Overview

• Logistics company's Q4 revenue beat analyst expectations despite a 3% yr/yr decline

• Q4 EPS fell 11% yr/yr to $1.49

• Company approved a new $3 bln share repurchase program

Outlook

• Company expects ocean rates to remain soft in 2026 due to increased capacity

• Expeditors to focus on growth diversification and pricing optimization in 2026

• Company plans strategic investments in AI and customer vertical solutions for growth

Result Drivers

• AIRFREIGHT GROWTH - Airfreight tonnage increased 6% driven by export volumes from North and South Asia, despite lower per-kilo profitability

• OCEAN FREIGHT PRESSURE - Ocean freight revenue-per-container fell 41% yr/yr due to increased capacity and lower volumes, partially offset by higher order management volumes

• CUSTOMS BROKERAGE DEMAND - Strong demand for customs brokerage services due to complexity and volume, supported by technology investments

Company press release: ID:nBw4xDXwma

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Revenue	Beat	$2.90 bln	$2.83 bln (10 Analysts)
Q4 EPS		$1.49
Q4 Net Income		$201 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 6 "sell" or "strong sell"

• The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy."

• Wall Street's median 12-month price target for Expeditors International of Washington Inc is $143.00, about 4.4% below its February 23 closing price of $149.63

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 22 three months ago

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