C.H. Robinson's profit beats estimates as cost cuts ease weak demand, shares jump (updated)

CH Robinson Worldwide

29/10/2025 22:58

Updates shares, adds analyst comment in paragraph 5

By Abhinav Parmar

Oct 29 (Reuters) - Global freight forwarder C.H. Robinson CHRW.O posted third-quarter profit above Wall Street estimates on Wednesday, as cost-cutting measures helped it offset weak freight demand, sending its shares up more than 12% in after-market trading.

The Minnesota-based company has streamlined operations, exiting its European Surface Transportation business and reducing headcount, as it works to rein in costs and protect profitability amid continued weakness in surface and ocean freight rates.

The company's operating expenses fell 12.6%, while its average employee headcount declined 10.8% in the quarter, compared with a year ago.

C.H. Robinson reported adjusted profit of $1.40 per share for the quarter ended September 30, compared with analysts' average estimate of $1.30, according to data compiled by LSEG.

"The quarter is another example of the company's ability to leverage technology and drive growth despite headcount reductions," said Stephens analyst Reed Seay.

The company's ocean services unit, which manages freight costs, optimizes shipping routes and oversees international compliance for carriers, was hit by weaker pricing and volumes during the quarter, leading to a 32.5% decline in its adjusted gross profit.

"International freight has been impacted by global trade policies, which caused previous front-loading, a dislocation of shipments and a softer-than-normal peak season. Combined with excess vessel capacity, this caused ocean rates to decline substantially," CEO Dave Bozeman said.

However, higher volumes in both truckload and less-than-truckload services helped the company's North American Surface Transportation segment to post a 1.1% rise in revenue.

"Despite a fairly steady exit of trucking capacity over the past three years, truckload spot rates continue to bounce along the bottom due to low demand," Bozeman added.

C.H. Robinson's total revenue decreased 10.9% to $4.14 billion in the third quarter, missing estimates of $4.23 billion.

 (Reporting by Abhinav Parmar in Bengaluru; Editing by Alan Barona)

 ((Abhinav.Parmar@thomsonreuters.com))