Expeditors tops quarterly estimates on strong customs brokerage demand

Feb 24 (Reuters) - Global freight forwarder Expeditors International of Washington EXPD.N on Tuesday reported fourth-quarter profit and revenue above Wall Street estimates, helped by stronger demand for its customs brokerage services.

Shifting U.S. trade policies under President Donald Trump have increased customs-related activity, as businesses navigate changing tariff rules and compliance requirements, driving up customs clearance costs and boosting demand for brokerage firms like Expeditors.

"Demand for customs brokerage remained strong, reflecting both the complexity and volume of work," CEO Daniel Wall said, adding that the company plans to step up investments in technology, including AI-driven tools, to improve efficiency.

Wall added that the company will sharpen pricing and further align costs with market conditions in 2026, while directing capital toward AI and customer-focused vertical solutions.

The Seattle, Washington-based company reported profit of $1.49 per share for the quarter ended December 31, above analysts' average estimate of $1.46 per share, according to data compiled by LSEG.

Revenue from the air freight segment rose to $1.11 billion from $1.06 billion a year earlier, driven by higher export volumes out of North and South Asia, the company said.

Its customs brokerage division reported revenue of $1.14 billion, up from $983.2 million in the same quarter in the prior year.

The company posted total quarterly revenue of $2.86 billion, down more than 3% year-on-year, but above analysts' estimate of $2.83 billion.

Separately, Expeditors also unveiled a new share buyback program authorizing the repurchase of up to $3 billion worth of its common stock.