Nothing but higher numbers in Expeditors’ quarterly earnings report

Both air freight and ocean freight kilos moved for the quarter were up 7% from the second quarter a year earlier. For air freight, the month-by-month increases were 9% in April, 4% in May and 7% in June. For ocean freight measured in 40-foot equivalent units,  the gains were 12%, 7% and 4%, respectively. 

Expeditors does not hold a conference call with analysts. But in his comments in the company’s earnings statement, CEO and President Daniel Wall sounded similar to the types of statements made by C.H. Robinson on their earnings call, citing changes in operations as the basis for the strong performance in the quarter.

““Throughout the Expeditors global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence,” Wall said in the statement.“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.”

Net earnings per share were up 8% to $1.34 per share. According to SeekingAlpha, that number beat Wall Street consensus by 10 cents per share. The total revenue figure of $2.65 billion was $200 million above consensus.

Stock market reaction is quiet

There was little reaction to the earnings in trading Tuesday. At approximately 3:20 p.m. EDT, the decline in Expeditors stock was about 0.75% to $116.02 on a day when the S&P 500 at that time was down about 0.4%. 

Despite Expeditors being at the forefront of international trade and the impacts from tariffs, its stock price now isn’t that much different that it was a month ago (-1.9%), three months ago (+3.9%) and a year ago (-4.2%). The 52-week low was $100.47 back in April; the 52-week high was $131.59 in September. 

Even in an earnings report where the numbers looked solidly higher, Wall’s statement said average buy and sell rates, in the air and on the water, “remained highly volatile.” Expeditors processed a “substantial increase” in customs clearances, and they “(required) greater skills as they have become more complex” coming alongside the increase in volumes.

Tariff-driven activity a factor

Expeditors did see “pull-forward” business, particularly in its air freight activities. “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,” Wall said.

Getting freight on the water ahead of tariffs also affected Expeditors’ business, Wall said. And ocean freight was impacted as volumes grew, “particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines.”

But while air capacity may have been tight, that was not the case with ocean freight, according to Wall. “Ocean rates softened throughout the quarter, with demand unable to match increased ocean capacity,” he said.

Although C.H. Robinson (NASDAQ: CHRW) is only tangentially a direct competitor, both it and Expeditors share two key aspects: they are both considered 3PLs, and they are both dividend aristocrats, having increased their dividend annually for at least 25 consecutive years. 

But one difference in the companies is that while C.H. Robinson is shedding a significant number of employees–down 17.4% from the second quarter of 2024 to the corresponding quarter of 2025–the headcount at Expeditors is rising. It was up to 19,666 employees from 18,463 a year ago, for a gain of 6.5%.

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