Expeditors International Reports Strong Revenue Growth, Net Earnings Increase in Q3 2024

Expeditors International of Washington, Inc. reported significant financial performance for the third quarter and the nine months ended September 30, 2024. The company achieved revenues of $3,000,131,000 for Q3 2024, a substantial increase from $2,190,001,000 in Q3 2023. For the nine months, total revenues reached $7,645,810,000, compared to $7,022,342,000 in the same period last year.

The growth in revenue was driven by strong demand in both airfreight and ocean freight services. Airfreight services revenue rose to $986,950,000 in Q3 2024, up 36% from $724,331,000 in Q3 2023. Ocean freight and ocean services saw an even more pronounced increase, with revenues soaring 82% to $1,017,618,000 from $560,281,000 in the prior year. The increase in ocean freight was attributed to importers front-loading shipments, resulting in a 12% rise in containers shipped.

Operating income for Q3 2024 was reported at $301,524,000, a 40% increase from $216,069,000 in Q3 2023. However, total operating expenses also rose significantly to $2,698,607,000 from $1,973,932,000, reflecting increased costs associated with higher volumes and rates. Net earnings for Q3 2024 were $229,926,000, compared to $170,843,000 in Q3 2023, marking a 35% increase. For the nine months, net earnings decreased slightly to $575,477,000 from $592,634,000 in the previous year.

The company’s cash and cash equivalents as of September 30, 2024, totaled $1,293,173,000, down from $1,512,883,000 at the end of 2023. Accounts receivable increased significantly to $2,176,959,000, up from $1,532,599,000, indicating higher sales volume. Total current assets rose to $4,083,045,000 from $3,435,196,000, while total assets increased to $5,170,917,000 from $4,523,809,000.

In terms of shareholder returns, Expeditors repurchased 5,057 shares at an average price of $119.21 during the nine months ended September 30, 2024, compared to 10,522 shares at an average price of $113.97 in the same period of 2023. The company declared a semi-annual dividend of $0.73 per share on November 4, 2024, consistent with the previous year’s dividend of $0.69 per share.

Despite the positive revenue growth, the company faced challenges, including a decrease in net cash from operating activities, which fell to $89,972,000 in Q3 2024 from $189,980,000 in Q3 2023, primarily due to increased working capital investments. Additionally, the company reported material weaknesses in internal controls over financial reporting, which management is actively remediating.