10-KPeriod: FY2025

EXPEDITORS INTERNATIONAL OF WASHINGTON INC Annual Report, Year Ended Dec 31, 2025

Filed February 25, 2026For Securities:EXPD

Summary

Expeditors International of Washington, Inc. (EXPD) reported solid performance for the fiscal year ending December 31, 2025, with total revenues growing by 4% year-over-year, driven by a substantial 13% increase in Customs Brokerage and Other Services and a 9% rise in Airfreight Services. This growth was notably fueled by increased demand from technology customers investing in AI infrastructure and a surge in customs brokerage services due to the complex and dynamic global trade environment. Despite a 11% decline in Ocean Freight revenues, attributed to falling average rates and shifting trade dynamics, the company managed to increase operating income by 1% and maintain net earnings for shareholders, while generating strong operating cash flow of $1.0 billion. The company continues to navigate a challenging geopolitical and economic landscape, marked by evolving trade tariffs, inflationary pressures, and volatile freight rates. Expeditors' strategic focus remains on organic growth, leveraging its integrated global technology platform, and maintaining its culture centered on employee development and superior customer service. Significant investments in technology, including AI, are being made to enhance productivity and customer value, particularly in customs brokerage and compliance. The company also returned substantial capital to shareholders through $875 million in stock repurchases and dividends, underscoring its commitment to shareholder value.

Financial Highlights

43 data points
Beta

Revenue

$11.07B

Net Income

$810.33M

7.3% Net Margin

EPS (Diluted)

$5.95

Total Assets

$4.89B

Cash & Equivalents

$1.31B

Free Cash Flow

$1.01B

Financial Statements
Beta
Revenue$11.07B
Operating Expenses$10.02B
Operating Income$1.05B
Net Income$810.33M
EPS (Basic)$5.97
EPS (Diluted)$5.95
Shares Outstanding (Basic)135.81M
Shares Outstanding (Diluted)136.25M

Key Highlights

  • 1Total revenues increased by 4% to approximately $10.1 billion in 2025, primarily driven by strong performance in Customs Brokerage and Airfreight services.
  • 2Customs Brokerage and Other Services revenue saw a significant 13% increase, reflecting heightened demand due to a complex global trade environment and increased customs declarations.
  • 3Airfreight Services revenue grew by 9%, supported by strong demand from technology customers and a rise in tonnage, particularly from exports out of South and North Asia.
  • 4Ocean Freight and Ocean Services revenue declined by 11%, mainly due to a significant drop in average ocean freight rates and an imbalance between demand and capacity.
  • 5Operating income saw a modest 1% increase to $1.05 billion, while net earnings attributable to shareholders remained stable at $810 million.
  • 6Operating cash flow was robust, reaching $1.0 billion in 2025, a notable increase from $723 million in the prior year.
  • 7The company returned $875 million to shareholders through dividends and share repurchases, demonstrating a commitment to capital return.

Frequently Asked Questions

Expeditors' revenue growth in 2025 was primarily driven by a 13% increase in Customs Brokerage and Other Services, reflecting strong demand due to complex global trade dynamics, and a 9% increase in Airfreight Services, supported by technology sector demand and increased tonnage.

The dynamic trade environment and evolving tariffs created both challenges and opportunities. While it increased demand for customs brokerage services and shifted trade volumes, it also contributed to volatility in ocean freight rates and capacity, leading to an 11% decline in ocean freight revenues. The company is actively managing these shifts and focusing on compliance amidst increasing complexity.

Expeditors is making significant investments in its technology platform, including artificial intelligence (AI). The company is focused on leveraging AI to enhance productivity and customer value, especially in areas like customs brokerage and compliance, while not anticipating altering core customer-facing functions with AI solutions. The development and deployment of AI are ongoing as the organization learns and refines its use.

Despite inflationary pressures on labor and service provider rates, Expeditors managed to maintain stable net earnings and achieve a slight increase in operating income. This was achieved through a combination of strong revenue growth in key segments, careful management of expenses, and the company's unique incentive-based compensation system that aligns employee performance with profitability. While ocean rates declined, airfreight and customs brokerage revenues helped offset these pressures.