C. H. ROBINSON WORLDWIDE, INC.

C.H. Robinson Worldwide, Inc. is one of the largest global logistics providers in the world, operating throughout North America, Europe, Asia, Oceania, South America, and the Middle East. The company delivers tailored solutions across truckload, less-than-truckload, ocean, air, and more, and its global suite of multimodal logistics services brings together the expertise of its people with custom technology differentiated by one of the largest datasets on shipments, routings, and carriers in the world. The transportation services industry is highly competitive and fragmented, and the company competes against traditional and non-traditional logistics companies, including transportation providers that own equipment, third-party freight brokers, technology matching services, internet freight brokers, carriers offering logistics services, on-demand transportation service providers, NVOCCs, IACs, and freight forwarders. In its sourcing business, the company competes with produce brokers, produce growers, produce marketing companies, produce wholesalers, and foodservice buying groups.

The company's most significant competitive advantages are its people and relationships, global suite of services, scale, Lean AI data and technology, process, and stability. The company's proprietary technology connects 75,000 customers ¹ and 450,000 contract carriers ². In 2025, customers trusted the company to manage approximately 37 million shipments ³ and $23 billion in freight ⁴. The company's largest customer accounted for approximately two percent of consolidated total revenues in 2025 ⁵. The company's top 100 customers based on total revenue comprised approximately 40 percent of consolidated total revenues ⁶ and its top 100 customers based on adjusted gross profits comprised approximately 28 percent of consolidated adjusted gross profits ⁷.

The company generates revenue primarily through transportation and logistics services, which accounted for approximately 95 percent of adjusted gross profits in 2025, 2024, and 2023 ⁸. Sourcing services accounted for approximately five percent of adjusted gross profits in 2025, 2024, and 2023 ⁹. The company makes a profit driven by the difference between what it charges customers and what it pays transportation providers. Most transactions in the transportation and sourcing businesses are recorded at the gross amount charged to customers, while customs brokerage, managed solutions, freight forwarding, and sourcing managed procurement transactions are recorded at the net amount. The company serves 75,000 customers worldwide ¹⁰, ranging from Fortune 100 companies to small businesses in a wide variety of industries.

The company has two reportable segments: North American Surface Transportation (NAST) and Global Forwarding, with remaining operating segments reported as All Other and Corporate. NAST provides transportation and logistics services across North America through a network of offices in the United States, Canada, and Mexico, with primary services including truckload and less than truckload transportation brokerage services. Global Forwarding provides transportation and logistics services through an international network of offices in North America, Europe, Asia, Oceania, South America, and the Middle East, with primary services including ocean freight services, air freight services, and customs brokerage. All Other and Corporate includes Robinson Fresh, Managed Solutions, Other Surface Transportation outside of North America, and other miscellaneous revenues and unallocated corporate expenses. Robinson Fresh provides sourcing services that primarily include the buying, selling, and/or marketing of fresh fruits, vegetables, and other value-added perishable items. In November 2024, the company launched C.H. Robinson Managed Solutions to address a growing gap in the marketplace for shippers wanting seamless access to 4PL services, 3PL managed transportation, and TMS technology from one provider.

Transportation services adjusted gross profits by mode for 2025 were: Truckload $1,052,281,000 ¹¹, LTL $609,736,000 ¹², Ocean $432,874,000 ¹³, Air $136,695,000 ¹⁴, Customs $132,776,000 ¹⁵, and Other Logistics Services $224,279,000 ¹⁶, for a total of $2,588,641,000 ¹⁷. For 2024, the figures were: Truckload $1,072,691,000 ¹⁸, LTL $572,169,000 ¹⁹, Ocean $519,970,000 ²⁰, Air $135,901,000 ²¹, Customs $107,480,000 ²², and Other Logistics Services $225,599,000 ²³, for a total of $2,633,810,000 ²⁴. For 2023, the figures were: Truckload $1,039,079,000 ²⁵, LTL $550,373,000 ²⁶, Ocean $420,883,000 ²⁷, Air $123,470,000 ²⁸, Customs $97,096,000 ²⁹, and Other Logistics Services $255,735,000 ³⁰, for a total of $2,486,636,000 ³¹. NAST segment adjusted gross profits for 2025 were $1,706,329,000 ³², for 2024 were $1,641,195,000 ³³, and for 2023 were $1,593,854,000 ³⁴. Global Forwarding segment adjusted gross profits for 2025 were $741,921,000 ³⁵, for 2024 were $802,549,000 ³⁶, and for 2023 were $689,365,000 ³⁷. All Other and Corporate segment adjusted gross profits for 2025 were $281,160,000 ³⁸, for 2024 were $321,270,000 ³⁹, and for 2023 were $321,389,000 ⁴⁰.

In 2025, the company initiated a new restructuring program (the 2025 Restructuring Program) aimed at enhancing operational efficiency and achieving cost savings through the adoption of advanced technologies, including artificial intelligence. The program is expected to span the next three years, and in 2025 the company recognized restructuring charges of $30.4 million ⁴¹ primarily related to workforce reductions and related personnel expenses. The company expects to incur restructuring charges of $50 million to $75 million ⁴² in total over the duration of the program. On October 28, 2025, the Board of Directors approved an additional $2.0 billion ⁴³ of authorization under the company's share repurchase program. During 2025, the company repurchased 3,093,915 shares ⁴⁴ for $356,263,000 ⁴⁵. The sale of the Europe Surface Transportation business closed effective February 1, 2025, and the company received $27.7 million ⁴⁶ of consideration at closing with additional fixed installment payments due throughout 2026. The company also completed an acquisition for $11,864,000 ⁴⁷, net of cash acquired.

Total revenues for 2025 were $16,232,763,000 ⁴⁸, a decrease of 8.4 percent from $17,724,956,000 ⁴⁹ in 2024. Gross profits for 2025 were $2,671,152,000 ⁵⁰, a decrease of 1.8 percent from $2,720,706,000 ⁵¹ in 2024. Adjusted gross profits for 2025 were $2,729,410,000 ⁵², a decrease of 1.3 percent from $2,765,014,000 ⁵³ in 2024. Income from operations for 2025 was $794,961,000 ⁵⁴, up 18.8 percent from $669,141,000 ⁵⁵ in 2024. Adjusted operating margin for 2025 was 29.1 percent ⁵⁶, an increase of 490 basis points from 24.2 percent ⁵⁷ in 2024. Net income for 2025 was $587,081,000 ⁵⁸, up 26.1 percent from $465,690,000 ⁵⁹ in 2024. Diluted earnings per share for 2025 was $4.83 ⁶⁰, up 25.1 percent from $3.86 ⁶¹ in 2024. Cash provided by operating activities for 2025 was $914,519,000 ⁶², up 79.6 percent from $509,084,000 ⁶³ in 2024.

The company's growth strategy is powered by innovations with AI, machine learning, and data science. The company has expanded the use of generative and agentic AI in its industry, creating proprietary technology to perform work that defied automation for decades. The company's fleet of more than 30 AI agents ⁶⁴ is integrated with Navisphere, its global, multimodal transportation management system. The company's enhancements to its dynamic costing and pricing models are key contributors to expanding operating margins and growing volume and market share. The company's proprietary technology connects 75,000 customers ⁶⁵ and 450,000 contract carriers ⁶⁶. In 2025, the company managed approximately 37 million shipments ⁶⁷ for 75,000 customers ⁶⁸ utilizing the more than 450,000 contract carriers ⁶⁹ on its platform. The company continues to make smart, talent-focused investments globally in technology, with approximately 800 technologists ⁷⁰ across product, data, engineering, and AI.

The company's global forwarding market faced a persistent imbalance in 2025, marked by excess vessel capacity and weak global demand. Looking ahead, uncertainty persists due to geopolitical and macroeconomic factors, including evolving trade policies, the Red Sea conflict, and carriers' ability to effectively manage excess capacity. The company expects ocean pricing to remain under pressure until global freight demand meaningfully improves. Similar dynamics continue to affect the air freight market, where overall air freight pricing remains sensitive to tariff developments and broader economic conditions. In North America surface transportation, carrier capacity continued to contract toward the end of 2025, and the market has become increasingly sensitive, with spot market rates exhibiting sharper than typical reactions to changes in supply and demand conditions. Despite these emerging pressures, the market has not fully transitioned into a sustained upcycle, and soft demand conditions and remaining excess capacity continue to temper the pace of the shift.

The company's 2025 Restructuring Program is expected to materially reduce the company's cost structure and better position the company for sustainable, long-term growth in an increasingly technology-driven marketplace. The program is centered around two key initiatives: Process Optimization and Workforce Productivity, and Facilities Consolidation and Footprint Optimization. The company expects to incur restructuring charges of $50 million to $75 million ⁷¹ in total over the duration of the 2025 Restructuring Program primarily related to severance and other personnel related costs and impairments related to the early termination or abandonment of facilities under operating leases. In 2025, the company recognized restructuring charges of $30.4 million ⁷² primarily related to workforce reductions and related personnel expenses. Personnel expenses decreased 5.9 percent to $1.4 billion ⁷³ in 2025, primarily due to cost-optimization efforts and productivity improvements and the divestiture of the Europe Surface Transportation business. Average employee headcount decreased 11.5 percent ⁷⁴ to 12,733 ⁷⁵ in 2025.

The company anticipates capital expenditures in 2026 to be approximately $75 million to $85 million ⁷⁶. Capital expenditures in 2025 were $70,543,000 ⁷⁷, consisting primarily of investments in software intended to deliver scalable solutions, including those driven by AI, that transform processes, improve customer and contract carrier experience, accelerate the pace of development, and improve dynamic pricing and costing capabilities. The company continues to optimize its real estate footprint across the network in consideration of expected staffing levels and flexible work arrangements. As of December 31, 2025, the company had a total of 11,855 employees ⁷⁸ in 37 countries ⁷⁹.

Capital expenditures for 2025 were $70,543,000 ⁸⁰. The company anticipates capital expenditures in 2026 to be approximately $75 million to $85 million ⁸¹. On October 28, 2025, the Board of Directors approved an additional $2.0 billion ⁸² of authorization under the company's share repurchase program. As of December 31, 2025, there were 3,669,530 shares ⁸³ remaining for future repurchases. The company currently expects to execute the share repurchase program over a period of approximately three years. Over the long term, the company remains committed to its quarterly dividend and share repurchases to enhance shareholder value. Dividends declared in 2025 were $2.49 per share ⁸⁴, totaling $302,300,000 ⁸⁵.

The company faces structural headwinds including economic recession risk, which could cause a decrease in volumes, credit risk and working capital increases, transportation provider failures, and expense management challenges. Higher carrier prices may result in decreased adjusted gross profit margin and increases in working capital. Changing fuel costs and interruptions of fuel supplies may have an impact on adjusted gross profit margin. The company's dependence on third parties to provide equipment and services may impact the delivery and quality of transportation and logistics services. The company faces substantial industry competition, including impacts from technological disruption and automation adoption. The company's international operations subject it to operational, financial, and data privacy risks, including changes in tariffs, trade restrictions, trade agreements, and taxations. In 2025, the United States government made significant changes to national trade policy, including imposing tariffs on certain goods imported into the United States, which impacted the Global Forwarding business most significantly in the second quarter of 2025, with volatile market conditions causing global demand fluctuations and lower volumes.

The company's ability to appropriately staff and retain employees is important to its business model. The company's employee turnover ratio in 2025 was 19 percent ⁸⁶, and the voluntary turnover rate was 11 percent ⁸⁷. The company's 2025 engagement survey generated a 76 percent engagement score ⁸⁸. The company may be subject to the negative impacts of climate change, which could disrupt operations by adversely affecting the ability to procure services that meet regulatory or customer requirements. The company's indebtedness could adversely impact its financial condition and results of operations. The company may be adversely impacted by changing interest rates, as it is exposed to changes in interest rates primarily on short-term debt that carries floating interest rates. Changes to income tax regulations in the United States and other jurisdictions where the company operates may increase its tax liability.

The company faces material risks from economic recession, which could reduce overall freight volumes and cause a decrease in opportunities for growth, as a significant portion of freight is comprised of transactional or spot market opportunities. Higher carrier prices may result in decreased adjusted gross profit margin and increases in working capital, and in some instances where the company has entered into contract freight rates with customers, changes in market conditions could require the company to provide transportation services at a loss. The company depends on independent third parties to provide truck, rail, ocean, and air services, and if it is unable to secure sufficient equipment or other transportation services from third parties to meet commitments to customers, operating results could be materially and adversely affected. The company faces substantial industry competition, including from technology-driven matching platforms and AI-driven freight matching, and if it fails to maintain the pace, scale, or quality of automation and AI adoption, it may be unable to achieve strategic goals for operational efficiency and digital transformation. The company's top 100 customers based on total revenue comprised approximately 40 percent of consolidated total revenues ⁸⁹ and its top 100 customers based on adjusted gross profits comprised approximately 28 percent of consolidated adjusted gross profits ⁹⁰, and the sudden loss of major customers could materially and adversely affect operating results. The company is subject to claims arising from its transportation operations, and carries various liability insurance policies with total automobile limits of $135 million ⁹¹ subject to a $10 million ⁹² per incident deductible, and total general liability limits of $87 million ⁹³ subject to a $500,000 ⁹⁴ per incident deductible.

Management's message emphasizes the company's position as one of the largest global logistics providers, with consolidated total revenues of $16.2 billion in 2025 ⁹⁵. The company's strategy is rooted in the Robinson Operating Model, a disciplined approach to continuous improvement driving operational effectiveness. Lean AI is highlighted as a unique and disciplined method of applying artificial intelligence at scale to achieve tangible business results. Management emphasizes that the company's innovations with AI, machine learning, and data science benefit customers, contract carriers, and employees and help power the growth strategy. The company's enhancements to dynamic costing and pricing models are key contributors to expanding operating margins and growing volume and market share. Management notes that the company's proprietary technology connects 75,000 customers ⁹⁶ and 450,000 contract carriers ⁹⁷, and in 2025, customers trusted the company to manage approximately 37 million shipments ⁹⁸ and $23 billion in freight ⁹⁹. The company's adjusted operating margin of 29.1 percent ¹⁰⁰ increased 490 basis points. Net income totaled $587.1 million ¹⁰¹, up 26.1 percent from a year ago, and diluted earnings per share increased 25.1 percent to $4.83 ¹⁰². The company's strategic priorities include advancing dynamic pricing and costing capabilities, driving operational effectiveness through the Robinson Operating Model, and leveraging Lean AI to accelerate problem-solving, drive growth, and deliver more value to customers and carriers.