Earnings release
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Nov 03, 2026 EXPEDITORS REPORTS THIRD QUARTER 2026 EPS OF $2.65 BELLEVUE, Wash.--(BUSINESS WIRE)-- Expeditors International of Washington, Inc. (NYSE:EXPD) today announced third quarter 2026 financial results including the following comparisons to the same quarter of 2025: • Diluted Net Earnings Attributable to Shareholders per share (EPS) increased 62% to $2.65 • Net Earnings Attributable to Shareholders increased 55% to $345 million • Operating Income increased 55% to $445 million • Revenues increased 42% to $4.1 billion • Airfreight tonnage increased 13% and ocean container volume increased 7% • Customs, Transcon, Distribution, and Order Management each achieved double-digit revenue growth for a third consecutive quarter • Cash returned to shareholders in the form of share repurchases and dividends was $197 million and $946 million for the third quarter and year-to-date period of 2026, respectively Daniel R. Wall, President and Chief Executive Officer, commented: “We continue to gain share, particularly in markets that we have made a strategic focus. By continuing to streamline our processes and prioritize companywide growth across every region, product, and district, we once again generated double-digit growth across most of our businesses. While we have thrived during periods of significant disruption throughout our history, the strength of demand for our products and services is what really drove Q3 performance. Demand from certain customers, such as the hyperscalers, has been outpacing the market overall, but we have been very deliberate to expand our customer base across our global network and further diversify our revenues. I sincerely thank our global operations, transition & implementation, sales, and account management teams for their continued focus and dedication to our customers. Through those efforts, we are now charting a course for durable performance no matter what the operating environment.” Q3 2026 Operational Highlights Airfreight services: “Airfreight demand remained strong during the quarter, with record global air tonnage increasing approximately 13% year-over-year, driven primarily by continued growth in South Asia, where export tonnage increased most notably. Hyperscaler demand, which also includes shipments from Tier 1 and Tier 2 suppliers supporting AI infrastructure, was a significant driver of volume growth, while air capacity remains constrained by limited fleet expansion and ongoing new aircraft delivery delays. Capacity was also impacted by aircraft redeployments that affected Asia-Europe e-commerce, stemming from European Union regulations meant to curb the flow of de minimis imports. At the same time, China-U.S. e-commerce tonnage has nearly recovered to what it was In This Section Skip To Main Content Page 1 of 14
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prior to the U.S. termination of de minimis shipments in May 2025. Adding geopolitical events to this mix, airfreight rates remained elevated during the quarter, with demand outpacing available capacity.” Ocean freight and ocean services: “After the flattening we saw in Q2’26, ocean volumes increased 7% year-over- year in Q3, with particularly strong comparative growth in September and across Asia export markets. Significant congestion at major Asian ports and transshipment hubs impacted the ocean markets, as capacity was idled and port operations were halted as a result of three back-to-back typhoons. Nevertheless, demand was consistently healthy and we were able to lean into our longstanding carrier relationships to secure the capacity we needed to support both existing and new customers amidst these service disruptions. The strength of our global network and world class operating teams enabled us to maintain service continuity and respond effectively as conditions deteriorated. We expect congestion and supply chain challenges to persist through the remainder of 2026.” Customs brokerage and other services: “All of the products in our customs brokerage and other services continued to generate double-digit growth during the quarter, supported by strong customer demand across transportation management, distribution, and supply chain solutions. Much of the strength in our customs brokerage business was from tariff-related additional-line fees and post-entry activity that began in Q3 2025. However, growth during the most recent quarter was driven by significant new business wins, higher declaration volumes, and broad-based customs services across all regions, from both new and existing customers. Demand from AI hyperscalers and other high- value technology customers continued to drive growth across a diverse range of geographies and business sectors. Growth during the quarter was particularly strong in our Transcon road freight and warehousing and distribution businesses, with robust demand from large technology customers.” David A. Hackett, Senior Vice President and Chief Financial Officer, added: “We had another exceptional quarter and our pipeline of new business remains strong, showing the durability of our earnings growth. Our revenue grew 42%, while headcount increased only 1% from prior year, demonstrating the scalability of our operating model and driving significant operating leverage. Our operating efficiency increased to 36.7%, well above our historical target of 30%. The growth in operating income of 55% combined with a lower tax rate and a lower share count drove the 62% increase in diluted EPS. “We have made and are continuing to make investments in temperature-controlled facilities, critical logistics services, and productivity initiatives, including investments in artificial intelligence and other technology solutions. These high- return investments, coupled with our strong operational performance, are driving revenue growth and improvements in productivity as we seek to decouple headcount growth from revenue growth over the long term. We will continue making high-return investments, including additional investments in artificial intelligence and other technology solutions to further increase our net operating margins over the long term.” Mr. Hackett noted that the Company returned $197 million to shareholders through share repurchases during the quarter and $946 million in dividends and share repurchases for the first nine months of 2026. 2026 Investor Day As previously announced, Expeditors plans to hold an Investor Day for its shareholders and analysts on the morning of Wednesday, November 18, 2026, in New York City. Investor Questions Investors may submit written questions via email to: investor@expeditors.com. Questions received by the end of business on November 6, 2026 will be considered in management's 8-K “Responses to Selected Questions.” About Expeditors International of Washington, Inc.: Expeditors International of Washington, Inc. (NYSE: EXPD) is a leading S&P 500 global logistics company headquartered in Bellevue, Washington. Through a worldwide network of knowledgeable professionals across six continents and a globally connected technology platform, Expeditors tailors solutions to manage increasingly complex supply chains and international trade requirements. The asset-light company offers air, customs, ocean, Skip To Main Content Page 2 of 14
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order management, road, warehousing and distribution, and cargo insurance services to key industries worldwide. Guided by a culture of exceptional customer service, Expeditors aspires to be the most trusted and valued logistics company in the world. For more information, visit expeditors.com. Disclaimer on Forward-Looking Statements: 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; expand our customer base and diversify our revenues; to thrive during period of disruption; to generate durable earnings growth and other operating performance regardless of the operating environment; our ability to increase financial performance by investing in AI and other technology solutions; 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; continued robust demand for all of our products by a diverse set of customers, including hyperscalers; our ability to work closely with our customers and carrier partners to find solutions, secure capacity, and deliver value, while aligning our resources to maximize profitability. Future financial performance could differ materially because of factors such as: congestion and supply chain challenges; geopolitical uncertainty and ongoing conflicts in the Middle East and Ukraine; national policy changes on tariffs and other similar measures; new capacity in the marketplace; changes in ocean transit times; e-commerce demand in the air market; volatile rates; and the price of fuel or fuel shortages. In addition, port actions, other labor disruptions, tariffs, geopolitical tensions, 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. 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. Expeditors International of Washington, Inc. Third Quarter 2026 Earnings Release, November 3, 2026 Financial Summary for three and nine months ended September 30, 2026 and 2025 (Unaudited) (in 000's of US dollars except share data) Three months ended September 30, Nine months ended September 30, 2026 2025 % Change 2026 2025 % Change Revenues $4,107,649 $2,894,751 42% $10,392,946 $8,213,055 27% Directly related cost of transportation and other expenses $2,893,962 $1,939,657 49% $ 7,121,953 $5,469,689 30% Salaries and other operating expenses $ 768,273 $ 667,052 15% $ 2,181,133 $1,941,730 12% Operating income $ 445,414 $ 288,042 55% $ 1,089,860 $ 801,636 36% Net earnings attributable to $ 344,512 $ 222,256 55% $ 840,348 $ 609,625 38% 1 2 Skip To Main Content Page 3 of 14
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shareholders Basic earnings attributable to shareholders per share $ 2.65 $ 1.65 61% $ 6.39 $ 4.47 43% Diluted earnings attributable to shareholders per share $ 2.65 $ 1.64 62% $ 6.38 $ 4.46 43% Basic weighted average shares outstanding 129,918 134,956 131,458 136,346 Diluted weighted average shares outstanding 130,117 135,285 131,727 136,790 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 nine months ended September 30, 2026, we repurchased 1.1 million and 5.4 million shares of common stock at an average price of $178.36 and $154.87. During the three and nine months ended September 30, 2025, we repurchased 1.8 million and 5.3 million shares of common stock at an average price of $119.65 and $116.10 per share. Employee Full-time Equivalents as of September 30, 2026 2025 North America 7,738 7,404 Europe 4,231 4,193 North Asia 2,323 2,306 South Asia 2,189 1,996 Middle East, Africa and India 1,524 1,478 Latin America 911 891 Global Technology 1,151 1,483 Corporate 396 419 1 2 Skip To Main Content Page 4 of 14
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Total 20,463 20,170 Third quarter year-over-year percentage increase in: 2026 Airfreight kilos Ocean freight FEU July 8% 5% August 13% 5% September 19% 12% Quarter 13% 7% EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited) September 30, 2026 December 31, 2025 Assets: Current Assets: Cash and cash equivalents $ 1,092,464 $ 1,314,285 Accounts receivable, less allowance for credit loss of $7,740 at September 30, 2026 and $7,241 at December 31, 2025 3,086,192 2,021,889 Deferred contract costs 337,095 283,281 Other 125,082 136,167 Total current assets 4,640,833 3,755,622 Skip To Main Content Page 5 of 14
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Property and equipment, less accumulated depreciation and amortization of $659,590 at September 30, 2026 and $651,087 at December 31, 2025 455,607 462,122 Operating lease right-of-use assets 555,204 550,162 Goodwill 7,927 7,927 Deferred income tax asset, net 106,733 101,671 Other assets, net 19,740 16,134 Total assets $ 5,786,044 $ 4,893,638 Liabilities: Current Liabilities: Accounts payable $ 1,741,797 $ 1,123,429 Accrued expenses 622,207 448,055 Contract liabilities 449,710 358,386 Current portion of operating lease liabilities 115,553 110,891 Federal, state and foreign income taxes payable 49,384 32,046 Total current liabilities 2,978,651 2,072,807 Noncurrent portion of operating lease liabilities 460,282 459,698 Deferred income tax liability, net 3,376 3,040 Shareholders’ Equity: Common stock, par value $0.01 per share. Issued and outstanding: 129,551 shares at September 30, 2026 and 133,884 shares at December 31, 2025 1,296 1,339 Additional paid-in capital — — Retained earnings 2,533,724 2,538,455 Accumulated other comprehensive loss (193,591) (184,161) Skip To Main Content Page 6 of 14
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Total shareholders’ equity 2,341,429 2,355,633 Noncontrolling interest 2,306 2,460 Total equity 2,343,735 2,358,093 Total liabilities and equity $ 5,786,044 $ 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 September 30, Nine months ended September 30, 2026 2025 2026 2025 Revenues: Airfreight services $ 1,544,691 $ 1,020,258 $ 4,070,396 $ 2,873,805 Ocean freight and ocean services 1,102,833 746,120 2,412,639 2,203,567 Customs brokerage and other services 1,460,125 1,128,373 3,909,911 3,135,683 Total revenues 4,107,649 2,894,751 10,392,946 8,213,055 Operating Expenses: Airfreight services 1,169,540 766,783 3,073,796 2,113,679 Ocean freight and ocean services 861,491 542,304 1,809,398 1,599,680 Customs brokerage and other services 862,931 630,570 2,238,759 1,756,330 Salaries and related 588,267 490,437 1,661,536 1,419,710 Skip To Main Content Page 7 of 14
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Rent and occupancy 70,619 68,308 207,503 198,392 Depreciation and amortization 14,180 14,248 40,750 42,699 Selling and promotion 10,384 9,657 30,649 28,159 Other 84,823 84,402 240,695 252,770 Total operating expenses 3,662,235 2,606,709 9,303,086 7,411,419 Operating income 445,414 288,042 1,089,860 801,636 Other Income (Expense): Interest income 5,504 8,491 20,965 26,858 Other, net (2,575) 1,640 2,465 3,529 Other income, net 2,929 10,131 23,430 30,387 Earnings before income taxes 448,343 298,173 1,113,290 832,023 Income tax expense 103,771 75,095 271,416 220,927 Net earnings 344,572 223,078 841,874 611,096 Less net earnings attributable to the noncontrolling interest 60 822 1,526 1,471 Net earnings attributable to shareholders $ 344,512 $ 222,256 $ 840,348 $ 609,625 Basic earnings attributable to shareholders per share $ 2.65 $ 1.65 $ 6.39 $ 4.47 Diluted earnings attributable to shareholders per share $ 2.65 $ 1.64 $ 6.38 $ 4.46 Weighted average basic shares outstanding 129,918 134,956 131,458 136,346 Weighted average diluted shares outstanding 130,117 135,285 131,727 136,790 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Skip To Main Content Page 8 of 14
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Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Three months ended September 30, Nine months ended September 30, 2026 2025 2026 2025 Operating Activities: Net earnings $ 344,572 $ 223,078 $ 841,874 $ 611,096 Adjustments to reconcile net earnings to net cash from operating activities: Provisions for losses on accounts receivable 1,048 839 4,229 2,651 Deferred income tax benefit (3,810) (1,565) (4,778) (9,012) Stock compensation expense 15,996 18,046 61,019 56,862 Depreciation and amortization 14,180 14,248 40,750 42,699 Other, net 1,696 1,616 (14,448) 8,381 Changes in operating assets and liabilities: (Increase) decrease in accounts receivable (459,127) (37,828) (1,084,503) 12,337 Increase (decrease) in accounts payable and accrued liabilities 284,074 (16,747) 793,694 26,719 (Increase) decrease in deferred contract costs (85,988) 48,449 (69,555) 102,805 Increase (decrease) in contract liabilities 109,249 (53,358) 107,250 (125,685) Increase in income taxes payable, net 14,203 21,740 51,662 7,412 Increase in other, net (23,530) (17,150) (26,757) (13,063) Net cash from operating activities 212,563 201,368 700,437 723,202 Skip To Main Content Page 9 of 14
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Investing Activities: Purchase of property and equipment (18,286) (11,098) (42,889) (40,125) Other, net 56 924 21,542 1,104 Net cash from investing activities (18,230) (10,174) (21,347) (39,021) Financing Activities: Proceeds from borrowings on lines of credit, net 4,497 1,989 7,346 2,276 Proceeds from issuance of common stock 61,385 61,187 65,747 79,362 Repurchases of common stock (197,343) (212,294) (839,874) (620,764) Dividends paid — — (105,770) (104,139) Payments for taxes related to net share settlement of equity awards — — (21,543) (10,353) Distribution to noncontrolling interest (154) (491) (1,673) (1,837) Net cash from financing activities (131,615) (149,609) (895,767) (655,455) Effect of exchange rate changes on cash and cash equivalents (1,702) (7,580) (5,144) 13,121 Change in cash and cash equivalents 61,016 34,005 (221,821) 41,847 Cash and cash equivalents at beginning of period 1,031,448 1,156,162 1,314,285 1,148,320 Cash and cash equivalents at end of period $1,092,464 $1,190,167 $1,092,464 $1,190,167 Taxes Paid: Income taxes $ 91,220 $ 53,528 $ 220,250 $ 219,429 EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES Business Segment Information (In thousands) Skip To Main Content Page 10 of 14
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(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 September 30, 2026: Revenues $1,339,730159,379 78,069 1,033,763 691,788 533,542 274,515 (3,137) 4,107,649 Directly related cost of transportation and other expenses $779,266 97,950 46,615 856,039 558,644 346,775 211,179 (2,506) 2,893,962 Salaries and related costs $330,567 27,010 13,545 50,400 41,336 99,837 25,572 - 588,267 Other operating expenses $(6,709) 20,188 11,035 49,466 34,229 52,320 20,108 (631) 180,006 Operating income $236,606 14,231 6,874 77,858 57,579 34,610 17,656 - 445,414 Identifiable assets at period end $2,867,959226,029 141,480 697,273 592,354 876,247 419,685 (34,983) 5,786,044 Capital expenditures $9,086 682 772 1,064 1,015 4,349 1,318 - 18,286 Depreciation and amortization $7,520 578 276 1,211 810 2,988 797 - 14,180 Equity $1,479,31758,168 61,696 218,782 182,522 328,968 177,210 (162,928) 2,343,735 For the three months ended September 30, 2025: Revenues $928,858122,842 68,098 721,353 406,104 487,889 161,835 (2,228) 2,894,751 1 2 Skip To Main Content Page 11 of 14
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Directly related cost of transportation and other expenses $478,767 77,749 42,337 584,631 318,614 318,393 120,771 (1,605) 1,939,657 Salaries and related costs $275,595 21,978 11,162 41,158 29,957 91,301 19,286 - 490,437 Other operating expenses $29,668 14,941 8,900 38,723 24,478 47,005 13,531 (631) 176,615 Operating income $144,828 8,174 5,699 56,841 33,055 31,190 8,247 8 288,042 Identifiable assets at period end $2,580,473192,957 104,334 463,689 341,607 819,342 292,545 (15,365) 4,779,582 Capital expenditures $5,619 253 240 812 1,172 1,312 1,690 - 11,098 Depreciation and amortization $7,818 506 244 1,442 693 2,950 595 - 14,248 Equity $1,513,58553,799 41,622 205,772 133,471 264,690 164,295 (94,596) 2,282,638 UNITED STATES OTHER NORTH AMERICA LATIN AMERICA NORTH ASIA SOUTH ASIA EUROPE MIDDLE EAST, AFRICA AND INDIA ELIMI- NATIONS CONSOLI- DATED For the nine months ended September 30, 2026: Revenues $3,458,559430,873 205,245 2,453,725 1,683,743 1,502,301 666,889 (8,389) 10,392,946 Directly related cost of transportation and other expenses $1,936,978268,568 120,036 2,008,461 1,332,761 965,376 496,019 (6,246) 7,121,953 Salaries and related costs $941,442 74,599 37,627 132,946 110,569 293,187 71,166 - 1,661,536 1 2 1 Skip To Main Content Page 12 of 14
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Other operating expenses $29,314 51,627 29,864 125,425 93,926 144,969 46,601 (2,129) 519,597 Operating income $550,825 36,079 17,718 186,893 146,487 98,769 53,103 (14) 1,089,860 Identifiable assets at period end $2,867,959226,029 141,480 697,273 592,354 876,247 419,685 (34,983) 5,786,044 Capital expenditures $22,894 1,729 1,107 2,146 2,828 9,011 3,174 - 42,889 Depreciation and amortization $21,906 1,593 770 3,737 2,375 7,998 2,371 - 40,750 Equity $1,479,31758,168 61,696 218,782 182,522 328,968 177,210 (162,928) 2,343,735 For the nine months ended September 30, 2025: Revenues $2,660,632347,455 197,391 2,053,146 1,130,212 1,360,396 470,165 (6,342) 8,213,055 Directly related cost of transportation and other expenses $1,385,038218,370 119,717 1,646,538 877,464 883,987 342,862 (4,287) 5,469,689 Salaries and related costs $799,702 61,775 32,630 118,205 86,596 261,763 59,039 - 1,419,710 Other operating expenses $84,075 46,495 28,559 113,289 75,880 132,242 43,574 (2,094) 522,020 Operating income $391,817 20,815 16,485 175,114 90,272 82,404 24,690 39 801,636 Identifiable assets at period end $2,580,473192,957 104,334 463,689 341,607 819,342 292,545 (15,365) 4,779,582 Capital expenditures $20,172 736 739 5,862 3,235 4,396 4,985 - 40,125 Depreciation and amortization $24,652 1,502 748 3,674 1,885 8,387 1,851 - 42,699 2 1 2 Skip To Main Content Page 13 of 14
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Equity $1,513,58553,799 41,622 205,772 133,471 264,690 164,295 (94,596) 2,282,638 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/20261102234046/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