Expeditors International of Washington, Inc. (EXPD)

Expeditors reported third-quarter 2026 revenue of $4.1 billion on 3 November, up 42 percent from the same quarter of 2025 1. Diluted earnings per share were $2.65, up 62 percent, and operating income rose 55 percent to $445 million 1.

The company said airfreight tonnage rose 13 percent and ocean container volume rose 7 percent 1. It said demand from hyperscalers, including suppliers supporting AI infrastructure, was a significant driver of air volume growth 1.

Air Cargo News reported that airfreight revenue rose 51.4 percent to $1.5 billion on higher volumes and higher rates 4. The same report said air operating costs grew 52 percent to $1.2 billion 4.

Customs brokerage grew on new business wins and higher declaration volumes, the company said 1. Insider Monkey cautioned in September that a temporary surge in IEEPA-related filings and Middle East-driven air rates may not repeat 6.

Expeditors plans an Investor Day in New York City on 18 November 2026 1. It also said it expects congestion and supply chain challenges to persist through the remainder of 2026 1. The board declared a semi-annual dividend of $0.81 per share, payable on 15 December 2026 2.

In 1981 a group of Harper executives including Peter Rose joined Expeditors, a company with an office in Seattle, with a plan to combine freight forwarding and customs brokerage 12.

The plan was to move cargo on other companies' transportation equipment instead of owning any 12. That asset-light model still defines the company, which buys cargo space from carriers and resells it to customers 3.

Chief financial officer Bradley Powell later called the pandemic period "the most robust operating environment we have ever seen" 11. Revenue was $16.5 billion in 2021 and $17.1 billion in 2022 11.

On 20 February 2022 Expeditors found it had been the target of a cyber-attack and shut down most of its operating systems worldwide, which limited its ability to arrange freight and handle customs for customers 10.

In the fourth quarter of 2022 revenue dropped 36 percent to $3.4 billion and diluted earnings per share were $1.38, down 48 percent 11. Chief executive Jeffrey Musser called the reversal "stunning and unparalleled" 11.

Revenue was $9.3 billion in 2023, with operating income of $940 million 3.

Revenue then recovered to $10.6 billion in 2024 and $11.1 billion in 2025, with operating income of $1.04 billion and $1.05 billion 3. Revenue rose 4 percent in 2025 as customs brokerage and airfreight gains outweighed a fall in ocean 3.

In 2025 customs brokerage revenue rose 13 percent and airfreight revenue rose 9 percent, while ocean revenue fell 11 percent as ocean rates dropped 3. The company linked customs growth to the complexity of changing tariffs, and airfreight gains to technology customers building AI infrastructure 3.

Shippers rushed goods early in 2025 ahead of tariff changes, but volumes softened from August onward 3. The US ended its de minimis exemption, which covered goods made in China and Hong Kong worth under $800, on 2 May 2025 3.

Ocean rates charged to customers fell 37 percent and rates paid to carriers fell 39 percent in the second half of 2025, against the same period of 2024 3.

Cash from operations was $1.0 billion in 2025, up from $723 million in 2024, and the company returned $875 million to shareholders through share repurchases and dividends 3.

In 2026 the pace picked up, with second-quarter diluted earnings per share of $2.03, up 51 percent 5. The company also booked a $25 million restructuring charge for its Global Technology team 5.

Airfreight services

Airfreight is one of the company's principal services 3. Expeditors buys space on airline flights in bulk, groups many customers' shipments together, and resells that space at lower rates than a single shipper could get 3.

Airfreight revenue was $3.98 billion in 2025, up 9 percent, and about 36 percent of the total 3. In the third quarter of 2026 it was $1.54 billion, against $1.02 billion a year earlier 1.

Air Cargo News reported that airfreight operating profit, meaning revenue less the directly related costs, reached $375 million in the third quarter against $253 million a year before 4. The company said air capacity remains constrained by limited fleet expansion and delayed aircraft deliveries 4.

Ocean freight and ocean services

In ocean, Expeditors works as a non-vessel operating common carrier, a company that books container space with shipping lines and resells it, through its subsidiary Expeditors International Ocean, Inc. 3.

Ocean revenue was $2.81 billion in 2025, down 11 percent, and about 25 percent of the total 3. In the third quarter of 2026 it was $1.10 billion, up from $746 million, on container volume up 7 percent 1.

The company said three back-to-back typhoons idled capacity and halted port operations in Asia during the quarter 1.

Customs brokerage and other services

Customs brokerage means preparing the paperwork and paying the duties and taxes that let goods clear a border 3. This line also holds Transcon road freight, warehousing and distribution 3.

This line was the largest in 2025 at $4.27 billion, up 13 percent 3. In the third quarter of 2026 it was $1.46 billion, against $1.13 billion a year earlier 1.

The company said customs, Transcon, distribution and order management each grew by double digits for a third quarter in a row 1. It said Transcon and warehousing growth was particularly strong, on demand from large technology customers 1.

Offices, people and workforce

The company says it runs about 430 locations worldwide, about 100 of them in the United States and 17 owned, and most contain warehouse space 3. Its headquarters is in Bellevue, Washington 3.

It operates 172 district offices: 70 in the Americas, 17 in North Asia, 16 in South Asia, 45 in Europe and 24 in the Middle East, Africa and India 3. It also uses independent agents in 35 other relationships 3.

Daniel Wall is president and chief executive, and David Hackett is senior vice president and chief financial officer 1. Effective 1 October 2026, Blake Bell moved from president of global business development to senior vice president, professional services 7.

The company had 20,463 full-time equivalent employees on 30 September 2026, against 20,170 a year earlier 1. Chief financial officer Hackett noted that revenue grew 42 percent while headcount rose only 1 percent 1.

Rivals and current problems

The 10-K calls the industry intensely competitive and says some rivals have significantly more resources 3. Armstrong and Associates ranks Expeditors sixth among global forwarders for 2025, with 855,200 ocean TEUs and 928,000 metric tons of air cargo 9.

The same ranking puts Kuehne + Nagel and DSV first, each with about 2.0 million metric tons of air cargo, and DHL third on air tonnage 9.

Tariffs and trade rules are the first conditions the 10-K discusses under industry trends 3. It notes that on 20 February 2026 the US Supreme Court ruled on certain tariffs under the IEEPA, and that the process for any refunds is uncertain 3.

The 10-K says no pending legal matter is expected to have a material effect on operations, cash flows or financial position, and no single customer accounts for five percent of revenue 3.

The umbrella, in words

The company describes itself as an asset-light global logistics company offering air, customs, ocean, order management, road, warehousing and distribution, and cargo insurance services 2.

Exhibit 21.1 to the 10-K lists the subsidiaries, among them Expeditors International Ocean, Inc., organized in Delaware, and Expeditors Cargo Insurance Brokers, Inc., organized in Washington 8. The 10-K says the company operates in over 60 countries 3.

Expeditors includes majority-owned subsidiaries in its accounts 3. At 30 September 2026 it reported a noncontrolling interest of $2.3 million, the part of subsidiaries owned by others 1.

Common stock is the only class on its balance sheet, and 129.6 million shares were outstanding on 30 September 2026 against 133.9 million at the end of 2025 1.

Expeditors plans an Investor Day for shareholders and analysts on the morning of 18 November 2026 in New York City 1. Questions sent by 6 November 2026 will be considered for a management Form 8-K called "Responses to Selected Questions" 1.

The board declared a semi-annual dividend of $0.81 per share, payable on 15 December 2026 to holders of record on 1 December 2026 2. Chief financial officer Hackett said that with it the company will have returned more than $1 billion through dividends and repurchases in 2026 2.

On 23 February 2026 the board authorized a new repurchase program of up to $3 billion, effective when the current program expires, which happens when outstanding shares reach 130 million 3.

The company expects congestion and supply chain challenges to persist through the remainder of 2026 1. Its release lists tariff policy, new market capacity, volatile rates and fuel prices among the factors that could change future results 1.

In August the finance chief said the Global Technology restructuring is expected to lower costs by about $50 million a year, nearly 10 percent of corporate overhead 5. The headcount reduction is primarily realized in the third quarter, the company said 5.

Hackett said with the third-quarter results that the company is investing in temperature-controlled facilities, critical logistics services and productivity work, including artificial intelligence, to decouple headcount growth from revenue growth over the long term 1.

The 10-K says the company is assessing what the IEEPA ruling and the resulting tariff changes mean for its customs brokerage services, including post-entry activity 3.

Hackett also said the company intends to keep making high-return investments, including more in AI and other technology, to raise net operating margins over the long term 1.

The 10-K lists growing services into and out of Europe and growing customs brokerage throughout Asia as key strategic initiatives 3. It says the company does not anticipate altering customer-facing functions with AI solutions 3.