Expeditors International of Washington, Inc. (NYSE:EXPD) today announced third quarter 2025 financial results including the following comparisons to the same quarter of 2024:

Diluted Net Earnings Attributable to Shareholders per share (EPS¹) increased 1% to $1.64
Net Earnings Attributable to Shareholders decreased (3)% to $222 million
Operating Income decreased (4)% to $288 million
Revenues decreased (4)% to $2.9 billion
Airfreight tonnage increased 4% and ocean container volume decreased (3)%
Cash returned to shareholders in the form of share repurchases was $212 million; $725 million has been returned to shareholders in the form of share repurchases and dividends so far in 2025

¹Diluted earnings attributable to shareholders per share.

NOTE: See Disclaimer on Forward-Looking Statements in this release.

Daniel R. Wall, President and Chief Executive Officer, made the following comments:

"Despite the ongoing challenges in our marketplace due to geopolitical dynamics, as well as supply and demand shifts, we believe our culture of intense focus on the needs of our customers and our carrier partners provides an ideal platform to showcase the breadth of our global solutions. We also believe that while the freight environment remains unpredictable, our continued focus on fee-based services will help balance the performance of our overall product portfolio."

Comparing Q3 2025 to Q3 2024

Airfreight services: "During the quarter we grew airfreight tonnage on exports, particularly from North and South Asia. We continued to expand our business in our strategic verticals, particularly in our leading areas of technology, pharmaceuticals, and aviation. We also continue to benefit from the significant investments being made by our technology customers in artificial intelligence infrastructure. With our long history of expertise in handling high-value technologies, we believe we are very well positioned to support our customers as they rapidly build out AI infrastructure around the globe.

"Previously tight air capacity eased during the quarter, after expiration of the de minimis exception for goods entering the U.S., which had prompted some shippers to accelerate orders earlier in the year in anticipation of higher tariffs. That extra capacity led to slightly lower sell and buy rates during the quarter."

Ocean freight and ocean services: "Pricing volatility coupled with slightly lower volumes led to significantly lower revenues in the quarter for this business. In the first half of the year, U.S. importers accelerated shipments in advance of expected tariffs. Volumes declined in the third quarter, primarily related to retail customers and, as additional capacity came on-line, sell and buy rates declined substantially. Despite these market challenges, we remained disciplined and efficient while adjusting our ocean business for slower market growth, as we recognize that the ocean capacity/demand imbalance could continue for some time."

Customs brokerage and other services: "All of our businesses within this category continued to generate strong growth. The products and services within this group tend to be more stable than our air and ocean businesses. Our customs brokerage business continues to deliver strong growth given the high demand for our services due to the dynamic trade environment. Our Transcon road freight and warehousing and distribution services also benefitted from strong AI infrastructure demand."

Customs Brokerage in Focus

"Companywide, we continue to perform at a high level because of our uniquely talented and experienced people. I must, however, especially commend our customs brokerage group because of the extra intensity around tariffs. The increase in volume and complexity of entries continues to test our customs group. We are investing in and exploring ways to further enhance our productivity in this area, including enhancements from AI and other technology solutions. Due to the constantly evolving landscape, we will continuously invest in productivity tools for this business."

David A. Hackett, Senior Vice President and Chief Financial Officer, also commented:

"We delivered consistent profitability across our portfolio of businesses in the quarter, especially given the volatility in the ocean market and tough comparisons to prior-year results. Our strong customer service culture and our unique compensation structure, which aligns executive compensation to both operating income and shareholder interests, allow us to deliver differentiated performance.

"We are focused on aligning our operating cost structure with a lower growth environment, while continuing to make strategic investments in high return areas to drive sustainable, profitable and capital efficient growth."

Mr. Hackett noted that the Company repurchased $212 million in common stock during the third quarter and returned $725 million in the form of share repurchases and dividends for the year-to-date period.

Expeditors is a global logistics company headquartered in Bellevue, Washington. The Company employs trained professionals in 172 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:

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 inflation; continued changes in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets; the demand for our customs brokerage and other products; geopolitical uncertainty; national policy changes on tariffs and other similar measures; port actions and other labor disruptions; new capacity in the marketplace; longer ocean transit times; e-commerce demand in the air market; changing de minimis laws; and volatile rates. Future financial performance could differ materially because of factors such as: our focus on fee-based services to help balance the performance of our overall product portfolio; our ability to benefit from the significant investments being made by our technology customers in artificial intelligence infrastructure; the relative stability of our customs brokerage and other services businesses; the ability of our customs brokerage business to continue to deliver strong growth from high demand for our services; our ability to deliver differentiated performance because of our customer service culture and compensation model; our ability to align our operating cost structure with a lower growth environment; our ability to make investments in high return areas to drive sustainable, profitable and capital efficient growth; our ability to continue to process an increasing number of more complex customs clearances; our ability to find solutions to keep cargo moving for our customers during highly uncertain market conditions; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. Geopolitical risks, 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, 2024, 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 2025 Earnings Release, November 4, 2025
Financial Summary for three and nine months ended September 30, 2025 and 2024 (Unaudited)
(in 000's of US dollars except share data)

	Three months ended September 30,					Nine months ended September 30,
	2025		2024		% Change	2025		2024		% Change
Revenues	$	2,894,751	$	3,000,131	(4)%	$	8,213,055	$	7,645,810	7%
Directly related cost of transportation and other expenses ¹	$	1,939,657	$	2,093,964	(7)%	$	5,469,689	$	5,166,652	6%
Salaries and other operating expenses ²	$	667,052	$	604,643	10%	$	1,941,730	$	1,738,939	12%
Operating income	$	288,042	$	301,524	(4)%	$	801,636	$	740,219	8%
Net earnings attributable to shareholders	$	222,256	$	229,574	(3)%	$	609,625	$	574,195	6%
Diluted earnings attributable to shareholders per share	$	1.64	$	1.63	1%	$	4.46	$	4.04	10%
Basic earnings attributable to shareholders per share	$	1.65	$	1.63	1%	$	4.47	$	4.06	10%
Diluted weighted average shares outstanding		135,285		141,027			136,790		142,288
Basic weighted average shares outstanding		134,956		140,417			136,346		141,540

¹Directly 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.

²Salaries 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, 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. During the three and nine months ended September 30, 2024 we repurchased 1.2 million and 5.1 million shares of common stock at an average price of $118.47 and $119.21 per share.

	Employee Full-time Equivalents as of September 30,
	2025		2024
North America		7,404		6,920
Europe		4,193		3,838
North Asia		2,306		2,271
South Asia		1,996		1,776
Middle East, Africa and India		1,478		1,386
Latin America		891		780
Information Systems		1,483		1,303
Corporate		419		416
Total		20,170		18,690

	Third quarter year-over-year percentage increase (decrease) in:
2025	Airfreight kilos	Ocean freight FEU
July	6%	3%
August	3%	(4)%
September	2%	(6)%
Quarter	4%	(3)%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on November 7, 2025 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)

	September 30, 2025			December 31, 2024
Assets:
Current Assets:
Cash and cash equivalents	$	1,190,167		$	1,148,320
Accounts receivable, less allowance for credit loss of $7,797 at September 30, 2025 and $6,878 at December 31, 2024		2,045,284			1,997,840
Deferred contract costs		263,491			349,343
Other		175,605			164,272
Total current assets		3,674,547			3,659,775
Property and equipment, less accumulated depreciation and amortization of $647,057 at September 30, 2025 and $615,533 at December 31, 2024		465,006			449,404
Operating lease right-of-use assets		539,486			551,652
Goodwill		7,927			7,927
Deferred federal and state income taxes, net		77,499			70,671
Other assets, net		15,117			15,029
Total assets	$	4,779,582		$	4,754,458
Liabilities:
Current Liabilities:
Accounts payable	$	1,146,062		$	1,036,749
Accrued liabilities, primarily salaries and related costs		427,219			451,921
Contract liabilities		334,541			441,927
Current portion of operating lease liabilities		111,174			106,736
Federal, state and foreign income taxes payable		28,762			29,140
Total current liabilities		2,047,758			2,066,473
Noncurrent portion of operating lease liabilities		449,186			462,201
Shareholders' Equity:
Common stock, par value $0.01 per share. Issued and outstanding: 134,019 shares at September 30, 2025 and 138,003 shares at December 31, 2024		1,340			1,380
Additional paid-in capital		—			—
Retained earnings		2,468,131			2,455,132
Accumulated other comprehensive loss		(189,069	)		(233,500	)
Total shareholders' equity		2,280,402			2,223,012
Noncontrolling interest		2,236			2,772
Total equity		2,282,638			2,225,784
Total liabilities and equity	$	4,779,582		$	4,754,458

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,
	2025		2024		2025		2024
Revenues:
Airfreight services	$	1,020,258	$	986,950	$	2,873,805	$	2,606,647
Ocean freight and ocean services		746,120		1,017,618		2,203,567		2,240,079
Customs brokerage and other services		1,128,373		995,563		3,135,683		2,799,084
Total revenues		2,894,751		3,000,131		8,213,055		7,645,810
Operating Expenses:
Airfreight services		766,783		740,356		2,113,679		1,923,115
Ocean freight and ocean services		542,304		783,827		1,599,680		1,675,931
Customs brokerage and other services		630,570		569,781		1,756,330		1,567,606
Salaries and related		490,437		450,308		1,419,710		1,289,901
Rent and occupancy		68,308		61,024		198,392		181,873
Depreciation and amortization		14,248		15,774		42,699		45,914
Selling and promotion		9,657		7,589		28,159		22,366
Other		84,402		69,948		252,770		198,885
Total operating expenses		2,606,709		2,698,607		7,411,419		6,905,591
Operating income		288,042		301,524		801,636		740,219
Other Income:
Interest income		8,491		9,917		26,858		36,699
Other, net		1,640		973		3,529		4,599
Other income, net		10,131		10,890		30,387		41,298
Earnings before income taxes		298,173		312,414		832,023		781,517
Income tax expense		75,095		82,488		220,927		206,040
Net earnings		223,078		229,926		611,096		575,477
Less net earnings attributable to the noncontrolling interest		822		352		1,471		1,282
Net earnings attributable to shareholders	$	222,256	$	229,574	$	609,625	$	574,195
Diluted earnings attributable to shareholders per share	$	1.64	$	1.63	$	4.46	$	4.04
Basic earnings attributable to shareholders per share	$	1.65	$	1.63	$	4.47	$	4.06
Weighted average diluted shares outstanding		135,285		141,027		136,790		142,288
Weighted average basic shares outstanding		134,956		140,417		136,346		141,540

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC.
AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2025			2024			2025			2024
Operating Activities:
Net earnings	$	223,078		$	229,926		$	611,096		$	575,477
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses (recoveries) on accounts receivable		839			(582	)		2,651			1,456
Deferred income tax benefit		(1,565	)		(1,057	)		(9,012	)		(5,680	)
Stock compensation expense		18,046			9,760			56,862			47,836
Depreciation and amortization		14,248			15,774			42,699			45,914
Other, net		1,616			162			8,381			4,032
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(37,828	)		(301,167	)		12,337			(647,794	)
(Decrease) increase in accounts payable and accrued liabilities		(16,747	)		107,535			26,719			402,818
Decrease (increase) in deferred contract costs		48,449			(30,657	)		102,805			(216,977	)
(Decrease) increase in contract liabilities		(53,358	)		50,527			(125,685	)		254,902
Increase in income taxes payable, net		21,740			20,331			7,412			13,163
Increase in other, net		(17,150	)		(10,580	)		(13,063	)		(1,502	)
Net cash from operating activities		201,368			89,972			723,202			473,645
Investing Activities:
Purchase of property and equipment		(11,098	)		(12,291	)		(40,125	)		(30,415	)
Other, net		924			(225	)		1,104			(62	)
Net cash from investing activities		(10,174	)		(12,516	)		(39,021	)		(30,477	)
Financing Activities:
Proceeds (payments) on borrowings on lines of credit, net		1,989			10,445			2,276			(5,538	)
Proceeds from issuance of common stock		61,187			53,256			79,362			67,734
Repurchases of common stock		(212,294	)		(140,031	)		(620,764	)		(602,855	)
Dividends paid		—			—			(104,139	)		(102,638	)
Payments for taxes related to net share settlement of equity awards		—			—			(10,353	)		(15,348	)
Distribution to noncontrolling interest		(491	)		—			(1,837	)		—
Net cash from financing activities		(149,609	)		(76,330	)		(655,455	)		(658,645	)
Effect of exchange rate changes on cash and cash equivalents		(7,580	)		20,194			13,121			(4,233	)
Change in cash and cash equivalents		34,005			21,320			41,847			(219,710	)
Cash and cash equivalents at beginning of period		1,156,162			1,271,853			1,148,320			1,512,883
Cash and cash equivalents at end of period	$	1,190,167		$	1,293,173		$	1,190,167		$	1,293,173
Taxes Paid:
Income taxes	$	53,528		$	63,046		$	219,429		$	196,649

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 September 30, 2025:
Revenues	$	928,858		122,842		68,098		721,353		406,104		487,889		161,835		(2,228	)		2,894,751
Directly related cost of transportation and other expenses¹	$	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 expenses²	$	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	$	2,580,473		192,957		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	$	1,513,585		53,799		41,622		205,772		133,471		264,690		164,295		(94,596	)		2,282,638
For the three months ended September 30, 2024:
Revenues	$	854,679		114,264		61,981		914,417		445,308		433,660		177,145		(1,323	)		3,000,131
Directly related cost of transportation and other expenses¹	$	443,930		67,626		38,973		763,781		369,905		279,235		131,098		(584	)		2,093,964
Salaries and related costs	$	245,133		20,489		9,824		42,490		29,261		83,728		19,383		—			450,308
Other operating expenses²	$	8,319		14,772		8,781		44,076		22,046		43,189		13,900		(748	)		154,335
Operating income	$	157,297		11,377		4,403		64,070		24,096		27,508		12,764		9			301,524
Identifiable assets at period end	$	2,611,417		192,370		108,985		727,724		376,283		863,840		319,627		(29,329	)		5,170,917
Capital expenditures	$	9,299		198		101		296		839		1,548		10		—			12,291
Depreciation and amortization	$	8,961		569		279		1,774		502		2,819		870		—			15,774
Equity	$	1,628,893		35,825		42,670		221,519		124,387		182,515		164,665		(41,304	)		2,359,170

	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, 2025:
Revenues	$	2,660,632		347,455		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 expenses¹	$	1,385,038		218,370		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 expenses²	$	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	$	2,580,473		192,957		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
Equity	$	1,513,585		53,799		41,622		205,772		133,471		264,690		164,295		(94,596	)		2,282,638
For the nine months ended September 30, 2024:
Revenues	$	2,385,392		331,837		151,787		2,096,709		960,970		1,241,432		481,600		(3,917	)		7,645,810
Directly related cost of transportation and other expenses¹	$	1,270,981		199,710		88,077		1,702,401		757,167		796,205		353,839		(1,728	)		5,166,652
Salaries and related costs	$	717,420		59,371		27,531		113,387		76,641		241,388		54,163		—			1,289,901
Other operating expenses²	$	55,415		43,313		22,389		111,201		58,662		122,330		37,936		(2,208	)		449,038
Operating income	$	341,576		29,443		13,790		169,720		68,500		81,509		35,662		19			740,219
Identifiable assets at period end	$	2,611,417		192,370		108,985		727,724		376,283		863,840		319,627		(29,329	)		5,170,917
Capital expenditures	$	17,775		2,172		383		933		2,938		4,860		1,354		—			30,415
Depreciation and amortization	$	27,087		1,601		846		3,965		1,469		8,573		2,373		—			45,914
Equity	$	1,628,893		35,825		42,670		221,519		124,387		182,515		164,665		(41,304	)		2,359,170

²Other 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/20251103198353/en/

Daniel R. Wall

President and Chief Executive Officer

(206) 674-3455

David A. Hackett

Senior Vice President and Chief Financial Officer

(206) 288-8794

Geoffrey Buscher

Director - Investor Relations

(206) 892-4510

Expeditors Reports Third Quarter 2025 EPS of $1.64