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
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