EDEN PRAIRIE Logistics giant C.H. Robinson Worldwide Inc. reported a sharp increase in third-quarter profit, crediting its strategic overhaul for allowing it to gain market share and improve efficiency even as the freight industry remains in a prolonged slump.
The company said that net income surged 67.6% to $163 million, or $1.34 per share, for the quarter ended Sept. 30. On an adjusted basis, earnings were $1.40 per share, a 9.4% increase from a year earlier.
The results highlight a disconnect between the company’s financial performance and the challenging freight environment. While C.H. Robinson’s total revenue fell 10.9% to $4.1 billion, its income from operations jumped 22.6% to $220.8 million.
In an interview, President and CEO Dave Bozeman acknowledged the “continued soft freight environment,” citing a 12th consecutive quarterly decline in the Cass Freight Shipment Index and ocean rates that fell substantially.
“We are not immune to the market,” Bozeman said. “But this is a new C.H. Robinson, and we don’t use the macro environment as an excuse.”
The company attributed its profitability to disciplined cost-cutting, improved productivity, and a strategy it calls “Lean AI,” which combines lean operational principles with artificial intelligence to automate processes. Average employee headcount fell 10.8% from the same period last year.
A key driver was the performance of its North American Surface Transportation division. The company said it grew its combined truckload and less-than-truckload volume by about 3% year-over-year, which it calls “demonstrable market share gains” against an industry index that declined 7.2%. The division’s adjusted operating margin reached 39%, close to its mid-cycle target of 40%.
The Global Forwarding segment, which handles international shipments like ocean freight, faced headwinds from falling rates and global trade policies. However, the company said it still hit its 30% adjusted operating margin target for the division through improved productivity and revenue management.
Bozeman said the quarter marks the seventh in a row of “consistent outperformance” since unveiling the new strategy in 2024.
“For the seventh consecutive quarter, we have delivered consistent outperformance through the disciplined execution of our strategy,” Bozeman said in a statement. “There is no doubt in our minds that we are on the right path.”
For the first nine months of the year, the company reported net income of $450.8 million, up 42.5% from the same period in 2024.
C.H. Robinson shares, which trade on the Nasdaq under the symbol CHRW, were inactive in premarket trading.