C.H. Robinson — Q3 2026 Earnings Summary

Financial Performance:

• Total revenues increased 29.5% year-over-year to $5.4 billion for the quarter ended September 30, 2026.
• Gross profits increased 15.0% to $795.6 million; adjusted gross profits increased 14.5% to $808.4 million.
• Income from operations increased 23.1% to $271.8 million.
• Adjusted income from operations increased 26.1% to $290.8 million.
• Diluted earnings per share (EPS) increased 24.6% to $1.67; adjusted diluted EPS increased 28.6% to $1.80.
• Net income increased 21.8% to $198.5 million.
• Operating expenses increased 10.6% to $536.6 million, driven by higher incentive compensation and other SG&A expenses.
• Cash generated by operations decreased $151.3 million to $124.1 million due to unfavorable changes in working capital from higher transportation rates.
• Cash returned to shareholders increased 52.5% to $289.1 million, comprising $214.3 million in stock repurchases and $74.8 million in dividends.
• Average employee headcount declined 10.4% year-over-year to 11,253.
• Total assets were $6.39 billion as of September 30, 2026, compared to $5.06 billion as of December 31, 2025.
• Total liabilities were $4.81 billion, with long-term debt increasing to $1.44 billion from $1.09 billion at year-end 2025.
• The effective tax rate for the quarter was 20.6%, flat year-over-year.

Guidance and Future Outlook:

• The company expects the full-year effective tax rate for 2026 to be between 18% and 20%.
• Capital expenditures for 2026 are expected to range from $65 million to $75 million.
• Management anticipates the integration of the RXO business will be enabled by the company's Lean AI operating model and disciplines.
• The company expects to drive sustainable outperformance, profitable growth, and long-term value for stakeholders.

Business Segments and Product Lines:

• North American Surface Transportation (NAST):
  • Total revenues increased 29.1% to $3.8 billion.
  • Adjusted gross profits increased 16.6% to $517.9 million.
  • Truckload adjusted gross profit per shipment increased 17.0% year-over-year.
  • NAST volume increased 3.5% year-over-year, outpacing the Cass Freight Shipment Index for the 14th consecutive quarter.
  • Income from operations increased 17.9% to $203.9 million; adjusted operating margin expanded 50 basis points to 39.4%.
• Global Forwarding:
  • Total revenues increased 46.1% to $1.1 billion.
  • Adjusted gross profits increased 15.4% to $221.2 million.
  • Ocean adjusted gross profits increased 23.2%; Air adjusted gross profits increased 23.2%.
  • Income from operations increased 63.3% to $80.0 million; adjusted operating margin expanded 1,060 basis points to 36.2%.
• All Other and Corporate:
  • Total revenues decreased 1.3% to $379.8 million.
  • Robinson Fresh adjusted gross profits decreased 5.1% to $38.1 million due to margin compression from higher fuel costs.
  • Managed Solutions adjusted gross profits increased 4.1% due to increased freight under management.
  • Other Surface Transportation adjusted gross profits were $0, following the divestiture of the Europe Surface Transportation business.
• Service Line Performance:
  • Truckload adjusted gross profits increased 19.0% to $325.8 million.
  • LTL adjusted gross profits increased 8.3% to $171.4 million.
  • Ocean adjusted gross profits increased 23.2% to $136.1 million.
  • Air adjusted gross profits increased 22.6% to $43.6 million.
  • Customs adjusted gross profits decreased 12.9% to $31.7 million.

Market and Competitive Landscape:

• NAST volume growth of 3.5% outpaced the Cass Freight Shipment Index decline of 0.3% for the quarter.
• The North American trucking market experienced significant supply-driven tightening during the quarter.
• The company successfully repriced a large portion of its contractual truckload portfolio and captured spot volumes at higher margins.
• C.H. Robinson manages 37 million shipments annually representing $23 billion in freight, serving 75,000 customers and 450,000 contract carriers.

Risks and Challenges:

• Forward-looking statements regarding the proposed acquisition of RXO, Inc. are subject to risks including failure to obtain regulatory approvals, satisfaction of closing conditions, and successful integration.
• Risks include changes in economic conditions, consumer demand, market pricing pressures, fuel price volatility, and freight capacity availability.
• Potential risks associated with the acquisition include financing costs, integration difficulties, and the possibility that anticipated benefits may not be realized.
• Other risks include reliance on technology, cybersecurity threats, employee staffing and retention, geopolitical conditions, and regulatory changes.

Management Commentary and Tone:

• CEO Dave Bozeman highlighted 14 consecutive quarters of NAST volume outgrowth and double-digit year-over-year earnings growth.
• Management credited the "Lean AI strategy," which combines Lean methodology, custom-built AI, and employee expertise, for driving value and minimizing waste.
• Bozeman stated that the company has made significant strides in becoming the "trusted partner" for customers and carriers, a value proposition expected to be magnified by the RXO addition.
• Management expressed confidence in the strength of their strategies, technology, people, and operating model disciplines as differentiating and sustainable factors.

Other Key Points:

• The company is proceeding with the proposed acquisition of RXO, Inc., viewing its Lean AI disciplines as key to transforming the RXO business.
• The Europe Surface Transportation business was divested as of February 1, 2025.
• A $12.2 million impairment charge was recorded related to a Kansas City regional center lease sublease agreement.
• Restructuring and related costs totaled $16.1 million for the quarter, including $3.6 million in severance and $2.9 million in acquisition-related costs.
• Acquisition-related costs for the quarter were $2.9 million.
• Diluted weighted average shares outstanding decreased 2.2% year-over-year due to share repurchases.
• Cash and cash equivalents were $193.1 million as of September 30, 2026.