Expeditors International of Washington (EXPD 1.09%), a global provider of logistics and freight forwarding services, released its second quarter 2025 results on August 5, 2025. The company reported GAAP earnings per share (EPS) of $1.34, beating the analyst estimate of $1.25 (GAAP). Revenue (GAAP) also exceeded expectations at $2.65 billion, compared to the consensus estimate of $2.42 billion (GAAP). Both top and bottom line results (GAAP) marked improvements from the prior year, with revenue (GAAP) up nine percent and EPS (GAAP) rising eight percent. The quarter was notable for operational outperformance in both air and ocean freight, continued investment in technology, and disciplined capital returns. Management highlighted a solid quarter, although cost pressures and increased tax rates provided headwinds.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (GAAP) | $1.34 | $1.25 | $1.24 | 8% |
| Revenue (GAAP) | $2.65 billion | $2.42 billion | $2.44 billion | 9% |
| Operating income | $248 million | $224 million | 11% | |
| Net earnings attributable to shareholders | $184 million | $175 million | 5% | |
| Operating margin | 9.3% | 9.2% | 0.1 percentage points |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company overview and recent focus
Expeditors International of Washington is a logistics and freight forwarding company that offers air, ocean, and customs brokerage services to businesses worldwide. It acts as an intermediary, purchasing cargo space from transportation carriers and arranging shipments for clients across many industries. The company’s main focus areas include managing third-party carrier relationships, leveraging proprietary technology platforms, meeting regulatory requirements, and developing its workforce.
In recent years, Expeditors has prioritized building strong partnerships with air and ocean carriers to secure shipping capacity and manage costs. Investment in its in-house technology systems remains a cornerstone, providing clients with shipment visibility and real-time analytics. The company’s success relies on its ability to adapt to complex regulations and maintain a performance-driven corporate culture focused on compliance and high-quality customer service.
Quarterly highlights and performance drivers
Expeditors reported notable increases in both airfreight and ocean shipping volumes during the quarter. Airfreight tonnage climbed seven percent, as customers accelerated technology and high-value shipments before trade deadlines. Ocean container volume rose seven percent, reflecting demand for exports from South Asia as customers shifted supply chains and moved goods before new tariffs applied.
Segment revenue figures showed airfreight services at $951.8 million, a 10.7% increase over the prior year period. Ocean freight and services generated $675.8 million, while customs brokerage and other services brought in $1.02 billion, a 10.5% increase over the prior year period. These advances contributed to total revenue and operating income growth outpacing expectations.
Operating income rose eleven percent. Despite increasing business volumes, the company faced higher salary and operating expenses, which grew thirteen percent year over year. Management stated it limited headcount growth to directly support new activity and invested in information technology critical to operational reliability. The effective tax rate increased to 28.7%, up from 25.8% in the prior year period, which slowed net earnings growth compared to operating income growth.
The company returned $335 million to shareholders through dividends and share repurchases.
Expeditors’ business model and strategy
Expeditors’ business relies on managing relationships with air and ocean carriers to buy cargo space at favorable terms. By negotiating with best-in-class carriers, Expeditors ensures reliable capacity for clients and stabilizes its service quality. It then resells this transportation to shippers, acting as a logistics coordinator.
Its proprietary technology platform, developed by internal teams, enables clients to track shipments, manage customs requirements, and analyze supply chain trends in real time. This investment in technology is essential for operational efficiency, providing shipment visibility, real-time analytics, and support for compliance with a global set of regulations. Regulatory adaptation remains an ongoing focus, with the company highlighting increased complexity in customs clearance. Its commitment to compliance, ongoing employee development, and incentive-based compensation programs are also central to the company culture and have supported steady organic growth.
Looking ahead
For the remainder of fiscal 2025, company management did not provide specific forward financial guidance. Leadership noted the global freight environment remains unpredictable, with risks including fluctuating carrier rates, evolving tariffs, cost inflation, and ongoing geopolitical tension. These factors can affect both demand for logistics services and Expeditors’ ability to manage margins.
Investors should closely monitor trends in carrier rates and volume, expense management efforts, and any regulatory or geopolitical events that may affect shipping flows. Expeditors maintains a debt-free balance sheet and strong cash reserves, providing flexibility in unpredictable times. The company continues to invest in workforce and technology, with a focus on sustaining its operational strengths and adapting to market developments.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
