Expeditors Reports Fourth Quarter 2024 EPS of $1.68

Business Wire

Tue, Feb 18, 2025, 6:30 AM 12 min read

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