C.H. Robinson tops Q3 revenue estimate on higher truckload pricing

C.H. Robinson Worldwide, Inc. (CHRW) said on Oct. 28 that third-quarter revenue rose 29.5% to $5.36 billion from a year earlier, topping the $5.01 billion consensus estimate compiled by Finnhub. Adjusted diluted earnings per share were $1.80, up 28.6%, in line with the $1.79 estimate.

The Eden Prairie, Minnesota, company said it manages 37 million shipments a year, representing $23 billion in freight, for 75,000 customers and 450,000 contract carriers.

Here's how the company did:

• Revenue: $5.36 billion vs. $4.14 billion a year earlier, against a $5.01 billion estimate according to Finnhub
• Adjusted diluted EPS: $1.80 vs. $1.40 a year earlier, against a $1.79 estimate according to Finnhub
• Diluted EPS: $1.67 vs. $1.34 a year earlier
• Net income: $198.5 million vs. $163.0 million a year earlier

Revenue growth was driven by higher pricing in truckload, ocean, less than truckload and air services, the company said. Income from operations rose 23.1% to $271.8 million.

"I want to thank our people for continuing to provide exceptional service to our customers and carriers," said President and Chief Executive Officer Dave Bozeman. He called the quarter "another quarter of double-digit year-over-year earnings growth."

Segment results

North American Surface Transportation revenue rose 29.1% to $3.8 billion, and adjusted gross profit rose 16.6% to $517.9 million. Truckload adjusted gross profit per shipment rose 17.0%, and segment volume increased 3.5%, the 14th consecutive quarter of growth above the Cass Freight Shipment Index.

Global Forwarding revenue rose 46.1% to $1.1 billion, driven by higher pricing in ocean and air services. Adjusted gross profit rose 15.4% to $221.2 million, and income from operations rose 63.3% to $80.0 million.

Robinson Fresh adjusted gross profit fell 5.1% to $38.1 million, which the company attributed to margin compression from higher fuel costs. Managed Solutions adjusted gross profit rose 4.1% to $31.2 million.

Costs and guidance

Personnel expenses rose 3.1% to $360.3 million, mainly on higher incentive compensation. Other selling, general and administrative expenses rose 29.7% to $176.3 million, including an impairment charge on the Kansas City regional center lease. Average employee headcount declined 10.4%.

For 2026, the company expects its full-year effective tax rate to be 18% to 20%, and capital expenditures of $65 million to $75 million.

Cash and capital returns

Cash generated from operations fell $151.3 million to $124.1 million, due to unfavorable changes in working capital driven by higher transportation rates. The company returned $289.1 million to shareholders in the quarter, including $214.3 million in share repurchases and $74.8 million in dividends.

A slide in the filing said share repurchases have been paused following the agreement to acquire RXO, Inc. The company announced that deal on Oct. 5 at $30.25 per RXO share, a transaction value of $5.8 billion, with closing expected in the first half of 2027.