C. H. ROBINSON WORLDWIDE, INC.
For the period ended Sep 30, 2026. Filed Oct 30, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 30, 2026
CHRW$125.33-2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-31.
0001043277-26-000031
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-30.
0001043277-26-000043
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 104 current paragraphs.
35 unchanged; 47 reworded; 21 added; 17 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 8 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
During the third quarter of 2026, the global forwarding market continued to be shaped primarily by supply-side dynamics rather than underlying demand conditions, although trends varied by trade lane. Ocean peak-season demand began earlier than usual, and while global vessel capacity was generally sufficient to meet demand, operational disruptions and ocean carriers’ continued capacity management actions, including blank sailings, constrained effective capacity and disrupted vessel schedules. These conditions pushed Trans-Pacific ocean rates higher in the quarter. On Asia-to-Europe trade lanes, ocean carriers gradually increased transits through the Suez Canal, restoring some effective capacity. Overall, ocean freight rates remained significantly higher than the third quarter of 2025, when excess vessel capacity, softening consumer demand, and shifting tariff policies contributed to substantially lower rates across many trade lanes. The air freight market remained uneven, with capacity available on many lanes, while demand for technology-related cargo, including artificial intelligence infrastructure equipment, tightened capacity on certain trade lanes in the quarter. Continued conflict in the Middle East affected airspace availability and flight routings and contributed to significantly higher jet fuel prices, which kept air freight rates elevated compared to the third quarter of 2025.
Current report
Our global forwarding results in the third quarter of 2026 were largely in line with the market trends discussed above. Our ocean freight shipments increased 2.0 percent compared to the third quarter of 2025, as earlier-than-usual peak-season demand supported volumes, even as ocean carriers’ continued capacity management actions, including blank sailings, and operational disruptions constrained effective capacity and disrupted vessel schedules. Ocean freight rates were significantly higher than in the third quarter of 2025, when excess vessel capacity, softening consumer demand, and shifting trade policies contributed to substantially lower rates. Our air freight tonnage decreased 4.0 percent compared to the third quarter of 2025, reflecting uneven market conditions and the continued impact of Middle East conflict on airspace availability and flight routings. The higher ocean and air freight rates contributed to a 46.1 percent increase in our global forwarding total revenues and a 56.0 percent increase in our purchased transportation and related services costs compared to the third quarter of 2025.
Current report
•Gross profits increased 15.0 percent to $795.6 million. Adjusted gross profits increased 14.5 percent to $808.4 million, primarily driven by higher adjusted gross profit per transaction in our truckload, ocean, air and LTL services and higher volume in our truckload and LTL services.
Current report
•Other selling, general, and administrative (“SG&A”) expenses increased 29.7 percent to $176.3 million primarily due to higher claims expenses and an impairment charge on our Kansas City regional center lease driven by the execution of a sublease agreement for the remaining portion of the facility.
Current report
Total revenues and direct costs. Total transportation revenues and direct costs increased significantly, primarily due to higher pricing and costs in our truckload, ocean, LTL, and air freight services, including the impact of elevated fuel prices, and higher truckload volume. In our NAST business, elevated insurance costs, stricter driver requirements, federal enforcement actions, and other operating challenges continued to remove carrier capacity from the market, driving truckload rates higher and resulting in some truckload freight shifting to LTL. In our Global Forwarding business, supply-side dynamics rather than underlying demand conditions drove ocean freight rates significantly higher than the prior year, although trends varied by trade lane. Ocean carriers’ continued capacity management actions, including blank sailings, and operational disruptions constrained effective capacity and disrupted vessel schedules. In the prior year, excess vessel capacity, softening consumer demand, and shifting tariff policies contributed to substantially lower rates across many trade lanes. Continued conflict in the Middle East affected airspace availability and flight routings and contributed to significantly higher jet fuel prices, which kept air freight rates elevated compared to the prior year. Our sourcing total revenues and direct costs decreased due to lower average pricing with retail customers, partially offset by higher volumes with foodservice customers.
Current report
Gross profits and adjusted gross profits. Our transportation adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our truckload, ocean, air freight and LTL services and higher volume in our truckload and LTL services. In our truckload services, higher adjusted gross profit per transaction reflected the continued advancement of our dynamic pricing and costing capabilities, which allowed us to capitalize on elevated spot market conditions, along with improvements in our contractual portfolio resulting from continued repricing efforts to reflect the rising cost environment. In our ocean services, higher adjusted gross profit per shipment reflected elevated market pricing as operational disruptions and ocean carriers’ continued capacity management actions, including blank sailings, constrained effective capacity. In our air freight services, higher adjusted gross profit per metric ton reflected elevated market pricing driven by higher jet fuel prices and the continued impact of conflict in the Middle East on airspace availability and flight routings. In our LTL services, higher adjusted gross profit per transaction reflected favorable pricing dynamics as the elevated cost of truckload capacity continued to shift freight to LTL. Our sourcing adjusted gross profits decreased, driven by margin compression caused by higher fuel costs, partially offset by higher volumes with foodservice customers.
Current report
Operating expenses. Personnel expenses increased primarily due to higher incentive compensation reflecting our strong operating performance. This impact was partially offset by cost optimization efforts and productivity improvements, including lower average employee headcount and lower restructuring charges. Other SG&A expenses increased primarily due to higher claims expense and an impairment charge on our Kansas City regional center lease, resulting from the execution of a sublease agreement for the remaining portion of the facility.
Current report
Our personnel expenses in the third quarter of 2026 included $3.6 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program. In addition, other SG&A expenses included $12.5 million of expense driven by the impairment charge on our Kansas City regional center lease that was also associated with the program and $2.9 million of acquisition-related expenses. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Current report
Our personnel expenses in the third quarter of 2025 included $9.7 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program.
Current report
Consolidated Results of Operations—Nine Months Ended September 30, 2026, Compared to the Nine Months Ended September 30, 2025
Current report
Our personnel expenses for the nine months ended September 30, 2026 included $30.4 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program. In addition, other SG&A expenses included $16.3 million of expense driven by the impairment charge on our Kansas City regional center lease which was also associated with the program and acquisition-related expenses.
Current report
(1) Adjusted gross profit is a non-GAAP financial measure explained above.
Current report
Gross profits and adjusted gross profits. NAST adjusted gross profits increased, driven by higher adjusted gross profit per transaction in our truckload and LTL services. The higher adjusted gross profit per transaction in our truckload services reflected the continued advancement of our dynamic pricing and costing capabilities, which allowed us to capitalize on elevated spot market conditions, along with improvements in our contractual portfolio resulting from continued repricing efforts to reflect the rising cost environment. The higher adjusted gross profit per transaction in our LTL services reflected favorable pricing dynamics as the elevated cost of truckload capacity continued to shift freight to LTL. Other adjusted gross profits increased driven by incremental warehousing services.
Current report
NAST personnel expenses in the third quarter of 2026 included $1.8 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses also included $3.1 million of acquisition and restructuring-related expenses. NAST personnel expenses in the third quarter of 2025 included $1.2 million of severance and related personnel expenses also associated with the 2025 Restructuring Program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Current report
NAST personnel expenses in the nine months ended September 30, 2026 included $19.8 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses included $3.3 million of acquisition and restructuring related expenses. NAST personnel expenses in the nine months ended September 30, 2025 included $1.9 million of severance and related personnel expenses also associated with the 2025 Restructuring Program.
Current report
(1)Adjusted gross profit is a non-GAAP financial measure explained above.
Current report
Total revenues and direct costs. Global Forwarding total revenues and direct costs increased primarily driven by higher pricing and costs in ocean and air freight services, including the impact of higher fuel prices, along with an increase in ocean volumes. These increases were partially offset by lower air freight tonnage. Supply-side dynamics rather than underlying demand conditions drove ocean freight rates significantly higher than the prior year, although trends varied by trade lane. Ocean carriers’ continued capacity management actions, including blank sailings, and operational disruptions constrained effective capacity and disrupted vessel schedules. In the prior year, excess vessel capacity, softening consumer demand, and shifting tariff policies contributed to substantially lower rates across many trade lanes. Continued conflict in the Middle East affected airspace availability and flight routings and contributed to significantly higher jet fuel prices, which kept air freight rates elevated compared to the prior year.
Current report
Total revenues and direct costs. Global Forwarding total revenues and direct costs increased, primarily driven by higher pricing and costs in ocean and air freight services, including the impact of higher fuel prices, partially offset by lower ocean, air, and customs volumes. Ocean pricing and costs increased as carrier capacity management actions, including blank sailings, along with operational disruptions and vessel rerouting, constrained effective capacity. Air freight pricing and costs increased as the continued conflict in the Middle East affected airspace availability and flight routings and contributed to higher jet fuel prices. In the prior year period, the evolving tariff landscape led to short-lived spikes in demand and pricing; however, elevated capacity levels and weak consumer sentiment ultimately resulted in lower global forwarding rates and purchased transportation costs.
Current report
Gross profits and adjusted gross profits. Global Forwarding adjusted gross profits increased, driven by a higher adjusted gross profit per shipment in air freight services. This increase was partially offset by declines in ocean, air and customs volumes. The higher adjusted gross profit per shipment in air freight services reflected elevated market pricing driven by higher jet fuel prices and the impact of conflict in the Middle East on airspace availability and flight routings.
Current report
(1) Adjusted gross profit is a non-GAAP financial measure explained above.
Current report
We expect to finance the cash consideration with new debt financing and have entered into a fully underwritten commitment (the “commitment”) for a 364-day senior unsecured bridge term loan facility of up to $4.5 billion arranged by Morgan Stanley Senior Funding, Inc. The commitment is intended to finance a portion of the cash consideration, to refinance RXO’s existing credit facility and to pay related fees and expenses, and to backstop amendments to our existing revolving credit facility and private placement notes. The commitments under the bridge facility are reduced by, among other things, the net proceeds of any notes offering, the commitments under any term loan facility, and the effectiveness of those amendments. Subsequent to the third quarter of 2026, we entered into the Fifth Amendment to our existing $1.0 billion revolving credit facility, which, among other things, permits the RXO acquisition and the related financing transactions and modifies certain financial covenant provisions in anticipation of the increased indebtedness expected to be incurred in connection with the RXO acquisition, including a temporary increase in the maximum permitted net leverage ratio following the closing of the acquisition. Upon the effectiveness of the Fifth Amendment, the portion of the commitment backstopping our revolving credit facility terminated, reducing the commitments under the bridge facility to $3.5 billion. The portion of the commitment backstopping our private placement notes will terminate upon the effectiveness of an amendment to the note purchase agreement governing those notes, which we expect to complete in the fourth quarter of 2026.
Removed paragraphs (17)
Previous report
During the second quarter of 2026, the global forwarding market remained driven primarily by supply-side dynamics rather than underlying demand conditions. Market conditions were shaped by intensifying geopolitical disruption, elevated fuel costs, and ocean carriers' continued capacity management actions, including blank sailings. Ongoing conflict in the Middle East severely constrained transits and continued the rerouting of Asia-to-Europe vessels around the Cape of Good Hope, which continues to extend transit times and reduced effective capacity. Ocean freight rates rose sharply during the second quarter of 2026 as these supply-side pressures, combined with the early onset of peak-season demand and customer front-loading of holiday and retail inventory, outpaced available capacity. Rate increases were further amplified by conflict and fuel-related surcharges, rather than by a broad-based recovery in underlying freight demand. The air freight market experienced a similar supply-driven tightening, as airspace restrictions and reduced carrier operations in the Middle East contracted global cargo capacity, lengthened flight routings, and increased operating costs, although capacity began to stabilize late in the quarter. These constraints, together with a sharp increase in jet fuel prices, drove air freight rates meaningfully higher during the quarter.
Previous report
Our global forwarding results in the second quarter of 2026 were largely in-line with the market trends discussed above. Our ocean freight shipments increased 1.0 percent compared to the second quarter of 2025, as early onset peak-season demand and customer front-loading of holiday and retail inventory supported volumes, even as carrier blank sailings and the continued rerouting of vessels related to Middle East conflicts continued to reduce effective capacity. This modest increase was achieved against a volatile second quarter of 2025 that was heavily impacted by significant policy shifts and changing global tariff rates. Our air freight tonnage decreased 7.5 percent compared to the second quarter of 2025, reflecting a supply-driven contraction in global cargo capacity from Middle East airspace restrictions and reduced carrier operations, which elevated air freight rates and constrained demand during the quarter.
Previous report
•Gross profits increased 6.8 percent to $725.9 million. Adjusted gross profits increased 6.5 percent to $738.0 million, primarily driven by higher adjusted gross profit per transaction in our LTL and air services and higher volume in our LTL services.
Previous report
•Other selling, general, and administrative (“SG&A”) expenses increased 1.2 percent to $143.8 million primarily due to increases across several expense categories.
Previous report
Our personnel expenses in the second quarter of 2026 included $8.0 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program. In addition, other SG&A expenses included a net $0.5 million gain driven by the favorable termination of an operating lease, also associated with the program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Previous report
Our personnel expenses for the second quarter of 2025 included $3.9 million of severance and related personnel expenses associated with our 2025 Restructuring Program. In addition, other SG&A expenses included $0.4 million of expenses resulting from the divestiture of our Europe Surface Transportation business. Refer to Note 14, Divestitures, for further discussion related to the divestiture of our Europe Surface Transportation business.
Previous report
Consolidated Results of Operations—Six Months Ended June 30, 2026, Compared to the Six Months Ended June 30, 2025
Previous report
Total revenues and direct costs. Total revenues and direct costs increased primarily due to higher pricing and costs in our truckload and LTL services and higher pricing in our air freight services, partially offset by lower volumes in truckload, ocean, and air freight. In our NAST business, tightening market conditions drove higher market pricing and costs across our truckload and LTL services. The supply-side market tightening that emerged in late 2025 and continued into 2026, along with elevated diesel fuel prices, drove all-in transportation rates higher than the prior year. In our global forwarding business, air freight pricing and costs increased, reflecting a contraction in effective global capacity from Middle East conflicts, which drove airspace restrictions and longer flight times along with a sharp increase in jet fuel prices. Ocean pricing and costs increased later in the period as early onset peak-season demand and customer front-loading of holiday and retail inventory supported rates, even as carrier blank sailings and the continued rerouting of vessels related to those same conflicts reduced effective capacity. Our sourcing total revenues and direct costs increased primarily due to higher volumes with retail and foodservice customers.
Previous report
Gross profits and adjusted gross profits. Our transportation adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our LTL and air services, partially offset by lower volume in our truckload, ocean, and air freight services. The higher adjusted gross profit per transaction in our LTL services was driven primarily by stronger demand and favorable pricing dynamics as some customers shifted freight to LTL solutions in response to rising truckload transportation costs. Our adjusted gross profits in truckload services decreased reflecting a decline in volumes as higher adjusted gross profit per transaction from the transactional market was mostly offset by lower adjusted gross profit per transaction in our contractual portfolio. Sourcing adjusted gross profits increased due to higher volumes with foodservice customers, partially offset by margin compression, primarily with retail customers.
Previous report
Operating expenses. Personnel expenses increased primarily due to higher restructuring charges related to workforce reductions. These increases were partially offset by cost optimization initiatives and productivity improvements, including a lower average employee headcount. Other SG&A expenses decreased primarily due to lower occupancy costs and reductions across several expense categories. The decline in occupancy costs was driven by a $6.3 million impairment charge related to our Kansas City regional center recorded in the prior-year period, together with ongoing facilities footprint optimization efforts.
Previous report
Our personnel expenses for the six months ended June 30, 2026 included $26.8 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program. In addition, other SG&A included $0.9 million of expense also associated with the program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Previous report
NAST personnel expenses in the second quarter of 2026 included $2.0 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses also included $0.1 million of restructuring costs. NAST personnel expenses in the second quarter of 2025 included $0.7 million of severance and related personnel expenses also associated with the same program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Previous report
Gross profits and adjusted gross profits. NAST adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our LTL services. The higher adjusted gross profit per transaction in our LTL services reflected stronger demand and favorable pricing dynamics as some customers shifted freight to LTL solutions in response to rising truckload transportation costs, along with increased LTL volumes. Adjusted gross profits in our truckload services decreased, reflecting a decline in volumes, as higher adjusted gross profit per transaction from the transactional, or spot, market was mostly offset by lower adjusted gross profit per transaction in our contractual portfolio. The higher transactional market adjusted gross profit per transaction reflected our ability to capture higher-margin opportunities as spot market costs rose, while the lower contractual market adjusted gross profit per transaction reflected the sharper acceleration in carrier costs relative to our contractual rates, as we worked with our customers to honor our contractual commitments while actively repricing to reflect the changing market conditions.
Previous report
NAST personnel expenses in the six months ended June 30, 2026 included $18.1 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses also included $0.2 million of restructuring costs. NAST personnel expenses in the six months ended June 30, 2025 included $0.7 million of severance and related personnel expenses also associated with the same program.
Previous report
Total revenues and direct costs. Global Forwarding total revenues and direct costs increased primarily driven by higher pricing and costs in air services, including the impact of higher fuel surcharges, along with higher pricing and costs in ocean services, and to a lesser extent, an increase in ocean volumes. These increases were partially offset by lower air freight tonnage. Air pricing increased, reflecting a supply-driven contraction in effective global capacity and a sharp increase in jet fuel prices resulting from Middle East airspace restrictions and longer flight routings, along with constrained demand during the quarter. Ocean pricing increased as the early onset of peak-season demand and customer front-loading of holiday and retail inventory supported volumes and rates, even as carrier blank sailings and the continued rerouting of Asia-to-Europe vessels related to Middle East conflicts reduced effective capacity.
Previous report
Total revenues and direct costs. Global Forwarding total revenues decreased, primarily driven by lower volumes in both ocean and air freight services and, to a lesser extent, lower pricing in ocean services. These decreases were mostly offset by higher pricing in air services, including the impact of higher fuel surcharges. The higher pricing in the air freight market also contributed to an increase in purchased transportation costs compared to the prior year. Ocean and air freight volumes declined from the elevated levels experienced in the first half of 2025, which benefited from accelerated shipping activity ahead of anticipated tariff implementations. Ocean pricing was pressured early in the period by excess vessel capacity in the market, before strengthening later in the period as the early onset of peak‑season demand and customer front‑loading of holiday and retail inventory supported volumes and rates, even as carrier blank sailings and the continued rerouting of Asia‑to‑Europe vessels related to Middle East conflicts reduced effective capacity. Air freight pricing increased, reflecting a supply‑driven contraction in effective global capacity and a sharp increase in jet fuel prices resulting from Middle East airspace restrictions and longer flight routings, even as air freight tonnage declined amid constrained demand.
Previous report
Gross profits and adjusted gross profits. Global Forwarding adjusted gross profits decreased, primarily driven by a lower adjusted gross profit per shipment in ocean services and lower ocean volumes. The decline in ocean adjusted gross profit per shipment was attributable to excess vessel capacity that significantly reduced pricing earlier in the period, and, later in the period, to purchased transportation costs increasing faster than customer pricing. These declines were partially offset by a higher adjusted gross profit per shipment in air services, attributable to the elevated global air freight pricing discussed above, partially offset by lower air freight volumes.
Reworded paragraphs (47)
Previous wording
Our Quarterly Report on Form 10-Q, including this discussion and analysis of our financial condition and results of operations and our disclosures about market risk, contains certain “forward-looking statements.” These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability and ability to achieve our long-term growth targets; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence upon and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business, including reliance on third-party platforms; cybersecurity related risks; our ability to staff and retain employees; risks associated with operations outside of the United States; our ability to successfully integrate the operations of acquired companies with our historic operations or efficiently manage divestitures; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations, including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; risks associated with cybersecurity events; and other risks and uncertainties, including those described in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission on February 13, 2026, as well as the updates to these risk factors included in Part II—“Item 1A, Risk Factors,” herein.
Current wording
Our Quarterly Report on Form 10-Q, including this discussion and analysis of our financial condition and results of operations and our disclosures about market risk, contains certain “forward-looking statements.” Forward-looking statements in this Quarterly Report include, among other things, statements concerning the proposed acquisition of RXO, Inc., including the anticipated timing and completion of the transaction; the receipt of required regulatory approvals and approval of the transaction by RXO’s stockholders; the satisfaction of other closing conditions; our plans to finance the cash consideration; our plans for the post-closing integration of RXO; and the anticipated benefits and other effects of the transaction. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability and ability to achieve our long-term growth targets; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks relating to the proposed acquisition of RXO, including the possibility that the transaction may not be completed on the anticipated terms or timing, or at all; the failure to obtain required regulatory approvals or approval of the transaction by RXO’s stockholders or to satisfy other closing conditions; risks associated with financing the cash consideration, including our ability to obtain new debt financing within the anticipated timing and on anticipated terms and the potential need to borrow under the committed bridge facility; difficulties, delays, or unanticipated costs in integrating RXO; the possibility that the anticipated benefits of the transaction may not be realized, may be realized later than expected, or may be less than anticipated; our dependence upon and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business, including reliance on third-party platforms; cybersecurity related risks; our ability to staff and retain employees; risks associated with operations outside of the United States; our ability to successfully integrate the operations of acquired companies with our historic operations or efficiently manage divestitures; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
The North American surface transportation market continued to tighten during the second quarter of 2026, extending the trend that emerged in late 2025 and accelerated in early 2026. Carrier capacity contracted further as regulatory enforcement activity impacting driver availability, combined with elevated operating costs, continued to strain capacity. These supply-side dynamics, rather than a meaningful recovery in underlying freight demand, remained the primary driver of higher transportation rates, with truckload spot rates rising sharply on a year-over-year basis. Seasonal produce and beverage demand, along with disruptive events such as the International Roadcheck enforcement period, further tightened regional capacity and contributed to temporary spikes in spot rates. As truckload rates increased, some shippers shifted freight to less-than-truckload solutions to improve transportation efficiency and manage costs, contributing to stronger demand trends in portions of the less than truckload (“LTL”) market. In addition, escalating geopolitical tensions in the Middle East disrupted global oil flows and drove diesel fuel prices to multi-year highs during the quarter before easing later in the period, adding further cost pressure and volatility to all-in transportation rates. Underlying freight demand remained subdued, and industry freight volumes, as measured by the Cass Freight Index, declined 3.3 percent in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
The North American surface transportation market remained tight during the third quarter of 2026. Truckload spot rates eased from peak levels experienced early in the quarter as supply pressures moderated and uneven consumer spending limited demand, resulting in more typical seasonal trends. However, truckload rates remained elevated compared to the third quarter of 2025, and contract rates continued to adjust higher. Elevated insurance costs, stricter driver requirements, federal enforcement actions, and other operating challenges continue to remove carrier capacity from the market. These supply-side dynamics, rather than a meaningful recovery in underlying freight demand, remained the primary driver of elevated transportation rates and left the market more sensitive to disruptions because there is less available capacity to absorb sudden changes in freight demand. In the less than truckload (“LTL”) market, conditions remained stable although the elevated cost of truckload capacity continued to shift freight to LTL. Diesel fuel prices remained elevated, adding further cost pressure to all-in transportation rates. Underlying freight demand remained muted, although volumes showed early signs of stabilization late in the quarter. Industry freight volumes, as measured by the Cass Freight Index, declined 0.3 percent in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
One of the key metrics we use to measure market conditions is the truckload routing guide depth from our Managed Solutions business. This metric measures the average number of carriers contacted before securing a transportation provider. A routing guide depth of 1 would be perfect performance and 2 would be extremely poor. The average routing guide depth in the second quarter of 2026 was 1.4 compared to 1.3 in the second quarter of 2025, reflecting a further tightening of the market compared to the prior year.
Current wording
One of the key metrics we use to measure market conditions is the truckload routing guide depth from our Managed Solutions business. This metric measures the average number of carriers contacted before securing a transportation provider. A routing guide depth of 1 would be perfect performance and 2 would be extremely poor. The average routing guide depth in the third quarter of 2026 was 1.5 compared to 1.2 in the third quarter of 2025, reflecting a further tightening of the market compared to the prior year.
Previous wording
Looking ahead, conflict-related disruptions, the pace of capacity normalization, and evolving trade and tariff policy are likely to continue to drive volatility in ocean and air freight pricing in the near term, although the ultimate extent and duration remain uncertain.
Current wording
Looking ahead, conflict-related disruptions in the Middle East, including the potential for renewed disruption to Red Sea transits, the pace of new capacity entering the market, and evolving trade and tariff policy are likely to continue to drive volatility in ocean and air freight pricing in the near term, although the ultimate extent and duration remain uncertain.
Previous wording
Our surface transportation business continued to operate in a rising cost environment during the second quarter of 2026, as discussed in the Market Trends section. As a result of these tightening market conditions, our average truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 29.0 percent during the second quarter of 2026 compared to the second quarter of 2025. Our average truckload linehaul rate charged to our customers, excluding fuel surcharges, increased approximately 25.5 percent during the second quarter of 2026 compared to the second quarter of 2025. The sharper acceleration in cost relative to rate reflected the supply-driven tightening described above, as carrier capacity contraction and diesel fuel price volatility drove costs higher faster than contractual rates could reprice. In truckload, our adjusted gross profit per transaction declined modestly, as we worked with our customers to honor our contractual commitments while actively repricing contractual rates to reflect the changing market dynamics and also capture higher-margin opportunities in the spot market. Our combined North American Surface Transportation ("NAST") truckload and LTL volume increased approximately 1.5 percent year-over-year in the second quarter of 2026, outperforming the Cass Freight Index, which declined 3.3 percent compared to the second quarter of 2025.
Current wording
Our surface transportation business continued to operate in a rising cost environment during the third quarter of 2026, as discussed in the market trends section. As a result of these tight market conditions, our average truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 33.5 percent during the third quarter of 2026 compared to the third quarter of 2025. Our average truckload linehaul rate charged to our customers, excluding fuel surcharges, increased approximately 31.5 percent during the third quarter of 2026 compared to the third quarter of 2025. Our truckload adjusted gross profit per transaction increased approximately 17.0 percent, as the continued advancement of our dynamic pricing and costing capabilities allowed us to capitalize on the elevated spot market conditions during the third quarter of 2026, in addition to improvements in our contractual portfolio resulting from our continued repricing efforts to reflect the rising cost environment. Our combined North American Surface Transportation (“NAST”) truckload and LTL volume increased approximately 3.5 percent year-over-year in the third quarter of 2026, outperforming the Cass Freight Index, which declined 0.3 percent compared to the third quarter of 2025.
Previous wording
The following summarizes select second quarter 2026 year-over-year operating comparisons to the second quarter 2025:
Current wording
The following summarizes select third quarter 2026 year-over-year operating comparisons to the third quarter of 2025:
Previous wording
•Total revenues increased 19.3 percent to $4.9 billion, primarily driven by higher pricing in our truckload, LTL, air, and ocean services.
Current wording
•Total revenues increased 29.5 percent to $5.4 billion, primarily driven by higher pricing in our truckload, ocean, LTL, and air services and higher volume in our truckload services.
Previous wording
•Personnel expenses increased 0.9 percent to $338.5 million, primarily due to higher incentive compensation reflecting our strong operating performance. This was partially offset by cost optimization efforts and productivity improvements. Average employee headcount decreased 10.8 percent.
Current wording
•Personnel expenses increased 3.1 percent to $360.3 million, primarily due to higher incentive compensation reflecting our strong operating performance. This was partially offset by cost optimization efforts, productivity improvements, and lower restructuring charges. Average employee headcount decreased 10.4 percent.
Previous wording
•Income from operations increased 18.4 percent to $255.7 million, due to the increase in adjusted gross profit, partially offset by the increase in operating expenses.
Current wording
•Income from operations increased 23.1 percent to $271.8 million, due to the increase in adjusted gross profit, partially offset by the increase in operating expenses.
Previous wording
•Adjusted operating margin of 34.7 percent increased 360 basis points.
Current wording
•Adjusted operating margin of 33.6 percent increased 230 basis points.
Previous wording
•Interest and other income/expense, net totaled $17.9 million of expense, consisting primarily of $16.9 million of interest expense, which increased $0.1 million versus last year due to a higher average debt balance, partially offset by lower variable interest rates. The second quarter of 2026 results also include a $1.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
Current wording
•Interest and other income/expense, net totaled $21.7 million of expense, consisting primarily of $20.4 million of interest expense, which increased $4.7 million versus last year due to a higher average debt balance, partially offset by lower variable interest rates. The third quarter of 2026 results also include a $2.1 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
Previous wording
•The effective tax rate in the quarter was 21.5 percent compared to 21.4 percent in the second quarter last year.
Current wording
•The effective tax rate in the quarter was 20.6 percent, consistent with the third quarter last year.
Previous wording
•Net income totaled $186.8 million, an increase of 22.5 percent from a year ago.
Current wording
•Net income totaled $198.5 million, an increase of 21.8 percent from a year ago.
Previous wording
•Diluted earnings per share increased 23.8 percent to $1.56.
Current wording
•Diluted earnings per share increased 24.6 percent to $1.67.
Previous wording
•Cash flow from operations decreased $229.2 million, primarily driven by a sequential increase in net operating working capital.
Current wording
•Cash flow from operations decreased $380.5 million, primarily driven by a sequential increase in net operating working capital.
Previous wording
Interest and other income/expense, net. Interest and other income/expense, net primarily consisted of interest expense of $16.9 million which increased $0.1 million during the second quarter of 2026, due to a higher average debt balance, partially offset by lower variable interest rates. The current period included a $1.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses. The second quarter of 2025 included a $4.9 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
Current wording
Interest and other income/expense, net. Interest and other income/expense, net primarily consisted of interest expense of $20.4 million, which increased $4.7 million during the third quarter of 2026, due to a higher average debt balance, partially offset by lower variable interest rates. The current period included a $2.1 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
Previous wording
Provision for income taxes. Our effective income tax rate was 21.5 percent for the second quarter of 2026 compared to 21.4 percent for the second quarter of 2025. The effective income tax rate for the second quarter of 2026 was higher than the statutory federal income tax rate primarily due to state income tax expense, net of federal benefit, which increased the effective tax rate by 2.1 percentage points and by non-deductible executive compensation expenses, which increased the effective tax rate by 1.5 percentage points. These impacts were partially offset by the tax benefit of share-based payment awards, and foreign tax credits. The effective income tax rate for the second quarter of 2025 was higher than the statutory federal income tax rate primarily due to state income tax expense, net of federal benefit, which increased the effective tax rate by 2.3 percentage points. This impact was partially offset by foreign tax credits which decreased the effective income tax rate by 1.9 percentage points during the second quarter of 2025.
Current wording
Provision for income taxes. Our effective income tax rate was 20.6 percent for the third quarter of 2026 consistent with the third quarter of 2025. The effective income tax rate for the third quarter of 2026 was lower than the statutory federal income tax rate primarily due to U.S. tax credits and the tax benefit of share-based payment awards, which decreased the effective tax rate by 2.0 percentage points and 1.6 percentage points, respectively. These impacts were partially offset by state income tax expense, net of federal benefit, which increased the effective tax rate by 3.3 percentage points. The effective income tax rate for the third quarter of 2025 was lower than the statutory federal income tax rate primarily due to the impact of share-based payment awards and foreign tax credits, which decreased the effective income tax rate by 3.8 percentage points and 2.0 percentage points, respectively. These impacts were partially offset by state income tax expense, net of federal benefit, which increased the effective tax rate by 2.4 percentage points during the third quarter of 2025.
Previous wording
Total revenues and direct costs. Total transportation revenues and direct costs increased significantly primarily due to higher pricing and costs in our truckload and LTL services, along with higher pricing and costs in our air and ocean services, partially offset by lower air freight tonnage. In our NAST business, tightening market conditions drove higher market pricing across our truckload and LTL services, which was the largest contributor to the year-over-year increase. As discussed in the Market Trends and Business Trends sections, the supply-driven tightening and elevated diesel fuel prices in the market drove all-in transportation rates higher than the prior year. In our global forwarding business, ocean pricing improved as early onset peak-season demand and customer front-loading of holiday and retail inventory supported volumes and rates, even as carrier blank sailings and the continued rerouting of vessels related to Middle East conflicts reduced effective capacity. Air pricing similarly increased, reflecting a supply-driven contraction in effective global capacity and a sharp increase in jet fuel prices from Middle East airspace restrictions and longer flight times and constrained demand during the quarter. Our sourcing total revenues and direct costs increased, due to higher volumes with foodservice customers.
Current wording
Total revenues and direct costs. Total transportation revenues and direct costs increased primarily due to higher pricing and costs in our truckload, ocean, LTL, and air freight services, including the impact of elevated fuel prices, and higher LTL volume. In our NAST business, tightening market conditions drove higher market pricing and costs across our truckload and LTL services. The supply-side market tightening that emerged in late 2025 and continued through 2026, along with elevated fuel prices, drove all-in transportation rates higher than the prior year. Elevated insurance costs, stricter driver requirements, federal enforcement actions, and other operating challenges continued to remove carrier capacity from the market and resulted in some truckload freight shifting to LTL. In our Global Forwarding business, ocean pricing and costs increased as carrier capacity management actions, including blank sailings, operational disruptions, and vessel rerouting constrained effective capacity. Air freight pricing and costs increased as continued conflict in the Middle East affected airspace availability and flight routings and contributed to higher jet fuel prices, keeping air freight rates elevated compared to the prior year. Our sourcing total revenues and direct costs increased primarily due to higher volumes with foodservice customers, partially offset by lower average pricing with retail customers.
Previous wording
Gross profits and adjusted gross profits. Our transportation adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our LTL and air freight services, as higher adjusted gross profit per transaction from the transactional market was mostly offset by lower adjusted gross profit per transaction in our contractual portfolio within truckload services. The higher adjusted gross profit per transaction in our LTL services reflected stronger demand and favorable pricing dynamics as some customers shifted freight to LTL solutions in response to rising truckload transportation costs. In our truckload services, higher transactional, or spot, market adjusted gross profit per transaction reflected our ability to capture higher-margin opportunities as spot market costs rose, while lower contractual market adjusted gross profit per transaction reflected the sharper acceleration in carrier costs relative to contractual rates, as we worked with our customers to honor our contractual commitments while actively repricing to reflect the changing market conditions. Sourcing adjusted gross profits increased, due to higher volume with foodservice customers.
Current wording
Gross profits and adjusted gross profits. Our transportation adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our truckload, LTL and air freight services and higher volume in our LTL services. In our truckload services, higher adjusted gross profit per transaction reflected the continued advancement of our dynamic pricing and costing capabilities, which allowed us to capitalize on elevated spot market conditions, along with improvements in our contractual portfolio in the third quarter resulting from repricing efforts to reflect the rising cost environment. In our LTL services, higher adjusted gross profit per transaction and higher volume reflected stronger demand and favorable pricing dynamics as rising truckload transportation costs shifted freight to LTL solutions. In our air freight services, higher adjusted gross profit per shipment reflected elevated market pricing driven by higher jet fuel prices and the impact of conflict in the Middle East on airspace availability and flight routings. Our sourcing adjusted gross profits increased primarily due to higher volumes with foodservice customers, partially offset by lower adjusted gross profits per transaction with retail customers.
Previous wording
Operating expenses. Personnel expenses increased primarily due to higher incentive compensation reflecting our strong operating performance. This impact was partially offset by cost optimization efforts and productivity improvements, including lower average employee headcount. Other SG&A expenses increased primarily due to increases across several expense categories.
Current wording
Operating expenses. Personnel expenses increased primarily due to higher incentive compensation reflecting our strong operating performance and higher restructuring charges. These increases were partially offset by cost optimization initiatives and productivity improvements, including lower average employee headcount. Other SG&A expenses increased primarily due to higher claims expense and an impairment charge on our Kansas City regional center lease, resulting from the execution of a sublease agreement for the remaining portion of the facility.
Previous wording
Our personnel expenses for the six months ended June 30, 2025 included $5.1 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program and the divestiture of our Europe Surface Transportation business. In addition, other SG&A included $7.8 million of expense also associated with the divestiture and the Kansas City regional center impairment discussed above.
Current wording
Our personnel expenses for the nine months ended September 30, 2025 included $14.8 million of severance and related personnel expenses incurred in connection with our 2025 Restructuring Program and the divestiture of our Europe Surface Transportation business. In addition, other SG&A expenses included $7.9 million of expense driven by a $6.3 million impairment charge on our Kansas City regional center lease and expenses related to the divestiture of our Europe Surface Transportation business.
Previous wording
Interest and other income/expense, net. Interest and other income/expense, net primarily consisted of interest expense of $30.9 million, which decreased $2.7 million driven by lower variable interest rates and a lower average debt balance compared to the prior year. The six months ended June 30, 2026 included a $0.3 million net gain from foreign currency revaluation and realized foreign currency gains and losses, compared to an $8.3 million net loss in the prior year.
Current wording
Interest and other income/expense, net. Interest and other income/expense, net primarily consisted of interest expense of $51.3 million, which increased $1.9 million driven by a higher average debt balance, partially offset by lower variable interest rates compared to the prior year. The nine months ended September 30, 2026 included a $1.8 million net loss from foreign currency revaluation and realized foreign currency gains and losses, compared to an $8.3 million net loss in the prior year.
Previous wording
Provision for income taxes. Our effective income tax rate was 17.4 percent for the six months ended June 30, 2026 and 17.9 percent for the six months ended June 30, 2025. The effective income tax rate for the six months ended June 30, 2026 was lower than the statutory federal income tax rate primarily due to the tax benefit of share-based payment awards and foreign tax credits, which decreased the effective tax rate by 9.1 percentage points and 1.1 percentage points, respectively. These impacts were partially offset by non-deductible executive compensation expenses and state income tax expense, net of federal benefit, which increased the effective tax rate by 3.6 percentage points and 2.3 percentage points, respectively. The effective income tax rate for the six months ended June 30, 2025 was lower than the statutory federal income tax rate primarily due to the tax benefit of share-based payment awards, foreign tax credits, and U.S. tax credits and incentives, which decreased the effective tax rate by 2.9 percentage points, 1.9 percentage points, and 1.6 percentage points, respectively. These impacts were partially offset by state income tax expense, net of federal benefit which increased the effective tax rate by 2.2 percentage points.
Current wording
Provision for income taxes. Our effective income tax rate was 18.7 percent for the nine months ended September 30, 2026 and 18.9 percent for the nine months ended September 30, 2025. The effective income tax rate for the nine months ended September 30, 2026 was lower than the statutory federal income tax rate primarily due to the tax benefit of share-based payment awards and U.S. tax credits, which decreased the effective tax rate by 6.3 percentage points and 1.2 percentage points, respectively. These impacts were partially offset by non-deductible executive compensation expenses and state income tax expense, net of federal benefit, which increased the effective tax rate by 2.8 percentage points and 2.7 percentage points, respectively. The effective income tax rate for the nine months ended September 30, 2025 was lower than the statutory federal income tax rate primarily due to the tax benefit of share-based payment awards and foreign tax credits, which decreased the effective tax rate by 3.3 percentage points and 2.0 percentage points, respectively. These impacts were partially offset by state income tax expense, net of federal benefit, which increased the effective tax rate by 2.3 percentage points.
Previous wording
Total revenues and direct costs. NAST total revenues and direct costs increased significantly primarily due to higher pricing and costs in our truckload and LTL services, including higher fuel surcharges. Tightening market conditions drove higher market pricing across our truckload and LTL services, which was the largest contributor to the year-over-year increase, with volumes also increasing in both truckload and LTL services. As discussed in the Market Trends and Business Trends sections, the supply-driven tightening and elevated diesel fuel prices in the market drove all-in transportation rates higher than the prior year. Our average truckload linehaul rate per mile charged to customers, which excludes fuel surcharges, increased approximately 25.5 percent in the second quarter of 2026 compared to the second quarter of 2025. Our truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 29.0 percent in the second quarter of 2026 compared to the second quarter of 2025.
Current wording
Total revenues and direct costs. NAST total revenues and direct costs increased significantly primarily due to higher pricing and costs in our truckload and LTL services, including the impact of elevated fuel prices, as well as higher truckload and LTL volumes. Elevated insurance costs, stricter driver requirements, federal enforcement actions, and other operating challenges continued to remove carrier capacity from the market, driving truckload rates higher and resulting in some truckload freight shifting to LTL. Our average truckload linehaul rate per mile charged to customers, which excludes fuel surcharges, increased approximately 31.5 percent in the third quarter of 2026 compared to the third quarter of 2025. Our truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 33.5 percent in the third quarter of 2026 compared to the third quarter of 2025.
Previous wording
Operating expenses. NAST personnel expenses increased primarily due to higher incentive compensation reflecting our strong operating performance. This impact was partially offset by cost optimization efforts and productivity improvements, including lower average employee headcount. NAST other SG&A expenses increased primarily due to higher claims expense and higher allocated corporate expenses partially offset by declines across several expense categories.
Current wording
Operating expenses. NAST personnel expenses increased primarily due to higher incentive compensation reflecting our strong operating performance. This impact was partially offset by cost optimization efforts and productivity improvements, including lower average employee headcount. NAST other SG&A expenses increased primarily due to higher claims expenses, higher professional services, and higher allocated corporate expenses.
Previous wording
Total revenues and direct costs. NAST total revenues and direct costs increased significantly primarily due to higher market pricing and costs in our truckload and LTL services, including higher fuel surcharges. Tightening market conditions drove higher market pricing across our truckload and LTL services. This supply-driven tightening, which emerged in late 2025 and continued into 2026, together with elevated diesel fuel prices, drove all-in transportation rates higher than the prior year. LTL volumes increased for the year-to-date period, while truckload volumes decreased, reflecting a decline in the first quarter that was only partially offset by modest growth in the second quarter. Our average truckload linehaul rate per mile charged to customers, which excludes fuel surcharges, increased approximately 18.5 percent. Our truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 21.5 percent.
Current wording
Total revenues and direct costs. NAST total revenues and direct costs increased primarily due to higher pricing and costs in our truckload and LTL services, including the impact of elevated fuel prices, and higher LTL volume. Tightening market conditions drove higher market pricing and costs across our truckload and LTL services. The supply-side market tightening that emerged in late 2025 and continued through 2026, along with elevated fuel prices, drove all-in transportation rates higher than the prior year. Elevated insurance costs, stricter driver requirements, federal enforcement actions, and other operating challenges continued to remove carrier capacity from the market and resulted in some truckload freight shifting to LTL. Our average truckload linehaul rate per mile charged to customers, which excludes fuel surcharges, increased approximately 23.0 percent. Our truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 25.5 percent.
Previous wording
Gross profits and adjusted gross profits. NAST adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our LTL services, as higher adjusted gross profit per transaction from the transactional market was mostly offset by lower adjusted gross profit per transaction in our contractual portfolio within truckload services. The higher adjusted gross profit per transaction in our LTL services reflected stronger demand and favorable pricing dynamics as some customers shifted freight to LTL solutions in response to rising truckload transportation costs. In our truckload services, higher transactional, or spot, market adjusted gross profit per transaction reflected our ability to capture higher-margin opportunities as spot market costs rose, while lower contractual market adjusted gross profit per transaction reflected the sharper acceleration in carrier costs relative to our contractual rates, as we worked with our customers to honor our contractual commitments while actively repricing to reflect the changing market conditions.
Current wording
Gross profits and adjusted gross profits. NAST adjusted gross profits increased, driven primarily by higher adjusted gross profit per transaction in our truckload and LTL services and higher LTL volume. In our truckload services, higher adjusted gross profit per transaction reflected the continued advancement of our dynamic pricing and costing capabilities, which allowed us to capitalize on elevated spot market conditions, along with improvements in our contractual portfolio in the third quarter resulting from repricing efforts to reflect the rising cost environment. In our LTL services, higher adjusted gross profit per transaction and higher volume reflected stronger demand and favorable pricing dynamics as rising truckload transportation costs shifted freight to LTL solutions. Other adjusted gross profits increased driven by incremental warehousing services.
Previous wording
Operating expenses. NAST personnel expenses increased driven by higher restructuring charges related to workforce reductions and higher incentive compensation reflecting our strong operating performance. These increases were partially offset by cost optimization efforts and productivity improvements, including lower average employee headcount. NAST other SG&A expenses increased primarily due to higher allocated corporate expenses and higher claims expense.
Current wording
Operating expenses. NAST personnel expenses increased driven by higher incentive compensation reflecting our strong operating performance and higher restructuring charges related to workforce reductions. These increases were partially offset by cost optimization efforts and productivity improvements, including lower average employee headcount. NAST other SG&A expenses increased primarily due to higher claims expense and higher allocated corporate expenses.
Previous wording
Gross profits and adjusted gross profits. Global Forwarding adjusted gross profits increased, primarily driven by a higher adjusted gross profit per shipment in air services, attributable to the elevated global air freight pricing discussed above. This increase was partially offset by lower adjusted gross profits in ocean and customs services. Ocean adjusted gross profits declined, driven by a lower adjusted gross profit per shipment as purchased transportation costs increased faster than customer pricing, partially offset by higher volumes, as discussed above. Customs adjusted gross profits decreased compared to the elevated levels in the prior year, which benefited from higher duty advance fees reflecting elevated global tariff rates.
Current wording
Gross profits and adjusted gross profits. Global Forwarding adjusted gross profits increased, primarily driven by a higher adjusted gross profit per shipment in ocean and air services, and an increase in ocean volumes. This increase was partially offset by lower adjusted gross profits in customs services. In our ocean services, higher adjusted gross profit per shipment reflected elevated market pricing as operational disruptions and ocean carriers’ continued capacity management actions, including blank sailings, constrained effective capacity. In our air freight services, higher adjusted gross profit per metric ton reflected elevated market pricing driven by higher jet fuel prices and the continued impact of conflict in the Middle East on airspace availability and flight routings. Customs adjusted gross profits decreased compared to the elevated levels in the prior year, which benefited from higher duty advance fees reflecting elevated global tariff rates.
Previous wording
Operating expenses. Personnel expenses decreased driven by cost optimization efforts and productivity improvements including lower average employee headcount and lower incentive compensation expense. Global Forwarding other SG&A expenses increased primarily due to higher allocated corporate expenses.
Current wording
Operating expenses. Personnel expenses decreased driven by cost optimization efforts and productivity improvements including lower average employee headcount, partially offset by higher incentive compensation expense. Global Forwarding other SG&A expenses increased primarily due to higher allocated corporate expenses.
Previous wording
Global Forwarding personnel expenses in the second quarter of 2026 included $3.0 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses included a $0.8 million gain resulting from the favorable termination of an operating lease also associated with the program. Global Forwarding personnel expenses for the second quarter of 2025 included $2.6 million of severance and related personnel expenses also associated with the same program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Current wording
Global Forwarding personnel expenses in the third quarter of 2026 included $0.9 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Global Forwarding personnel expenses for the third quarter of 2025 included $8.4 million of severance and related personnel expenses also associated with the same program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Previous wording
Operating expenses. Personnel expenses decreased driven by cost optimization efforts and productivity improvements, including lower average employee headcount, in addition to lower incentive compensation. Other SG&A expenses decreased with reductions across several expense categories partially offset by higher allocated corporate expenses.
Current wording
Operating expenses. Personnel expenses decreased driven by cost optimization efforts and productivity improvements, including lower average employee headcount. Other SG&A expenses increased primarily due to higher allocated corporate expenses.
Previous wording
Global Forwarding personnel expenses for the six months ended June 30, 2026 included $4.1 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses also included $0.6 million of restructuring costs. Global Forwarding personnel expenses for the six months ended June 30, 2025 included $2.6 million of severance and related personnel expenses also associated with the same program.
Current wording
In addition to the above, Global Forwarding personnel expenses in the nine months ended September 30, 2026 included $5.0 million of severance and related personnel expenses. We also incurred $0.6 million of other SG&A expenses in the nine months ended September 30, 2026. These expenses were both associated with our 2025 Restructuring Program. Personnel expenses for the nine months ended September 30, 2025 included $11.0 million of severance and related personnel expenses also associated with the same program.
Previous wording
Total revenues and direct costs. Total revenues and direct costs increased primarily due to higher volumes with foodservice customers in our Robinson Fresh business. Total revenues and direct costs in our Managed Solutions business also increased as a result of higher freight under management.
Current wording
Total revenues and direct costs. Total revenues and direct costs decreased primarily due to lower average pricing with retail customers, partially offset by higher volumes with foodservice customers in our Robinson Fresh business. Total revenues and direct costs in our Managed Solutions business increased as a result of higher freight under management.
Previous wording
Gross profits and adjusted gross profits. Robinson Fresh adjusted gross profits increased due to higher volume with foodservice customers. Managed Solutions adjusted gross profits increased as a result of higher freight under management.
Current wording
Gross profits and adjusted gross profits. Robinson Fresh adjusted gross profits decreased, driven by margin compression caused by higher fuel costs, partially offset by higher volumes with foodservice customers. Managed Solutions adjusted gross profits increased as a result of higher freight under management.
Previous wording
Restructuring, lease impairment charge, and divestiture expenses. All Other and Corporate personnel expenses in the second quarter of 2026 included $3.0 million of severance and related personnel expenses associated with our 2025 Restructuring Program. In addition, we incurred $0.2 million of other SG&A expenses during the second quarter of 2026 related to the program.
Current wording
Restructuring, lease impairment charge, and divestiture expenses. All Other and Corporate personnel expenses in the third quarter of 2026 included $0.9 million of severance and related personnel expenses associated with our 2025 Restructuring Program. In addition, other SG&A expenses included $12.3 million of expense driven by an impairment charge on our Kansas City regional center lease that was also associated with the program.
Previous wording
All Other and Corporate personnel expenses for the second quarter of 2025 included $0.6 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses for the second quarter of 2025 included $0.4 million related to restructuring activities and the divestiture of our Europe Surface Transportation business. Refer to Note 14, Divestitures, for further discussion related to the divestiture of our Europe Surface Transportation business and Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Current wording
All Other and Corporate personnel expenses in the third quarter of 2025 included $0.1 million of severance and related personnel expenses associated with our 2025 Restructuring Program. Other SG&A expenses also included net favorable post-closing working capital adjustments of $0.2 million resulting from the divestiture of our Europe Surface Transportation business. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program. Refer to Note 14, Divestitures, for further discussion related to the divestiture of our Europe Surface Transportation business.
Previous wording
Total revenues and direct costs. Total revenues and direct costs increased primarily due to higher volumes with retail and foodservice customers in our Robinson Fresh business. These increases were partially offset by lower revenues and direct costs resulting from the divestiture of our Europe Surface Transportation business on February 1, 2025. Total revenues and direct costs in our Managed Solutions business also increased as a result of higher freight under management.
Current wording
Total revenues and direct costs. Total revenues and direct costs increased primarily due to higher volumes with foodservice customers, partially offset by lower average pricing with retail customers in our Robinson Fresh business. Total revenues and direct costs in our Managed Solutions business also increased as a result of higher freight under management. These increases were partially offset by lower revenues and direct costs resulting from the divestiture of our Europe Surface Transportation business on February 1, 2025.
Previous wording
Gross profits and adjusted gross profits. Robinson Fresh adjusted gross profits increased due to higher volumes with foodservice customers, partially offset by margin compression, primarily with retail customers. Managed Solutions adjusted gross profits increased as a result of higher freight under management. Other Surface Transportation adjusted gross profits decreased due to the divestiture of our Europe Surface Transportation business.
Current wording
Gross profits and adjusted gross profits. Robinson Fresh adjusted gross profits increased primarily due to higher volumes with foodservice customers, partially offset by lower adjusted gross profit per transaction with retail customers. Managed Solutions adjusted gross profits increased as a result of higher freight under management. Other Surface Transportation adjusted gross profits decreased due to the divestiture of our Europe Surface Transportation business.
Previous wording
Restructuring, lease impairment charge, and divestiture expenses. All Other and Corporate personnel expenses in the six months ended June 30, 2026, included $4.7 million of severance and related personnel expenses associated with our 2025 Restructuring Program. In addition, we incurred $0.1 million of other SG&A expenses during the six months ended June 30, 2026 related to the program.
Current wording
Restructuring, lease impairment charge, and divestiture expenses. All Other and Corporate personnel expenses in the nine months ended September 30, 2026 included $5.6 million of severance and related personnel expenses associated with our 2025 Restructuring Program. In addition, other SG&A expenses included $12.4 million of expense driven by the impairment charge on our Kansas City regional center lease that was also associated with the program.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(1) Adjusted gross profit margin is a non-GAAP financial measure explained above.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
(1)Adjusted gross profit margin is a non-GAAP financial measure explained above.