C.H. Robinson Worldwide (NASDAQ:CHRW) Delivers Q4 CY2025 Earnings With Revenue Falling Short of Analyst Projections, Yet Shares Jump 7%

C.H. Robinson Worldwide (CHRW) Q4 2025 Earnings Overview

C.H. Robinson (NASDAQ:CHRW), a leading freight transportation intermediary, reported fourth-quarter 2025 revenue of $3.91 billion, representing a 6.5% decrease compared to the previous year and falling short of Wall Street’s projections. However, the company’s adjusted earnings per share (EPS) reached $1.23, surpassing analyst expectations by 9.2%.

Curious whether C.H. Robinson Worldwide is a smart investment at this time?

Q4 2025 Financial Highlights

• Total Revenue: $3.91 billion, missing analyst forecasts of $3.99 billion (down 6.5% year-over-year, 1.9% below expectations)
• Adjusted EPS: $1.23, exceeding consensus estimates of $1.13 (9.2% above expectations)
• Adjusted EBITDA: $207.8 million, slightly under the $211.2 million forecast (margin of 5.3%, 1.6% below estimates)
• Operating Margin: 4.6%, unchanged from the same period last year
• Free Cash Flow Margin: 7.4%, an improvement from 6% a year ago
• Market Capitalization: $21.31 billion

President and CEO Dave Bozeman commented, “The fourth quarter presented significant challenges, including subdued global freight demand, higher spot trucking costs, and declining ocean shipping rates, all of which put pressure on our business.”

About C.H. Robinson Worldwide

C.H. Robinson (NASDAQ:CHRW) specializes in freight transportation and logistics, partnering with tens of thousands of carriers to deliver comprehensive solutions for its clients.

Revenue Performance

Long-term sales growth is a key indicator of a company’s strength. While some companies can deliver strong results for a quarter or two, the most robust businesses demonstrate consistent expansion over time. In C.H. Robinson’s case, the company’s trailing 12-month revenue of $16.23 billion is nearly unchanged from five years ago, suggesting limited progress and raising questions about its overall business quality.

C.H. Robinson Worldwide Quarterly Revenue

At StockStory, we prioritize long-term growth, but it’s important to recognize that five-year snapshots may not capture industry cycles or the impact of new contracts and product launches. Over the past two years, C.H. Robinson’s revenue has declined by an average of 4% annually, reflecting broader headwinds in the Air Freight and Logistics sector, where many peers have also seen sales drop.

C.H. Robinson Worldwide Year-On-Year Revenue Growth

Breaking down the company’s revenue, North American surface transportation accounts for 71.8% and Global Forwarding represents 18.7%. Over the last two years, North American surface transportation revenue declined by an average of 3.6% per year, while Global Forwarding revenue grew at an average annual rate of 4.8%.

C.H. Robinson Worldwide Quarterly Revenue by Segment

This quarter, the company’s revenue fell short of expectations, dropping 6.5% year-over-year to $3.91 billion.

Looking forward, analysts anticipate a 4.1% increase in revenue over the next year. While this suggests some improvement, the projected growth rate remains below the industry average.

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Profitability and Margins

Over the past year, C.H. Robinson’s operating margin has improved, averaging 4.4% over the last five years. While this reflects some operational efficiency, the company’s overall profitability remains modest for the industrial sector, largely due to a low gross margin.

Examining the longer-term trend, the operating margin has remained relatively stable over the past five years, indicating that a significant shift in the business model would be needed to drive meaningful improvement. This pattern is not unique to C.H. Robinson, as many companies in the Air Freight and Logistics industry have experienced margin compression during the recent downturn.

C.H. Robinson Worldwide Trailing 12-Month Operating Margin (GAAP)

For the fourth quarter, the company reported an operating margin of 4.6%, matching the result from the same period last year and suggesting a stable cost structure.

Earnings Per Share Analysis

While revenue trends provide insight into a company’s growth, changes in earnings per share (EPS) reveal how profitable that growth is. For example, a company might boost revenue through heavy marketing, but that doesn’t always translate to higher earnings.

Over the past five years, C.H. Robinson’s EPS has grown at a compound annual rate of 6.5%. This is an improvement over its flat revenue, but since operating margins haven’t increased, it doesn’t necessarily indicate stronger business fundamentals.

C.H. Robinson Worldwide Trailing 12-Month EPS (Non-GAAP)

A closer look at the company’s earnings reveals that C.H. Robinson has reduced its share count by 11.3% over five years through stock buybacks. This financial maneuver has helped boost EPS, even though it hasn’t resulted from operational improvements.

C.H. Robinson Worldwide Diluted Shares Outstanding

To ensure we’re not missing recent changes, it’s helpful to review EPS over a shorter timeframe. Over the past two years, C.H. Robinson’s annual EPS growth rate accelerated to 25.7%, making it one of the faster-growing companies in the industrial sector during this period.

In the latest quarter, adjusted EPS rose to $1.23 from $1.21 a year ago, beating analyst estimates by 9.2%. Wall Street expects full-year EPS to reach $5.09 over the next 12 months, representing an 18% increase.

Summary of Q4 Results

C.H. Robinson Worldwide exceeded analyst expectations for EPS and delivered strong results in its Global Forwarding segment. However, total revenue and North American surface transportation revenue both fell short of forecasts, making for a mixed quarter overall. Following the earnings release, the company’s stock price climbed 7% to $197.20.

Is C.H. Robinson Worldwide a compelling buy right now? While quarterly results are important, long-term fundamentals and valuation play a much larger role in investment decisions.