CHRW · C.H. Robinson Worldwide, Inc.

C.H. Robinson demonstrated resilient profitability in the first quarter of 2026, achieving a 15.4% increase in adjusted diluted EPS to $1.35 despite a challenging freight environment. The performance was anchored by the North American Surface Transportation (NAST) segment, which grew total revenues by 2.8% year-over-year to $2.95 billion. Management highlighted that NAST gained market share for the 12th consecutive quarter, outperforming the Cass Freight Shipment Index which declined 6.2%. A key operational achievement was maintaining the NAST adjusted gross profit margin at 14.6%, even as truckload linehaul costs per mile increased 13.0%. The company offset these cost pressures through disciplined revenue management, repricing contractual business, and leveraging its "Lean AI" strategy to optimize productivity.

Conversely, the Global Forwarding segment faced headwinds, with total revenues declining 14.2% to $664.7 million due to soft demand and excess vessel capacity impacting ocean rates. Consequently, Global Forwarding income from operations fell 26.2% to $31.7 million. Partially offsetting this decline, the Customs sub-segment posted a 20.0% increase in adjusted gross profits. The company's capital allocation strategy was aggressive, with cash returned to shareholders increasing 105.6% to $359.8 million, driven by $280.7 million in share repurchases. Management indicated that strong conviction in the company's intrinsic value led to the increased buyback activity. Looking forward, the company expects a full-year 2026 effective tax rate of 18% to 20% and capital expenditures between $75 million and $85 million.