NYSE:EXPD
EXPEDITORS INTERNATIONAL OF WASHINGTON INC
A premier global provider of comprehensive freight forwarding and supply chain optimization services with a robust international network.
Key Metrics
Investment Thesis
Bull Case
The stock offers compelling value as the company rebounds to near pre-pandemic revenue levels with sustained profitability. Strong balance sheet with $1.31B in cash provides flexibility for strategic acquisitions or weathering economic headwinds. Consistent dividend payments and share buybacks signal management confidence in long-term growth prospects.
Bear Case
Revenue volatility over the past three years highlights extreme sensitivity to macroeconomic cycles and global trade disruptions. High operating expenses relative to revenue leave thin margins vulnerable to cost inflation from fuel and labor. Significant retained earnings deficit of $2.54B suggests historical capital allocation challenges that could limit future expansion options.
About EXPEDITORS INTERNATIONAL OF WASHINGTON INC
EXPEDITORS INTERNATIONAL OF WASHINGTON INC is a global leader in freight forwarding and supply chain management solutions. The company serves diverse industries including automotive, consumer goods, and technology across North America, Europe, and Asia. Key products include logistics consulting, customs brokerage, and end-to-end transportation services.
Analysis
Management Discussion
Recent financial performance shows revenue recovery to $11.07B in 2025 from a significant dip in 2023, indicating successful market adaptation. Strong operating profit of $1.05B and net income of $812.0M demonstrate improved profitability despite high operating expenses of $10.02B. The company maintained healthy cash flow from operations at $1.01B while managing substantial shareholder returns through dividends and repurchases.
Industry Overview
The global freight forwarding industry is highly competitive and cyclical, heavily influenced by international trade volumes and supply chain dynamics. Companies must continuously invest in technology and network capabilities to maintain margins amid rising operational costs. Consolidation trends favor larger players with diversified geographic footprints and integrated service offerings.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $17.07B | $9.30B | $10.60B | $11.07B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $17.07B | $9.30B | $10.60B | $11.07B |
| Operating Expenses | $15.25B | $8.36B | $9.56B | $10.02B |
| Operating Income | $1.82B | $939.9M | $1.04B | $1.05B |
| Marketing | $24.3M | $27.9M | $33.3M | $40.1M |
| Stock-Based Comp | $64.4M | $58.4M | $64.4M | $69.2M |
| D&A | $57.3M | $67.8M | $61.1M | $56.8M |
| Other OpEx | $15.22B | $8.33B | $9.53B | $9.98B |
| Non-Operating Income | $11.5M | $75.1M | $53.5M | $41.5M |
| Interest Expense | $23.3M | $4.8M | — | — |
| Interest Income | $25.6M | $70.5M | $46.7M | $35.7M |
| Pre-Tax Income | $1.84B | $1.02B | $1.09B | $1.09B |
| Income Tax | $475.3M | $263.2M | $283.2M | $282.0M |
| Continuing Ops | $1.36B | $751.8M | $811.6M | $812.0M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.36B | $751.8M | $811.6M | $812.0M |
| Minority Interest | $3.2M | $-1.1M | $1.6M | $1.7M |
| Net to Common | $1.36B | $752.9M | $810.1M | $810.3M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $4.52B | $3.44B | $3.66B | $3.76B |
| Cash & Equivalents | $2.03B | $1.51B | $1.15B | $1.31B |
| Accounts Receivable | $2.11B | $1.53B | $2.00B | $2.02B |
| Prepaid Expenses | $118.7M | $170.9M | $164.3M | $136.2M |
| Other Current Assets | $257.5M | $218.8M | $349.3M | $283.3M |
| Long-Term Assets | $1.07B | $1.09B | $1.09B | $1.14B |
| PP&E (Net) | $501.9M | $479.2M | $449.4M | $462.1M |
| Goodwill | $7.9M | $7.9M | $7.9M | $7.9M |
| Operating Leases | $507.5M | $516.3M | $551.7M | $550.2M |
| Other LT Assets | $55.1M | $85.2M | $85.7M | $117.8M |
| Total Assets | $5.59B | $4.52B | $4.75B | $4.89B |
| Current Liabilities | $2.05B | $1.70B | $2.07B | $2.07B |
| Accounts Payable | $1.11B | $860.9M | $1.04B | $1.12B |
| Current Leases | $95.6M | $99.7M | $106.7M | $110.9M |
| Deferred Revenue | $323.1M | $280.9M | $441.9M | $358.4M |
| Taxes Payable | $47.1M | $15.6M | $29.1M | $32.0M |
| Other Current Liab | $0 | $0 | $0 | $0 |
| Long-Term Liabilities | $422.8M | $428.0M | $462.2M | $462.7M |
| LT Operating Leases | $422.8M | $428.0M | $462.2M | $459.7M |
| Other LT Liab | $0 | $0 | $0 | $3.0M |
| Total Liabilities | $2.48B | $2.13B | $2.53B | $2.54B |
| Shareholders' Equity | $3.11B | $2.39B | $2.23B | $2.36B |
| Retained Earnings | $3.31B | $2.58B | $2.46B | $2.54B |
| Total L&E | $5.59B | $4.52B | $4.75B | $4.89B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.36B | $751.8M | $811.6M | $812.0M |
| Non-Cash Adjustments | $4.74B | $1.32B | $-1.23B | $362.8M |
| Working Capital Changes | $-3.97B | $-1.02B | $1.14B | $-168.4M |
| Cash from Operations | $2.13B | $1.05B | $723.4M | $1.01B |
| Cash from Investing | $-87.7M | $-39.4M | $-40.5M | $-44.7M |
| Share Buybacks | $1.58B | $1.39B | $855.1M | $667.3M |
| Dividends Paid | $213.8M | $202.0M | $204.1M | $207.4M |
| Cash from Financing | $-1.68B | $-1.54B | $-1.03B | $-802.5M |
| FX Effect | $-52.0M | $1.6M | $-22.1M | $6.6M |
| Net Change in Cash | $305.4M | $-521.2M | $-364.6M | $166.0M |
| Beginning Cash | $1.73B | $2.03B | $1.51B | $1.15B |
| Ending Cash | $2.03B | $1.51B | $1.15B | $1.31B |
Frequently Asked Questions
How does EXPEDITORS INTERNATIONAL OF WASHINGTON INC make money?
The company generates revenue primarily through ocean and air freight forwarding, land transportation services, and value-added supply chain solutions. Revenue streams also include customs brokerage, warehousing, and distribution logistics for clients ranging from small businesses to large multinational corporations.
What are the main risks for EXPD?
Significant exposure to global economic downturns that reduce consumer demand and freight volumes. Volatility in fuel prices and exchange rates impacting operating margins and cash flow stability. Geopolitical tensions and regulatory changes affecting international trade routes and customs procedures. High reliance on third-party carrier capacity which could be disrupted by port strikes or infrastructure issues.
What is EXPD's competitive advantage?
Extensive global network of strategic partnerships with carriers and agents providing seamless cross-border connectivity. Proprietary technology platforms enabling real-time visibility and efficient route optimization across complex supply chains. Deep industry expertise allowing for tailored solutions in specialized sectors like automotive and pharmaceuticals.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.