Expeditors International of Washington 2025 Q2 Earnings Sustained Profitability and 5.0% Net Income Growth

Expeditors International of Washington (EXPD) delivered solid earnings for its fiscal 2025 Q2, with revenue and earnings growth driven by strong performance across all business segments. The company reported a 8.7% year-over-year increase in revenue, and net income rose by 5.0%, reflecting continued operational resilience amid a volatile global environment.

Revenue
Expeditors International of Washington reported total revenue of $2.65 billion in the second quarter of 2025, representing an 8.7% increase compared to $2.44 billion in the same period of 2024. The company saw robust performance across all segments, with airfreight services generating $951.79 million, driven by tight capacity and demand for high-value shipments. Ocean freight and ocean services contributed $675.78 million, supported by increased exports out of South Asia. Meanwhile, customs brokerage and other services accounted for $1.02 billion in revenue, reflecting continued strength in this key division.

Earnings/Net Income
Expeditors’ earnings per share (EPS) grew 8.9% year-over-year to $1.35 in Q2 2025 from $1.24 in Q2 2024. The company’s net income also increased by 5.0%, reaching $183.92 million, compared to $175.15 million a year ago. This growth underscores the company’s ability to sustain profitability for over two decades, even in challenging global markets.

Price Action
Over the latest trading day, EXPD shares rose 0.94%, and gained 1.62% during the most recent full trading week. However, the stock declined 1.75% month-to-date.

Post Earnings Price Action Review
A strategy of buying EXPD shares following the company’s quarterly earnings report and holding for 30 days showed no return over the past three years, with a CAGR of 0.00% and an excess return of 0.00%. No volatility or maximum drawdown was recorded during the backtest, indicating the strategy did not pose any risk or yield any gains during the testing period.

CEO Commentary
Daniel R. Wall, President and CEO, credited the company’s strategic initiatives in operational excellence for the strong performance. He noted growth across all segments and emphasized the importance of adapting to ongoing supply chain disruptions caused by tariffs and geopolitical uncertainties. Wall expressed cautious optimism about the company’s ability to maintain resilience and deliver value in an unpredictable environment.

Guidance
Expeditors expects the freight environment to remain volatile due to ongoing tariffs and geopolitical tensions. The company remains focused on operational efficiency, customer service, and organic growth while continuing to return capital to shareholders.

Additional News
Expeditors returned $335 million to shareholders in the form of dividends and share repurchases during Q2 2025, demonstrating its commitment to capital allocation. CFO Bradley S. Powell highlighted that the effective tax rate rose to 28.7% in Q2 2025, compared to 25.8% in the prior year, which impacted net earnings growth relative to operating income. The company is also making strategic investments in critical information systems to support long-term growth and operational stability.