10-QPeriod: Q2 FY2025

EXPEDITORS INTERNATIONAL OF WASHINGTON INC Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:EXPD

Summary

Expeditors International of Washington, Inc. (EXPD) reported solid financial results for the second quarter of 2025, demonstrating strong revenue growth across all its service segments. The company saw an 11% increase in total revenues for the quarter, reaching $2.65 billion, driven by a 7% increase in airfreight tonnage and ocean containers shipped, and strong demand for customs brokerage services. This growth was partly fueled by U.S. importers accelerating shipments ahead of anticipated higher tariffs and the termination of the de minimis exemption for goods from China and Hong Kong. Net earnings attributable to shareholders rose by 5% to $183.6 million for the quarter, despite a higher effective tax rate. Earnings per diluted share increased to $1.34 from $1.24 in the prior year's second quarter. The company generated robust operating cash flow of $179 million, an increase from $127 million in Q2 2024, and continued to return capital to shareholders through $335 million in share repurchases and dividends. Management expresses confidence in the company's liquidity and ability to meet its obligations.

Financial Highlights

42 data points
Beta

Revenue

$2.65B

Net Income

$183.57M

6.9% Net Margin

EPS (Diluted)

$1.34

Total Assets

$4.79B

Cash & Equivalents

$1.16B

Free Cash Flow

$179.21M

Financial Statements
Beta
Revenue$2.65B
Operating Expenses$2.40B
Operating Income$247.74M
Net Income$183.57M
EPS (Basic)$1.35
EPS (Diluted)$1.34
Shares Outstanding (Basic)136.27M
Shares Outstanding (Diluted)136.63M

Key Highlights

  • 1Total revenues increased by 11% to $2.65 billion for the three months ended June 30, 2025, compared to $2.44 billion in the prior year.
  • 2Net earnings attributable to shareholders grew by 5% to $183.6 million for the quarter, or $1.34 per diluted share, up from $175.5 million, or $1.24 per diluted share, in the same period last year.
  • 3Operating income increased by 11% to $247.7 million for the quarter, reflecting revenue growth outpacing expense increases.
  • 4Airfreight tonnage and ocean containers shipped both increased by 7% year-over-year, indicating strong volume growth.
  • 5Customs brokerage and other services revenue saw a 10% increase, driven by higher shipment volumes and increased complexity in trade regulations.
  • 6Cash from operating activities was $179 million for the quarter, up significantly from $127 million in Q2 2024.
  • 7The company returned $335 million to shareholders through common stock repurchases and dividends during the quarter.

Frequently Asked Questions

Revenue growth was primarily driven by increased volumes across airfreight, ocean freight, and customs brokerage services. This was partly due to U.S. importers accelerating shipments in anticipation of higher tariffs and the termination of the de minimis exemption for goods from China and Hong Kong, which increased demand for customs brokerage and logistics services.

Net earnings attributable to shareholders increased by 5% to $183.6 million, or $1.34 per diluted share. While operating income saw an 11% increase, the net earnings growth was moderated by a higher effective tax rate in the current quarter compared to the prior year.

Expeditors maintained a strong liquidity position with $1.16 billion in cash and cash equivalents as of June 30, 2025. Net cash provided by operating activities was $179 million for the quarter. The company has no significant long-term debt other than lease liabilities and believes its current cash position and operating cash flows are sufficient to meet its liquidity and capital requirements.

The report highlights risks related to the volatile international trade environment, including increased tariffs, intergovernmental disputes, and geopolitical risks, which could impact trade volumes and business results. The company also faces risks associated with tax audits in various jurisdictions and potential adverse determinations that could impact financial results. Additionally, ongoing remediation of material weaknesses in internal controls over financial reporting is noted, although management believes its financial statements are fairly presented.