Expeditors reports Q2 EPS $1.34, consensus $1.24

Reports Q2 revenue $2.65B, consensus $2.45B. “Throughout the Expeditors (EXPD) global network, we are seeing the positive impact of our strategic initiatives to maximize operational excellence,” said Daniel R. Wall, CEO. “Our focus on growth and execution puts us in a strong position to quickly adapt to this highly unpredictable environment. We are working with each of our regions and districts to increase efficiency and further optimize customer service to drive organic growth and boost profitability. We continued to grow all of our businesses during another quarter in which on-and-off tariffs and geopolitical uncertainty prompted many of our customers to re-evaluate their supply chains in anticipation of higher tariffs. Average buy and sell rates, for both air and ocean, remained highly volatile. We once again processed a substantial increase in customs clearances requiring greater skill as they have become more complex, while also growing air tonnage and ocean volumes. Our airfreight business increased on growth in tonnage and higher rates in most regions, as capacity remained tight despite new government limits on de minimis shipments, and particularly as customers sought to ship technology and other high-value inventory ahead of trade deadlines. Our ocean business also grew largely on increased volumes, particularly exports out of South Asia, as customers relocated sourcing to that region and moved freight in advance of extended tariff deadlines. Ocean rates softened throughout the quarter, with demand unable to match increased ocean capacity. Our other businesses within the customs brokerage segment, including road freight and warehousing and distribution, also grew on strong volumes and new business, as we worked with a mix of current and new customers to navigate the unpredictable and changing state of global supply chains.”