CH Robinson Worldwide Inc (0HQW.L) Q2 2025 Earnings Report

CH Robinson Worldwide Inc reported QQ2 2025 revenue of $4.137 billion, down 7.74% year-over-year, but delivered notable margin expansion and robust cash generation. Despite the top-line decline versus the prior year period, gross margin rose to 8.65% (vs. 8. y/y), with operating income of $215.9 million and net income of $152.5 million, translating to basic EPS of $1.27 and diluted EPS of $1.26. On a QoQ basis, profitability metrics improved meaningfully: gross profit rose 10.28% QoQ, operating income rose 22.09% QoQ, and net income rose 12.69% QoQ. EBITDA stood at $240.8 million with an EBITDAR of 5.82%. The company generated $227.1 million of operating cash flow and $219.8 million of free cash flow, while deploying capital toward shareholder returns (dividends of $74.9 million and share repurchases of $81.1 million) and modest debt management.

Balance sheet and liquidity remained solid. Cash and cash equivalents were $156.0 million at quarter end, with total debt of $1.692 billion and net debt of $1.536 billion. The company posted a current ratio of 1.31 and a cash conversion cycle of 27.8 days, aided by receivables turnover of 1.52x and payables turnover of 2.85x. Operating metrics reflect the industry dynamics of a capital-light freight brokerage with a diversified service mix and continued emphasis on cost discipline and capital allocation. Management commentary is not present in the provided transcript data; as such, the forward-looking guidance and qualitative outlook rely on the reported results and standard industry dynamics.

Investment implications: The narrative suggests CHRW remains a leading player in North American surface transportation and Global Forwarding with a strong free cash flow profile and a disciplined approach to capital allocation. The revenue decline YoY calls for close monitoring of demand cycles and pricing power, but margin resilience and cash generation support a constructive long-term thesis if volume stabilizes and cost controls persist. The valuation metrics imply a relatively balanced-to-attractive setup relative to segmented logistics peers, especially given the cash yield and the ability to fund capital returns from operations.