Expeditors Posts Strong Growth in Q2 2025

Expeditors Office (Photo: Jhvephoto / Phaata)

Expeditors International has posted second-quarter results with most key metrics higher than a year ago.

The company's revenue reached $2.65 billion, a 9% increase from a year ago, while transportation and other expenses rose by 7%. This spread helped drive an 11% increase in operating income to $650.8 million, up from $575.7 million.

Compared to the prior year, the company's freight volumes were up across the board. Expeditors (NYSE: EXPD) does not release actual volumes, but it does report on growth or decline rates.

Air and ocean freight volumes (in kilograms) for the quarter were both up 7% from the prior year's second quarter. For airfreight, the month-by-month increases were 9% in April, 4% in May, and 7% in June. For ocean freight measured in forty-foot equivalent units (FEUs), the gains were 12%, 7%, and 4%, respectively.

Expeditors does not hold calls with analysts. But in his comments in the company's earnings release, CEO and President Daniel Wall sounded similar to what C.H. Robinson offered in its earnings announcement, citing operational changes as the basis for the strong quarterly performance.

"Throughout the Expeditors global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence," Wall said in the statement. "Our focus on growth and execution puts us in a strong position to quickly adapt to this highly unpredictable environment. We are working with each of our regions and districts to increase efficiency and further optimize customer service to drive organic growth and boost profitability."

Net earnings per share rose 8% to $1.34/share. According to SeekingAlpha, that beat the Wall Street consensus by 10 cents per share. The total revenue of $2.65 billion was also $200 million more than the consensus.

Muted Stock Market Reaction

There was little reaction to the earnings report in Tuesday's trading session. At about 3:20 p.m. EDT, Expeditors' stock was down about 0.75% to $116.02 on a day when the S&P 500 at that time was also down about 0.4%.

Although Expeditors is at the forefront of international trade and subject to the impact of tariffs, its stock price is not much different now than it was a month ago (-1.9%), three months ago (+3.9%), and a year ago (-4.2%). Its 52-week low was $100.47 in April; its 52-week high was $131.59 in September.

Even in an earnings report where the numbers looked solid, Wall's statement said that average buy and sell rates, for both air and ocean, "remained highly volatile." Expeditors handled a "significant increase" in customs brokerage, and they "required a higher skill set as they have become more complex" along with the increase in volume.

Tariff-Driven Activity a Factor

Expeditors did see "pull-forward" business, particularly in its airfreight operations. "Capacity remained tight despite new government limits on de minimis shipments, and particularly as customers sought to ship technology and other high-value inventory ahead of trade deadlines," Wall said.

Front-loading of ocean freight ahead of tariffs also impacted Expeditors' business, Wall said. And ocean freight was affected as volumes increased, "particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines."

But while air capacity may have been tight, the same was not true for ocean freight, according to Wall. "Ocean rates softened throughout the quarter, with demand unable to match increased ocean capacity," he said.

Although C.H. Robinson (NASDAQ: CHRW) is only an indirect competitor, both they and Expeditors share two key aspects: they are both considered 3PL companies, and they are both "dividend aristocrats," having increased their annual dividend for at least 25 consecutive years.

But one difference between the two is that while C.H. Robinson is shedding a significant number of employees – down 17.4% from the second quarter of 2024 to the corresponding quarter of 2025 – the headcount at Expeditors is on the rise. It increased to 19,666 employees from 18,463 a year ago, a 6.5% increase.

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• Asia-Pacific: Cargo Volumes Rise, But Load Factors Dip

Source: Phaata.com (According to Freight Waves)

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