Expeditors Reports Fourth Quarter 2024 EPS of $1.68

Rhea-AI Summary

Expeditors International (NYSE:EXPD) reported strong Q4 2024 results with significant year-over-year improvements. EPS increased 54% to $1.68, while net earnings rose 49% to $236 million. Operating income grew 51% to $301 million, and revenues jumped 30% to $3.0 billion.

The company saw notable volume increases with airfreight tonnage up 11% and ocean container volume up 14%. Performance was driven by strong demand from Asia, heavy e-commerce business, and increased technology product demand. Ocean segment growth was influenced by capacity constraints due to Red Sea disruptions and longer transit times.

The company returned $1.1 billion to shareholders through stock repurchases and dividends in 2024, marking the third consecutive year of returning over $1 billion in capital to shareholders. During Q4, they repurchased 2.0 million shares at an average price of $120.14.

Positive

• 54% increase in EPS to $1.68
• 49% increase in net earnings to $236 million
• 51% growth in operating income to $301 million
• 30% revenue growth to $3.0 billion
• 11% increase in airfreight tonnage
• 14% growth in ocean container volume
• $1.1 billion returned to shareholders in 2024

Negative

• visibility on future performance due to geopolitical uncertainties
• Potential impact from anticipated U.S. elimination of certain de minimis exemptions
• Ongoing disruptions in Red Sea affecting ocean transit times

Insights

Financial Analyst

The Q4 2024 results demonstrate Expeditors' ability to capitalize on market disruptions and convert challenges into opportunities. The 51% jump in operating income to $301M on a 30% revenue increase to $3.0B showcases the company's operational leverage and pricing power during supply chain disruptions.

Three key factors drove this exceptional performance: First, the Red Sea crisis created a perfect storm of capacity constraints and rate increases in ocean freight, leading to significant margin expansion. Second, strong Asian demand combined with e-commerce growth drove air freight volumes up 11%, the highest since Q4 2021. Third, the company maintained impressive cost discipline, with operating efficiency remaining above the 30% target despite adding necessary headcount.

The strategic importance of these results lies in Expeditors' demonstrated ability to thrive in chaos. While competitors might struggle with disruptions, Expeditors' asset-light model and global network allow rapid adaptation to changing conditions. The company's strong cash position of $1.15B provides flexibility for future opportunities while maintaining shareholder returns, evidenced by the $1.1B returned through buybacks and dividends in 2024.

However, investors should monitor several risk factors: The potential U.S. elimination of de minimis exemptions could impact air freight volumes, ongoing geopolitical tensions may further disrupt trade routes, and any normalization of supply chains could pressure margins back toward historical levels.

BELLEVUE, Wash.--(BUSINESS WIRE)-- Expeditors International of Washington, Inc. (NYSE:EXPD) today announced fourth quarter 2024 financial results including the following comparisons to the same quarter of 2023:

• Diluted Net Earnings Attributable to Shareholders per share (EPS¹) increased 54% to $1.68
• Net Earnings Attributable to Shareholders increased 49% to $236 million
• Operating Income increased 51% to $301 million
• Revenues increased 30% to $3.0 billion
• Airfreight tonnage increased 11% and ocean container volume increased 14%

“As in Q3 2024, our fourth quarter results demonstrate our ability to adapt to highly volatile conditions and win new business,” said Jeffrey S. Musser, President and Chief Executive Officer. “Strong demand from Asia, along with heavy de minimis-driven e-commerce business and increased demand for technology products, limited access to air capacity. At the same time, we believe ocean capacity was partially hampered by front-loading, as shippers scrambled to limit disruptions from potential port labor actions, and by longer transits as carriers continued to avoid the Red Sea. Turbulent conditions such as these are when Expeditors tends to perform at its best, as we double-down to find solutions for our customers to avoid the worst of the chaos and keep their freight moving.

“All of our primary businesses performed very well again in the fourth quarter and we moved more air tonnage than we have since Q4 2021. Strong demand out of Asia drove rate increases and segment growth in both the quarter and during the second half of 2024. Disruption-driven ocean demand led to significantly increased rates and strained capacity, leading to increased year-over-year growth. Strong demand generally for ocean transportation combined with longer transit times and capacity issues caused by the disruptions in the Red Sea resulted in significant increases in overall average buy and sell rates and growth in volumes. Growth in air and ocean shipments helped drive an increase in fees for customs declarations and services. We also grew our road freight and warehousing and distribution businesses during the quarter.

“We continue to have limited visibility going forward. It is extremely difficult to predict the impact to global air supply and demand that may result from actions such as the anticipated U.S. elimination of certain de minimis exemptions. So, too, whether recessed Red Sea hostilities will lead to resumed ocean transit via that route remains to be seen. Geopolitical words and action are driving disruption at a faster pace than we can ever recall, and national policies regarding tariffs and other similar measures are highly unclear in many countries around the globe. However, whether accessing scarce capacity or navigating increasingly complex customs requirements, we believe we are at our finest during chaotic times like these. We remain flexible and steadfastly focused on serving our customers to keep their freight moving across borders during such unpredictable times.”

Bradley S. Powell, Senior Vice President and Chief Financial Officer, added, “Given the growth in air and ocean shipments, increased customs declarations and other business activity, we carefully added headcount in certain important areas during the quarter, while continuing to increase profitability, growing operating income by 51% from a year ago. Our measure of operating efficiency (operating income as a percentage of revenue less directly related cost of transportation and other expenses) was above our 30% target again for the quarter and for the year. We continue to make significant investments in cybersecurity and other technology to maintain, protect, and upgrade current systems, while also investing to deploy new and enhanced solutions.”

Mr. Powell noted that the Company returned $1.1 billion to shareholders through stock repurchases and dividends in 2024, the third consecutive year that the Company has returned more than $1 billion of capital to shareholders.

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.

¹Diluted earnings attributable to shareholders per share.
NOTE: See Disclaimer on Forward-Looking Statements in this release.

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 growth in air and ocean carrier capacity and the impact on rates; unpredictability in the ocean and air markets, including uncertainty due to conflicts in the Middle East and Red Sea; national policy changes on tariffs and other similar measures; port actions and other labor disruptions; new capacity in the marketplace; longer ocean transit times; strong 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 ability to secure higher air tonnage and ocean volumes; our ability to carefully add headcount and keep other costs in check while continuing to generate efficiency that meets our historical expectations; the alignment of our variable compensation structure with performance; our ability to enhance and bolster our network security; that management is able to grow the business and explore new areas for profitable growth; our ability to leverage the strength of our carrier relationships; the strength of our non-asset-based operating model; and our ability to remain a strong, healthy, unified and resilient organization. Geo-political risks, port actions and other labor disruptions, 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, 2023, 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. Fourth quarter 2024 Earnings Release, February 18, 2025 Financial Summary for the three and twelve months ended December 31, 2024 and 2023 (Unaudited) (in 000's of US dollars except share data)
		Three months ended December 31,										Twelve months ended December 31,
		2024				2023				% Change		2024				2023				% Change
Revenues		$	2,954,705			$	2,277,768			30%		$	10,600,515			$	9,300,110			14%
Directly related cost of transportation and other expenses 1		$	2,020,066			$	1,513,604			33%		$	7,186,718			$	6,054,000			19%
Salaries and other operating expenses 2		$	633,535			$	564,766			12%		$	2,372,474			$	2,306,177			3%
Operating income		$	301,104			$	199,398			51%		$	1,041,323			$	939,933			11%
Net earnings attributable to shareholders		$	235,878			$	158,719			49%		$	810,073			$	752,883			8%
Diluted earnings attributable to shareholders per share		$	1.68			$	1.09			54%		$	5.72			$	5.01			14%
Basic earnings attributable to shareholders per share		$	1.69			$	1.09			55%		$	5.75			$	5.05			14%
Diluted weighted average shares outstanding			139,992				145,891						141,722				150,186
Basic weighted average shares outstanding			139,357				144,979						140,992				149,141

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 twelve months ended December 31, 2024 we repurchased 2.0 million and 7.1 million shares of common stock at an average price of $120.14 and $119.47 per share, respectively. During the three and twelve months ended December 31, 2023 we repurchased 1.6 million and 12.1 million shares of common stock at an average price of $119.22 and $114.68 per share, respectively. In addition, during 2024 and 2023, we paid cash dividends of $1.46 and $1.38 per share, respectively.

		Employee Full-time Equivalents as of December 31,
		2024				2023
North America			6,999				6,864
Europe			3,882				3,791
North Asia			2,280				2,260
South Asia			1,827				1,693
Middle East, Africa and India			1,389				1,428
Latin America			796				750
Information Systems			1,326				1,265
Corporate			418				401
Total			18,917				18,452

		Fourth quarter year-over-year percentage increase (decrease):
		Airfreight kilos		Ocean freight FEU
2024
October		12%		11%
November		11%		18%
December		10%		14%
Quarter		11%		14%

Investors may submit written questions via e-mail to: investor@expeditors.com. Questions received by the end of business on February 21, 2025 will be considered in management's 8-K “Responses to Selected Questions.”

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

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (In thousands, except per share data) (Unaudited)
		December 31, 2024				December 31, 2023
Assets:
Current Assets:
Cash and cash equivalents		$	1,148,320			$	1,512,883
Accounts receivable, less allowance for credit loss of $6,878 and $6,550 at December 31, 2024 and 2023, respectively			1,997,840				1,532,599
Deferred contract costs			349,343				218,807
Other			164,272				170,907
Total current assets			3,659,775				3,435,196
Property and equipment, less accumulated depreciation and amortization of $615,533 and $597,473 at December 31, 2024 and 2023, respectively			449,404				479,225
Operating lease right-of-use assets			551,652				516,280
Goodwill			7,927				7,927
Deferred federal and state income taxes, net			70,671				63,690
Other assets, net			15,029				21,491
Total assets		$	4,754,458			$	4,523,809
Liabilities:
Current Liabilities:
Accounts payable		$	1,036,749			$	860,856
Accrued expenses, primarily salaries and related costs			451,921				447,336
Contract liabilities			441,927				280,909
Current portion of operating lease liabilities			106,736				99,749
Federal, state and foreign income taxes			29,140				15,562
Total current liabilities			2,066,473				1,704,412
Noncurrent portion of operating lease liabilities			462,201				427,984
Commitments and contingencies
Shareholders’ Equity:
Preferred stock, none issued			—				—
Common stock, par value $0.01 per share. Issued and outstanding: 138,003 shares and 143,866 shares at December 31, 2024 and 2023, respectively			1,380				1,439
Additional paid-in capital			—				—
Retained earnings			2,455,132				2,580,968
Accumulated other comprehensive loss			(233,500	)			(192,057	)
Total shareholders’ equity			2,223,012				2,390,350
Noncontrolling interest			2,772				1,063
Total equity			2,225,784				2,391,413
Total liabilities and equity		$	4,754,458			$	4,523,809

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited)
		Three months ended December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
Revenues:
Airfreight services		$	1,063,026			$	866,122			$	3,669,673			$	3,246,527
Ocean freight and ocean services			908,435				511,854				3,148,514				2,363,243
Customs brokerage and other services			983,244				899,792				3,782,328				3,690,340
Total revenues			2,954,705				2,277,768				10,600,515				9,300,110
Operating Expenses:
Airfreight services			808,437				639,725				2,731,552				2,347,293
Ocean freight and ocean services			681,021				357,788				2,356,952				1,634,947
Customs brokerage and other services			530,608				516,091				2,098,214				2,071,760
Salaries and related			472,753				409,605				1,762,654				1,700,516
Rent and occupancy			59,140				58,134				241,013				232,358
Depreciation and amortization			15,176				21,386				61,090				67,760
Selling and promotion			10,965				9,066				33,331				27,913
Other			75,501				66,575				274,386				277,630
Total operating expenses			2,653,601				2,078,370				9,559,192				8,360,177
Operating income			301,104				199,398				1,041,323				939,933
Other Income (Expense):
Interest income			10,007				16,728				46,706				70,451
Other, net			2,172				250				6,771				4,644
Other income (expense), net			12,179				16,978				53,477				75,095
Earnings before income taxes			313,283				216,376				1,094,800				1,015,028
Income tax expense			77,127				57,231				283,167				263,249
Net earnings			236,156				159,145				811,633				751,779
Less net earnings (losses) attributable to the noncontrolling interest			278				426				1,560				(1,104	)
Net earnings attributable to shareholders		$	235,878			$	158,719			$	810,073			$	752,883
Diluted earnings attributable to shareholders per share		$	1.68			$	1.09			$	5.72			$	5.01
Basic earnings attributable to shareholders per share		$	1.69			$	1.09			$	5.75			$	5.05
Weighted average diluted shares outstanding			139,992				145,891				141,722				150,186
Weighted average basic shares outstanding			139,357				144,979				140,992				149,141

EXPEDITORS INTERNATIONAL OF WASHINGTON, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)
		Three months ended December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
Operating Activities:
Net earnings		$	236,156			$	159,145			$	811,633			$	751,779
Adjustments to reconcile net earnings to net cash from operating activities:
Provisions for losses on accounts receivable			1,991				1,627				3,447				3,943
Deferred income tax expense (benefit)			542				(14,974	)			(5,138	)			(22,916	)
Stock compensation expense			16,528				11,437				64,364				58,399
Depreciation and amortization			15,176				21,386				61,090				67,760
Other, net			(7,391	)			2,065				(3,359	)			8,461
Changes in operating assets and liabilities:
Decrease (Increase) in accounts receivable			116,178				(55,481	)			(531,616	)			573,724
(Decrease) increase in accounts payable and accrued expenses			(143,508	)			11,645				259,310				(300,345	)
Decrease (increase) in deferred contract costs			69,292				8,082				(147,685	)			36,952
(Decrease) increase in contract liabilities			(75,349	)			(6,527	)			179,553				(40,076	)
Increase (decrease) in income taxes payable, net			13,225				20,445				26,388				(77,298	)
Increase (decrease) in other, net			6,876				(497	)			5,374				(7,192	)
Net cash from operating activities			249,716				158,353				723,361				1,053,191
Investing Activities:
Purchase of property and equipment			(10,051	)			(10,714	)			(40,466	)			(39,314	)
Other, net			5				90				(57	)			(119	)
Net cash from investing activities			(10,046	)			(10,624	)			(40,523	)			(39,433	)
Financing Activities:
(Payments) proceeds on borrowing on lines of credit			(14,520	)			739				(20,058	)			(5,944	)
Proceeds from issuance of common stock			1,523				4,584				69,257				84,889
Repurchases of common stock			(252,206	)			(193,592	)			(855,061	)			(1,392,886	)
Dividends Paid			(101,449	)			(99,766	)			(204,087	)			(202,029	)
Payments for taxes related to net share settlement of equity awards			—				(5	)			(15,348	)			(19,506	)
Distributions to noncontrolling interest			—				(1,089	)			—				(1,089	)
Net cash from financing activities			(366,652	)			(289,129	)			(1,025,297	)			(1,536,565	)
Effect of exchange rate changes on cash and cash equivalents			(17,871	)			14,855				(22,104	)			1,559
Change in cash and cash equivalents			(144,853	)			(126,545	)			(364,563	)			(521,248	)
Cash and cash equivalents at beginning of period			1,293,173				1,639,428				1,512,883				2,034,131
Cash and cash equivalents at end of period		$	1,148,320			$	1,512,883			$	1,148,320			$	1,512,883
Taxes Paid:
Income taxes		$	60,521			$	50,321			$	257,170			$	356,380

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 December 31, 2024:
Revenues		$	866,606				97,443				63,212				837,644				430,161				459,487				201,591				(1,439	)			2,954,705
Directly related cost of transportation and other expenses1		$	462,106				48,715				38,336				681,226				341,281				296,273				152,643				(514	)			2,020,066
Salaries and related		$	257,491				20,110				10,806				44,814				29,542				88,369				21,621				—				472,753
Operating income		$	137,866				12,068				5,005				68,483				33,733				31,056				12,892				1				301,104
Identifiable assets at period end		$	2,565,372				171,872				104,172				582,331				338,759				753,064				270,356				(31,468	)			4,754,458
Capital expenditures		$	6,474				221				104				317				1,301				1,117				517								10,051
Depreciation and amortization		$	9,153				519				258				1,067				547				2,704				928								15,176
Equity		$	1,500,901				43,155				42,535				228,747				119,823				174,536				156,748				(40,661	)			2,225,784
For the three months ended December 31, 2023:
Revenues		$	775,382				109,933				45,350				573,020				234,260				422,340				118,670				(1,187	)			2,277,768
Directly related cost of transportation and other expenses1		$	422,015				68,096				27,237				461,029				175,214				276,161				84,391				(539	)			1,513,604
Salaries and related		$	224,243				17,770				9,117				35,864				23,404				82,720				16,487				—				409,605
Operating income (loss)		$	100,652				7,492				690				44,893				16,260				25,848				3,572				(9	)			199,398
Identifiable assets at period end		$	2,595,576				174,509				109,380				449,529				237,470				721,259				256,199				(20,113	)			4,523,809
Capital expenditures		$	8,016				315				82				424				227				1,142				508				—				10,714
Depreciation and amortization		$	15,401				475				281				1,106				460				2,876				787				—				21,386
Equity		$	1,774,874				19,222				54,581				158,329				103,573				167,141				154,038				(40,345	)			2,391,413
		UNITED STATES				OTHER NORTH AMERICA				LATIN AMERICA				NORTH ASIA				SOUTH ASIA				EUROPE				MIDDLE EAST, AFRICA AND INDIA				ELIMI- NATIONS				CONSOLI- DATED
For the twelve months ended December 31, 2024:
Revenues		$	3,251,998				429,280				214,999				2,934,353				1,391,131				1,700,919				683,191				(5,356	)			10,600,515
Directly related cost of transportation and other expenses1		$	1,733,087				248,425				126,413				2,383,627				1,098,448				1,092,478				506,482				(2,242	)			7,186,718
Salaries and related		$	974,911				79,481				38,337				158,201				106,183				329,757				75,784				—				1,762,654
Operating income		$	479,442				41,511				18,795				238,203				102,233				112,565				48,554				20				1,041,323
Identifiable assets at period end		$	2,565,372				171,872				104,172				582,331				338,759				753,064				270,356				(31,468	)			4,754,458
Capital expenditures		$	24,249				2,393				487				1,250				4,239				5,977				1,871								40,466
Depreciation and amortization		$	36,240				2,120				1,104				5,032				2,016				11,277				3,301								61,090
Equity		$	1,500,901				43,155				42,535				228,747				119,823				174,536				156,748				(40,661	)			2,225,784
For the twelve months ended December 31, 2023:
Revenues		$	3,311,327				436,331				197,344				2,180,808				865,261				1,808,624				505,194				(4,779	)			9,300,110
Directly related cost of transportation and other expenses1		$	1,809,526				270,080				117,376				1,700,025				612,606				1,200,753				345,873				(2,239	)			6,054,000
Salaries and related		$	946,527				76,398				37,689				145,166				95,895				329,403				69,438				—				1,700,516
Operating income		$	463,804				23,014				10,373				207,709				76,885				114,536				43,611				1				939,933
Identifiable assets at period end		$	2,595,576				174,509				109,380				449,529				237,470				721,259				256,199				(20,113	)			4,523,809
Capital expenditures		$	23,845				1,247				442				1,534				971				7,830				3,445				—				39,314
Depreciation and amortization		$	44,039				1,879				1,123				4,597				1,940				11,313				2,869				—				67,760
Equity		$	1,774,874				19,222				54,581				158,329				103,573				167,141				154,038				(40,345	)			2,391,413

¹ 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250217712636/en/

Jeffrey S. Musser

President and Chief Executive Officer

(206) 674-3433

Bradley S. Powell

Senior Vice President and Chief Financial Officer

(206) 674-3412

Geoffrey Buscher

Director - Investor Relations

(206) 892-4510

Source: Expeditors International of Washington, Inc.

FAQ

What were EXPD's Q4 2024 earnings per share and how did they compare to 2023?

EXPD reported Q4 2024 EPS of $1.68, representing a 54% increase from $1.09 in Q4 2023.

How much did EXPD's revenue grow in Q4 2024?

EXPD's revenue grew 30% to $3.0 billion in Q4 2024 compared to Q4 2023.

How much capital did EXPD return to shareholders in 2024?

EXPD returned $1.1 billion to shareholders through stock repurchases and dividends in 2024.

What was EXPD's airfreight and ocean freight volume growth in Q4 2024?

In Q4 2024, EXPD's airfreight tonnage increased 11% and ocean container volume grew 14% year-over-year.

How many shares did EXPD repurchase in Q4 2024 and at what price?

EXPD repurchased 2.0 million shares at an average price of $120.14 per share in Q4 2024.