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

Diluted Net Earnings Attributable to Shareholders per share (EPS¹) increased 8% to $1.34
Net Earnings Attributable to Shareholders increased 5% to $184 million
Operating Income increased 11% to $248 million
Revenues increased 9% to $2.7 billion
Airfreight tonnage increased 7% and ocean container volume increased 7%
Cash returned to shareholders in the form of dividends and share repurchases was $335 million

"Throughout the Expeditors global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence," said Daniel R. Wall, President and Chief Executive Officer. "Our focus on growth and execution puts us in a strong position to quickly adapt to this highly unpredictable environment. We are working with each of our regions and districts to increase efficiency and further optimize customer service to drive organic growth and boost profitability.

"We continued to grow all of our businesses during another quarter in which on-and-off tariffs and geopolitical uncertainty prompted many of our customers to re-evaluate their supply chains in anticipation of higher tariffs. Average buy and sell rates, for both air and ocean, remained highly volatile. We once again processed a substantial increase in customs clearances requiring greater skill as they have become more complex, while also growing air tonnage and ocean volumes.

"Our airfreight business increased on growth in tonnage and higher rates in most regions, as capacity remained tight despite new government limits on de minimis shipments, and particularly as customers sought to ship technology and other high-value inventory ahead of trade deadlines. Our ocean business also grew largely on increased volumes, particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines. Ocean rates softened throughout the quarter, with demand unable to match increased ocean capacity. Our other businesses within the customs brokerage segment, including road freight and warehousing and distribution, also grew on strong volumes and new business, as we worked with a mix of current and new customers to navigate the unpredictable and changing state of global supply chains.

"Looking ahead, we continue to expect the freight environment to remain unpredictable. Our resilience comes from the experience and expertise of our global network. Our customers have become accustomed to this unsettled environment and have come to trust that we can help them navigate uncertainty. This has not come without enormous extra effort and diligence from all our employees over the past months, and we are deeply appreciative."

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, "We continued to watch expenses closely during the quarter, increasing operating income by 11%. As many costs have increased, we have been careful to limit headcount growth only in support of additional business activity, and to make essential investments to further strengthen our critical information systems."

Mr. Powell noted that the Company's second quarter net earnings grew at a lower rate than operating income as our effective tax rate increased from 25.8% a year ago to 28.7% during the most recent quarter, driven by changes in foreign exchange rates and certain non-deductible expenses. Mr. Powell further commented that the Company returned $335 million to shareholders in common stock repurchases and dividends during the second quarter of 2025.

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.

¹Diluted earnings attributable to shareholders per share.

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

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 inflation; continued changes in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets; geopolitical uncertainty; national policy changes on tariffs and other similar measures; port actions and other labor disruptions; new capacity in the marketplace; longer ocean transit times; e-commerce demand in the air market; changing de minimis laws; and volatile rates. Future financial performance could differ materially because of factors such as: our ability to produce organic growth and boost profitability as a result of strategic initiatives to maximize operational performance; our ability to continue to process an increasing number of more complex customs clearances; our ability to secure higher air tonnage and ocean volumes; our ability to carefully add headcount and keep other costs in check while continuing to generate efficiency that meets our historical expectations; the alignment of our variable compensation structure with performance; our ability to enhance and bolster our network security; our ability to take market share; our ability to offer cross-border customs expertise; our ability to offer solutions to address the ever shifting tariff changes and customer sourcing decisions; our ability to find solutions to keep cargo moving for our customers during highly uncertain market conditions; our ability to leverage the strength of our carrier relationships; 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, the removal of the de minimis exemption, 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.


Expeditors International of Washington, Inc.
Second Quarter 2025 Earnings Release, August 5, 2025
Financial Summary for three and six months ended June 30, 2025 and 2024 (Unaudited)
(in 000's of US dollars except share data)

	Three months ended June 30,					Six months ended June 30,
	2025		2024		% Change	2025		2024		% Change
Revenues	$	2,651,885	$	2,439,001	9%	$	5,318,304	$	4,645,679	14%
Directly related cost of transportation and other expenses¹	$	1,753,357	$	1,639,408	7%	$	3,530,032	$	3,072,688	15%
Salaries and other operating expenses²	$	650,792	$	575,674	13%	$	1,274,678	$	1,134,296	12%
Operating income	$	247,736	$	223,919	11%	$	513,594	$	438,695	17%
Net earnings attributable to shareholders	$	183,574	$	175,469	5%	$	387,369	$	344,621	12%
Diluted earnings attributable to shareholders per share	$	1.34	$	1.24	8%	$	2.82	$	2.41	17%
Basic earnings attributable to shareholders per share	$	1.35	$	1.24	9%	$	2.83	$	2.43	16%
Diluted weighted average shares outstanding		136,631		141,716			137,537		142,928
Basic weighted average shares outstanding		136,266		141,013			137,045		142,104
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 six months ended June 30, 2025 we repurchased 2.0 million and 3.5 million shares of common stock at an average price of $112.05 and $114.31 per share. During the three and six months ended June 30, 2024 we repurchased 0.9 million and 3.9 million shares of common stock at an average price of $116.88 and $119.43 per share.

	Employee Full-time Equivalents as of June 30,
	2025	2024
North America	7,214	6,847
Europe	4,040	3,812
North Asia	2,306	2,238
South Asia	1,934	1,717
Middle East, Africa and India	1,463	1,391
Latin America	877	754
Information Systems	1,419	1,291
Corporate	413	413
Total	19,666	18,463

	Second quarter year-over-year percentage increase in:
2025	Airfreight kilos	Ocean freight FEU
April	9%	12%
May	4%	7%
June	7%	4%
Quarter	7%	7%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on August 8, 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)

	June 30, 2025			December 31, 2024
Assets:
Current Assets:
Cash and cash equivalents	$	1,156,162		$	1,148,320
Accounts receivable, less allowance for credit loss of $7,575 at June 30, 2025 and $6,878 at December 31, 2024		2,005,094			1,997,840
Deferred contract costs		309,371			349,343
Other		180,949			164,272
Total current assets		3,651,576			3,659,775
Property and equipment, less accumulated depreciation and amortization $651,685 at June 30, 2025 and $615,533 at December 31, 2024		469,714			449,404
Operating lease right-of-use assets		565,367			551,652
Goodwill		7,927			7,927
Deferred federal and state income taxes, net		75,943			70,671
Other assets, net		15,954			15,029
Total assets	$	4,786,481		$	4,754,458
Liabilities:
Current Liabilities:
Accounts payable	$	1,118,283		$	1,036,749
Accrued liabilities, primarily salaries and related costs		468,426			451,921
Contract liabilities		385,414			441,927
Current portion of operating lease liabilities		113,626			106,736
Federal, state and foreign income taxes		30,525			29,140
Total current liabilities		2,116,274			2,066,473
Noncurrent portion of operating lease liabilities		472,924			462,201
Shareholders' Equity:
Common stock, par value $0.01 per share. Issued and outstanding: 135,134 shares at June 30, 2025 and 138,003 shares at December 31, 2024		1,351			1,380
Additional paid-in capital		—			—
Retained earnings		2,380,278			2,455,132
Accumulated other comprehensive loss		(186,275	)		(233,500	)
Total shareholders' equity		2,195,354			2,223,012
Noncontrolling interest		1,929			2,772
Total equity		2,197,283			2,225,784
Total liabilities and equity	$	4,786,481		$	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 June 30,					Six months ended June 30,
		2025		2024			2025		2024
Revenues:
Airfreight services	$	951,787	$	860,323		$	1,853,547	$	1,619,697
Ocean freight and ocean services		675,782		651,675			1,457,447		1,222,461
Customs brokerage and other services		1,024,316		927,003			2,007,310		1,803,521
Total revenues		2,651,885		2,439,001			5,318,304		4,645,679
Operating Expenses:
Airfreight services		698,402		645,168			1,346,896		1,182,759
Ocean freight and ocean services		483,475		478,121			1,057,376		892,104
Customs brokerage and other services		571,480		516,119			1,125,760		997,825
Salaries and related		471,336		426,431			929,273		839,593
Rent and occupancy		65,741		59,597			130,084		120,849
Depreciation and amortization		13,847		14,979			28,451		30,140
Selling and promotion		9,928		7,998			18,502		14,777
Other		89,940		66,669			168,368		128,937
Total operating expenses		2,404,149		2,215,082			4,804,710		4,206,984
Operating income		247,736		223,919			513,594		438,695
Other Income (Expense):
Interest income		9,183		11,904			18,367		26,782
Other, net		1,050		98			1,889		3,626
Other income, net		10,233		12,002			20,256		30,408
Earnings before income taxes		257,969		235,921			533,850		469,103
Income tax expense		74,050		60,770			145,832		123,552
Net earnings		183,919		175,151			388,018		345,551
Less net earnings (losses) attributable to the noncontrolling interest		345		(318	)		649		930
Net earnings attributable to shareholders	$	183,574	$	175,469		$	387,369	$	344,621
Diluted earnings attributable to shareholders per share	$	1.34	$	1.24		$	2.82	$	2.41
Basic earnings attributable to shareholders per share	$	1.35	$	1.24		$	2.83	$	2.43
Weighted average diluted shares outstanding		136,631		141,716			137,537		142,928
Weighted average basic shares outstanding		136,266		141,013			137,045		142,104

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES

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

	Three months ended June 30,						Six months ended June 30,
		2025			2024			2025			2024
Operating Activities:
Net earnings	$	183,919		$	175,151		$	388,018		$	345,551
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable		1,051			1,644			1,812			2,038
Deferred income tax benefit		(7,523	)		(6,917	)		(7,447	)		(4,623	)
Stock compensation expense		27,267			25,704			38,816			38,076
Depreciation and amortization		13,847			14,979			28,451			30,140
Other, net		4,474			1,885			6,765			3,870
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(57,984	)		(286,085	)		50,165			(346,627	)
Increase in accounts payable and accrued liabilities		61,885			211,692			43,466			295,283
(Increase) decrease in deferred contract costs		(21,617	)		(122,258	)		54,356			(186,320	)
Increase (decrease) in contract liabilities		16,961			135,067			(72,327	)		204,375
Decrease in income taxes payable, net		(44,668	)		(29,854	)		(14,328	)		(7,168	)
Decrease in other, net		1,600			5,761			4,087			9,078
Net cash from operating activities		179,212			126,769			521,834			383,673
Investing Activities:
Purchase of property and equipment		(15,875	)		(7,943	)		(29,027	)		(18,124	)
Other, net		24			66			180			163
Net cash from investing activities		(15,851	)		(7,877	)		(28,847	)		(17,961	)
Financing Activities:
Proceeds (payments) on borrowings on lines of credit, net		92			1,259			287			(15,983	)
Proceeds from issuance of common stock		5,132			6,449			18,175			14,478
Repurchases of common stock		(231,116	)		(102,300	)		(408,470	)		(462,824	)
Dividends paid		(104,139	)		(102,638	)		(104,139	)		(102,638	)
Payments for taxes related to net share settlement of equity awards		(9,844	)		(10,163	)		(10,353	)		(15,348	)
Distribution to noncontrolling interest		—			—			(1,346	)		—
Net cash from financing activities		(339,875	)		(207,393	)		(505,846	)		(582,315	)
Effect of exchange rate changes on cash and cash equivalents		14,156			(10,102	)		20,701			(24,427	)
Change in cash and cash equivalents		(162,358	)		(98,603	)		7,842			(241,030	)
Cash and cash equivalents at beginning of period		1,318,520			1,370,456			1,148,320			1,512,883
Cash and cash equivalents at end of period	$	1,156,162		$	1,271,853		$	1,156,162		$	1,271,853
Taxes Paid:
Income taxes	$	125,277		$	96,739		$	165,901		$	133,603

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 June 30, 2025:
Revenues	$	877,325		108,128		66,904		636,785		359,531		449,712		155,458		(1,958	)		2,651,885
Directly related cost of transportation and other expenses¹	$	454,354		67,428		40,945		507,413		277,355		293,878		113,243		(1,259	)		1,753,357
Salaries and related costs	$	266,018		20,205		11,030		36,686		28,567		88,913		19,917		—			471,336
Other operating expenses²	$	31,859		16,726		9,745		36,820		28,117		41,878		15,015		(704	)		179,456
Operating income	$	125,094		3,769		5,184		55,866		25,492		25,043		7,283		5			247,736
Identifiable assets at period end	$	2,554,090		186,248		105,069		523,858		354,318		789,514		286,466		(13,082	)		4,786,481
Capital expenditures	$	6,146		257		274		4,545		1,189		1,928		1,536		—			15,875
Depreciation and amortization	$	7,896		499		253		1,176		622		2,791		610		—			13,847
Equity	$	1,475,449		57,602		37,810		192,012		119,338		191,551		162,159		(38,638	)		2,197,283
For the three months ended June 30, 2024:
Revenues	$	779,170		110,723		45,314		637,351		287,943		409,455		170,349		(1,304	)		2,439,001
Directly related cost of transportation and other expenses¹	$	423,102		65,374		24,640		512,146		223,238		262,451		128,949		(492	)		1,639,408
Salaries and related costs	$	238,974		19,976		8,860		35,955		24,463		80,088		18,115		—			426,431
Other operating expenses²	$	24,701		14,363		5,691		34,807		18,621		39,625		12,237		(802	)		149,243
Operating income	$	92,393		11,010		6,123		54,443		21,621		27,291		11,048		(10	)		223,919
Identifiable assets at period end	$	2,566,053		173,764		93,967		626,892		336,598		738,068		284,672		(31,673	)		4,788,341
Capital expenditures	$	2,948		575		129		355		1,955		1,094		887		—			7,943
Depreciation and amortization	$	9,106		535		278		1,098		419		2,784		759		—			14,979
Equity	$	1,546,936		32,700		41,135		163,913		129,886		151,165		153,155		(40,463	)		2,178,427


	UNITED STATES		OTHER NORTH AMERICA		LATIN AMERICA		NORTH ASIA		SOUTH ASIA		EUROPE		MIDDLE EAST, AFRICA AND INDIA		ELIMI- NATIONS			CONSOLI- DATED
For the six months ended June 30, 2025:
Revenues	$	1,731,774		224,613		129,293		1,331,793		724,108		872,507		308,330		(4,114	)		5,318,304
Directly related cost of transportation and other expenses¹	$	906,271		140,621		77,380		1,061,907		558,850		565,594		222,091		(2,682	)		3,530,032
Salaries and related costs	$	524,107		39,797		21,468		77,047		56,639		170,462		39,753		—			929,273
Other operating expenses²	$	54,407		31,554		19,659		74,566		51,402		85,237		30,043		(1,463	)		345,405
Operating income	$	246,989		12,641		10,786		118,273		57,217		51,214		16,443		31			513,594
Identifiable assets at period end	$	2,554,090		186,248		105,069		523,858		354,318		789,514		286,466		(13,082	)		4,786,481
Capital expenditures	$	14,553		483		499		5,050		2,063		3,084		3,295		—			29,027
Depreciation and amortization	$	16,834		996		504		2,232		1,192		5,437		1,256		—			28,451
Equity	$	1,475,449		57,602		37,810		192,012		119,338		191,551		162,159		(38,638	)		2,197,283
For the six months ended June 30, 2024:
Revenues	$	1,530,713		217,573		89,806		1,182,292		515,662		807,772		304,455		(2,594	)		4,645,679
Directly related cost of transportation and other expenses¹	$	827,051		132,084		49,104		938,620		387,262		516,970		222,741		(1,144	)		3,072,688
Salaries and related costs	$	472,287		38,882		17,707		70,897		47,380		157,660		34,780		—			839,593
Other operating expenses²	$	47,096		28,541		13,608		67,125		36,616		79,141		24,036		(1,460	)		294,703
Operating income	$	184,279		18,066		9,387		105,650		44,404		54,001		22,898		10			438,695
Identifiable assets at period end	$	2,566,053		173,764		93,967		626,892		336,598		738,068		284,672		(31,673	)		4,788,341
Capital expenditures	$	8,476		1,974		282		637		2,099		3,312		1,344		—			18,124
Depreciation and amortization	$	18,126		1,032		567		2,191		967		5,754		1,503		—			30,140
Equity	$	1,546,936		32,700		41,135		163,913		129,886		151,165		153,155		(40,463	)		2,178,427
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/20250804104884/en/

Daniel R. Wall

President and Chief Executive Officer

(206) 674-3455

Bradley S. Powell

Senior Vice President and Chief Financial Officer

(206) 674-3412

Geoffrey Buscher

Director - Investor Relations

(206) 892-4510