Earnings release
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C.H. Robinson Reports 2026 Second Quarter Results July 29, 2026 EDEN PRAIRIE, Minn.--(BUSINESS WIRE)-- C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended June 30, 2026. Second Quarter Highlights: Mid-cycle operating margin targets achieved while the freight market is still in the trough of the demand cycle Company continues to deliver secular earnings growth driven by market share gains, disciplined revenue management and evergreen productivity improvements fueled by its Lean AI strategy North American Surface Transportation ("NAST") volume increased approximately 1.5% year-over-year compared to a 3.3% decline in the Cass Freight Shipment Index, reflecting the 13th consecutive quarter of market outgrowth NAST truckload adjusted gross profit per shipment held flat year-over-year despite a significant increase in truckload spot market costs Income from operations increased 18.4% to $255.7 million Adjusted income from operations increased 19.5% to $263.2 million Diluted earnings per share ("EPS") increased 23.8% to $1.56 Adjusted diluted EPS increased 24.8% to $1.61 Cash generated by operations decreased by $191.2 million to $35.9 million Cash returned to shareholders increased 87.5% to $301.3 million Adjusted gross profit, adjusted income from operations, and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 14 for further discussion and GAAP to Non-GAAP Reconciliations. "I want to begin by thanking our people for their relentless efforts to provide exceptional service to our customers and carriers, for embracing the Robinson operating model and continuing to execute with discipline. These efforts contributed to the high-quality earnings we reported today," said President and Chief Executive Officer, Dave Bozeman. "When I became CEO three years ago, we committed to delivering higher highs and higher lows across freight market cycles. Our second quarter results are yet another example of delivering on that commitment. Despite being in the trough of the freight market demand cycle, with the Cass Freight Shipment Index declining on a year-over-year basis for the 15th consecutive quarter, we hit our mid-cycle operating margin targets in both NAST and Global Forwarding in the second quarter of 2026." "We achieved this through the disciplined execution of our Lean AI strategy, which has enabled us to identify and remove waste and to automate manual processes in the quote-to-cash lifecycle of an order. The result has been evergreen productivity improvements of over 60% since the end of 2022 in both NAST and Global Forwarding. The execution of our strategy has also enabled us to build a scalable model with significant operating leverage, which contributed to the 20% year-over-year increase in our adjusted operating income." "But our Lean AI strategy isn’t just about generating higher productivity," added Bozeman. "First and foremost, it needs to result in better service to our customers and carriers, and our scores related to customer satisfaction are exceptionally strong. As we continue to purposefully engineer our work to drive higher automation, an industry-leading cost to serve, and service to our customers and carriers that is better than ever, we’ve consistently gained market share in our NAST business. The second quarter of 2026 was the 13th consecutive quarter in which our year-over-year NAST volume growth outpaced the Cass Freight Shipment Index." "In our Global Forwarding business, the team continues to help our customers navigate ongoing disruptions across global shipping networks, and they continue to implement the same revenue management disciplines that have been successfully deployed in NAST. Additionally, they are moving from manual, reactive work that is dependent on manual handoffs toward automated workflows that are faster, more connected, and easier to manage at scale. While this journey is still ongoing, we're already seeing encouraging progress in several areas, and as a result, the Global Forwarding team delivered year-over-year productivity improvements of more than 15% in the second quarter of 2026 and achieved an adjusted operating margin, excluding restructuring, of 33.4%." "We’ll continue to focus on providing differentiated service and solutions to our customers and carriers, executing with discipline, and improving our business model and our cost to serve. We’re highly confident in our ability to continue executing on all of our strategic initiatives, and the strategies that our team is executing are built to be effective in any market environment," said Bozeman. (1) (1) (1) (1)
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Summary of Second Quarter of 2026 Results Compared to the Second Quarter of 2025 Total revenues increased 19.3% to $4.9 billion, primarily driven by higher pricing in our truckload, less than truckload ("LTL"), air and ocean services. Gross profits increased 6.8% to $725.9 million. Adjusted gross profits increased 6.5% to $738.0 million, primarily driven by higher adjusted gross profit per transaction in our LTL and air services and higher volume in our LTL services. Operating expenses increased 1.0% to $482.2 million. Personnel expenses increased 0.9% to $338.5 million, primarily due to higher incentive compensation reflecting our strong operating performance. This was partially offset by cost optimization efforts and productivity improvements. Average employee headcount declined 10.8%. Other selling, general and administrative (“SG&A”) expenses increased 1.2% to $143.8 million, primarily due to increases across several expense categories. Income from operations totaled $255.7 million, up 18.4% due to the increase in adjusted gross profit, partially offset by the increase in operating expenses. Adjusted operating margin of 34.7% increased 360 basis points. Interest and other income/expense, net totaled $17.9 million of expense, consisting primarily of $16.9 million of interest expense, which increased $0.1 million versus last year due to a higher average debt balance, partially offset by lower variable interest rates. The second quarter of 2026 results also include a $1.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses. Theeffective tax rate in the quarter was 21.5% compared to 21.4% in the second quarter of 2025. Net income totaled $186.8 million, up 22.5% from a year ago. Diluted EPS of $1.56 increased 23.8%. Adjusted diluted EPS of $1.61 increased 24.8%. Adjusted gross profits, adjusted operating margin and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 14 for further discussion and GAAP to Non-GAAP Reconciliations. Summary of 2026 Year-to-Date Results Compared to 2025 Total revenues increased 9.3% to $8.9 billion, primarily driven by higher pricing in our truckload and LTL services. Gross profits increased 2.7% to $1.4 billion. Adjusted gross profits increased 2.4% to $1.4 billion, primarily driven by higher adjusted gross profit per transaction in our LTL and air services. This was partially offset by lower adjusted gross profit per transaction in our ocean services. Operating expenses decreased 0.7% to $967.0 million. Personnel expenses increased 1.1% to $691.2 million, primarily due to higher restructuring charges related to workforce reductions. This was partially offset by cost optimization efforts and productivity improvements. Average employee headcount declined 11.9%. Other SG&A expenses decreased 4.8% to $275.8 million primarily due to reductions across several expense categories and due to a prior year impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building. Income from operations totaled $431.4 million, up 9.8% from last year due to the increase in adjusted gross profit and the decrease in operating expenses. Adjusted operating margin of 30.9% increased 220 basis points. Interest and other income/expense, net totaled $26.9 million of expense, primarily consisting of $30.9 million of interest expense, which decreased $2.7 million versus last year due to lower variable interest rates and a lower average debt balance. The year-to-date results also include $2.2 million of interest income and a $0.3 million net gain from foreign currency revaluation and realized foreign currency gains and losses. The effective tax rate for the six months ended June 30, 2026 was 17.4% compared to 17.9% in the year-ago period. Net income totaled $334.0 million, up 16.1% from a year ago. Diluted EPS of $2.78 increased 17.3%. Adjusted diluted EPS of $2.95 increased 19.9%. Adjusted gross profits, adjusted operating margin and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 14 for further discussion and GAAP to Non-GAAP Reconciliations. North American Surface Transportation (“NAST”) Results Summarized financial results of our NAST segment are as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Total revenues $ 3,593,269$ 2,918,227 23.1% $ 6,540,592$ 5,786,647 13.0% Adjusted gross profits 469,389 432,248 8.6% 900,466 850,572 5.9% Income from operations 189,845 163,991 15.8% 334,975 307,662 8.9% (1) (1) (1) (1) (1) (1) (1) (1) (1)
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____________________________________________ Adjusted gross profits and adjusted operating margin - excluding restructuring are non-GAAP financial measures explained later in this release. The difference between adjusted gross profits and gross profits is not material. Second quarter total revenues for the NAST segment totaled $3.6 billion, an increase of 23.1% over the prior year, primarily driven by higher pricing in our truckload and LTL services. NAST adjusted gross profits increased 8.6% in the quarter to $469.4 million. Adjusted gross profits in truckload increased 0.2% due to a 0.5% increase in volume. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 25.5% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, increased 29.0%, resulting in a 2.0% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 21.7% versus the year-ago period, driven by a 19.5% increase in adjusted gross profit per order and a 2.0% increase in LTL volume. Total NAST truckload and LTL volume increased 1.5% versus the year-ago period and outpaced the market indices. Operating expenses increased 4.2%, primarily due to higher claims expenses and higher incentive compensation reflecting our strong operating performance, partially offset by cost optimization efforts and productivity improvements. Second quarter average employee headcount was down 11.6% year-over-year. Income from operations increased 15.8% to $189.8 million, and adjusted operating margin expanded 250 basis points to 40.4%. Adjusted operating margin - excluding restructuring increased 280 basis points to 40.9%. Global Forwarding Results Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Total revenues $ 896,604$ 797,800 12.4% $ 1,561,334$ 1,572,688 (0.7)% Adjusted gross profits 188,830 187,581 0.7% 351,121 372,209 (5.7)% Income from operations 60,970 51,330 18.8% 92,654 94,273 (1.7)% ____________________________________________ Adjusted gross profits and adjusted operating margin - excluding restructuring are non-GAAP financial measures explained later in this release. The difference between adjusted gross profits and gross profits is not material. Second quarter total revenues for the Global Forwarding segment increased 12.4% to $896.6 million, primarily driven by higher pricing in our air and ocean services. Adjusted gross profits increased 0.7% in the quarter to $188.8 million. Ocean adjusted gross profits decreased 2.8%, driven by a 4.0% decrease in adjusted gross profit per shipment, partially offset by a 1.0% increase in shipments. Air adjusted gross profits increased 23.4%, driven by a 33.5% increase in adjusted gross profit per metric ton shipped, partially offset by a 7.5% decline in metric tons shipped. Customs adjusted gross profits decreased 9.4%, driven by a 7.5% decrease in adjusted gross profit per transaction and a 2.0% reduction in transaction volume. Operating expenses decreased 6.2%, primarily due to cost optimization efforts and lower incentive compensation. Second quarter average employee headcount decreased 16.6% year-over-year. Income from operations increased 18.8% to $61.0 million, and adjusted operating margin expanded 490 basis points to 32.3% in the quarter. Adjusted operating margin - excluding restructuring expanded 470 basis points to 33.4%. All Other and Corporate Results Total revenues and adjusted gross profits for Robinson Fresh, Managed Solutions and Other Surface Transportation are summarized as follows (dollars in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Total revenues $ 444,225$ 420,516 5.6% $ 845,106$ 823,948 2.6% Adjusted gross profits: Robinson Fresh $ 47,276$ 44,395 6.5% $ 84,793$ 82,048 3.3% Managed Solutions 32,471 29,007 11.9% 62,079 56,853 9.2% Other Surface Transportation — — —% — 4,637 (100.0)% ____________________________________________ Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. Includes our Europe Surface Transportation business, which was divested as of February 1, 2025. Second quarter Robinson Fresh adjusted gross profits increased 6.5% to $47.3 million driven by a volume increase with foodservice customers. Managed Solutions adjusted gross profits increased 11.9% due to an increase in freight under management. (1) (1) (1) (1) (1) (1) (2) (1) (2)
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Other Income Statement Items Interest and other income/expense, net totaled $17.9 million of expense, consisting primarily of $16.9 million of interest expense, which increased $0.1 million versus the second quarter of 2025 due to a higher average debt balance, partially offset by lower variable interest rates. The second quarter of 2026 results also include a $1.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses. The second quarter effective tax rate was 21.5% compared to 21.4% in the second quarter of 2025. For 2026, we expect our full-year effective tax rate to be 18% to 20%. Diluted weighted average shares outstanding in the quarter were down 1.1% year-over-year due to share repurchases that have occurred over the past twelve months. Cash Flow Generation and Capital Distribution Cash generated from operations totaled $35.9 million in the second quarter, compared to $227.1 million in the second quarter of 2025. The $191.2 million decrease in cash flow from operations was primarily related to a $227.3 million decrease in cash generated by changes in net operating working capital, due to a $196.4 million sequential increase in net operating working capital in the second quarter of 2026 compared to a $30.9 million sequential decrease in the second quarter of 2025. In the second quarter of 2026, cash returned to shareholders totaled $301.3 million, with $226.0 million in repurchases of common stock and $75.3 million in cash dividends. Capital expenditures totaled $18.2 million in the quarter. Capital expenditures for 2026 are expected to be $65 million to $75 million. About C.H. Robinson C.H. Robinson is the global leader in Lean AI supply chains. For more than a century, companies everywhere have looked to us to reimagine how goods move. Now, as we redefine what’s next for the industry, that same drive fuels our commitment to Building Tomorrow’s Supply Chains, Today™. Trusted by 75,000 customers and 450,000 contract carriers, we manage 37 million shipments annually, representing $23 billion in freight. We deliver tailored solutions across the world via truckload, less-than-truckload, ocean, air, and more. With our unique combination of human insight and Lean AI working as one, supply chains move faster, smarter, and more sustainably. As a responsible global citizen, we proudly contribute millions to the causes that matter most to our employees. For more information, visit us at chrobinson.com (Nasdaq: CHRW). Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability and achieving our long-term growth targets; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business, including reliance on third-party platforms and cybersecurity related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations or efficiently managing divestitures; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations, including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; and other risks and uncertainties detailed in our Annual and Quarterly Reports. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay.
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Conference Call Information: C.H. Robinson Worldwide Second Quarter 2026 Earnings Conference Call Wednesday, July 29, 2026; 5:30 p.m. Eastern Time Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through C.H. Robinson's Investor Relations website at investor.chrobinson.com. To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756 Adjusted Gross Profit by Service Line (in thousands) This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines. Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Adjusted gross profits: Transportation Truckload $ 264,164$ 267,913 (1.4)% $ 515,763$ 530,201 (2.7)% LTL 185,309 152,186 21.8% 348,757 300,597 16.0% Ocean 104,988 107,902 (2.7)% 194,907 223,237 (12.7)% Air 42,339 34,461 22.9% 75,063 67,271 11.6% Customs 31,787 35,098 (9.4)% 64,107 62,018 3.4% Other logistics services 67,774 56,459 20.0% 126,165 111,240 13.4% Total transportation 696,361 654,019 6.5% 1,324,762 1,294,564 2.3% Sourcing 41,605 39,212 6.1% 73,697 71,755 2.7% Total adjusted gross profits$ 737,966$ 693,231 6.5% $ 1,398,459$ 1,366,319 2.4% ____________________________________________ Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. GAAP to Non-GAAP Reconciliation (unaudited, in thousands) Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Revenues: Transportation $ 4,524,773$ 3,746,660 20.8% $ 8,168,484$ 7,468,575 9.4% Sourcing 409,325 389,883 5.0% 778,548 714,708 8.9% Total revenues 4,934,098 4,136,543 19.3% 8,947,032 8,183,283 9.3% Costs and expenses: Purchased transportation and related services 3,828,412 3,092,641 23.8% 6,843,722 6,174,011 10.8% Purchased products sourced for resale 367,720 350,671 4.9% 704,851 642,953 9.6% Direct internally developed software amortization 12,038 13,681 (12.0)% 25,900 29,347 (11.7)% (1) (1)
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Total direct expenses 4,208,170 3,456,993 21.7% 7,574,473 6,846,311 10.6% Gross profit $ 725,928$ 679,550 6.8% $ 1,372,559$ 1,336,972 2.7% Plus: Direct internally developed software amortization 12,038 13,681 (12.0)% 25,900 29,347 (11.7)% Adjusted gross profit $ 737,966$ 693,231 6.5% $ 1,398,459$ 1,366,319 2.4% Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring and/or loss on divestiture is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring and/or loss from divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring and/or loss on divestiture are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring and/or loss on divestiture are presented below: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Total revenues $ 4,934,098$ 4,136,543 19.3% $ 8,947,032$ 8,183,283 9.3% Income from operations255,743 215,919 18.4% 431,429 392,772 9.8% Operating margin 5.2% 5.2% — bps 4.8% 4.8% — bps Adjusted gross profit$ 737,966$ 693,231 6.5% $ 1,398,459$ 1,366,319 2.4% Income from operations255,743 215,919 18.4% 431,429 392,772 9.8% Adjusted operating margin 34.7% 31.1% 360 bps 30.9% 28.7% 220 bps Adjusted gross profit$ 737,966$ 693,231 6.5% $ 1,398,459$ 1,366,319 2.4% Adjusted income from operations 263,233 220,229 19.5% 459,154 405,695 13.2% Adjusted operating margin - excluding restructuring and/or loss on divestiture 35.7% 31.8% 390 bps 32.8% 29.7% 310 bps GAAP to Non-GAAP Reconciliation (unaudited, in thousands) Our adjusted income from operations, adjusted operating margin - excluding restructuring and/or loss on divestiture, adjusted net income and adjusted net income per share (diluted) are non-GAAP financial measures. These non-GAAP measures are calculated excluding the impact of restructuring and/or loss from divestiture. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income from operations, adjusted operating margin - excluding restructuring and/or loss on divestiture, adjusted net income and adjusted net income per share (diluted). The reconciliation of these non-GAAP measures are presented below (in thousands except per share data): Non-GAAP Reconciliation: NAST Global Forwarding All Other and CorporateConsolidated Three Months Ended June 30, 2026 Income from operations $ 189,845$ 60,970 $ 4,928 $ 255,743 Severance and other personnel expenses 2,019 2,998 2,999 8,016 Other selling, general, and administrative expenses138 (828) 164 (526) Total adjustments to income from operations 2,157 2,170 3,163 7,490 Adjusted income from operations $ 192,002$ 63,140 $ 8,091 $ 263,233 Adjusted gross profit $ 469,389$ 188,830$ 79,747 $ 737,966 Adjusted income from operations 192,002 63,140 8,091 263,233 Adjusted operating margin - excluding restructuring 40.9% 33.4% 10.1% 35.7% NAST Global Forwarding All Other and CorporateConsolidated Six Months Ended June 30, 2026 (1)
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Income from operations $ 334,975$ 92,654 $ 3,800 $ 431,429 Severance and other personnel expenses 18,053 4,081 4,652 26,786 Other selling, general, and administrative expenses180 599 160 939 Total adjustments to income from operations 18,233 4,680 4,812 27,725 Adjusted income from operations $ 353,208$ 97,334 $ 8,612 $ 459,154 Adjusted gross profit $ 900,466$ 351,121$ 146,872$ 1,398,459 Adjusted income from operations 353,208 97,334 8,612 459,154 Adjusted operating margin - excluding restructuring 39.2% 27.7% 5.9% 32.8% Three Months Ended June 30, 2026Six Months Ended June 30, 2026 $ in 000's per share $ in 000's per share Net income and per share (diluted) $ 186,786$ 1.56 $ 334,019$ 2.78 Restructuring and related costs, pre-tax 7,490 0.06 27,725 0.23 Tax effect of adjustments (2,008) (0.01) (6,627) (0.06) Adjusted net income and per share (diluted)$ 192,268$ 1.61 $ 355,117 $ 2.95 ____________________________________________ The three months ended June 30, 2026 includes severance and other personnel expenses of $8.0 million related to workforce reductions and a $0.5 million net gain driven by the favorable termination of an operating lease. The six months ended June 30, 2026 includes severance and other personnel expenses of $26.8 million related to workforce reductions and $0.9 million of other charges. Non-GAAP Reconciliation: NAST Global Forwarding All Other and CorporateConsolidated Three Months Ended June 30, 2025 Income from operations $ 163,991$ 51,330 $ 598 $ 215,919 Severance and other personnel expenses 677 2,576 635 3,888 Other selling, general, and administrative expenses— — 422 422 Total adjustments to income from operations 677 2,576 1,057 4,310 Adjusted income from operations $ 164,668$ 53,906 $ 1,655 $ 220,229 Adjusted gross profit $ 432,248$ 187,581$ 73,402 $ 693,231 Adjusted income from operations 164,668 53,906 1,655 220,229 Adjusted operating margin - excluding restructuring and loss on divestiture 38.1% 28.7% N/M 31.8% NAST Global Forwarding All Other and CorporateConsolidated Six Months Ended June 30, 2025 Income (loss) from operations $ 307,662$ 94,273 $ (9,163) $ 392,772 Severance and other personnel expenses 677 2,576 1,822 5,075 Other selling, general, and administrative expenses— — 7,848 7,848 Total adjustments to income from operations 677 2,576 9,670 12,923 Adjusted income from operations $ 308,339$ 96,849 $ 507 $ 405,695 Adjusted gross profit $ 850,572$ 372,209$ 143,538$ 1,366,319 Adjusted income from operations 308,339 96,849 507 405,695 Adjusted operating margin - excluding restructuring and loss on divestiture 36.3% 26.0% N/M 29.7% Three Months Ended June 30, 2025Six Months Ended June 30, 2025 $ in 000's per share $ in 000's per share Net income and per share (diluted) $ 152,471$ 1.26 $ 287,773$ 2.37 Restructuring and related costs, pre-tax 3,881 0.04 10,140 0.08 Loss on divestiture, pre-tax 429 — 2,783 0.02 Tax effect of adjustments (1,005) (0.01) (2,031) (0.01) (2) (1) (2) (1) (2)
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Adjusted net income and per share (diluted)$ 155,776$ 1.29 $ 298,665$ 2.46 ____________________________________________ The three months ended June 30, 2025 includes severance and other personnel expenses of $3.9 million related to workforce reductions and $0.4 million of other charges. The six months ended June 30, 2025 includes severance and other personnel expenses of $5.1 million primarily related to workforce reductions and $7.8 million of other charges, which include a $6.3 million impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building. Condensed Consolidated Statements of Income (unaudited, in thousands, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 % change 2026 2025 % change Revenues: Transportation $4,524,773$3,746,660 20.8% $8,168,484$7,468,575 9.4% Sourcing 409,325 389,883 5.0% 778,548 714,708 8.9% Total revenues 4,934,098 4,136,543 19.3% 8,947,032 8,183,283 9.3% Costs and expenses: Purchased transportation and related services 3,828,412 3,092,641 23.8% 6,843,722 6,174,011 10.8% Purchased products sourced for resale 367,720 350,671 4.9% 704,851 642,953 9.6% Personnel expenses 338,472 335,322 0.9% 691,195 683,875 1.1% Other selling, general, and administrative expenses143,751 141,990 1.2% 275,835 289,672 (4.8)% Total costs and expenses4,678,355 3,920,624 19.3% 8,515,603 7,790,511 9.3% Income from operations 255,743 215,919 18.4% 431,429 392,772 9.8% Interest and other income/expense, net (17,878) (22,026) (18.8)% (26,891) (42,077) (36.1)% Income before provision for income taxes 237,865 193,893 22.7% 404,538 350,695 15.4% Provision for income taxes51,079 41,422 23.3% 70,519 62,922 12.1% Net income $ 186,786$ 152,471 22.5% $ 334,019$ 287,773 16.1% Net income per share (basic)$ 1.58 $ 1.27 24.4% $ 2.80 $ 2.39 17.2% Net income per share (diluted)$ 1.56 $ 1.26 23.8% $ 2.78 $ 2.37 17.3% Weighted average shares outstanding (basic) 118,565 120,244 (1.4)% 119,181 120,605 (1.2)% Weighted average shares outstanding (diluted) 119,751 121,025 (1.1)% 120,350 121,442 (0.9)% Business Segment Information (unaudited, in thousands, except average employee headcount) NAST Global Forwarding All Other and CorporateConsolidated Three Months Ended June 30, 2026 Total revenues $ 3,593,269$ 896,604$ 444,225$ 4,934,098 Adjusted gross profits 469,389 188,830 79,747 737,966 Income from operations 189,845 60,970 4,928 255,743 Depreciation and amortization 4,763 1,486 16,320 22,569 Total assets 3,453,880 1,275,412 1,114,214 5,843,506 Average employee headcount 4,671 3,699 3,101 11,471 NAST Global Forwarding All Other and CorporateConsolidated Three Months Ended June 30, 2025 (1) (2) (1) (2)
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Total revenues $ 2,918,227$ 797,800$ 420,516$ 4,136,543 Adjusted gross profits 432,248 187,581 73,402 693,231 Income from operations 163,991 51,330 598 215,919 Depreciation and amortization 4,815 2,188 17,863 24,866 Total assets 2,971,926 1,332,889 1,017,096 5,321,911 Average employee headcount 5,283 4,436 3,139 12,858 _______________________________________ Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material. All cash and cash equivalents are included in All Other and Corporate. Business Segment Information (unaudited, in thousands, except average employee headcount) NAST Global Forwarding All Other and CorporateConsolidated Six Months Ended June 30, 2026 Total revenues $ 6,540,592$ 1,561,334$ 845,106$ 8,947,032 Adjusted gross profits 900,466 351,121 146,872 1,398,459 Income from operations 334,975 92,654 3,800 431,429 Depreciation and amortization 9,526 3,421 34,474 47,421 Total assets 3,453,880 1,275,4121,114,214 5,843,506 Average employee headcount 4,732 3,767 3,100 11,599 NAST Global Forwarding All Other and CorporateConsolidated Six Months Ended June 30, 2025 Total revenues $ 5,786,647$ 1,572,688$ 823,948$ 8,183,283 Adjusted gross profits 850,572 372,209 143,538 1,366,319 Income (loss) from operations 307,662 94,273 (9,163) 392,772 Depreciation and amortization 9,624 4,327 36,557 50,508 Total assets 2,971,926 1,332,8891,017,096 5,321,911 Average employee headcount 5,283 4,469 3,414 13,166 ____________________________________________ Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material. All cash and cash equivalents are included in All Other and Corporate. Condensed Consolidated Balance Sheets (unaudited, in thousands) June 30, 2026December 31, 2025 Assets Current assets: Cash and cash equivalents $ 154,590$ 160,871 Receivables, net of allowance for credit loss 3,055,149 2,360,829 Contract assets, net of allowance for credit loss 230,598 156,441 Prepaid expenses and other 120,563 120,402 Total current assets 3,560,900 2,798,543 Property and equipment, net of accumulated depreciation and amortization108,492 116,362 Right-of-use lease assets 261,199 278,323 Intangible and other assets, net of accumulated amortization 1,912,915 1,865,153 Total assets $ 5,843,506$ 5,058,381 Liabilities and stockholders’ investment Current liabilities: Accounts payable and outstanding checks $ 1,686,822$ 1,241,276 Accrued expenses: (1) (2) (1) (2) (1) (2) (1) (2) (1) (2)
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Compensation 120,754 188,838 Transportation expense 188,259 120,708 Income taxes 6,415 33,745 Other accrued liabilities 178,658 174,955 Current lease liabilities 70,654 72,180 Total current liabilities 2,251,562 1,831,702 Long-term debt 1,685,017 1,089,438 Noncurrent lease liabilities 216,900 233,768 Noncurrent income taxes payable 38,499 34,875 Deferred tax liabilities 21,383 21,526 Other long-term liabilities 2,455 1,425 Total liabilities 4,215,816 3,212,734 Total stockholders’ investment 1,627,690 1,845,647 Total liabilities and stockholders’ investment $ 5,843,506$ 5,058,381 Condensed Consolidated Statements of Cash Flow (unaudited, in thousands, except employee count) Six Months Ended June 30, Operating activities: 2026 2025 Net income $ 334,019$ 287,773 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 47,421 50,508 Provision for credit losses 3,760 6,605 Stock-based compensation 53,005 44,028 Deferred income taxes 24,903 15,419 Excess tax benefit on stock-based compensation (27,386) (8,155) Change in loss on disposal group — (569) Other operating activities 2,176 7,254 Changes in operating elements: Receivables (704,333) (108,002) Contract assets (74,457) 11,595 Prepaid expenses and other 144 (27,934) Right of use asset 15,894 24,704 Accounts payable and outstanding checks 441,310 121,249 Accrued compensation (68,860) (64,607) Accrued transportation expense 67,551 (5,056) Accrued income taxes 3,400 30,866 Other accrued liabilities 6,414 (20,779) Lease liability (18,117) (31,844) Other assets and liabilities (2,347) 604 Net cash provided by operating activities 104,497 333,659 Investing activities: Purchases of property and equipment (7,610) (10,640) Purchases and development of software (25,642) (25,601) Cash used for acquisitions, net of cash acquired (78,948) — Proceeds from divestiture 11,828 27,737 Net cash used for investing activities (100,372) (8,504) Financing activities: Proceeds from stock issued for employee benefit plans 55,434 27,026 Stock tendered for payment of withholding taxes (74,566) (54,589) Repurchase of common stock (432,183) (128,767) Cash dividends (154,300) (152,355) Proceeds from long-term borrowings 1,952,000 — Payments on long-term borrowings (1,357,000) —
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Proceeds from short-term borrowings — 1,240,800 Payments on short-term borrowings — (1,264,800) Net cash used for financing activities (10,615) (332,685) Effect of exchange rates on cash and cash equivalents 209 6,985 Net change in cash and cash equivalents, including cash and cash equivalents classified within assets held for sale (6,281) (545) Plus: net decrease in cash and cash equivalents within assets held for sale— 10,776 Cash and cash equivalents, beginning of period 160,871 145,762 Cash and cash equivalents, end of period $ 154,590$ 155,993 Employees as of June 30 11,388 12,803