EXPD Filings — Expeditors International of Washington, Inc. - FilingSpy
EXPD
Expeditors International of Washington, Inc.
A global logistics company that moves freight without owning any planes, ships, or trucks — it buys cargo space from carriers and clears goods through customs. Founded in 1979 in Seattle, the business grew from a vision sketched on a napkin in a Hong Kong bar in 1981 by founders Peter Rose and James Wang. Today it coordinates airfreight, ocean freight, warehousing, and ground transportation for businesses across dozens of countries.
Airfreight revenue rose 57% on AI-driven tech demand, lifting total revenue 32% to $3.5B and operating income 41% to $350M.
Airfreight took over the story. rose 32% to $3.5 billion and climbed 41% to $350 million as technology customers investing in AI infrastructure drove a 57% increase in airfreight services, while ocean freight stabilized after three quarters of decline. The quarter included a $25 million , and management flagged tariff and geopolitical uncertainty as risks to the trajectory.
Key takeaways
Airfreight services rose 57% on 14% higher tonnage and 44% higher average sell rates, fueled by technology customers investing in AI infrastructure.
Ocean freight services grew 5%, as average buy and sell rates and container volumes began recovering late in the quarter after three quarters of decline.
Customs brokerage and other services rose 27%, benefiting from higher customs clearance complexity, road freight, and warehousing demand tied to AI-related technology shipments.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 32% driven by 57% airfreight growth from AI-related tech demand, while ocean freight stabilized and a $25M restructuring charge was recorded.
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Total revenues increased 32% to $3.5 billion, with airfreight services surging 57% on 14% higher tonnage and 44% higher average sell rates, fueled by technology customers investing in AI infrastructure.
Ocean freight and ocean services grew 5% as average buy and sell rates and container volumes began recovering late in the quarter after three quarters of declines, though six-month revenue fell 10%.
increased 41% to $350 million, but results included a $25 million expense for a Global Technology group restructuring, with remaining costs expected in the second half of 2026.
was $179 million, essentially flat , while the company returned $461 million to shareholders through repurchases of 2.3 million shares and dividends.
Net foreign currency transactional losses narrowed to $6 million for the six-month period from $17 million a year earlier.
What changed
Ocean freight sell rates and container volumes, which management had flagged to watch after a 33% Q1 sell-rate drop, began recovering late in Q2, with the returning to 5% growth after three quarters of decline.
Customs brokerage growth accelerated to 27% from 17% in Q1, as AI-infrastructure-driven demand from technology customers persisted and intensified.
of $179 million was down 42% sequentially from Q1's $309 million, as from Q1 growth were not fully collected.
The material weakness in IT general controls from the 2022 cyber-attack remained unremediated through this filing.
What to watch
Q3 2026 airfreight tonnage and sell rates to see if the 57% Q2 increase from AI-related tech demand sustains.
Q3 2026 ocean consolidation sell rates and container volumes to confirm the late-Q2 recovery continues after three quarters of decline.
Remaining Global Technology restructuring costs and any further charges in the second half of 2026.
Q3 2026 against $179 million as from higher Q2 volumes are collected.
Customs brokerage and other services rose 27%, benefiting from higher customs clearance complexity, road freight, and warehousing demand tied to AI-related technology shipments.
increased 41% to $350 million, but results included a $25 million expense for a Global Technology group restructuring, with remaining costs expected in the second half of 2026.
was $179 million, flat , while $461 million was returned to shareholders via repurchases of 2.3 million shares and dividends.
Management cited ongoing uncertainty from U.S. tariff actions, the Iran conflict disrupting Middle East operations and airfreight capacity, and volatile carrier pricing as key risks to future performance.
Quantitative and Qualitative Disclosures About Market Risk
Expeditors faces foreign exchange risk from multi-currency operations and limited interest rate risk, with no derivative hedging used.
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Principal FX exposures include the Chinese Yuan, Indian Rupee, Euro, Mexican Peso, Canadian Dollar, British Pound, and Vietnamese Dong.
A hypothetical 10% weakening of the U.S. dollar over the six months ended June 30, 2026 would have raised by approximately $37 million; a 10% strengthening would have reduced it by approximately $30 million.
The company does not use derivative financial instruments to manage currency risk, instead accelerating international currency settlements to manage intercompany FX exposure.
Net foreign currency transactional losses were $6 million for the six months ended June 30, 2026, down from $17 million in the prior-year period.
Interest rate risk is minimal: with $1,031 million in cash and equivalents and no , a 10-basis-point rate change would not significantly impact earnings.
Expeditors is involved in claims, lawsuits, government investigations, income, transfer pricing and indirect tax audits and other legal matters that arise in the ordinary course of business and are subject to inherent uncertainties. Currently, in management's opinion and based u…
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Expeditors is involved in claims, lawsuits, government investigations, income, transfer pricing and indirect tax audits and other legal matters that arise in the ordinary course of business and are subject to inherent uncertainties. Currently, in management's opinion and based upon advice from legal and tax advisors, none of these matters are expected to have a material effect on our operations, cash flows or financial position. As of June 30, 2026, the amounts recorded for claims, lawsuits, government investigations and other legal matters are not significant to our operations, cash flows or financial position. At this time, we are unable to estimate any additional loss or range of reasonably possible losses, if any, beyond the amounts recorded, that might result from the resolution of these matters.
In addition to the other information set forth in this report, careful consideration should be given to the risk factors under Item 1A Risk Factors in our Annual Report on Form 10-K filed on February 25, 2026. There have been no material changes in Expeditors' risk factors from…
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In addition to the other information set forth in this report, careful consideration should be given to the risk factors under Item 1A Risk Factors in our Annual Report on Form 10-K filed on February 25, 2026. There have been no material changes in Expeditors' risk factors from those disclosed under Item 1A Risk Factors in our annual report on Form 10-K filed on February 25, 2026.
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