EXPD

• Airfreight tonnage growth accelerated from 13% in April to 15% in June, driven by AI hyperscaler demand and market share gains.
• The Middle East conflict reduced air cargo capacity and payload efficiency, supporting elevated buy and sell rates during the quarter.
• Ocean volumes increased 7% sequentially from Q1, the first sequential increase since Q3 2025, with signs of market stabilization.
• A restructuring of the Global Technology organization incurred a $25 million charge and is expected to reduce annual costs by approximately $50 million.
• The company does not provide formal guidance but notes healthy demand entering Q3 and expects air rates to normalize over time.

7.01 Regulation FD Disclosure

• Net earnings attributable to shareholders rose 45% to $266 million, and operating income increased 41% to $350 million.
• Diluted EPS was $2.03, up 51% from $1.34 in the prior-year quarter.
• Airfreight tonnage increased 14% year-over-year; ocean container volume was flat.
• Company returned $461 million in dividends and share repurchases during Q2 2026.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits

• The Middle East conflict has had minimal direct impact, with the greatest effect in air freight due to higher jet fuel prices, tightened capacity, and longer routes; ocean fuel increases were passed through at cost.
• Customs brokerage activity has increased due to tariff refunds, re-filings, and compliance work following court rulings, with refund activity starting in late April and expected to grow significantly.
• The company is investing in technology, including AI, to enhance customs productivity and margins, while noting that technology cannot replace compliance judgment.
• Ocean volumes and rates show no sign of recovery due to global capacity-demand imbalance, and hyperscaler AI data center construction demand is expected to peak by the end of the decade.
• Capital allocation priorities remain investing in organic growth and returning excess cash via dividends and share repurchases.

7.01 Regulation FD Disclosure

• At the May 5, 2026 annual meeting, shareholders elected all nine director nominees, each to serve until the next annual meeting.
• Shareholders ratified KPMG LLP as independent auditor for fiscal year ending December 31, 2026, with 110,799,170 votes for, 8,370,398 against, and 3,331,457 abstentions.
• Director vote results ranged from Olivia D. Polius receiving the most votes (111,268,420 for) to Liane J. Pelletier receiving the fewest (100,683,902 for).
• The report was filed under Item 5.07 to disclose the final voting results of the matters submitted to shareholders.

5.07 Submission of Matters to a Vote of Security Holders

• First quarter 2026 diluted EPS increased 16% to $1.71 from $1.47 in Q1 2025.
• Operating income increased 11% to $295 million; revenues grew 4% to $2.8 billion.
• Airfreight tonnage increased 5% while ocean container volume decreased 4%.
• Company returned $288 million to shareholders via share repurchases in Q1 2026.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits

• On May 4, 2026, the Board of Directors declared a semi-annual cash dividend of $0.81 per share.
• The dividend represents a 5% increase from the prior dividend.
• Since 2024, Expeditors has returned nearly $2 billion to shareholders through dividends and share repurchases.
• In February 2026, the Board authorized a new share repurchase program of up to $3 billion.

8.01 Other Events · 9.01 Financial Statements and Exhibits

• The company reports gaining customs market share and expects cross-border complexity to persist beyond current trade policy volatility.
• Expeditors states it does not see disintermediation risk from AI-driven customs software, citing the need for licensed brokers and compliance judgment.
• Headcount flattened sequentially, with increases partly in customs and technology investments; the company expects efficiency gains as automation scales.
• The company does not anticipate material cost drag from tariff refunds, as post-entry work is generally recoverable through service fees.

7.01 Regulation FD Disclosure

• Diluted EPS for Q4 2025 was $1.49, down 11% from $1.68 in Q4 2024.
• Airfreight tonnage increased 6% while ocean container volume decreased 6% in Q4 2025 versus Q4 2024.
• The company returned $150 million to shareholders in dividends and share repurchases during Q4 2025, and $875 million for the full year 2025.
• The Board of Directors approved a new $3 billion share repurchase program, effective upon expiration of the current program.

2.02 Results of Operations and Financial Condition · 9.01 Financial Statements and Exhibits