C.H. Robinson Reports 2025 Fourth Quarter Results

C.H. Robinson Reports 2025 Fourth Quarter Results C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended December 31, 2025. Fourth Quarter Highlights: In the face of significant market headwinds, C.H. Robinson continued to deliver strong performance driven by market share gains, disciplined revenue management, a cost of hire advantage versus the market, and evergreen productivity improvements fueled by its Lean AI strategyNorth American Surface Transportation ("NAST") total volume increased approximately 1% and NAST truckload volume increased approximately 3%, compared to a 7.6% decline in the Cass Freight Shipment IndexNAST adjusted gross profit margin (1) increased 20 basis points to 14.6%Income from operations decreased 1.3% to $181.4 millionAdjusted income from operations (1) increased 7.1% to $197.4 millionDiluted earnings per share (EPS) decreased 8.2% to $1.12Adjusted diluted EPS (1) increased 1.7% to $1.23Cash generated by operations increased by $37.5 million to $305.4 millionCash returned to shareholders increased 150.7% to $207.7 million (1) Adjusted gross profit margin, adjusted income from operations, and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations. "The fourth quarter certainly provided a challenging macro environment, with weak global freight demand, rising spot costs in trucking and falling ocean rates all providing headwinds to our business," said President and Chief Executive Officer, Dave Bozeman. "However, we’ve consistently focused on controlling what we can control, which is providing differentiated service and solutions to our customers and carriers, executing with discipline, and continuously improving our business model and our cost to serve. This focus, and the strength of our Lean AI - which is the combination of our Lean operating model, industry-leading technology and the best logisticians - has enabled us to consistently outperform over the last two years, and we did it again in the fourth quarter." "The Cass Freight Shipment Index declined year-over-year for the 13th consecutive quarter and was the lowest Q4 reading since the financial crisis of 2009," Bozeman added. "Spot market costs for truckload capacity spiked during the last five weeks of the quarter, due to a seasonal decline in capacity, three winter storms and incremental pressure from the cumulative enforcement of various commercial driver regulations. International freight continues to be impacted by global trade policies, which caused previous front-loading, a dislocation of shipments and a more pronounced decline in demand after the third quarter peak season. Combined with excess vessel capacity, this caused ocean rates to decline substantially versus a year ago - consistent with the expectations that we laid out at our Investor Day in December of 2024. So the macro conditions for global transportation companies were difficult in fourth quarter, and we are not impervious to these volume and rate dynamics." "In NAST, we grew our total volume by approximately 1% and our truckload volume by approximately 3% on a year-over-year basis. Compared to a 7.6% year-over-year decline in the Cass Freight Shipment Index, this reflects another quarter of demonstrable market share growth. This was accomplished while mitigating some of the market pressure on gross profits through strong revenue management practices and by improving our cost of hire advantage. These disciplines enabled us to improve our NAST AGP margin by 20 basis points on a year-over-year basis, despite the pressure on spot market costs from a decline in available capacity." "In Global Forwarding, we expanded gross margins by 120 basis points year-over-year through improved revenue management discipline. We also continued to evolve our Global Forwarding business to a more cohesive, centralized model with standardized and Lean AI-enabled processes. We continued to improve our productivity and cost to serve across the enterprise, resulting in a double-digit productivity increase in NAST for the full year and a high-single-digit productivity increase in Global Forwarding. As we continue to purposefully engineer our work to drive higher automation, a lower cost to serve and improved customer outcomes, all of this is aimed at building the best model for demonstrable outgrowth while continuing to have industry-leading operating margins. While we’re pleased with the results we’ve delivered in the last two years, we are still in the early stages of our transformation. Significant runway exists as we continue to deepen the Lean mindset and scale custom-built AI agents across the enterprise," said Bozeman. Summary of Fourth Quarter of 2025 Results Compared to the Fourth Quarter of 2024 Total revenues decreased 6.5% to $3.9 billion, primarily driven by the divestiture of our Europe Surface Transportation business, lower pricing and volume in our ocean services, and lower pricing in our truckload services. This was partially offset by higher volume in our truckload services.Gross profits decreased 4.5% to $642.5 million. Adjusted gross profits(1) decreased 4.0% to $657.0 million, primarily driven by lower adjusted gross profit per transaction in our ocean services and the divestiture of our Europe Surface Transportation business.Operating expenses decreased 5.0% to $475.7 million. Personnel expenses decreased 4.9% to $337.0 million, primarily due to cost optimization efforts and productivity improvements and the divestiture of our Europe Surface Transportation business. This was partially offset by higher restructuring charges related to workforce reductions. Average employee headcount declined 12.9%. Other selling, general and administrative (“SG&A”) expenses decreased 5.3% to $138.7 million, primarily due to cost optimization efforts and prior year restructuring charges for impairments related to reducing our facilities footprint. These decreases were partially offset by a $12.6 million favorable adjustment in the prior year related to the divestiture of our Europe Surface Transportation business.Income from operations totaled $181.4 million, down 1.3% due to the decrease in adjusted gross profit and higher restructuring charges, partially offset by the decrease in operating expenses. Adjusted operating margin(1) of 27.6% increased 80 basis points.Interest and other income/expense, net totaled $14.8 million of expense, consisting primarily of $13.7 million of interest expense, which decreased $5.1 million versus last year due to a lower average debt balance and lower variable interest rates. The fourth quarter of 2025 results also include a $2.9 million net loss from foreign currency revaluation and realized foreign currency gains and losses.Theeffective tax rate in the quarter was 18.1%, compared to 11.4% in the fourth quarter of 2024. The higher rate in the fourth quarter of 2025 was driven by the impact of non-recurring discrete items, lower U.S. tax credits, and an increase in unfavorable book-tax differences, partially offset by the tax benefits of stock-based compensation.Net income totaled $136.3 million, down 8.7% from a year ago. Diluted EPS of $1.12 decreased 8.2%. Adjusted diluted EPS(1) of $1.23 increased 1.7%. (1) Adjusted gross profit margin, adjusted income from operations, and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations. Summary of Full Year 2025 Results Compared to 2024 Total revenues decreased 8.4% to $16.2 billion, primarily driven by the divestiture of our Europe Surface Transportation business, in addition to lower pricing and volume in our ocean services and lower fuel surcharges in our truckload services.Gross profits decreased 1.8% to $2.7 billion. Adjusted gross profits(1) decreased 1.3% to $2.7 billion, primarily driven by lower adjusted gross profit per transaction in our ocean services and the divestiture of our Europe Surface Transportation business, which were partially offset by higher adjusted gross profit per transaction in our LTL, truckload, and customs services.Operating expenses decreased 7.7% to $1.9 billion. Personnel expenses decreased 5.9% to $1.4 billion, primarily due to cost optimization efforts and productivity improvements and the divestiture of our Europe Surface Transportation business. Average employee headcount declined 11.5%. Other SG&A expenses decreased 11.8% to $564.3 million primarily due to a $44.5 million loss in the prior year related to the divestiture of our Europe Surface Transportation business and prior year restructuring charges for impairments related to reducing our facilities footprint. In addition, other SG&A expenses declined across several expense categories in 2025 due to cost optimization efforts.Income from operations totaled $795.0 million, up 18.8% from last year due to the decrease in operating expenses. Adjusted operating margin(1) of 29.1% increased 490 basis points.Interest and other income/expense, net totaled $72.5 million of expense, primarily consisting of $63.1 million of interest expense, which decreased $22.8 million versus last year due to a lower average debt balance and lower variable interest rates. The year-to-date results also include an $11.2 million net loss from foreign currency revaluation and realized foreign currency gains and losses.The effective tax rate for the full year ended December 31, 2025 was 18.7% compared to 19.6% in the year-ago period. The lower rate was driven by higher foreign tax credits, higher tax benefits from stock-based compensation, and the prior year impact of the divestiture of our European Surface Transportation business, partially offset by a reduced benefit from U.S. tax credits in 2025 and non-recurring discrete items in the prior year.Net income totaled $587.1 million, up 26.1% from a year ago. Diluted EPS of $4.83 increased 25.1%. Adjusted diluted EPS(1) of $5.09 increased 12.9%. (1) Adjusted gross profit margin, adjusted income from operations, and adjusted diluted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations. North American Surface Transportation (“NAST”) Results Summarized financial results of our NAST segment are as follows (dollars in thousands): Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Total revenues $ 2,810,373 $ 2,802,700 0.3 % $ 11,562,714 $ 11,727,539 (1.4 )% Adjusted gross profits(1) 411,618 403,764 1.9 % 1,706,329 1,641,195 4.0 % Income from operations 141,296 132,528 6.6 % 621,836 531,292 17.0 % (1)Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. Fourth quarter total revenues for the NAST segment totaled $2.8 billion, an increase of 0.3% over the prior year, primarily driven by higher volumes in our truckload services, partially offset a shorter average length of haul in truckload services. NAST adjusted gross profits increased 1.9% in the quarter to $411.6 million. Adjusted gross profits in truckload decreased 0.4% due to a 3.0% decrease in adjusted gross profit per shipment, which was partially offset by a 3.0% increase in volume. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 2.5% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, also increased 2.5%, resulting in a flat truckload adjusted gross profit per mile. LTL adjusted gross profits increased 6.0% versus the year-ago period, driven by a 5.5% increase in adjusted gross profit per order and a 0.5% increase in LTL volume. Total NAST truckload and LTL volume increased 1.0% for the quarter and outpaced the market indices. Operating expenses decreased 0.3%, primarily due to cost optimization efforts and productivity improvements, partially offset by restructuring charges related to workforce reductions. Fourth quarter average employee headcount was down 7.1% year-over-year. Income from operations increased 6.6% to $141.3 million, and adjusted operating margin expanded 150 basis points to 34.3%. Global Forwarding Results Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands): Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Total revenues $ 730,983 $ 883,968 (17.3 )% $ 3,090,018 $ 3,805,018 (18.8 )% Adjusted gross profits(1) 177,957 203,801 (12.7 )% 741,921 802,549 (7.6 )% Income from operations 40,489 51,827 (21.9 )% 183,783 212,476 (13.5 )% (1)Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. Fourth quarter total revenues for the Global Forwarding segment decreased 17.3% to $731.0 million, primarily driven by lower pricing and volume in our ocean services. Adjusted gross profits decreased 12.7% in the quarter to $178.0 million. Ocean adjusted gross profits decreased 22.0%, driven by a 15.0% decrease in adjusted gross profit per shipment and an 8.0% decline in shipments. Air adjusted gross profits decreased 17.3%, driven by a 12.5% decline in metric tons shipped and a 5.5% decrease in adjusted gross profit per metric ton shipped. Customs adjusted gross profits increased 30.0%, driven by a 26.0% increase in adjusted gross profit per transaction and a 3.0% increase in transaction volume. Operating expenses decreased 9.5%, primarily due to cost optimization efforts and productivity improvements and lower incentive compensation, partially offset by restructuring charges related to workforce reductions. Fourth quarter average employee headcount decreased 11.8% year-over-year. Income from operations decreased 21.9% to $40.5 million, and adjusted operating margin declined 260 basis points to 22.8% in the quarter. All Other and Corporate Results Total revenues and adjusted gross profits for Robinson Fresh, Managed Solutions and Other Surface Transportation are summarized as follows (dollars in thousands): Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Total revenues $ 371,278 $ 497,988 (25.4 )% $ 1,580,031 $ 2,192,399 (27.9 )% Adjusted gross profits(1): Robinson Fresh $ 38,851 $ 35,983 8.0 % $ 161,094 $ 146,310 10.1 % Managed Solutions 28,588 28,133 1.6 % 115,429 113,770 1.5 % Other Surface Transportation(2) — 12,942 (100.0 )% 4,637 61,190 (92.4 )% (1)Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. (2) Includes our Europe Surface Transportation business, which was divested as of February 1, 2025. Fourth quarter Robinson Fresh adjusted gross profits increased 8.0% to $38.9 million due to an increase in integrated supply chain solutions for foodservice customers. Managed Solutions adjusted gross profits increased 1.6% due to an increase in freight under management. Other Income Statement Items Interest and other income/expense, net totaled $14.8 million of expense, consisting primarily of $13.7 million of interest expense, which decreased $5.1 million versus the fourth quarter of 2024 due to a lower average debt balance and lower variable interest rates. The fourth quarter effective tax rate was 18.1%, up from 11.4% in the fourth quarter of 2024. The higher rate in the fourth quarter of 2025 was driven by the impact of non-recurring discrete items, lower U.S. tax credits, and increased executive compensation allowed deductions, partially offset by higher tax benefits from stock-based compensation. For 2026, we expect our full-year effective tax rate to be 18% to 20%. Diluted weighted average shares outstanding in the quarter were down 0.5% year-over-year. Cash Flow Generation and Capital Distribution Cash generated from operations totaled $305.4 million in the fourth quarter, compared to $267.9 million in the fourth quarter of 2024. The $37.5 million increase in cash flow from operations was primarily related to a $28.2 million increase in cash generated by changes in net operating working capital, due to a $119.0 million sequential decrease in net operating working capital in the fourth quarter of 2025 compared to a $90.8 million sequential decrease in the fourth quarter of 2024. In the fourth quarter of 2025, cash returned to shareholders totaled $207.7 million, with $133.3 million in repurchases of common stock and $74.3 million in cash dividends. Capital expenditures totaled $15.7 million in the quarter. Capital expenditures for 2026 are expected to be $75 million to $85 million. About C.H. Robinson C.H. Robinson is the global leader in Lean AI supply chains. For more than a century, companies everywhere have looked to us to reimagine how goods move. Now, as we redefine what’s next for the industry, that same drive fuels our commitment to Building Tomorrow’s Supply Chains, Today™. Trusted by 83,000 customers and 450,000 contract carriers, we manage 37 million shipments annually, representing $23 billion in freight. We deliver tailored solutions across the world via truckload, less-than-truckload, ocean, air, and more. With our unique combination of human insight and Lean AI working as one, supply chains move faster, smarter, and more sustainably. As a responsible global citizen, we proudly contribute millions to the causes that matter most to our employees. For more information, visit us at chrobinson.com (Nasdaq: CHRW). Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability and achieving our long-term growth targets; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business, including reliance on third-party platforms and cybersecurity related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations or efficiently managing divestitures; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; and other risks and uncertainties detailed in our Annual and Quarterly Reports. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay. Conference Call Information: C.H. Robinson Worldwide Fourth Quarter 2025 Earnings Conference Call Wednesday, January 28, 2026; 5:30 p.m. Eastern Time Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through C.H. Robinson's Investor Relations website at investor.chrobinson.com. To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756 Adjusted Gross Profit by Service Line (in thousands) This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines. Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Adjusted gross profits(1): Transportation Truckload $ 248,195 $ 261,527 (5.1 )% $ 1,052,281 $ 1,072,691 (1.9 )% LTL 150,888 141,982 6.3 % 609,736 572,169 6.6 % Ocean 99,215 127,139 (22.0 )% 432,874 519,970 (16.8 )% Air 33,909 40,856 (17.0 )% 136,695 135,901 0.6 % Customs 34,400 26,467 30.0 % 132,776 107,480 23.5 % Other logistics services 56,618 54,383 4.1 % 224,279 225,599 (0.6 )% Total transportation 623,225 652,354 (4.5 )% 2,588,641 2,633,810 (1.7 )% Sourcing 33,789 32,269 4.7 % 140,769 131,204 7.3 % Total adjusted gross profits $ 657,014 $ 684,623 (4.0 )% $ 2,729,410 $ 2,765,014 (1.3 )% (1)Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material. GAAP to Non-GAAP Reconciliation (unaudited, in thousands) Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands): Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Revenues: Transportation $ 3,571,694 $ 3,870,927 (7.7 )% $ 14,823,804 $ 16,353,745 (9.4 )% Sourcing 340,940 313,729 8.7 % 1,408,959 1,371,211 2.8 % Total revenues 3,912,634 4,184,656 (6.5 )% 16,232,763 17,724,956 (8.4 )% Costs and expenses: Purchased transportation and related services 2,948,469 3,218,573 (8.4 )% 12,235,163 13,719,935 (10.8 )% Purchased products sourced for resale 307,151 281,460 9.1 % 1,268,190 1,240,007 2.3 % Direct internally developed software amortization 14,491 11,762 23.2 % 58,258 44,308 31.5 % Total direct expenses 3,270,111 3,511,795 (6.9 )% 13,561,611 15,004,250 (9.6 )% Gross profit $ 642,523 $ 672,861 (4.5 )% $ 2,671,152 $ 2,720,706 (1.8 )% Plus: Direct internally developed software amortization 14,491 11,762 23.2 % 58,258 44,308 31.5 % Adjusted gross profit $ 657,014 $ 684,623 (4.0 )% $ 2,729,410 $ 2,765,014 (1.3 )% Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring and/or loss on divestiture is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring and/or losses from divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring and/or loss on divestiture are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring and/or loss on divestiture are presented below: Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Total revenues $ 3,912,634 $ 4,184,656 (6.5 )% $ 16,232,763 $ 17,724,956 (8.4 )% Income from operations 181,353 183,799 (1.3 )% 794,961 669,141 18.8 % Operating margin 4.6 % 4.4 % 20 bps 4.9 % 3.8 % 110 bps Adjusted gross profit $ 657,014 $ 684,623 (4.0 )% $ 2,729,410 $ 2,765,014 (1.3 )% Income from operations 181,353 183,799 (1.3 )% 794,961 669,141 18.8 % Adjusted operating margin 27.6 % 26.8 % 80 bps 29.1 % 24.2 % 490 bps Adjusted gross profit $ 657,014 $ 684,623 (4.0 )% $ 2,729,410 $ 2,765,014 (1.3 )% Adjusted income from operations 197,448 184,408 7.1 % 833,733 759,349 9.8 % Adjusted operating margin - excluding restructuring and/or loss on divestiture 30.1 % 26.9 % 320 bps 30.5 % 27.5 % 300 bps GAAP to Non-GAAP Reconciliation (unaudited, in thousands) Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and/or loss on divestiture, adjusted net income and adjusted net income per share (diluted) are non-GAAP financial measures. These non-GAAP measures are calculated excluding the impact of restructuring and/or losses from divestiture. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring and/or loss on divestiture, adjusted net income and adjusted net income per share (diluted). The reconciliation of these non-GAAP measures are presented below (in thousands except per share data): Non-GAAP Reconciliation: NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended December 31, 2025 Income (loss) from operations $ 141,296 $ 40,489 $ (432 ) $ 181,353 Severance and other personnel expenses 8,309 3,982 2,892 15,183 Other selling, general, and administrative expenses 309 1,040 (437 ) 912 Total adjustments to income from operations(1) 8,618 5,022 2,455 16,095 Adjusted income from operations $ 149,914 $ 45,511 $ 2,023 $ 197,448 Adjusted gross profit $ 411,618 $ 177,957 $ 67,439 $ 657,014 Adjusted income from operations 149,914 45,511 2,023 197,448 Adjusted operating margin - excluding restructuring and loss on divestiture 36.4 % 25.6 % 3.0 % 30.1 % NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2025 Income (loss) from operations $ 621,836 $ 183,783 $ (10,658 ) $ 794,961 Severance and other personnel expenses 10,185 14,961 4,840 29,986 Other selling, general, and administrative expenses 384 1,167 7,235 8,786 Total adjustments to income from operations(2) 10,569 16,128 12,075 38,772 Adjusted income from operations $ 632,405 $ 199,911 $ 1,417 $ 833,733 Adjusted gross profit $ 1,706,329 $ 741,921 $ 281,160 $ 2,729,410 Adjusted income from operations 632,405 199,911 1,417 833,733 Adjusted operating margin - excluding restructuring and loss on divestiture 37.1 % 26.9 % 0.5 % 30.5 % Three Months Ended December 31, 2025 Twelve Months Ended December 31, 2025 $ in 000's per share $ in 000's per share Net income and per share (diluted) $ 136,321 $ 1.12 $ 587,081 $ 4.83 Restructuring and related costs, pre-tax 16,594 0.14 36,664 0.30 (Gain) loss on divestiture, pre-tax (499 ) — 2,108 0.02 Tax effect of adjustments (3,177 ) (0.03 ) (7,657 ) (0.06 ) Adjusted net income and per share (diluted) $ 149,239 $ 1.23 $ 618,196 $ 5.09 (1)The three months ended December 31, 2025 includes severance and other personnel expenses of $15.2 million related to workforce reductions and $0.9 million of other charges.(2)The twelve months ended December 31, 2025 includes severance and other personnel expenses of $30.0 million primarily related to workforce reductions and $8.8 million of other charges, which include a $6.3 million impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building. Non-GAAP Reconciliation: NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended December 31, 2024 Income (loss) from operations $ 132,528 $ 51,827 $ (556 ) $ 183,799 Severance and other personnel expenses 1,154 1,017 1,574 3,745 Other selling, general, and administrative expenses 671 2,281 (6,088 ) (3,136 ) Total adjustments to income (loss) from operations(1) 1,825 3,298 (4,514 ) 609 Adjusted income (loss) from operations $ 134,353 $ 55,125 $ (5,070 ) $ 184,408 Adjusted gross profit $ 403,764 $ 203,801 $ 77,058 $ 684,623 Adjusted income (loss) from operations 134,353 55,125 (5,070 ) 184,408 Adjusted operating margin - excluding restructuring and loss on divestiture 33.3 % 27.0 % N/M 26.9 % NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2024 Income (loss) from operations $ 531,292 $ 212,476 $ (74,627 ) $ 669,141 Severance and other personnel expenses 10,176 6,872 7,004 24,052 Other selling, general, and administrative expenses 6,885 4,729 54,542 66,156 Total adjustments to income from operations(2) 17,061 11,601 61,546 90,208 Adjusted income (loss) from operations $ 548,353 $ 224,077 $ (13,081 ) $ 759,349 Adjusted gross profit $ 1,641,195 $ 802,549 $ 321,270 $ 2,765,014 Adjusted income (loss) from operations 548,353 224,077 (13,081 ) 759,349 Adjusted operating margin - excluding restructuring and loss on divestiture 33.4 % 27.9 % N/M 27.5 % Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 $ in 000's per share $ in 000's per share Net income and per share (diluted) $ 149,306 $ 1.22 $ 465,690 $ 3.86 Restructuring and related costs, pre-tax 13,183 0.11 45,746 0.38 (Gain) loss on divestiture, pre-tax (12,574 ) (0.10 ) 44,462 0.37 Tax effect of adjustments (1,851 ) (0.02 ) (11,773 ) (0.10 ) Adjusted net income and per share (diluted) $ 148,064 $ 1.21 $ 544,125 $ 4.51 (1)The three months ended December 31, 2024 includes severance and other personnel expenses of $3.7 million related to workforce reductions and a $3.1 million net gain driven by a $12.6 million favorable adjustment to the loss on the divestiture of our Europe Surface Transportation business, partially offset by impairments related to reducing our facilities footprint.(2)The twelve months ended December 31, 2024 includes severance and other personnel expenses of $24.1 million related to workforce reductions and $66.2 million of other charges, which includes a $44.5 million loss on the divestiture of our Europe Surface Transportation business and impairments related to reducing our facilities footprint and of internally developed software. Condensed Consolidated Statements of Income (unaudited, in thousands, except per share data) Three Months Ended December 31, Twelve Months Ended December 31, 2025 2024 % change 2025 2024 % change Revenues: Transportation $ 3,571,694 $ 3,870,927 (7.7 )% $ 14,823,804 $ 16,353,745 (9.4 )% Sourcing 340,940 313,729 8.7 % 1,408,959 1,371,211 2.8 % Total revenues 3,912,634 4,184,656 (6.5 )% 16,232,763 17,724,956 (8.4 )% Costs and expenses: Purchased transportation and related services 2,948,469 3,218,573 (8.4 )% 12,235,163 13,719,935 (10.8 )% Purchased products sourced for resale 307,151 281,460 9.1 % 1,268,190 1,240,007 2.3 % Personnel expenses 336,981 354,381 (4.9 )% 1,370,158 1,456,249 (5.9 )% Other selling, general, and administrative expenses 138,680 146,443 (5.3 )% 564,291 639,624 (11.8 )% Total costs and expenses 3,731,281 4,000,857 (6.7 )% 15,437,802 17,055,815 (9.5 )% Income from operations 181,353 183,799 (1.3 )% 794,961 669,141 18.8 % Interest and other income/expense, net (14,825 ) (15,350 ) (3.4 )% (72,504 ) (89,937 ) (19.4 )% Income before provision for income taxes 166,528 168,449 (1.1 )% 722,457 579,204 24.7 % Provision for income taxes 30,207 19,143 57.8 % 135,376 113,514 19.3 % Net income $ 136,321 $ 149,306 (8.7 )% $ 587,081 $ 465,690 26.1 % Net income per share (basic) $ 1.14 $ 1.24 (8.1 )% $ 4.88 $ 3.89 25.4 % Net income per share (diluted) $ 1.12 $ 1.22 (8.2 )% $ 4.83 $ 3.86 25.1 % Weighted average shares outstanding (basic) 119,885 120,589 (0.6 )% 120,242 119,805 0.4 % Weighted average shares outstanding (diluted) 121,658 122,291 (0.5 )% 121,502 120,679 0.7 % Business Segment Information (unaudited, in thousands, except average employee headcount) NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended December 31, 2025 Total revenues $ 2,810,373 $ 730,983 $ 371,278 $ 3,912,634 Adjusted gross profits(1) 411,618 177,957 67,439 657,014 Income (loss) from operations 141,296 40,489 (432 ) 181,353 Depreciation and amortization 4,856 2,510 19,115 26,481 Total assets(2) 2,853,372 1,142,015 1,062,994 5,058,381 Average employee headcount 4,970 4,007 3,108 12,085 NAST Global Forwarding All Other and Corporate Consolidated Three Months Ended December 31, 2024 Total revenues $ 2,802,700 $ 883,968 $ 497,988 $ 4,184,656 Adjusted gross profits(1) 403,764 203,801 77,058 684,623 Income (loss) from operations 132,528 51,827 (556 ) 183,799 Depreciation and amortization 4,891 2,357 17,032 24,280 Total assets(2) 2,874,701 1,335,178 1,088,047 5,297,926 Average employee headcount 5,348 4,542 3,979 13,869 NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2025 Total revenues $ 11,562,714 $ 3,090,018 $ 1,580,031 $ 16,232,763 Adjusted gross profits(1) 1,706,329 741,921 281,160 2,729,410 Income (loss) from operations 621,836 183,783 (10,658 ) 794,961 Depreciation and amortization 19,354 9,087 74,377 102,818 Total assets(2) 2,853,372 1,142,015 1,062,994 5,058,381 Average employee headcount 5,158 4,284 3,291 12,733 NAST Global Forwarding All Other and Corporate Consolidated Twelve Months Ended December 31, 2024 Total revenues $ 11,727,539 $ 3,805,018 $ 2,192,399 $ 17,724,956 Adjusted gross profits(1) 1,641,195 802,549 321,270 2,765,014 Income (loss) from operations 531,292 212,476 (74,627 ) 669,141 Depreciation and amortization 20,670 10,602 65,888 97,160 Total assets(2) 2,874,701 1,335,178 1,088,047 5,297,926 Average employee headcount 5,696 4,678 4,012 14,386 (1)Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.(2) All cash and cash equivalents are included in All Other and Corporate. Condensed Consolidated Balance Sheets (unaudited, in thousands) December 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 160,871 $ 145,762 Receivables, net of allowance for credit loss 2,360,829 2,383,709 Contract assets, net of allowance for credit loss 156,441 200,332 Prepaid expenses and other 120,402 102,166 Assets held for sale — 137,634 Total current assets 2,798,543 2,969,603 Property and equipment, net of accumulated depreciation and amortization 116,362 127,189 Right-of-use lease assets 278,323 334,738 Intangible and other assets, net of accumulated amortization 1,865,153 1,866,396 Total assets $ 5,058,381 $ 5,297,926 Liabilities and stockholders’ investment Current liabilities: Accounts payable and outstanding checks $ 1,241,276 $ 1,212,132 Accrued expenses: Compensation 188,838 180,801 Transportation expense 120,708 153,274 Income taxes 33,745 9,326 Other accrued liabilities 174,955 173,318 Current lease liabilities 72,180 72,842 Current portion of debt — 455,792 Liabilities held for sale — 67,413 Total current liabilities 1,831,702 2,324,898 Long-term debt 1,089,438 921,857 Noncurrent lease liabilities 233,768 290,641 Noncurrent income taxes payable 34,875 23,472 Deferred tax liabilities 21,526 12,565 Other long-term liabilities 1,425 2,442 Total liabilities 3,212,734 3,575,875 Total stockholders’ investment 1,845,647 1,722,051 Total liabilities and stockholders’ investment $ 5,058,381 $ 5,297,926 Condensed Consolidated Statements of Cash Flow (unaudited, in thousands, except operational data) Twelve Months Ended December 31, Operating activities: 2025 2024 Net income $ 587,081 $ 465,690 Adjustments to reconcile net income to net cash provided by (used for) operating activities: Depreciation and amortization 102,818 97,160 Provision for credit losses 8,174 6,688 Stock-based compensation 80,070 84,590 Deferred income taxes 9,462 (80,067 ) Excess tax benefit on stock-based compensation (29,153 ) (9,411 ) Loss on disposal groups held for sale (856 ) 32,794 Other operating activities 8,178 20,682 Changes in operating elements: Receivables 95,359 (164,255 ) Contract assets 44,283 (11,969 ) Prepaid expenses and other (17,470 ) 60,740 Right of use asset 55,185 (5,937 ) Accounts payable and outstanding checks 10,783 (79,943 ) Accrued compensation 6,264 49,681 Accrued transportation expenses (32,566 ) 6,756 Accrued income taxes 64,658 15,545 Other accrued liabilities (17,926 ) 12,791 Lease liability (63,482 ) 5,076 Other assets and liabilities 3,657 2,473 Net cash provided by operating activities 914,519 509,084 Investing activities: Purchases of property and equipment (19,628 ) (22,653 ) Purchases and development of software (50,915 ) (51,635 ) Acquisitions, net of cash acquired (11,864 ) — Proceeds from divestiture 27,737 — Net cash used for investing activities (54,670 ) (74,288 ) Financing activities: Proceeds from stock issued for employee benefit plans 159,197 114,890 Stock tendered for payment of withholding taxes (76,917 ) (32,217 ) Repurchase of common stock (354,652 ) — Cash dividends (301,376 ) (294,772 ) Proceeds from long-term borrowings 949,000 10,000 Payments on long-term borrowings (1,211,000 ) (10,000 ) Proceeds from short-term borrowings 1,548,800 3,192,500 Payments on short-term borrowings (1,575,800 ) (3,396,500 ) Net cash used for financing activities (862,748 ) (416,099 ) Effect of exchange rates on cash and cash equivalents 7,232 (8,152 ) Net change in cash and cash equivalents, including cash and cash equivalents classified within assets held for sale 4,333 10,545 Plus: net decrease (increase) in cash and cash equivalents within assets held for sale 10,776 (10,307 ) Cash and cash equivalents, beginning of period 145,762 145,524 Cash and cash equivalents, end of period $ 160,871 $ 145,762 As of December 31, Operational Data: 2025 2024 Employees 11,855 13,781 CHRW-IR FOR INQUIRIES, CONTACT: Chuck Ives, Senior Director of Investor Relations Email: [email protected] Source: C.H. Robinson