Expeditors International's first-quarter gross revenue trend flipped positive year over year (up 4%) on strong airfreight tonnage and customs brokerage growth, partly offset by tough comps for ocean demand and pricing (previous import pull-forward). Operating profitability also inflected upward.
Expeditors has a long history of impressive execution and industry-leading profitability throughout the business cycle. Its non-asset-based operating model has generated average returns on capital near 40% over the past decade.
Bears
US tariffs (along with a potential oil price shock) pose near-term macroeconomic risk for Expeditors' retail and industrial end markets.
Based in the US, Expeditors International of Washington is a non-asset-based third-party logistics provider, mainly focused on international freight forwarding. Its offers freight consolidation and forwarding, customs brokerage, warehousing and distribution, purchase order management, vendor consolidation, and numerous other value-added logistics services. It employs sophisticated IT systems and contracts with airlines and ocean carriers to move customers' freight across the globe. The firm operates more than 200 full-service office locations worldwide, in addition to numerous satellite locations. In 2025, Expeditors derived 36% of consolidated gross revenue from airfreight, 25% from ocean freight, and 39% from customs brokerage and other services.