C.h. Robinson Worldwide Stock Earnings Reports

C.H. Robinson reported strong Q3 2025 execution despite a weak freight environment driven by low spot truckload rates and sharply lower ocean rates. The company grew North American Surface Transportation (NAST) combined truckload and LTL volumes ~3% year-over-year, expanded NAST gross margins for the eighth consecutive quarter and achieved ~39% adjusted operating margin in NAST (near the 40% mid-cycle target). Global Forwarding saw AGP decline due to ocean rate normalization, but expanded gross margins year-over-year through disciplined revenue management and achieved its 30% mid-cycle adjusted operating margin target in Q3. The firm is rapidly deploying its “lean AI” strategy (Agentic AI + lean operating model), claiming significant productivity gains (over 40% since end of 2022; >55% productivity improvement in Global Forwarding since 2022) and positioning tech + people + operating model as durable competitive moats. Financially, total revenue and AGP declined (impacted by lower ocean rates and a prior divestiture), Q3 cash from operations was $275M, net leverage improved to 1.17x, and the company returned ~$190M to shareholders in the quarter. Management raised its 2026 operating income target to $965M–$1.04B (implying ~ $6 EPS at the low end with 0 market growth), authorized an incremental $2B share repurchase program (~3 years), and reiterated disciplined, ROI-driven capital allocation and high M&A bar. Management expects continued productivity (baseline mid-single-digit annually) with potential double-digit waves from new AI innovations, and they remain confident the model will generate operating leverage as the market eventually inflects.