Earnings release
Page 1
Skip To Main Content Expeditors . In This Section EXPEDITORS REPORTS SECOND QUARTER 2026 EPS OF $ 2.03 Aug 04 , 2026 BELLEVUE , Wash .-- ( BUSINESS WIRE ) -- Expeditors International of Washington , Inc. ( NYSE : EXPD ) today announced second quarter 2026 financial results including the following comparisons to the same quarter of 2025 : • Diluted Net Earnings Attributable to Shareholders per share ( EPS1 ) increased 51 % to $ 2.03 • Net Earnings Attributable to Shareholders increased 45 % to $ 266 million • Operating Income increased 41 % to $ 350 million • Revenues increased 32 % to $ 3.5 billion • Airfreight tonnage increased 14 % and ocean container volume remained flat • Customs , Transcon , Distribution , and Order Management each achieved double - digit revenue growth for a second consecutive quarter • Cash returned to shareholders in the form of share repurchases and dividends was $ 461 million and $ 748 million , respectively , for the second quarter and year - to - date period of 2026 Daniel R. Wall , President and Chief Executive Officer , commented : " Our excellent performance this quarter , with double - digit growth across most of our products , is demonstrating that our strategy around operational excellence is working and allowing us to take market share . By focusing on increasing growth in each region , product , and district , we generated tremendous growth and diversification . Our sales , account management , and operations teams all executed extremely well globally this quarter to drive and support this momentum . " In July we announced the expansion of our Critical Logistics Services ( CLS ) to include expanded global Aircraft on Ground ( AOG ) capabilities , further strengthening our presence in time - critical aviation and aerospace logistics . We also continue to invest in our facilities to expand our capacity to meet growing demand for temperature - controlled solutions . By focusing on high - growth markets , we will be able to better serve an even more diverse range of customer needs . " Q2 2026 Operational Highlights Airfreight services : " Air buy and sell rates were highly elevated during the quarter , as demand for air capacity continued to outweigh available space , particularly late in the quarter and driven largely by a reduction in passenger flights and constrained belly capacity due to the conflict in the Middle East , home to some of the world's largest commercial air cargo operators . Tonnage increased 14 % compared to a year ago and was up 16 % compared to Q1 2026 , primarily from trade lanes that have been relatively unaffected by the conflict , particularly Asia - U.S . and Asia- Europe . The ongoing heavy demand from Al hyperscalers shows no sign of slowing down , and we have seen increased demand for freighter space , as some hyperscalers are requiring upper - deck access for their servers . In Page 1 of 14
Page 2
addition, e-commerce out of North Asia has been climbing closer to where it was before the U.S. government began restricting de minimis entries in Q2 2025, putting further pressure on capacity and rates. Given the current geopolitical state of the world and rising fuel costs along with tight capacity and routing challenges, air carriers are under enormous strain and may continue to be for some time.” Ocean freight and ocean services: “Despite all of the complications impacting the ocean markets, the carriers have adapted well and managed capacity very carefully, driving an increase in rates particularly late in the quarter as demand also increased. As a result, we may be starting to see a flattening of the long downturn in the ocean market. Volumes increased 7% compared to Q1 2026, the first sequential increase since the third quarter of 2025. Strengthening demand combined with heightened pricing late in the quarter led to an increase in profitability per- container in Q2 2026.” Customs brokerage and other services: “For a second consecutive quarter, customs and our other products within Customs brokerage and other services all generated double-digit growth from a diverse range of geographies and business sectors, led by demand from AI hyperscalers and other high-value technology customers. Our customs business benefited from tariff-related complexity, along with solid growth from new customers and increased declarations from existing customers. A temporary surge in IEEPA-related filings drove higher pricing, while cost discipline and productivity investments also helped improve our results.” David A. Hackett, Senior Vice President and Chief Financial Officer, added: “Our business performed exceptionally this quarter, and our pipeline of new business is very strong. Included in our results is a $25 million pretax restructuring charge related to our Global Technology team. This restructuring was done to modernize and reshape our Global Technology function for the future. While this was a strategic restructuring not driven by cost reduction, we expect it will lower our cost structure going forward by approximately $50 million annually, which equates to nearly 10% of our total corporate overhead expenses. We will continue making high- return investments, including additional investments in artificial intelligence and in our technology talent, capabilities, and solutions, consistent with our modernization strategy, to further increase our operating margins over the long term. The restructuring charge was partially offset by a $16 million gain on the sale of an underutilized property during the quarter. “As shown above, our strategic investments continue to enhance productivity as our operating efficiency increased to 32.2% in Q2, inclusive of the restructuring charge and before the lower operating costs noted above take effect. In addition, our second quarter headcount remained essentially flat vs. the first quarter of 2026; these measures do not yet fully include the reduction in headcount from the restructuring activities, which will primarily be realized in the third quarter.” Mr. Hackett noted that the Company returned $461 million in dividends and share repurchases during the quarter and $748 million in dividends and share repurchases for the first half of 2026. 2026 Investor Day Expeditors plans to hold an Investor Day for its shareholders and analysts on the morning of Wednesday, November 18, 2026, in New York City. About Expeditors International of Washington, Inc.: Expeditors is a global logistics company headquartered in Bellevue, Washington. The Company employs trained professionals in 171 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. Disclaimer on Forward-Looking Statements: Skip To Main Content Page 2 of 14
Page 3
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 our ability to take market share, to strengthen our presence in time-critical aviation and aerospace logistics, to expand our capacity to meet growing demand for temperature-controlled solutions, and to better serve an even more diverse range of customer needs; the resilience of our non-asset-based model; strategies and solutions to keep customer freight moving out of and around impacted areas; our disciplined cost control; a strong pipeline of new business and diverse areas of growth; robust demand for our customs brokerage services; our ability to work closely with our customers and carrier partners to find solutions and deliver value, while aligning our resources to maximize profitability; and our ability to achieve benefits from restructuring our Global Technology team and from making investments in technology, including artificial intelligence to help drive productivity gains. Future financial performance could differ materially because of factors such as: geopolitical uncertainty; national policy changes on tariffs and other similar measures; new capacity in the marketplace; longer ocean transit times; e-commerce demand in the air market; volatile rates; the price of fuel or fuel shortages; our ability to deliver differentiated performance because of our customer service culture and compensation model; our ability to continue to process an increasing number of more complex customs clearances; and our ability to remain a strong, healthy, unified and resilient organization. Port actions, other labor disruptions, tariffs, 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, 2025, 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. Diluted earnings attributable to shareholders per share. NOTE: See Disclaimer on Forward-Looking Statements in this release. Expeditors International of Washington, Inc. Second Quarter 2026 Earnings Release, August 4, 2026 Financial Summary for three and six months ended June 30, 2026 and 2025 (Unaudited) (in 000's of US dollars except share data) Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change Revenues $3,502,335 $2,651,885 32% $6,285,297 $5,318,304 18% Directly related cost of transportation and other expenses $2,416,840 $1,753,357 38% $4,227,991 $3,530,032 20% 1 1 Skip To Main Content Page 3 of 14
Page 4
Salaries and other operating expenses $ 735,877 $ 650,792 13% $1,412,860 $1,274,678 11% Operating income $ 349,618 $ 247,736 41% $ 644,446 $ 513,594 25% Net earnings attributable to shareholders $ 266,226 $ 183,574 45% $ 495,836 $ 387,369 28% Basic earnings attributable to shareholders per share $ 2.03 $ 1.35 50% $ 3.75 $ 2.83 33% Diluted earnings attributable to shareholders per share $ 2.03 $ 1.34 51% $ 3.74 $ 2.82 33% Basic weighted average shares outstanding 130,953 136,266 132,241 137,045 Diluted weighted average shares outstanding 131,372 136,631 132,724 137,537 Directly 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. Salaries 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, 2026, we repurchased 2.3 million and 4.3 million shares of common stock at an average price of $151.50 and $148.87. 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. Employee Full-time Equivalents as of June 30, 2026 2025 North America 7,530 7,214 Europe 4,204 4,040 North Asia 2,302 2,306 South Asia 2,111 1,934 Middle East, Africa and India 1,534 1,463 Latin America 900 877 2 1 2 Skip To Main Content Page 4 of 14
Page 5
Global Technology 1,406 1,419 Corporate 402 413 Total 20,389 19,666 Second quarter year-over-year percentage increase (decrease) in: 2026 Airfreight kilos Ocean freight FEU April 13% (9)% May 14% (1)% June 15% 9% Quarter 14% — Investors may submit written questions via email to: investor@expeditors.com. Questions received by the end of business on August 7, 2026 will be considered in management's 8-K “Responses to Selected Questions.” EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) June 30, 2026 December 31, 2025 Assets: Current Assets: Cash and cash equivalents $ 1,031,448 $ 1,314,285 Skip To Main Content Page 5 of 14
Page 6
Accounts receivable, less allowance for credit loss of $7,299 at June 30, 2026 and $7,241 at December 31, 2025 2,631,118 2,021,889 Deferred contract costs 259,486 283,281 Other 84,969 136,167 Total current assets 4,007,021 3,755,622 Property and equipment, less accumulated depreciation and amortization of $665,264 at June 30, 2026 and $651,087 at December 31, 2025 451,086 462,122 Operating lease right-of-use assets 546,607 550,162 Goodwill 7,927 7,927 Deferred income tax asset, net 103,092 101,671 Other assets, net 19,177 16,134 Total assets $ 5,134,910 $ 4,893,638 Liabilities: Current Liabilities: Accounts payable $ 1,468,305 $ 1,123,429 Accrued expenses 607,664 448,055 Contract liabilities 348,857 358,386 Current portion of operating lease liabilities 116,234 110,891 Federal, state and foreign income taxes payable 18,378 32,046 Total current liabilities 2,559,438 2,072,807 Noncurrent portion of operating lease liabilities 451,051 459,698 Deferred income tax liability, net 3,348 3,040 Shareholders’ Equity: Skip To Main Content Page 6 of 14
Page 7
Common stock, par value $0.01 per share. Issued and outstanding: 130,021 shares at June 30, 2026 and 133,884 shares at December 31, 2025 1,300 1,339 Additional paid-in capital — — Retained earnings 2,309,720 2,538,455 Accumulated other comprehensive loss (192,318) (184,161) Total shareholders’ equity 2,118,702 2,355,633 Noncontrolling interest 2,371 2,460 Total equity 2,121,073 2,358,093 Total liabilities and equity $ 5,134,910 $ 4,893,638 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, 2026 2025 2026 2025 Revenues: Airfreight services $ 1,494,842 $ 951,787 $ 2,525,705 $ 1,853,547 Ocean freight and ocean services 710,922 675,782 1,309,806 1,457,447 Customs brokerage and other services 1,296,571 1,024,316 2,449,786 2,007,310 Total revenues 3,502,335 2,651,885 6,285,297 5,318,304 Skip To Main Content Page 7 of 14
Page 8
Operating Expenses: Airfreight services 1,134,773 698,402 1,904,256 1,346,896 Ocean freight and ocean services 531,886 483,475 947,907 1,057,376 Customs brokerage and other services 750,181 571,480 1,375,828 1,125,760 Salaries and related 573,698 471,336 1,073,269 929,273 Rent and occupancy 68,428 65,741 136,884 130,084 Depreciation and amortization 12,695 13,847 26,570 28,451 Selling and promotion 9,894 9,928 20,265 18,502 Other 71,162 89,940 155,872 168,368 Total operating expenses 3,152,717 2,404,149 5,640,851 4,804,710 Operating income 349,618 247,736 644,446 513,594 Other Income: Interest income 6,821 9,183 15,461 18,367 Other, net 2,022 1,050 5,040 1,889 Other income, net 8,843 10,233 20,501 20,256 Earnings before income taxes 358,461 257,969 664,947 533,850 Income tax expense 91,203 74,050 167,645 145,832 Net earnings 267,258 183,919 497,302 388,018 Less net earnings attributable to the noncontrolling interest 1,032 345 1,466 649 Net earnings attributable to shareholders $ 266,226 $ 183,574 $ 495,836 $ 387,369 Basic earnings attributable to shareholders per share $ 2.03 $ 1.35 $ 3.75 $ 2.83 Diluted earnings attributable to shareholders per $ 2.03 $ 1.34 $ 3.74 $ 2.82 Skip To Main Content Page 8 of 14
Page 9
share Weighted average basic shares outstanding 130,953 136,266 132,241 137,045 Weighted average diluted shares outstanding 131,372 136,631 132,724 137,537 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, 2026 2025 2026 2025 Operating Activities: Net earnings $ 267,258 $ 183,919 $ 497,302 $ 388,018 Adjustments to reconcile net earnings to net cash from operating activities: Provisions for losses on accounts receivable 2,381 1,051 3,181 1,812 Deferred income tax benefit 794 (7,523) (968) (7,447) Stock compensation expense 32,200 27,267 45,023 38,816 Depreciation and amortization 12,695 13,847 26,570 28,451 Other, net (14,261) 4,474 (16,144) 6,765 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (575,863) (57,984) (625,376) 50,165 Skip To Main Content Page 9 of 14
Page 10
Increase in accounts payable and accrued liabilities 441,269 61,885 509,620 43,466 (Increase) decrease in deferred contract costs (84,703) (21,617) 16,433 54,356 Increase (decrease) in contract liabilities 96,590 16,961 (1,999) (72,327) (Decrease) increase in income taxes payable, net (1,124) (44,668) 37,459 (14,328) Decrease (increase) in other, net 1,404 1,600 (3,227) 4,087 Net cash from operating activities 178,640 179,212 487,874 521,834 Investing Activities: Purchase of property and equipment (11,991) (15,875) (24,603) (29,027) Other, net 21,356 24 21,486 180 Net cash from investing activities 9,365 (15,851) (3,117) (28,847) Financing Activities: Proceeds on borrowings on lines of credit, net (15) 92 2,849 287 Proceeds from issuance of common stock 1,236 5,132 4,362 18,175 Repurchases of common stock (354,907) (231,116) (642,531) (408,470) Dividends paid (105,770) (104,139) (105,770) (104,139) Payments for taxes related to net share settlement of equity awards (13,999) (9,844) (21,543) (10,353) Distribution to noncontrolling interest (869) — (1,519) (1,346) Net cash from financing activities (474,324) (339,875) (764,152) (505,846) Effect of exchange rate changes on cash and cash equivalents 1,270 14,156 (3,442) 20,701 Change in cash and cash equivalents (285,049) (162,358) (282,837) 7,842 Cash and cash equivalents at beginning of period 1,316,497 1,318,520 1,314,285 1,148,320 Skip To Main Content Page 10 of 14
Page 11
Cash and cash equivalents at end of period $ 1,031,448 $ 1,156,162 $ 1,031,448 $ 1,156,162 Taxes Paid: Income taxes $ 93,513 $ 125,277 $ 129,030 $ 165,901 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, 2026: Revenues $1,164,252141,860 68,181 817,046 568,779 519,885 225,216 (2,884) 3,502,335 Directly related cost of transportation and other expenses $666,578 89,325 39,879 670,698 449,872 336,532 166,068 (2,112) 2,416,840 Salaries and related costs $328,706 24,597 12,690 45,558 37,556 99,696 24,895 - 573,698 Other operating expenses $(504) 16,705 10,276 40,834 32,091 49,880 13,670 (773) 162,179 Operating income $169,472 11,233 5,336 59,956 49,260 33,777 20,583 1 349,618 Identifiable assets at period end $2,499,046199,633 136,582 580,755 518,374 858,781 350,672 (8,933) 5,134,910 Capital expenditures $6,240 796 186 282 775 2,563 1,149 - 11,991 1 2 Skip To Main Content Page 11 of 14
Page 12
Depreciation and amortization $7,133 515 248 1,184 737 2,095 783 - 12,695 Equity $1,270,494 58,576 61,342 175,652 205,374 320,189 190,235 (160,789) 2,121,073 For the three months ended June 30, 2025: Revenues $877,325108,128 66,904 636,785 359,531 449,712 155,458 (1,958) 2,651,885 Directly related cost of transportation and other expenses $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 expenses $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 $2,554,090186,248 105,069 523,858 354,318 789,514 286,466 (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 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, 2026: Revenues $2,118,829 271,494 127,176 1,419,962 991,955 968,759 392,374 (5,252) 6,285,297 1 2 Skip To Main Content Page 12 of 14
Page 13
Directly related cost of transportation and other expenses $1,157,712170,618 73,421 1,152,422 774,117 618,601 284,840 (3,740) 4,227,991 Salaries and related costs $610,875 47,589 24,082 82,546 69,233 193,350 45,594 - 1,073,269 Other operating expenses $36,023 31,439 18,829 75,959 59,697 92,649 26,493 (1,498) 339,591 Operating income $314,219 21,848 10,844 109,035 88,908 64,159 35,447 (14) 644,446 Identifiable assets at period end $2,499,046199,633 136,582 580,755 518,374 858,781 350,672 (8,933) 5,134,910 Capital expenditures $13,808 1,047 335 1,082 1,813 4,662 1,856 - 24,603 Depreciation and amortization $14,386 1,015 494 2,526 1,565 5,010 1,574 - 26,570 Equity $1,270,494 58,576 61,342 175,652 205,374 320,189 190,235 (160,789) 2,121,073 For the six months ended June 30, 2025: Revenues $1,731,774224,613 129,293 1,331,793 724,108 872,507 308,330 (4,114) 5,318,304 Directly related cost of transportation and other expenses $906,271140,621 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 expenses $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 $2,554,090186,248 105,069 523,858 354,318 789,514 286,466 (13,082) 4,786,481 Capital expenditures $14,553 483 499 5,050 2,063 3,084 3,295 - 29,027 1 2 1 2 Skip To Main Content Page 13 of 14
Page 14
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 Directly 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. Other 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/20260803724560/en/ Daniel R. Wall President and Chief Executive Officer (206) 674-3455 David A. Hackett Senior Vice President and Chief Financial Officer (206) 674-3400 Geoffrey Buscher Director - Investor Relations (206) 892-4510 Source: Expeditors International of Washington, Inc. 1 2 Page 14 of 14