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

Expeditors International of Washington reported mixed post-earnings price action, with a strategy of buying shares after a revenue beat delivering no return over the past three years. The company provided no quantitative guidance for revenue, EPS, or CAPEX in the release.

Revenue
Expeditors International of Washington reported total revenue of $2.65 billion for the second quarter of fiscal 2025, reflecting an 8.7% year-over-year increase from $2.44 billion in 2024 Q2. Airfreight services generated $951.79 million, while ocean freight and ocean services contributed $675.78 million. Customs brokerage and other services brought in $1.02 billion, collectively driving the company’s robust revenue performance.

Earnings/Net Income
Earnings per share (EPS) rose 8.9% year-over-year to $1.35, up from $1.24 in 2024 Q2, while net income increased by 5.0% to $183.92 million from $175.15 million the previous year. This marks another quarter of sustained profitability, reflecting the company’s strong operational resilience and consistent performance over two decades.

Price Action
In recent trading activity, the stock price of Expeditors International of Washington edged up 1.44% on the latest trading day, climbed 6.61% during the most recent full trading week, and gained 2.20% month-to-date.

Post-Earnings Price Action Review
A strategy of purchasing shares of Expeditors International of Washington (EXPD) following the company’s revenue growth in the second quarter and holding for 30 days yielded no return over the past three years. This approach, with a compound annual growth rate of 0.00%, underperformed the benchmark by 2.52% in excess return. Despite being risk-free, as indicated by a maximum drawdown and volatility of 0.00%, the strategy offered minimal returns, highlighting the limited impact of the earnings surprise on short-term performance.

CEO Commentary
Daniel R. Wall, President and Chief Executive Officer, emphasized the company’s strong operational execution amid global supply chain volatility. He attributed the growth across all business segments to increased airfreight and ocean freight volumes, driven by customers re-evaluating supply chains ahead of trade policy deadlines. Wall also highlighted the company’s commitment to enhancing efficiency, optimizing customer service, and leveraging technology to navigate geopolitical uncertainty.

Guidance
Expeditors expects the freight environment to remain unpredictable and will continue to focus on operational efficiency, cost management, and strategic IT investments. The company also plans to return capital to shareholders through dividends and share repurchases, though it did not provide specific quantitative targets for these initiatives.

Additional News
Within three weeks of the earnings report, no major M&A activity or C-level executive changes were reported for Expeditors International of Washington. The company also did not announce any new dividend or share repurchase plans beyond its existing commitment to return capital to shareholders, leaving investors without additional non-earnings related updates.