C.H. Robinson Worldwide Inc.
05/01/2026 | Press release | Distributed by Public on 05/01/2026 09:53
Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and related notes.
FORWARD-LOOKING INFORMATION
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; 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.
Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date.
OVERVIEW
C.H. Robinson Worldwide, Inc. ("C.H. Robinson," "the company," "we," "us," or "our") is one of the largest global logistics providers in the world. As a leader in Lean AI supply chains, we deliver logistics like no one else. For more than a century, companies everywhere have looked to us to reimagine how goods move. We deliver tailored solutions across the world via truckload, less-than-truckload, ocean, air, and more. With our unique combination of human insight and Lean AI working as one, supply chains move faster, smarter, and more sustainably.
Our adjusted gross profits and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profits are calculated as gross profits excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. Adjusted gross profit margin is calculated as adjusted gross profits divided by total revenues. We believe adjusted gross profits and adjusted gross profit margin are useful measures of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profits to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profits and adjusted gross profit margin.
The reconciliation of gross profits to adjusted gross profits and gross profit margin to adjusted gross profit margin is presented below (dollars in thousands):
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Revenues: | |||||||||||||||||
| Transportation | $ | 3,643,711 | $ | 3,721,915 | |||||||||||||
| Sourcing | 369,223 | 324,825 | |||||||||||||||
| Total revenues | 4,012,934 | 4,046,740 | |||||||||||||||
| Costs and expenses: | |||||||||||||||||
| Purchased transportation and related services | 3,015,310 | 3,081,370 | |||||||||||||||
| Purchased products sourced for resale | 337,131 | 292,282 | |||||||||||||||
| Direct internally developed software amortization | 13,862 | 15,666 | |||||||||||||||
| Total direct costs | 3,366,303 | 3,389,318 | |||||||||||||||
| Gross profits / Gross profit margin | 646,631 | 16.1% | 657,422 | 16.2% | |||||||||||||
| Plus: Direct internally developed software amortization | 13,862 | 15,666 | |||||||||||||||
| Adjusted gross profits / Adjusted gross profit margin | $ | 660,493 | 16.5% | $ | 673,088 | 16.6% | |||||||||||
Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profits. We believe adjusted operating margin is a useful measure of our profitability in comparison to our adjusted gross profits, which we consider a primary performance metric as discussed above. The reconciliation of operating margin to adjusted operating margin is presented below (dollars in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Total revenues | $ | 4,012,934 | $ | 4,046,740 | |||||||
| Income from operations | 175,686 | 176,853 | |||||||||
| Operating margin | 4.4% | 4.4% | |||||||||
| Adjusted gross profits | $ | 660,493 | $ | 673,088 | |||||||
| Income from operations | 175,686 | 176,853 | |||||||||
| Adjusted operating margin | 26.6% | 26.3% | |||||||||
MARKET TRENDS
During the first quarter of 2026, the North American surface transportation market experienced heightened volatility, driven primarily by tightening carrier capacity and rising operating costs, while freight demand showed only limited signs of recovery. Capacity pressures increased as regulatory enforcement activity and higher operating costs accelerated carrier attrition, contributing to higher market pricing. These conditions were exacerbated by winter weather, which created regional capacity constraints. In addition, escalating geopolitical uncertainty contributed to higher diesel fuel prices, further increasing all-in transportation rates and adding near-term cost pressure and operational complexity for both carriers and shippers.
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. Routing guide depth of 1 would be perfect performance and 2 would be extremely poor. As carrier capacity tightened during the quarter, routing guide performance deteriorated, with average routing guide depth increasing to 1.5 in the first quarter of 2026, compared to 1.3 in both the fourth quarter of 2025 and the first quarter of 2025.
Looking ahead, continued uncertainty related to fuel prices, regulatory enforcement impacting driver availability, and geopolitical disruptions may continue to drive volatility and exert upward pressure on transportation rates as the industry enters the seasonally stronger spring and summer months.
During the first quarter of 2026, the global forwarding market was influenced primarily by supply-side dynamics rather than underlying demand conditions. Market conditions reflected the impact of conflict-related rerouting, elevated fuel costs, and carriers' strategic capacity management actions, including blank sailings. This compared to the first quarter of 2025, where ocean freight volumes accelerated ahead of anticipated tariff implementations. Ocean freight rates declined substantially during the first quarter of 2026 driven by excess vessel capacity but were increasingly influenced by fuel-related surcharges. The airfreight market remained balanced, mirroring the first quarter of 2025 although pricing was similarly affected by elevated fuel costs. Airspace restrictions related to the conflict in the Middle East resulted in longer flight times, contributing to increased fuel consumption and higher operating costs near the end of the first quarter of 2026.
BUSINESS TRENDS
Our surface transportation business operated in a rising cost environment during the first quarter of 2026, as discussed in the Market Trends section. As a result of these challenging market conditions, our average truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 13.0 percent during the first quarter of 2026 compared to the first quarter of 2025. Our average truckload linehaul rate charged to our customers, excluding fuel surcharges, increased approximately 11.0 percent during the first quarter of 2026. Despite the rapidly increasing cost environment, we improved our adjusted gross profit per transaction in both truckload and less than truckload ("LTL") services, driven by the continued advancement of our dynamic pricing and costing capabilities. These capabilities enabled us to respond faster and more surgically to meet our contractual commitments and adapt quickly to the changing spot market. Our combined North American Surface Transportation ("NAST") truckload and LTL volume held flat year-over-year in the first quarter of 2026, significantly outperforming the Cass Freight Index, which declined 6.2 percent compared to the first quarter of 2025.
Our global forwarding results in the first quarter of 2026 were largely in-line with the market trends discussed above. Our year-over-year ocean freight shipments decreased 10.5 percent and our airfreight tonnage decreased 15.0 percent, driven by the accelerated shipping activity ahead of anticipated tariff implementations in the first quarter of 2025.
On February 1, 2025, we divested our Europe Surface Transportation business, which provided transportation and logistics services, including truckload and LTL transportation services across Europe. This business represented the majority of our Other Surface Transportation operations included in All Other and Corporate.
SELECTED OPERATING PERFORMANCE AND OTHER SIGNIFICANT ITEMS
The following summarizes select first quarter 2026 year-over-year operating comparisons to the first quarter 2025:
•Total revenues decreased 0.8 percent to $4.0 billion, primarily driven by lower volume in our ocean and truckload services and lower pricing in our ocean services. This was partially offset by higher pricing in our truckload and LTL services.
•Gross profits decreased 1.6 percent to $646.6 million. Adjusted gross profits decreased 1.9 percent to $660.5 million, primarily driven by lower adjusted gross profit per transaction and lower volume in our ocean services. This was partially offset by higher adjusted gross profit per transaction in our LTL services.
•Personnel expenses increased 1.2 percent to $352.7 million, primarily due to higher restructuring charges related to workforce reductions. This was partially offset by cost optimization efforts and productivity improvements. Average employee headcount decreased 12.3 percent.
•Other selling, general, and administrative ("SG&A") expenses decreased 10.6 percent to $132.1 million primarily due to a prior year impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building. In addition, other SG&A expenses declined across several expense categories in 2026 due to cost optimization efforts.
•Income from operations decreased 0.7 percent to $175.7 million, due to the decrease in adjusted gross profit and higher restructuring charges, partially offset by the decrease in operating expenses.
•Adjusted operating margin of 26.6 percent increased 30 basis points.
•Interest and other income/expense, net totaled $9.0 million of expense, consisting primarily of $14.0 million of interest expense, which decreased $2.8 million versus last year due to a lower average debt balance and lower variable interest rates. The first quarter of 2026 results also include a $1.7 million net gain from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate in the quarter was 11.7 percent compared to 13.7 percent in the first quarter last year. The lower rate in the first quarter of 2026 was driven by higher tax benefits related to stock-compensation deliveries, partially offset by non-recurring discrete items and lower U.S. and foreign tax credits and incentives.
•Net income totaled $147.2 million, an increase of 8.8 percent from a year ago.
•Diluted earnings per share increased 9.9 percent to $1.22.
•Cash flow from operations decreased $37.9 million, primarily driven by a sequential increase in net operating working capital.
CONSOLIDATED RESULTS OF OPERATIONS
The following table summarizes our results of operations (dollars in thousands, except per share data):
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % change | |||||||||||||||
| Revenues: | |||||||||||||||||
| Transportation | $ | 3,643,711 | $ | 3,721,915 | (2.1) | % | |||||||||||
| Sourcing | 369,223 | 324,825 | 13.7 | % | |||||||||||||
| Total revenues | 4,012,934 | 4,046,740 | (0.8) | % | |||||||||||||
| Costs and expenses: | |||||||||||||||||
| Purchased transportation and related services | 3,015,310 | 3,081,370 | (2.1) | % | |||||||||||||
| Purchased products sourced for resale | 337,131 | 292,282 | 15.3 | % | |||||||||||||
| Personnel expenses | 352,723 | 348,553 | 1.2 | % | |||||||||||||
| Other selling, general, and administrative expenses | 132,084 | 147,682 | (10.6) | % | |||||||||||||
| Total costs and expenses | 3,837,248 | 3,869,887 | (0.8) | % | |||||||||||||
| Income from operations | 175,686 | 176,853 | (0.7) | % | |||||||||||||
| Interest and other income/expense, net | (9,013) | (20,051) | (55.0) | % | |||||||||||||
| Income before provision for income taxes | 166,673 | 156,802 | 6.3 | % | |||||||||||||
| Provision for income taxes | 19,440 | 21,500 | (9.6) | % | |||||||||||||
| Net income | $ | 147,233 | $ | 135,302 | 8.8 | % | |||||||||||
| Diluted net income per share | $ | 1.22 | $ | 1.11 | 9.9 | % | |||||||||||
| Average employee headcount | 11,705 | 13,347 | (12.3) | % | |||||||||||||
|
Adjusted gross profit margin percentage(1)
|
|||||||||||||||||
| Transportation | 17.2 | % | 17.2 | % | - bps | ||||||||||||
| Sourcing | 8.7 | % | 10.0 | % | (130 bps) | ||||||||||||
| Total adjusted gross profit margin | 16.5 | % | 16.6 | % | (10 bps) | ||||||||||||
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(1) Adjusted gross profit margin is a non-GAAP financial measure explained above.
A reconciliation of our reportable segments to our consolidated results can be found in Note 8, Segment Reporting, in Part I, Financial Information of this Quarterly Report on Form 10-Q.
Consolidated Results of Operations-Three Months Ended March 31, 2026, Compared to the Three Months Ended March 31, 2025
Total revenues and direct costs. Total transportation revenues and direct costs decreased primarily due to lower volume in ocean and truckload services and lower pricing in ocean services, partially offset by higher pricing in truckload and LTL services. Our ocean volumes and pricing declined compared to the elevated levels experienced in the first quarter of 2025, which benefited from accelerated shipping activity ahead of anticipated tariff implementations. Pricing has also declined substantially due to excess vessel capacity in the market. In our NAST business, industry volumes continued to decline, while capacity pressures increased as regulatory enforcement activity and higher operating costs accelerated carrier attrition, contributing to higher market pricing. These conditions were exacerbated by winter weather, which created regional capacity constraints. Our sourcing total revenue and direct costs increased, driven by increased volume in foodservice and retail customers.
Gross profits and adjusted gross profits. Our transportation adjusted gross profits decreased, driven primarily by lower adjusted gross profit per transaction in ocean services and lower volume in ocean and truckload services, as discussed above. These declines were partially offset by higher adjusted gross profit per transaction in our LTL and truckload services. The decrease in ocean adjusted gross profit per transaction was primarily attributable to excess vessel capacity, which significantly reduced pricing across the market. The higher adjusted gross profit per transaction in our LTL and truckload services was driven by the continued advancement of our dynamic pricing and costing capabilities. These capabilities enabled us to respond faster and more surgically to meet our contractual commitments and adapt to rising spot market costs during the first quarter of 2026. Sourcing adjusted gross profits decreased slightly driven by margin compression primarily with retail customers.
Operating expenses. Personnel expenses increased primarily due to higher restructuring charges related to workforce reductions offset in part by cost optimization efforts and productivity improvements, including lower average employee headcount. Other SG&A expenses decreased primarily due to a prior year impairment charge discussed below. In addition, other SG&A expenses declined across several expense categories in the first quarter of 2026 due to cost optimization efforts.
Our personnel expenses in the first quarter of 2026 included $18.8 million of severance and related personnel expenses. We also incurred $1.4 million of restructuring related other SG&A expenses in the first quarter of 2026. These expenses were both associated with our 2025 Restructuring Program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
Our personnel expenses for the first quarter of 2025 included $1.2 million of severance and related personnel expenses and $1.2 million of other SG&A 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. We also incurred $6.3 million of other SG&A expenses in the first quarter of 2025 resulting from an impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building.
Interest and other income/expense, net. Interest and other income/expense, net primarily consisted of interest expense of $14.0 million which decreased $2.8 million during the first quarter of 2026, due to a lower average debt balance and lower variable interest rates. The current period included a $1.7 million net gain from foreign currency revaluation and realized foreign currency gains and losses. The first quarter of 2025 included a $3.4 million net loss from foreign currency revaluation and realized foreign currency gains and losses.
Provision for income taxes. Our effective income tax rate was 11.7 percent for the first quarter of 2026 compared to 13.7 percent for the first quarter of 2025. The effective income tax rate for the first quarter of 2026 was lower than the statutory federal income tax rate primarily due to the impact of share-based payment awards which decreased the effective income tax rate by 21.9 percentage points, partially offset by non-deductible executive compensation expenses which increased the effective tax rate by 8.8 percentage points. The effective income tax rate for the first quarter of 2025 was lower than the statutory federal income tax rate primarily due to the tax benefit of share-based payment awards, a lower tax rate on foreign earnings and U.S. tax credits and incentives which decreased the effective income tax rate by 6.1 percentage points, 2.7 percentage points, and 1.6 percentage points, respectively.
NAST Segment Results of Operations
| Three Months Ended March 31, | |||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % change | ||||||||||||||
| Total revenues | $ | 2,947,323 | $ | 2,868,420 | 2.8 | % | |||||||||||
| Costs and expenses: | |||||||||||||||||
| Purchased transportation and related services | 2,516,246 | 2,450,096 | 2.7 | % | |||||||||||||
| Personnel expenses | 176,096 | 162,810 | 8.2 | % | |||||||||||||
| Other selling, general, and administrative expenses | 109,851 | 111,843 | (1.8) | % | |||||||||||||
| Total costs and expenses | 2,802,193 | 2,724,749 | 2.8 | % | |||||||||||||
| Income from operations | $ | 145,130 | $ | 143,671 | 1.0 | % | |||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % change | |||||||||||||||
| Average employee headcount | 4,752 | 5,280 | (10.0) | % | |||||||||||||
| Service line volume statistics | |||||||||||||||||
| Truckload | (3.5) | % | |||||||||||||||
| LTL | 2.0 | % | |||||||||||||||
|
Adjusted gross profits(1)
|
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| Truckload | $ | 247,307 | $ | 252,006 | (1.9) | % | |||||||||||
| LTL | 161,676 | 146,354 | 10.5 | % | |||||||||||||
| Other | 22,094 | 19,964 | 10.7 | % | |||||||||||||
| Total adjusted gross profits | $ | 431,077 | $ | 418,324 | 3.0 | % | |||||||||||
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(1) Adjusted gross profit margin is a non-GAAP financial measure explained above.
Three Months Ended March 31, 2026, Compared to the Three Months Ended March 31, 2025
Total revenues and direct costs. NAST total revenues and direct costs increased primarily due to higher market pricing in truckload and LTL services, higher fuel surcharges, and increased LTL volumes. These increases were partially offset by lower truckload volumes. Elevated market pricing was driven by supply-side pressures, including increased regulatory enforcement activity and increasing carrier operating costs, which accelerated carrier attrition and resulted in higher transportation rates. Our average truckload linehaul rate per mile charged to customers, which excludes fuel surcharges, increased approximately 11.0 percent in the first quarter of 2026 compared to the first quarter of 2025. Our truckload linehaul cost per mile, excluding fuel surcharges, increased approximately 13.0 percent in the first quarter of 2026 compared to the first quarter of 2025.
Gross profits and adjusted gross profits. NAST adjusted gross profits increased primarily due to higher adjusted gross profit per transaction in truckload and LTL services and increased LTL volumes. These increases were partially offset by lower truckload volumes. The increase in adjusted gross profit per transaction in truckload and LTL services reflects the continued advancement of our dynamic pricing and costing capabilities. These capabilities enabled us to respond faster and more surgically to meet our contractual commitments and adapt to rising spot market costs during the first quarter of 2026.
Operating expenses. NAST personnel expenses increased primarily due to higher restructuring charges related to workforce reductions offset in part by cost optimization efforts and productivity improvements, including lower average employee headcount. NAST other SG&A expenses decreased primarily due to lower claims expense and declines across several expense categories.
NAST personnel expenses in the first quarter of 2026 included $16.0 million of severance and related personnel expenses related to our 2025 Restructuring Program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
The operating expenses of NAST and all other segments include allocated corporate expenses. Allocated personnel expenses consist primarily of stock-based compensation allocated based upon segment participation levels in our equity plans. Remaining corporate allocations, including corporate functions and technology related expenses, are included within each segment's other SG&A expenses, and are allocated based upon relevant segment operating metrics.
Global Forwarding Segment Results of Operations
| Three Months Ended March 31, | |||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % change | ||||||||||||||
| Total revenues | $ | 664,730 | $ | 774,888 | (14.2) | % | |||||||||||
| Costs and expenses: | |||||||||||||||||
| Purchased transportation and related services | 502,439 | 590,260 | (14.9) | % | |||||||||||||
| Personnel expenses | 78,897 | 87,729 | (10.1) | % | |||||||||||||
| Other selling, general, and administrative expenses | 51,710 | 53,956 | (4.2) | % | |||||||||||||
| Total costs and expenses | 633,046 | 731,945 | (13.5) | % | |||||||||||||
| Income from operations | $ | 31,684 | $ | 42,943 | (26.2) | % | |||||||||||
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | % change | |||||||||||||||
| Average employee headcount | 3,848 | 4,514 | (14.8) | % | |||||||||||||
| Service line volume statistics | |||||||||||||||||
| Ocean | (10.5) | % | |||||||||||||||
| Air | (15.0) | % | |||||||||||||||
| Customs | (2.0) | % | |||||||||||||||
|
Adjusted gross profits(1)
|
|||||||||||||||||
| Ocean | $ | 89,829 | $ | 115,283 | (22.1) | % | |||||||||||
| Air | 32,135 | 32,297 | (0.5) | % | |||||||||||||
| Customs | 32,320 | 26,935 | 20.0 | % | |||||||||||||
| Other | 8,007 | 10,113 | (20.8) | % | |||||||||||||
| Total adjusted gross profits | $ | 162,291 | $ | 184,628 | (12.1) | % | |||||||||||
________________________________
(1) Adjusted gross profit margin is a non-GAAP financial measure explained above.
Three Months Ended March 31, 2026, Compared to the Three Months Ended March 31, 2025
Total revenues and direct costs. Global Forwarding total revenues and direct costs decreased significantly in the first quarter of 2026, primarily driven by lower volumes across all services and significantly lower pricing and purchased transportation costs in ocean services. Ocean volumes and pricing declined from the elevated levels experienced in the first quarter of 2025, which benefited from accelerated shipping activity ahead of anticipated tariff implementations. Pricing also declined substantially due to excess vessel capacity in the market, despite conflict-related rerouting, elevated fuel costs, and carriers' strategic capacity management actions, including blank sailings.
Gross profits and adjusted gross profits. Global Forwarding adjusted gross profits decreased in the first quarter of 2026 primarily driven by significantly lower adjusted gross profit per shipment in ocean services and reduced volumes across all services, as discussed above. These declines were partially offset by an increase in customs adjusted gross profit per transaction. The decrease in adjusted gross profit per shipment in ocean services was primarily attributable to excess vessel capacity, which significantly reduced pricing across the market.
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 decreased primarily due to declines across several expense categories.
In addition to the above, Global Forwarding personnel expenses for the first quarter of 2026 included $1.1 million of severance and related personnel expenses. We also incurred $1.4 million in other SG&A expenses the first quarter of 2026. These expenses were both associated with our 2025 Restructuring Program. Refer to Note 13, Restructuring, for further discussion related to our 2025 Restructuring Program.
All Other and Corporate Segment Results of Operations
All Other and Corporate includes our Robinson Fresh and Managed Solutions segments, as well as Other Surface Transportation outside of North America and other miscellaneous revenues and unallocated corporate expenses.
| Three Months Ended March 31, | |||||||||||||||||
| (dollars in thousands) | 2026 | 2025 | % change | ||||||||||||||
| Total revenues | $ | 400,881 | $ | 403,432 | (0.6) | % | |||||||||||
| Loss from operations | (1,128) | (9,761) | (88.4) | % | |||||||||||||
|
Adjusted gross profits(1)
|
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| Robinson Fresh | 37,517 | 37,653 | (0.4) | % | |||||||||||||
| Managed Solutions | 29,608 | 27,846 | 6.3 | % | |||||||||||||
| Other Surface Transportation | - | 4,637 | (100.0) | % | |||||||||||||
| Total adjusted gross profits | $ | 67,125 | $ | 70,136 | (4.3) | % | |||||||||||
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(1) Adjusted gross profit margin is a non-GAAP financial measure explained above.
Three Months Ended March 31, 2026, Compared to the Three Months Ended March 31, 2025
Total revenues and direct costs. Total revenues decreased and direct costs were essentially flat. Total revenues and direct costs decreased due to the divestiture of our Europe Surface Transportation business on February 1, 2025. Additionally, total revenues and direct costs in our Robinson Fresh business increased driven by increased volume in foodservice and retail customers.
Gross profits and adjusted gross profits. Robinson Fresh adjusted gross profits decreased slightly driven by margin compression primarily with retail customers. Managed Solutions adjusted gross profits increased due to an increase in freight under management.
Restructuring, lease impairment charge, and divestiture expenses. All Other and Corporate personnel expenses in the first quarter of 2026 included $1.7 million of severance and related personnel expenses associated with our 2025 Restructuring Program.
Our personnel expenses for the first quarter of 2025 included $1.2 million of severance and related personnel expenses and $1.2 million of other SG&A 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. We also incurred $6.3 million of other SG&A expenses in the first quarter of 2025 resulting from an impairment charge on our Kansas City regional center lease resulting from the execution of a sublease agreement on a portion of the building.
LIQUIDITY AND CAPITAL RESOURCES
We have historically generated substantial cash from operations, which has enabled us to fund our organic growth while paying cash dividends and repurchasing stock. In addition, we maintain the following debt facilities as described in Note 4, Financing Arrangements (in thousands):
| Description | Carrying Value as of March 31, 2026 | Borrowing Capacity | Maturity | |||||||||||||||||
| Revolving credit facility | $ | - | $ | 1,000,000 | November 2027 | |||||||||||||||
| Senior Notes, Series B | 150,000 | 150,000 | August 2028 | |||||||||||||||||
| Senior Notes, Series C | 175,000 | 175,000 | August 2033 | |||||||||||||||||
|
Receivables Securitization Facility(1)
|
419,708 | 500,000 | August 2027 | |||||||||||||||||
|
Senior Notes(1)
|
598,019 | 600,000 | April 2028 | |||||||||||||||||
| Total debt | $ | 1,342,727 | $ | 2,425,000 | ||||||||||||||||
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(1) Net of unamortized discounts and issuance costs.
We expect to use our current debt facilities and potentially other indebtedness incurred in the future to assist us in continuing to fund working capital, capital expenditures, possible acquisitions, dividends, share repurchases or other investments.
Cash and cash equivalents totaled $159.7 million as of March 31, 2026, and $160.9 million as of December 31, 2025. Cash and cash equivalents held outside the United States totaled $149.5 million as of March 31, 2026, and $144.9 million as of December 31, 2025.
We prioritize our investments to grow our market share and expand globally in key industries, trade lanes, and geographies, and to digitize our customer, carrier, and internal tools to support our organic growth. We are continually looking for acquisitions, but those acquisitions must fit our culture and enhance our growth opportunities.
The following table summarizes our major sources and uses of cash and cash equivalents (dollars in thousands):
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sources (uses) of cash: | |||||||||||
| Cash provided by operating activities | $ | 68,599 | $ | 106,531 | |||||||
| Capital expenditures | (15,016) | (16,082) | |||||||||
| Cash used for acquisition | (150) | - | |||||||||
| Proceeds from divestiture | 11,828 | 27,737 | |||||||||
| Cash (used for) provided by investing activities | (3,338) | 11,655 | |||||||||
| Repurchase of common stock | (212,659) | (47,700) | |||||||||
| Cash dividends | (79,030) | (77,490) | |||||||||
| Net borrowings on debt | 253,000 | 12,000 | |||||||||
| Other financing activities | (27,718) | (33,021) | |||||||||
| Cash used for financing activities | (66,407) | (146,211) | |||||||||
| Effect of exchange rates on cash and cash equivalents | (60) | 1,429 | |||||||||
| Net change in cash and cash equivalents | $ | (1,206) | $ | (26,596) | |||||||
Cash flows from operating activities. The decrease in cash provided by operating activities was primarily driven by higher pricing in the North American surface transportation market toward the end of the first quarter of 2026. Capacity tightened as increased regulatory enforcement activity and higher carrier operating costs accelerated carrier attrition, negatively impacting routing guide performance and contributing to higher market pricing. These dynamics were further exacerbated by winter weather, which created regional capacity constraints, in addition to higher diesel fuel prices, both of which contributed to increased all-in transportation rates. As a result of these market conditions, net operating working capital increased, adversely impacting cash provided by operating activities during the first quarter of 2026. We continue to closely monitor credit and collections activities and the quality of our accounts receivable balance to minimize risk as well as work with our customers to facilitate the movement of goods across their supply chains while also ensuring timely payment.
Cash flows from investing activities. Capital expenditures consisted primarily of investments in software, which are intended to develop and deliver scalable solutions by transforming our processes, accelerate the pace of development and prioritizing data integrity, improve our customer and carrier experience, and increase efficiency to help expand our adjusted operating margins and grow the business.
The sale of our Europe Surface Transportation business closed during the first quarter of 2025. We received $27.7 million of consideration at closing during the first quarter of 2025 and $11.8 million of consideration in the first quarter of 2026. Additional installment payments are due in 2026. The remaining consideration due is collateralized by current and future accounts receivable of the Europe Surface Transportation business.
Cash flows from financing activities. Net cash used for financing activities decreased significantly in the first quarter of 2026 compared to the first quarter of 2025, driven by an increase in net borrowings on debt partially offset by an increase in cash returned to shareholders. Net borrowings on debt increased driven by a significant increase in share repurchases in the first quarter of 2026 compared to the prior year.
The number of shares we repurchase, if any, during future periods will vary based on our cash position, other potential uses of our cash, and market conditions. Over the long term, we remain committed to our quarterly dividend and share repurchases to enhance shareholder value. On October 28, 2025, the Board of Directors approved an additional $2.0 billion of authorization under the company's share repurchase program. The stock repurchase program does not obligate the company to acquire any amount of common stock and shall expire or terminate at the Board's discretion; however, the company currently expects to execute the share repurchase program over a period of approximately three years. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors.
We may seek to retire or purchase our outstanding Senior Notes through open market cash purchases, privately negotiated transactions or otherwise.
We believe that, assuming no change in our current business plan, our available cash, together with expected future cash generated from operations, the amount available under our credit facilities, and credit available in the market, will be sufficient to satisfy our anticipated needs for working capital, capital expenditures, and cash dividends for at least the next 12 months and the foreseeable future. We also believe we could obtain funds under lines of credit or other forms of indebtedness on short notice, if needed.
As of March 31, 2026, we were in compliance with all of the covenants under our debt agreements.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
Refer to Note 1, Basis of Presentation, contained in this Quarterly Report for a discussion of recently issued accounting pronouncements.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Refer to the company's 2025 Annual Report on Form 10-K for a complete discussion regarding our critical accounting policies and estimates. As of March 31, 2026, there were no material changes to our critical accounting policies and estimates.
C.H. Robinson Worldwide Inc. published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 01, 2026 at 15:53 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]