EXPD

Expeditors is a best-in-class, non-asset-based logistics provider that converts a volatile freight market into consistent, capital-light profits. The balance sheet is pristine: $1.31B cash against $2.36B equity, current assets of $3.76B versus $2.07B current liabilities, and no need to own aircraft or ships. Return on equity is an exceptional 34.4%, and the company returned roughly $874M to shareholders in FY2025 via $667M buybacks and $207M dividends while shares outstanding shrank 3.3%. Operating cash flow surged 39.1% to $1.01B against just $53.1M of capex, underscoring the model's cash conversion.

The problem is growth and price. Revenue of $11.1B grew only 4.4% and net income of $810M was flat year-over-year, well below the $1.36-1.42B earned in the 2021-2022 freight boom. The MD&A is candid that 2025's revenue gain came despite a drop in ocean revenues, with changing trade tariffs creating volatility in sell and buy rates as importers shifted volumes and timing. As a pure intermediary marking up purchased capacity, Expeditors' earnings track freight cycles it does not control.