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0001043277false00010432772025-04-302025-04-30
    
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: April 30, 2025
(Date of earliest event reported)
CHR_Logomark_299CP_CMYK (003).jpg
C.H. ROBINSON WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)

Commission File Number: 000-23189
Delaware   41-1883630
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)

14701 Charlson Road
Eden Prairie, Minnesota 55347
(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: 952-937-8500

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.10 par value CHRW Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐




    
Item 2.02    Results of Operations and Financial Condition.

The following information is being "furnished" in accordance with the General Instruction B.2 of Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Furnished herewith as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein are the text of the Company's announcement regarding its financial results for the quarter ended March 31, 2025 and its earnings conference call slides.


Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

Number Description
99.1
99.2
104 The cover page from the Current Report on Form 8-K formatted in Inline XBRL




    
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
C.H. ROBINSON WORLDWIDE, INC.
By: /s/ Nicole H. Strydom
Nicole H. Strydom
Deputy General Counsel and Assistant Secretary
Date: April 30, 2025


EX-99.1 2 ex991earningsreleaseq10331.htm EX-99.1 Document

relea_imagea08.jpg
C.H. Robinson
14701 Charlson Rd.
Eden Prairie, MN 55347
www.chrobinson.com

FOR IMMEDIATE RELEASE
FOR INQUIRIES, CONTACT:
Chuck Ives, Senior Director of Investor Relations
Email: chuck.ives@chrobinson.com

C.H. Robinson Reports 2025 First Quarter Results
Eden Prairie, MN, April 30, 2025 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended March 31, 2025.
First Quarter Highlights:
•Company continues its disciplined execution of the strategic initiatives shared at its 2024 Investor Day, generating year-over-year and sequential market share gains, gross margin expansion and higher operating leverage
•Gross profits increased 1.5% to $657.4 million
•Income from operations increased 39.1% to $176.9 million
•Adjusted operating margin(1) increased 700 basis points to 26.3%
•Adjusted operating margin, excluding lease impairment charge and loss on divestiture(1), increased 630 basis points to 27.6%
•Diluted earnings per share (EPS) increased 42.3% to $1.11
•Adjusted diluted EPS(1) increased 36.0% to $1.17
•Cash generated by operations increased by $139.9 million to $106.5 million
(1) Adjusted operating margin, adjusted operating margin, excluding lease impairment charge and loss on divestiture, 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 10 through 12 for further discussion and GAAP to Non-GAAP Reconciliations.

"Our first quarter results reflect progress in the disciplined execution of the strategies that we shared at our Investor Day in December — to take market share and expand our margins. We’re not waiting for a market recovery to improve our financial results, and the strategies that the Robinson team is executing are relevant in any market environment," said President and Chief Executive Officer, Dave Bozeman. "In our North American Surface Transportation business, we outgrew the market in both truckload and less-than-truckload ("LTL") while expanding gross margins and improving productivity — both year-over-year and sequentially.
1


In our Global Forwarding business, we continued to win new business and optimize our expenses through further increases in productivity. Overall, we delivered a 39% year-over-year increase in our enterprise’s income from operations. And regardless of the market environment, we will continue to lean into the self-help initiatives that enabled our first quarter market share growth and margin expansion."

"This includes continuing to arm our industry-leading talent with innovative tools that help us materially elevate the customer and carrier experience. We are innovating to harness the power of artificial intelligence and driving automation across the full lifecycle of a load, which gives our customers better service, while also helping us improve our performance by automating tasks that free up our talented people to work on more strategic and higher value work."

"Our people have further embraced our new operating model and the discipline needed to generate higher highs and higher lows across market cycles," Bozeman added. "Despite a challenging freight market, they like the transformation happening at Robinson and the momentum that we have. The vast experience of our resilient employees, and the value they bring to our customers and carriers, are reflected in our Q1 results."

"More recently, new tariffs and fluid trade policies have created market uncertainty and a lack of clarity, making planning activities more difficult and causing many customers to adopt a wait-and-see approach until they understand the impact on consumer spending and global demand," said Bozeman. "While we are certainly not immune to global market dynamics, we remain confident in our strategy and our people. Nothing about the current environment changes that."

"I want to thank our people for their relentless efforts to provide exceptional service to our customers and carriers, for embracing the Robinson operating model and continuing to execute with discipline, and for continuing to support each other as we navigate a changing marketplace. We’ve built a resilient organization, with a multi-horizon strategy that looks around corners and is underpinned by an operating model that provides stability by mandating execution of the strategy. I believe the strategies, disciplines and practices that we have implemented at Robinson can endure through a prolonged freight recession, through a market inflection, and through any part of the freight cycle."
2


Summary of First Quarter of 2025 Results Compared to the First Quarter of 2024
•Total revenues decreased 8.3% to $4.0 billion, primarily driven by the divestiture of our Europe Surface Transportation business, lower volume in our North America truckload services, and lower pricing in our ocean services.
•Gross profits increased 1.5% to $657.4 million. Adjusted gross profits increased 2.3% to $673.1 million, primarily driven by higher adjusted gross profit per transaction in our truckload and LTL services.
•Operating expenses decreased 6.5% to $496.2 million. Personnel expenses decreased 8.1% to $348.6 million, primarily due to cost optimization efforts and productivity improvements, the divestiture of our Europe Surface Transportation business, and prior year restructuring charges related to workforce reductions. Average employee headcount declined 11.0%. Other selling, general and administrative (“SG&A”) expenses decreased 2.5% to $147.7 million, primarily due to restructuring charges in the prior year related to the impairment of internally developed software.
•Income from operations totaled $176.9 million, up 39.1% due to both the increase in adjusted gross profit and the decrease in operating expenses. Adjusted operating margin(1) of 26.3% increased 700 basis points.
•Interest and other income/expense, net totaled $20.1 million of expense, consisting primarily of $16.8 million of interest expense, which decreased $5.3 million versus last year due to a lower average debt balance and lower variable interest rates, and a $3.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate in the quarter was 13.7%, compared to 15.8% in the first quarter of 2024. The lower rate in the first quarter of 2025 was driven by higher tax benefits related to stock-compensation deliveries, partially offset by lower U.S. tax credits and the impact of higher pre-tax income.
•Net income totaled $135.3 million, up 45.6% from a year ago. Diluted EPS of $1.11 increased 42.3%. Adjusted diluted EPS(1) of $1.17 increased 36.0%.
(1) Adjusted operating margin 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 10 through 12 for further discussion and GAAP to Non-GAAP Reconciliations.

3


North American Surface Transportation (“NAST”) Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):
Three Months Ended March 31,
2025 2024 % change
Total revenues $ 2,868,420  $ 3,000,313  (4.4) %
Adjusted gross profits(1)
418,324  397,110  5.3  %
Income from operations 143,671  108,895  31.9  %
____________________________________________
(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.

First quarter total revenues for the NAST segment totaled $2.9 billion, a decrease of 4.4% over the prior year, primarily driven by lower truckload volume, reflecting a decline in market demand for freight. NAST adjusted gross profits increased 5.3% in the quarter to $418.3 million. Adjusted gross profits in truckload increased 6.9% due to an 11.5% increase in adjusted gross profit per shipment, partially offset by a 4.5% decrease in truckload shipments. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, increased approximately 4.0% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, increased 3.0%, resulting in an 11.5% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 4.9% versus the year-ago period, driven by a 4.0% increase in adjusted gross profit per order and a 1.0% increase in LTL volume. NAST overall volume decreased approximately 1.0% for the quarter and outpaced the market indices. Operating expenses decreased 4.7%, primarily due to cost optimization efforts and productivity improvements and prior year restructuring charges related to workforce reductions. First quarter average employee headcount was down 12.1% year-over-year. Income from operations increased 31.9% to $143.7 million, and adjusted operating margin expanded 690 basis points to 34.3%.


4


Global Forwarding Results
Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
Three Months Ended March 31,
2025 2024 % change
Total revenues $ 774,888  $ 858,637  (9.8) %
Adjusted gross profits(1)
184,628  180,045  2.5  %
Income from operations 42,943  31,552  36.1  %
____________________________________________
(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.

First quarter total revenues for the Global Forwarding segment decreased 9.8% to $774.9 million, primarily driven by lower pricing in our ocean services. Adjusted gross profits increased 2.5% in the quarter to $184.6 million. Ocean adjusted gross profits increased 2.2%, driven by a 1.5% increase in shipments and a 1.0% increase in adjusted gross profit per shipment. Air adjusted gross profits increased 7.1%, driven by an 11.0% increase in adjusted gross profit per metric ton shipped, partially offset by a 3.0% decline in metric tons shipped. Customs adjusted gross profits increased 3.2%, driven by a 1.5% increase in adjusted gross profit per transaction and a 1.5% increase in transaction volume. Operating expenses decreased 4.6%, primarily due to cost optimization efforts and productivity improvements and prior year restructuring charges related to workforce reductions. First quarter average employee headcount decreased 7.4% year-over-year. Income from operations increased 36.1% to $42.9 million, and adjusted operating margin expanded 580 basis points to 23.3% in the quarter.


5


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 March 31,
2025 2024 % change
Total revenues $ 403,432  $ 553,361  (27.1) %
Adjusted gross profits(1):
Robinson Fresh $ 37,653  $ 33,736  11.6  %
Managed Solutions 27,846  28,936  (3.8) %
Other Surface Transportation 4,637  17,902  (74.1) %
____________________________________________
(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.

First quarter Robinson Fresh adjusted gross profits increased 11.6% to $37.7 million due to an increase in integrated supply chain solutions for retail and foodservice customers. Managed Solutions adjusted gross profits decreased 3.8% due to lower transaction volume. Other Surface Transportation adjusted gross profits decreased 74.1% to $4.6 million, primarily due to the divestiture of our Europe Surface Transportation business.

Other Income Statement Items
Interest and other income/expense, net totaled $20.1 million of expense, consisting primarily of $16.8 million of interest expense, which decreased $5.3 million versus the first quarter of 2024 due to a lower average debt balance and lower variable interest rates, and a $3.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
The first quarter effective tax rate was 13.7%, down from 15.8% in the first quarter of 2024. The lower rate in the first quarter of 2025 was driven by higher tax benefits related to stock-compensation deliveries, partially offset by lower U.S. tax credits and the impact of higher pre-tax income. For 2025, we expect our full-year effective tax rate to be 18% to 20%.
Diluted weighted average shares outstanding in the quarter were up 1.9% year-over-year.


6


Cash Flow Generation and Capital Distribution
Cash generated from operations totaled $106.5 million in the first quarter, compared to $33.3 million of cash used by operations in the first quarter of 2024. The $139.9 million increase in cash flow from operations was primarily related to a $42.4 million increase in net income and a $136.8 million decrease in cash used by changes in net operating working capital, due to an $11.1 million sequential increase in net operating working capital in the first quarter of 2025 compared to a $147.9 million sequential increase in the first quarter of 2024.
In the first quarter of 2025, cash returned to shareholders totaled $175.0 million, with $77.5 million in cash dividends and $97.5 million in repurchases of common stock.
Capital expenditures totaled $16.1 million in the quarter. Capital expenditures for 2025 are expected to be $65 million to $75 million.

7



About C.H. Robinson
C.H. Robinson delivers logistics like no one else™. Companies around the world look to us to reimagine supply chains, advance freight technology, and solve logistics challenges—from the simple to the most complex. 83,000 customers and 450,000 contract carriers in our network trust us to manage 37 million shipments and $23 billion in freight annually. Through our unmatched expertise, unrivaled scale, and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air, and beyond. As a responsible global citizen, we make supply chains more sustainable and 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; cyber-security 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; risks associated with cybersecurity events; 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 First Quarter 2025 Earnings Conference Call
Wednesday, April 30, 2025; 5:00 p.m. Eastern Time
Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at chrobinson.com.
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756

8



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 March 31,
2025 2024 % change
Adjusted gross profits(1):
  Transportation
     Truckload $ 262,288  $ 257,413  1.9  %
     LTL 148,411  141,136  5.2  %
     Ocean 115,335  112,858  2.2  %
     Air 32,810  30,532  7.5  %
     Customs 26,920  26,095  3.2  %
     Other logistics services 54,781  59,558  (8.0) %
     Total transportation 640,545  627,592  2.1  %
  Sourcing 32,543  30,137  8.0  %
Total adjusted gross profits $ 673,088  $ 657,729  2.3  %
____________________________________________
(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.
9


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 March 31,
2025 2024 % change
Revenues:
Transportation $ 3,721,915  $ 4,082,588  (8.8) %
Sourcing 324,825  329,723  (1.5) %
Total revenues 4,046,740  4,412,311  (8.3) %
Costs and expenses:
Purchased transportation and related services 3,081,370  3,454,996  (10.8) %
Purchased products sourced for resale 292,282  299,586  (2.4) %
Direct internally developed software amortization 15,666  10,222  53.3  %
Total direct expenses 3,389,318  3,764,804  (10.0) %
Gross profit $ 657,422  $ 647,507  1.5  %
Plus: Direct internally developed software amortization 15,666  10,222  53.3  %
Adjusted gross profit $ 673,088  $ 657,729  2.3  %
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, lease impairment charge, and/or loss on divestiture is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring, a lease impairment charge, and/or a loss from a divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring, lease impairment charge, 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, lease impairment charge, and/or loss on divestiture are presented below:
Three Months Ended March 31,
2025 2024 % change
Total revenues $ 4,046,740  $ 4,412,311  (8.3  %)
Income from operations 176,853  127,133  39.1  %
Operating margin 4.4  % 2.9  % 150 bps
Adjusted gross profit $ 673,088  $ 657,729  2.3  %
Income from operations 176,853  127,133  39.1  %
Adjusted operating margin 26.3  % 19.3  % 700   bps
Adjusted gross profit $ 673,088  $ 657,729  2.3  %
Adjusted income from operations 185,466  140,076  32.4  %
Adjusted operating margin - excluding restructuring, lease impairment charge, and/or loss on divestiture
27.6  % 21.3  % 630   bps
10


GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)

Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, lease impairment charge 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, lease impairment, 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, lease impairment charge, 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):
NAST Global Forwarding All
Other and Corporate
Consolidated
Three Months Ended March 31, 2025
Income (loss) from operations $ 143,671  $ 42,943  $ (9,761) $ 176,853 
Severance and other personnel expenses —  —  1,187  1,187 
Other selling, general, and administrative expenses —  —  7,426  7,426 
Total adjustments to income (loss) from operations(1)
—  —  8,613  8,613 
Adjusted income (loss) from operations $ 143,671  $ 42,943  $ (1,148) $ 185,466 
Adjusted gross profit $ 418,324  $ 184,628  $ 70,136  $ 673,088 
Adjusted income (loss) from operations 143,671  42,943  (1,148) 185,466 
Adjusted operating margin - excluding lease impairment charge and loss on divestiture 34.3  % 23.3  % N/M 27.6  %
Three Months Ended March 31, 2025
$ in 000's per share
Net income and per share (diluted) $ 135,302  $ 1.11 
Lease impairment charge, pre-tax 6,259  0.05 
Loss on divestiture, pre-tax 2,354  0.02 
Tax effect of adjustments (1,026) (0.01)
Adjusted net income and per share (diluted) $ 142,889  $ 1.17 
____________________________________________
(1) The three months ended March 31, 2025 includes severance and other personnel expenses of $1.2 million related to the divestiture of our Europe Surface Transportation business and $7.4 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.

11


NAST Global Forwarding All
Other and Corporate
Consolidated
Three Months Ended March 31, 2024
Income (loss) from operations $ 108,895  $ 31,552  $ (13,314) $ 127,133 
Severance and other personnel expenses 3,026  3,215  1,701  7,942 
Other selling, general, and administrative expenses 1,878  261  2,862  5,001 
Total adjustments to income (loss) from operations(1)
4,904  3,476  4,563  12,943 
Adjusted income (loss) from operations $ 113,799  $ 35,028  $ (8,751) $ 140,076 
Adjusted gross profit $ 397,110  $ 180,045  $ 80,574  $ 657,729 
Adjusted income (loss) from operations 113,799  35,028  (8,751) 140,076 
Adjusted operating margin - excluding restructuring 28.7  % 19.5  % N/M 21.3  %
Three Months Ended March 31, 2024
$ in 000's per share
Net income and per share (diluted) $ 92,904  $ 0.78 
Restructuring and related costs, pre-tax 12,943  0.11 
Tax effect of adjustments (3,101) (0.03)
Adjusted net income and per share (diluted) $ 102,746  $ 0.86 
____________________________________________
(1) The three months ended March 31, 2024 includes restructuring expenses of $7.9 million related to workforce reductions and $5.0 million of other charges, primarily related to an impairment of internally developed software due to reprioritizing the efforts of our product and technology teams on fewer initiatives to
accelerate the capabilities of our platform.
12


Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share data)
Three Months Ended March 31,
2025 2024 % change
Revenues:
 Transportation $ 3,721,915  $ 4,082,588  (8.8) %
 Sourcing 324,825  329,723  (1.5) %
   Total revenues 4,046,740  4,412,311  (8.3) %
Costs and expenses:
 Purchased transportation and related services 3,081,370  3,454,996  (10.8) %
 Purchased products sourced for resale 292,282  299,586  (2.4) %
 Personnel expenses 348,553  379,087  (8.1) %
Other selling, general, and administrative expenses 147,682  151,509  (2.5) %
   Total costs and expenses 3,869,887  4,285,178  (9.7) %
Income from operations 176,853  127,133  39.1  %
Interest and other income/expense, net (20,051) (16,780) 19.5  %
Income before provision for income taxes 156,802  110,353  42.1  %
Provision for income taxes 21,500  17,449  23.2  %
Net income $ 135,302  $ 92,904  45.6  %
Net income per share (basic) $ 1.12  $ 0.78  43.6  %
Net income per share (diluted) $ 1.11  $ 0.78  42.3  %
Weighted average shares outstanding (basic) 120,969  119,344  1.4  %
Weighted average shares outstanding (diluted) 121,932  119,604  1.9  %


13


Business Segment Information
(unaudited, in thousands, except average employee headcount)
NAST Global Forwarding
All
Other and Corporate
Consolidated
Three Months Ended March 31, 2025
Total revenues $ 2,868,420  $ 774,888  $ 403,432  $ 4,046,740 
Adjusted gross profits(1)
418,324  184,628  70,136  673,088 
Income (loss) from operations 143,671  42,943  (9,761) 176,853 
Depreciation and amortization 4,809  2,139  18,694  25,642 
Total assets(2)
2,989,401  1,292,915  943,798  5,226,114 
Average employee headcount 5,280  4,514  3,553  13,347 
NAST Global Forwarding
All
Other and Corporate
Consolidated
Three Months Ended March 31, 2024
Total revenues $ 3,000,313  $ 858,637  $ 553,361  $ 4,412,311 
Adjusted gross profits(1)
397,110  180,045  80,574  657,729 
Income (loss) from operations 108,895  31,552  (13,314) 127,133 
Depreciation and amortization 5,350  2,844  15,684  23,878 
Total assets(2)
3,065,996  1,257,675  1,148,417  5,472,088 
Average employee headcount 6,004  4,876  4,110  14,990 
____________________________________________
(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.


14


Condensed Consolidated Balance Sheets
(unaudited, in thousands)
March 31, 2025 December 31, 2024
Assets
   Current assets:
     Cash and cash equivalents $ 129,942  $ 145,762 
     Receivables, net of allowance for credit loss 2,482,842  2,383,709 
     Contract assets, net of allowance for credit loss 197,488  200,332 
     Prepaid expenses and other 113,453  102,166 
     Assets held for sale —  137,634 
        Total current assets 2,923,725  2,969,603 
 
  Property and equipment, net of accumulated depreciation and amortization 123,041  127,189 
  Right-of-use lease assets 311,035  334,738 
  Intangible and other assets, net of accumulated amortization 1,868,313  1,866,396 
Total assets $ 5,226,114  $ 5,297,926 
Liabilities and stockholders’ investment
  Current liabilities:
     Accounts payable and outstanding checks $ 1,274,573  $ 1,212,132 
     Accrued expenses:
        Compensation 109,646  180,801 
        Transportation expense 151,203  153,274 
        Income taxes 21,479  9,326 
        Other accrued liabilities 168,675  173,318 
Current lease liabilities 69,935  72,842 
Current portion of debt 467,854  455,792 
Liabilities held for sale —  67,413 
        Total current liabilities 2,263,365  2,324,898 
Long-term debt 922,087  921,857 
Noncurrent lease liabilities 268,914  290,641 
Noncurrent income taxes payable 23,941  23,472 
Deferred tax liabilities 10,392  12,565 
Other long-term liabilities 2,690  2,442 
Total liabilities 3,491,389  3,575,875 
Total stockholders’ investment 1,734,725  1,722,051 
Total liabilities and stockholders’ investment $ 5,226,114  $ 5,297,926 

15


Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands, except operational data)
Three Months Ended March 31,
Operating activities: 2025 2024
Net income $ 135,302  $ 92,904 
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
 Depreciation and amortization 25,642  23,878 
 Provision for credit losses 1,315  2,813 
 Stock-based compensation 23,146  22,673 
 Deferred income taxes 15,675  (6,805)
 Excess tax benefit on stock-based compensation (7,032) (1,570)
 Change in loss on disposal group (569) — 
Other operating activities 6,665  5,596 
Changes in operating elements:
Receivables (70,602) (225,402)
Contract assets 2,898  (45,574)
Prepaid expenses and other (10,994) (11,409)
Right of use asset 19,315  (13,933)
Accounts payable and outstanding checks 58,699  84,966 
Accrued compensation (71,579) (23,407)
Accrued transportation expenses (2,071) 38,106 
Accrued income taxes 19,445  3,619 
Other accrued liabilities (12,535) 5,446 
Lease liability (26,615) 14,347 
Other assets and liabilities 426  429 
Net cash provided by (used for) operating activities 106,531  (33,323)
Investing activities:
Purchases of property and equipment (3,348) (8,620)
Purchases and development of software (12,734) (13,854)
Proceeds from divestiture 27,737  — 
Net cash provided by (used for) investing activities 11,655  (22,474)
Financing activities:
Proceeds from stock issued for employee benefit plans 16,808  5,405 
Stock tendered for payment of withholding taxes (49,829) (16,130)
Repurchase of common stock (47,700) — 
Cash dividends (77,490) (74,580)
Proceeds from short-term borrowings 682,000  912,000 
Payments on short-term borrowings (670,000) (792,000)
Net cash (used for) provided by financing activities (146,211) 34,695 
Effect of exchange rates on cash and cash equivalents 1,429  (2,584)
Net change in cash and cash equivalents, including cash and cash equivalents classified within assets held for sale (26,596) (23,686)
Plus: net decrease in cash and cash equivalents within assets held for sale 10,776  — 
Cash and cash equivalents, beginning of period 145,762  145,524 
Cash and cash equivalents, end of period $ 129,942  $ 121,838 
As of March 31,
Operational Data: 2025 2024
Employees 12,912  14,734 

Source: C.H. Robinson
CHRW-IR
16
EX-99.2 3 q12025earningsdeck.htm EX-99.2 q12025earningsdeck
2024 INVESTOR DAY April 30, 2025 Q1 2025 Earnings Presentation


 
Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation 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; cyber-security 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; risks associated with cybersecurity events; 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. 2©2025 C.H. Robinson Worldwide, Inc. All Rights Reserved.


 
Thoughts from President & CEO, Dave Bozeman 3 ■ Our Q1 results reflect progress in the disciplined execution of the strategic initiatives that we shared at our Investor Day in December — to take market share and expand our margins. ■ In NAST, we outgrew the market in both truckload and LTL while expanding gross margins and improving productivity — both year-over-year and sequentially. ■ In Global Forwarding, we continued to win new business and optimize our expenses through further increases in productivity. ■ Overall, we delivered a 39% year-over-year increase in our enterprise’s Q1 income from operations. ■ We will continue to lean into the self-help initiatives that enabled our Q1 market share growth and margin expansion. ■ While we are certainly not immune to global market dynamics, we remain confident in our strategy and our people. Nothing about the current environment changes that.


 
IMPROVEPLAN ACTIVATE • Enterprise Strategy Map • Divisional Strategy Maps • Shared Services Strategy Maps • Regular operating review cadence (daily, weekly, monthly, quarterly) • Binary view of success (green) or opportunity (red) • Enterprise • Divisional • Shared Services • Accountable action plans on all scorecards with red • Embrace and attack the red! • e.g., Gemba walks (go to the desk) Scorecard: Measurable and Actionable Inputs Defined Strategic Workstreams Clear Long-Term Strategy and Goals Continuous and Rigorous Measurement and Action Plans Continuously Improving. Never Stops. 1 2 3 4 5 Robinson Operating Model 4


 
Q1 Highlights 5 ■ NAST gained market share in truckload and LTL and increased its AGP/shipment Y/Y, through disciplined pricing and a cost of hire advantage ■ Global Forwarding (GF) grew ocean volume Y/Y and ocean and air AGP/shipment grew Y/Y ■ NAST & GF productivity improved Y/Y, driving NAST income from operations up 32% Y/Y and GF income from operations up 36% ■ Focused on providing best-in-class service to our customers and carriers, gaining profitable share in targeted market segments, streamlining our processes, applying Lean principles and leveraging generative AI to drive out waste and optimize our costs, with a disciplined operating model that arms our people with innovative tools, decouples headcount growth from volume growth and drives operating leverage $4.0B Total Revenues -8.3% Y/Y $673M Adj. Gross Profits(1) +2.3% Y/Y $177M Income from Operations +39.1% Y/Y $1.11 Net Income/Share +42.3% Y/Y Q1 2025 1. Adjusted gross profits, adjusted income from operations and adjusted net income per share are non-GAAP financial measures. Refer to pages 21 through 24 for further discussion and a GAAP to Non-GAAP reconciliation. $185M of Adj. Income from Operations(1) $1.17 of Adj. Net Income per Share(1)


 
All Other & Corporate ■ Robinson Fresh integrated supply chain solutions generating increased AGP ■ Managed Solutions Q1 AGP down 3.8% Y/Y ■ Other Surface Transportation AGP declined 74.1% Y/Y, due to divestiture of Europe Surface Transportation business Global Forwarding (GF) ■ Ongoing conflict in the Red Sea straining ocean capacity and buoying rates ■ Ocean volume grew 1.5% Y/Y & air tonnage declined 3.0% Y/Y ■ Continuing to diversify our trade lane and industry vertical exposure, which has reduced our exposure in the China to U.S. trade lane North American Surface Transportation (NAST) ■ Adjusted gross profit (AGP) per load/order increased Y/Y in both TL and LTL ■ NAST volume performance outpaced the market indices for the 8th quarter in a row ■ Significant opportunities for profitable growth remain in a highly fragmented market ■ Focused on initiatives that improve the customer and carrier experience and lower our cost to serve ■ Productivity improvements are being driven by removing waste, increasing automation and Gen AI Complementary Global Suite of Services 6 Q1 2025 Adjusted Gross Profits(2) +5.3% Y/Y -13.0% Y/Y +2.5% Y/Y 1. Measured over trailing twelve months. 2. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. Over half of total revenues is garnered from customers to whom we provide both surface transportation and global forwarding services.(1)


 
NAST Q1’25 Results by Service 7 ■ Truckload AGP per shipment increased 11.5% Y/Y due to disciplined pricing and procurement efforts, resulting in higher profit per shipment on transactional and contractual volume and a 140 bps Y/Y improvement in adjusted gross profit margin(2) ■ Total NAST volume down 1.0% Y/Y, reflecting the 8th consecutive quarter of market share growth(2) ■ Truckload volume down 4.5% Y/Y(2) ■ LTL volume up 1.0% Y/Y and AGP per order increased 4.0% Y/Y(2) ■ Other AGP decreased primarily due to a decrease in warehousing services 1Q25 1Q24 %▲ Truckload (“TL”) $252.0 $235.7 6.9% Less than Truckload (“LTL”) $146.4 $139.5 4.9% Other $20.0 $21.9 (9.0)% Total Adjusted Gross Profits $418.3 $397.1 5.3% Adjusted Gross Profit Margin % 14.6% 13.2% 140 bps Adjusted Gross Profits(1) ($ in millions) 1. Adjusted gross profits and adjusted gross profit margin % are non-GAAP financial measures explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Growth rates are rounded to the nearest 0.5 percent. First Quarter Highlights


 
Truckload Price and Cost Change (1)(2)(3) 8 Truckload Q1 Volume(2)(4) -4.5 % Price/Mile(1)(2)(3) +4.0 % Cost/Mile(1)(2)(3) +3.0 % Adjusted Gross Profit(4) +6.9 % 1. Price and cost change represents YoY change for North America truckload shipments across all segments. 2. Growth rates are rounded to the nearest 0.5 percent. 3. Pricing and cost measures exclude fuel surcharges and costs. 4. Truckload volume and adjusted gross profit growth represents YoY change for NAST truckload. ■ 65% / 35% truckload contractual / transactional volume mix in Q1 ■ Average routing guide depth of 1.3 in Managed Solutions business vs. 1.2 in Q1 last year Yo Y % C ha ng e in P ric e an d C os t p er M ile YoY Price Change YoY Cost Change 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -30% -20% -10% 0% 10% 20% 30% 40% 50%


 
Truckload AGP $ per Shipment Trend 9 ■ Disciplined pricing and capacity procurement efforts resulted in improved optimization of volume and AGP per truckload.(1) ■ Increasing adoption of digital brokerage offering is improving our cost of hire. N A ST A dj us te d G ro ss P ro fit $ p er T ru ck lo ad Sh ip m en t N A ST A djusted G ross Profit M argin % NAST Adjusted Gross Profit $ per Truckload Shipment (left axis) NAST Adjusted Gross Profit Margin % (right axis) Average NAST AGP $ per Truckload Shipment (left axis) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.


 
Global Forwarding Q1’25 Results by Service 10 1Q25 1Q24 %▲ Ocean $115.3 $112.9 2.2% Air $32.3 $30.2 7.1% Customs $26.9 $26.1 3.2% Other $10.1 $10.8 (7.5)% Total Adjusted Gross Profits $184.6 $180.0 2.5% Adjusted Gross Profit Margin % 23.8% 21.0% 280 bps Adjusted Gross Profits (1) ($ in millions) ■ Ongoing conflict in the Red Sea continued to cause vessel re-routing, which is putting a strain on ocean capacity and buoying rates ■ Ocean AGP increased due to a 1.5% increase in shipments and a 1.0% increase in AGP per shipment(2) ■ Air AGP increased due to an 11.0% increase in AGP per metric ton shipped, partially offset by a 3.0% decline in metric tons shipped(2) ■ Customs AGP increased due to a 1.5% increase in volume and a 1.5% increase in adjusted gross profit per transaction(2) 1. Adjusted gross profits and adjusted gross profit margin % are non-GAAP financial measures explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Growth rates are rounded to the nearest 0.5 percent. First Quarter Highlights


 
All Other & Corporate Q1’25 Results 11 Robinson Fresh ■ Increased AGP due to an increase in integrated supply chain solutions for retail and foodservice customers Managed Solutions ■ Decline in AGP due to lower transaction volume Other Surface Transportation ■ Decline in AGP primarily driven by the divestiture of our Europe Surface Transportation business on February 1, 2025 1Q25 1Q24 %▲ Robinson Fresh $37.7 $33.7 11.6% Managed Solutions $27.8 $28.9 (3.8)% Other Surface Transportation $4.6 $17.9 (74.1)% Total $70.1 $80.6 (13.0)% Adjusted Gross Profits (1) ($ in millions) 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. First Quarter Highlights


 
Streamlining & Automating Processes to Drive Profitable Growth 12 12


 
New Customer & Carrier Experiences Driving Digital Adoption 13 ■ Improving customer and carrier outcomes with technology that supports our people and processes ■ Leveraging Gen AI to capitalize on our data and information advantage ■ Delivering process optimization by eliminating productivity bottlenecks ■ Accelerating the digital execution of critical touch points in the lifecycle of a load: • Reducing manual tasks per shipment • Reducing time per task 13


 
© C.H. Robinson Worldwide, Inc. All rights reserved. 14 Our Customer Promise


 
Capital Allocation Priorities: Balanced and Opportunistic 15 Cash Flow from Operations & Capital Distribution ($M) ■ $175 million of cash returned to shareholders in Q1 2025 ■ Q1 2025 capital distribution increased 93% Y/Y ■ More than 25 years of annually increasing dividends, on a per share basis ■ 970K shares repurchased at an average price of $100.57 ■ The Y/Y increase in cash from operations was driven by growth in net income and a favorable Y/Y change in net operating working capital. ■ We'll continue to manage our capital structure to maintain our investment grade credit rating.


 
2024 INVESTOR DAY Appendix


 
Q1 2025 Transportation Results(1) 17 Three Months Ended March 31 $ in thousands 2025 2024 % Change Total Revenues $ 3,721,915 $ 4,082,588 (8.8) % Total Adjusted Gross Profits(2) $ 640,545 $ 627,592 2.1 % Adjusted Gross Profit Margin % 17.2% 15.4% 180 bps Transportation Adjusted Gross Profit Margin % 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q1 19.7% 17.3% 16.4% 18.6% 15.3% 14.9% 13.5% 15.2% 15.4% 17.2% Q2 19.3% 16.2% 16.2% 18.3% 17.5% 13.8% 15.4% 15.5% 15.8% Q3 17.6% 16.4% 16.6% 16.9% 14.4% 13.7% 15.1% 15.1% 16.4% Q4 17.2% 16.6% 17.7% 15.6% 14.3% 13.3% 15.5% 15.0% 16.9% Total 18.4% 16.6% 16.7% 17.3% 15.3% 13.8% 14.8% 15.2% 16.1% 1. Includes results across all segments. 2. Adjusted gross profits and adjusted gross profit margin % are non-GAAP financial measures explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.


 
Q1 2025 NAST Results 18 1. Adjusted gross profits and adjusted gross profit margin % are non-GAAP financial measures explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Includes $4.9 million of restructuring charges in the Three Months Ended March 31, 2024 related to workforce reductions and reprioritizing the efforts of our product and technology teams. Three Months Ended March 31, $ in thousands 2025 2024 % Change Total Revenues $ 2,868,420 $ 3,000,313 (4.4) % Total Adjusted Gross Profits(1) $ 418,324 $ 397,110 5.3 % Adjusted Gross Profit Margin % 14.6% 13.2% 140 bps Income from Operations(2) $ 143,671 $ 108,895 31.9 % Adjusted Operating Margin % 34.3% 27.4% 690 bps Depreciation and Amortization $ 4,809 $ 5,350 (10.1) % Total Assets $ 2,989,401 $ 3,065,996 (2.5) % Average Headcount 5,280 6,004 (12.1) %


 
Q1 2025 Global Forwarding Results 19 1. Adjusted gross profits and adjusted gross profit margin % are non-GAAP financial measures explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Includes $3.5 million of restructuring charges in the Three Months Ended March 31, 2024 mainly related to workforce reductions Three Months Ended March 31 $ in thousands 2025 2024 % Change Total Revenues $ 774,888 $ 858,637 (9.8) % Total Adjusted Gross Profits(1) $ 184,628 $ 180,045 2.5 % Adjusted Gross Profit Margin % 23.8% 21.0% 280 bps Income from Operations(2) $ 42,943 $ 31,552 36.1 % Adjusted Operating Margin % 23.3% 17.5% 580 bps Depreciation and Amortization $ 2,139 $ 2,844 (24.8) % Total Assets $ 1,292,915 $ 1,257,675 2.8 % Average Headcount 4,514 4,876 (7.4) %


 
Q1 2025 All Other and Corporate Results 20 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Includes $8.6 million of charges in the Three Months Ended March 31, 2025 primarily related to 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. Includes $4.6 million of restructuring charges in the Three Months Ended March 31, 2024 related to workforce reductions and reprioritizing the efforts of our product and technology teams. Three Months Ended March 31, $ in thousands 2025 2024 % Change Total Revenues $ 403,432 $ 553,361 (27.1%) Total Adjusted Gross Profits(1) $ 70,136 $ 80,574 (13.0%) Income (loss) from Operations(2) $ (9,761) $ (13,314) (26.7%) Depreciation and Amortization $ 18,694 $ 15,684 19.2% Total Assets $ 943,798 $ 1,148,417 (17.8%) Average Headcount 3,553 4,110 (13.6%)


 
21 Our adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. Adjusted gross profit margin is calculated as adjusted gross profit divided by total revenues. We believe adjusted gross profit and adjusted gross profit margin are useful measures 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. The reconciliation of gross profit to adjusted gross profit and gross profit margin to adjusted gross profit margin are presented below: Three Months Ended March 31, $ in thousands 2025 2024 Revenues: Transportation $ 3,721,915 $ 4,082,588 Sourcing 324,825 329,723 Total Revenues $ 4,046,740 $ 4,412,311 Costs and expenses: Purchased transportation and related services 3,081,370 3,454,996 Purchased produced sourced for resale 292,282 299,586 Direct internally developed software amortization 15,666 10,222 Total direct costs $ 3,389,318 $ 3,764,804 Gross profit & Gross profit margin $ 657,422 16.2% $ 647,507 14.7% Plus: Direct internally developed software amortization 15,666 10,222 Adjusted gross profit/Adjusted gross profit margin $ 673,088 16.6% $ 657,729 14.9% Non-GAAP Reconciliations


 
Non-GAAP Reconciliations 22 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, lease impairment charge, and/or loss on divestiture is a similar non-GAAP financial measure to adjusted operating margin, but also excludes the impact of restructuring, lease impairment charge, and/or loss on divestiture. We believe adjusted operating margin and adjusted operating margin - excluding restructuring, lease impairment charge, 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, lease impairment charge, and/or loss on divestiture are presented below: Three Months Ended March 31, $ in thousands 2025 2024 Total Revenues $ 4,046,740 $ 4,412,311 Income from operations 176,853 127,133 Operating margin 4.4% 2.9% Adjusted gross profit $ 673,088 $ 657,729 Income from operations 176,853 127,133 Adjusted operating margin 26.3% 19.3% Adjusted gross profit $ 673,088 $ 657,729 Adjusted income from operations(1) 185,466 140,076 Adjusted operating margin - excluding restructuring, lease impairment charge, and/or loss on divestiture 27.6% 21.3% 1. In the Three Months Ended March 31, 2025, we incurred expenses of $1.2 million severance and other personnel expenses related to the divestiture of our Europe Surface Transportation business and $7.4 million of other charges, which includes 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. In the Three Months Ended March 31, 2024, we incurred restructuring expenses of $7.9 million related to workforce reductions and $5.0 million of other charges, primarily related to an impairment of internally developed software due to reprioritizing the efforts of our product and technology teams on fewer initiatives to accelerate the capabilities of our platform.


 
Non-GAAP Reconciliations 23 Our adjusted income (loss) from operations, adjusted operating margin - excluding lease impairment charge and 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 a lease impairment and 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 lease impairment charge and 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): Three Months Ended March 31, 2025 NAST Global Forwarding All Other and Corporate Consolidated Income (loss) from operations $ 143,671 $ 42,943 $ (9,761) $ 176,853 Severance and other personnel expenses — — 1,187 1,187 Other selling, general, and administrative expenses — — 7,426 7,426 Total adjustments to income (loss) from operations(1) — — 8,613 8,613 Adjusted income (loss) from operations $ 143,671 $ 42,943 $ (1,148) $ 185,466 Adjusted gross profit $ 418,324 $ 184,628 $ 70,136 $ 673,088 Adjusted income (loss) from operations 143,671 42,943 (1,148) 185,466 Adjusted operating margin - excluding lease impairment charge and loss on divestiture 34.3% 23.3% N/M 27.6% $ in 000's per share Net income and per share (diluted) $ 135,302 $ 1.11 Lease impairment charge, pre-tax 6,259 0.05 Loss on divestiture, pre-tax 2,354 0.02 Tax effect of adjustments (1,026) (0.01) Adjusted net income and per share (diluted) $ 142,889 $ 1.17 1. The Three Months Ended March 31, 2025 includes severance and other personnel expenses of $1.2 million related to the divestiture of our Europe Surface Transportation business and $7.4 million of other charges, which includes 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 Reconciliations 24 Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, 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. 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, 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): Three Months Ended March 31, 2024 NAST Global Forwarding All Other and Corporate Consolidated Income (loss) from operations $ 108,895 $ 31,552 $ (13,314) $ 127,133 Severance and other personnel expenses 3,026 3,215 1,701 7,942 Other selling, general, and administrative expenses 1,878 261 2,862 5,001 Total adjustments to income (loss) from operations(1) 4,904 3,476 4,563 12,943 Adjusted income (loss) from operations $ 113,799 $ 35,028 $ (8,751) $ 140,076 Adjusted gross profit $ 397,110 $ 180,045 $ 80,574 $ 657,729 Adjusted income (loss) from operations 113,799 35,028 (8,751) 140,076 Adjusted operating margin - excluding restructuring 28.7% 19.5% N/M 21.3% $ in 000's per share Net income and per share (diluted) $ 92,904 $ 0.78 Restructuring and related costs, pre-tax 12,943 0.11 Tax effect of adjustments (3,101) (0.03) Adjusted net income and per share (diluted) $ 102,746 $ 0.86 1. The Three Months Ended March 31, 2024 includes restructuring expenses of $7.9 million related to workforce reductions and $5.0 million of other charges, primarily related to an impairment of internally developed software due to reprioritizing the efforts of our product and technology teams on fewer initiatives to accelerate the capabilities of our platform.


 
2024 INVESTOR DAY Thank you INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com