309		2,210,147		1,214,598		1,183,664		465,596		(5,862	)		7,402,081
Salaries and related	$	1,066,878		83,591		44,769		159,947		118,522		361,448		80,777		—			1,915,932
Other operating expenses²	$	116,151		62,799		37,548		150,287		102,798		174,995		56,636		(2,764	)		698,450
Operating income	$	520,211		29,179		21,813		217,132		119,271		109,141		35,762		37			1,052,546
Identifiable assets at period end	$	2,681,989		163,328		101,107		460,856		379,262		818,822		299,375		(11,101	)		4,893,638
Capital expenditures	$	28,391		845		863		6,015		4,437		6,356		6,194		—			53,101
Depreciation and amortization	$	32,085		2,001		993		5,076		2,599		11,246		2,769		—			56,769
Equity	$	1,574,358		37,914		37,821		219,503		145,078		271,816		167,652		(96,049	)		2,358,093
For the twelve months ended December 31, 2024:
Revenues	$	3,251,998		429,280		214,999		2,934,353		1,391,131		1,700,919		683,191		(5,356	)		10,600,515
Directly related cost of transportation and other expenses¹	$	1,733,087		248,425		126,413		2,383,627		1,098,448		1,092,478		506,482		(2,242	)		7,186,718
Salaries and related	$	974,911		79,481		38,337		158,201		106,183		329,757		75,784		—			1,762,654
Other operating expenses²	$	64,558		59,863		31,454		154,322		84,267		166,119		52,371		(3,134	)		609,820
Operating income	$	479,442		41,511		18,795		238,203		102,233		112,565		48,554		20			1,041,323
Identifiable assets at period end	$	2,565,372		171,872		104,172		582,331		338,759		753,064		270,356		(31,468	)		4,754,458
Capital expenditures	$	24,249		2,393		487		1,250		4,239		5,977		1,871		—			40,466
Depreciation and amortization	$	36,240		2,120		1,104		5,032		2,016		11,277		3,301		—			61,090
Equity	$	1,500,901		43,155		42,535		228,747		119,823		174,536		156,748		(40,661	)		2,225,784

¹Directly related cost of transportation and other expenses totals Operating Expenses from Airfreight services, Ocean freight and ocean services, and Customs brokerage and other services as shown in the Condensed Consolidated Statements of Earnings.
²Other operating expenses totals rent and occupancy, depreciation and amortization, selling and promotion, and other as shown in the consolidated statements of earnings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260223547309/en/

Daniel R. Wall

President and Chief Executive Officer

(206) 674-3455

David A. Hackett

Senior Vice President and Chief Financial Officer

(206) 288-8794

Geoffrey Buscher

Director - Investor Relations

(206) 892-4510

Expeditors Reports Fourth Quarter 2025 EPS of $1.49