Adjustments for Non-Cash Items [USD, Thousands]

Stock-Based Compensation [USD, Thousands]

Changes in Working Capital [USD, Thousands]

Proceeds from / Repayments of Debt [USD, Thousands]

Share Repurchases [USD, Thousands]

Dividend Payments [USD, Thousands]

Net Change in Cash [USD, Thousands]

c56fa1128801cc3434ac7c22a3471149685e36a63a46ffeb3cdb581d828e0c88

Transportation Revenues (USD, thousands)

Sourcing Revenues (USD, thousands)

Total Revenues (USD, thousands)

Purchased transportation and related services (USD, thousands)

Purchased products sourced for resale (USD, thousands)

Personnel expenses (USD, thousands)

Other selling, general, and administrative expenses (USD, thousands)

Total costs and expenses (USD, thousands)

Income from operations (USD, thousands)

Interest and other income/expenses, net (USD, thousands)

Income before provision for income taxes (USD, thousands)

Provision for income taxes (USD, thousands)

Net income (USD, thousands)

Other comprehensive (loss) income (USD, thousands)

Comprehensive income (USD, thousands)

Basic net income per share (USD)

Diluted net income per share (USD)

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0155d6eac3ddd6845801eb04b66c634af1083ae4170ae53a34aa72a6f1f44112

U.S.

Other locations

Total Revenue

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a78b348ff3a3b583f4a8a6ecc728268483880e194e4390c5de67e595a8f307b7

590a9591c5ca8ac1ae819fec76a6126f9f23a1d86ae034b76490043411f180a0

Average employee headcount for Global Forwarding (headcount)

Volume of ocean services for Global Forwarding (percent)

Volume of air services for Global Forwarding (percent)

Volume of customs services for Global Forwarding (percent)

Average employee headcount for NAST (headcount)

Volume of truckload services for NAST (percent)

Volume of LTL services for NAST (percent)

Average truckload linehaul rate per mile charged to our customers (excluding fuel) (percent)

Average truckload linehaul cost per mile (excluding fuel) (percent)

67d6124620c1178772efa3bb7e57f804f7650e904df367a4afe81b97d2026cfc

Net income [USD, thousands]

Depreciation and amortization [USD, thousands]

Provision for credit losses [USD, thousands]

Stock-based compensation [USD, thousands]

Excess tax benefit on stock-based compensation [USD, thousands]

Loss on disposal groups held for sale [USD, thousands]

Other operating activities [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Purchases of property and equipment [USD, thousands]

Purchases and development of software [USD, thousands]

Net cash used for investing activities [USD, thousands]

Proceeds from stock issued for employee benefit plans [USD, thousands]

Stock tendered for payment of withholding taxes [USD, thousands]

Repurchase of common stock [USD, thousands]

Cash dividends [USD, thousands]

Proceeds from short-term borrowings [USD, thousands]

Payments on short-term borrowings [USD, thousands]

Net cash used for financing activities [USD, thousands]

Effect of exchange rates on cash and cash equivalents [USD, thousands]

Net change in cash and cash equivalents, including cash and cash equivalents classified within assets held for sale [USD, thousands]

Less: net increase in cash and cash equivalents within assets held for sale [USD, thousands]

Deferred income taxes [USD, thousands]

Cash and cash equivalents, beginning of year [USD, thousands]

Cash and cash equivalents, end of year [USD, thousands]

1aca0f4e1c5794d131d1a1f2945bf9a3dca9957d508b7fd2706c09e2744e257b

The **low cash and cash equivalents** in Q1 2024 were driven primarily by a **significant outflow from operating activities**. In Q1 2024, operating activities used **$33.3 million**, compared to a substantial positive cash inflow of **$254.5 million** in Q1 2023, largely due to an **increase in net operating working capital** driven by higher ocean freight rates. Additionally, **investing activities** used **$22.5 million** for capital expenditures and the change in **financing activities**—including **$120 million in net borrowings**—along with a **$2.6 million decrease** from exchange rate effects contributed to the overall lower cash position in Q1 2024.  **[CHRW_3381897_6]** **[0001043277-24-000026_chrw-20240331.htm:32]** **[0001043277-24-000023_ex991earningsreleaseq10331.htm:11]** 

Why was Cash and cash equivalents so low in Q1 2024?

The increase in Total assets for Q3 2024 was driven by several factors. **Receivables** increased from **$2,381,963 thousand** to **$2,630,350 thousand**, while there was significant **growth in contract assets** from **$189,900 thousand** to **$273,251 thousand**. Additionally, the company classified **$165,810 thousand** of assets as held for sale in anticipation of divesting its Europe Surface Transportation business. These factors, along with changes in prepaid expenses and reductions in goodwill and intangible assets, collectively contributed to the overall rise in Total assets.  **[0001043277-24-000051_chrw-20240930.htm:2]** **[0001043277-24-000051_chrw-20240930.htm:2]** **[0001043277-24-000051_chrw-20240930.htm:24]** **[0001043277-24-000051_chrw-20240930.htm:8]** 

What drove the increase in Total assets in Q3 2024?

The **drop in long-term debt in Q4 2024** was primarily due to **net repayments on debt**, which totaled **$204,000 thousand** during the year. These repayments were mainly aimed at reducing the outstanding balances on facilities such as the **Revolving Credit Facility** and the **Receivables Securitization Facility**. Additionally, the company repaid the **Senior Notes Series A** (which matured in August 2023) and the **364-Day Unsecured Revolving Credit Facility** (which matured in May 2023), further contributing to the decrease in long-term debt.  **[0001043277-25-000012_chrw-20241231.htm:59]** 

Why did Long-term debt drop in Q4 2024?

e81827bc9abd0df4e749f26d3dbc581182d90725d24e4d4b658b912ddcf6e2f8

The net income for CHRW in Q4 2024 was significantly driven by several key factors. **Gross profits** rose by **10.4%** due to higher adjusted gross profit per transaction in truckload and ocean services, which set a strong foundation for the increase.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:0]**  Additionally, **operating expenses** fell by **2.0%**, largely due to a **9.5% reduction in average employee headcount** and a **$12.6 million favorable adjustment** linked to the divestiture of the Europe Surface Transportation business.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[CHRW_3413616_6]**  The company also experienced **improved operating leverage**, with income from operations jumping by **71.1%** and a bolstered adjusted operating margin.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:0]**  Furthermore, a **sharp reduction in the effective tax rate** from **55.3% to 11.4%**, owing to non-recurring discrete items, enhanced U.S. tax credits, and additional tax benefits related to stock-based compensation, played a crucial role.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:7]**  Lastly, enhanced revenue management and productivity, particularly in the Global Forwarding and NAST segments, contributed to the overall boost in net income.  **[CHRW_3413616_6]** **[0001043277-25-000004_q42024earningsdeck.htm:1]** 

Why was net income so high in Q4 2024?

The EPS jump in Q4 2024 was driven by a **71.1% increase in income from operations** (rising to **$183.8 million**) along with a **10.4% boost in gross profits** and **lower operating expenses** through cost optimization measures. Additionally, **improved gross profit margins** and a **significantly lower effective tax rate of 11.4%** (down from **55.3%**) contributed to a **382.1% surge in net income** (up to **$149.3 million**), which collectively propelled the substantial rise in basic net income per share.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:14]** 

What drove the EPS jump in Q4 2024?

The higher operating income in Q4 2024 was driven by a combination of **higher adjusted gross profits** and **decreased operating expenses**. **Adjusted gross profits increased by 10.7% to $684.6 million**, while operating expenses declined, with a **2.1% reduction in personnel expenses** and a **2.0% reduction in SG&A expenses** that also benefited from a favorable adjustment related to a planned divestiture. This resulted in a markedly improved operating leverage, with the **adjusted operating margin increasing by 940 basis points to 26.8%**. Additionally, although there were **$3.7 million in restructuring charges**, the overall cost optimizations contributed to the substantial rise in income from operations.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:0]** **[CHRW_3413616_6]** 

What contributed to the higher operating income in Q4 2024?

Income before taxes surged in Q4 2024 primarily because C.H. Robinson experienced a **10.4% increase in gross profits**—rising to **$672.9 million** due to improved margins and higher adjusted gross profit per transaction—as well as **lower operating expenses** including a **2.1% reduction in personnel expenses** and a **$12.6 million favorable adjustment** related to the divestiture of its Europe Surface Transportation business. Additionally, **improved operating leverage** boosted income from operations by **71.1% to $183.8 million**, and a **59.8% reduction in interest expense** (thanks to a lower average debt balance and reduced variable interest rates) further amplified the increase in income before taxes.  **[0001043277-25-000004_ex991earningsreleaseq41231.htm:14]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:3]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:0]** 

Why did income before taxes surge in Q4 2024?

d73f30eca1a5f6f41c584ab70bbbd5b77d18e1614e67540e95c8bfecf9089bff

Operating Cash Flow was so low in Q1 2024 because the company experienced significant negative shifts in its working capital. Specifically, there was a **$135 million cash outflow** due to an increase in net operating working capital (driven by higher ocean rates in Global Forwarding), a **$225.4 million cash outflow** from rising receivables, and a **$45.6 million cash outflow** due to increased contract assets – all of which sharply contrasted with the favorable cash inflows experienced in Q1 2023. Additionally, while there was some offset from a **$85 million cash inflow** from accounts payable and outstanding checks, these adjustments were not enough to counteract the overall negative impact, resulting in a net cash use of **$(33.3) million** compared to the positive cash flow in the previous period.  **[CHRW_3381897_6]** **[0001043277-24-000023_ex991earningsreleaseq10331.htm:11]** **[0001043277-24-000026_chrw-20240331.htm:4]** 

Why was Operating Cash Flow so low in Q1 2024?

The documents do not provide any specific details explaining the change in deferred income taxes in Q3 2024, only noting the numerical differences without further explanation.  **[0001043277-24-000051_chrw-20240930.htm:5]** 

What caused the swing in Deferred income taxes in Q3 2024?

The drop in the quarter‐end provision (from **4,365 thousand USD** in Q3 2023 to **(543) thousand USD** in Q3 2024  **[0001043277-24-000051_chrw-20240930.htm:5]** ) appears to result from a reassessment of credit risk that factored in several elements. In particular, CHRW cited a focus on the **macroeconomic environment**, **customer-specific factors**, and the impact of **write‐offs and recoveries** as key drivers behind adjusting its credit loss estimates.  **[0001043277-24-000051_chrw-20240930.htm:20]**  These factors led the company to reduce its expected credit losses in Q3 2024.

Why did Provision for credit losses drop in Q3 2024?

The increase appears to have been driven primarily by **substantially higher stock-based compensation** – rising from **$58,169 thousand in Q4 2023** to **$84,590 thousand in Q4 2024** – which likely led to higher withholding tax obligations. Additional contributing factors mentioned include potential **changes in tax rates or policies** and an increased **volume of stock transactions**; however, the documents do not provide further specific details on these aspects.  **[0001043277-25-000012_chrw-20241231.htm:72]** **[0001043277-25-000004_ex991earningsreleaseq41231.htm:16]** 

What drove the increase in stock tendered for withholding taxes in Q4 2024?

Financing activities turned positive in Q1 2024 because the company shifted from net debt repayments in Q1 2023 to net borrowings in Q1 2024, with **net borrowings of $120,000 thousand** compared to **net repayments of $101,000 thousand** in the previous quarter. Additionally, the company did not spend cash on share repurchases in Q1 2024—unlike the **$31,182 thousand** used in Q1 2023—and the outflow from other financing activities increased to **$10,725 thousand** from **$375 thousand**. These factors collectively contributed to a positive net cash of **$34,695 thousand** from financing activities in Q1 2024.  **[0001043277-24-000026_chrw-20240331.htm:32]** 

Why did financing activities turn positive in Q1 2024?

5c8d7aa19593de2e51d617b1ff3df4ff012e8eda82058f35fd7608893b61a76e

4ad0baf8dec0bd8445581da383fe3d342ab97c7d7318cb29074ea861db3695f8

CH Robinson Worldwide Inc (CHRW)

Financials