C.H. Robinson’s fourth quarter results underline a financial turnaround despite a slight decline in revenues. Total revenue for the quarter fell 0.9% to $4.18 billion, reflecting weaker truckload volumes. However, disciplined pricing and cost control measures helped increase gross profit by 10.4% to $672.9 million.
“In an environment of oversupplied truckload capacity and subdued demand, our focus on quality volume and margin expansion really paid off,” said CEO Dave Bozeman.
Driving efficiency through strategic cost control
North American Surface Transportation (NAST) experienced revenue declines of 6.6% for the quarter—from $3.0 billion to $2.8 billion—largely due to reduced truckload shipments. Yet, the segment managed to increase its adjusted gross profits by 6.2% to $403.8 million.
Truckload operations saw a 17.0% rise in adjusted gross profit per shipment, even as shipment numbers dipped by 6.5%. The segment also recorded an 18.0% boost in truckload adjusted gross profit per mile, with average linehaul rates climbing about 6.0% compared to a 4.0% increase in costs.
Meanwhile, Less Than Truckload (LTL) services experienced a modest 2.5% volume uptick and a 2.0% gain in profit per order. Operating expenses in NAST dropped by 4.6%, and the segment trimmed its workforce by 12.4% during the quarter, helping push income from operations up 38.1% to $132.5 million.
Global forwarding powers ahead
The Global Forwarding segment posted stellar performance, buoyed by higher freight rates in its ocean services and a significant uptick in air freight volumes. Total revenues jumped 24.7% to $884.0 million in Q4, while adjusted gross profits rose 25.6% to $203.8 million.
Ocean shipments increased by 3.5%, with adjusted gross profit per shipment up 23.5%, leading to a 27.7% improvement in ocean profitability.
Air freight volumes surged 15.5% in metric tons, with profit per metric ton rising 26.0%, driving a 45.4% increase in adjusted gross profits for that mode.
Despite these gains, the Global Forwarding unit reduced its headcount by 9.5%, achieving an operating income leap of 129.6% to $51.8 million and an adjusted operating margin expansion of 1,150 basis points to 25.4%.
European performance in “Other and Corporate” segments
C.H. Robinson’s efforts in Europe also played a key role in the overall performance picture, albeit with mixed results. The “Other and Corporate” segments, which include Robinson Fresh, Managed Solutions, and Other Surface Transportation, reported total revenues of $497.99 million—a 2.8% decline in Q4.
Notably, the Other Surface Transportation unit experienced a 20.1% drop in adjusted gross profits to $12.9 million, primarily driven by a 19.4% decline in Europe truckload adjusted gross profits.
Meanwhile, a $12.6 million favorable adjustment to the loss on the planned divestiture of the Europe Surface Transportation business helped partially offset declines in other areas.
Full-year 2024 performance
For the full year, C.H. Robinson reported income from operations of $669.1 million, up 30.0% from the previous year, while gross profits climbed 5.8% to $2.7 billion. The company’s adjusted operating margin increased by 440 basis points to 24.2%—or by 630 basis points, reaching 27.5%, when excluding restructuring and divestiture-related costs. On a per-share basis, diluted EPS jumped 41.9% to $3.86, with adjusted EPS rising 36.7% to $4.51.
Operating efficiency improvements extended beyond profitability. Over the two-year period spanning 2023 and 2024, compounded productivity gains of over 30% were achieved in both the Global Forwarding and NAST segments. These gains helped decouple headcount from volume growth, as the company reduced its overall employee base by more than 10% while boosting productivity by over 15%.
Robust cash flow and balanced capital allocation
In Q4, cash generated by operations soared to $267.9 million—a dramatic improvement from $47.3 million in the same period last year—fueled by a $118.3 million rise in net income and a sequential $90.8 million reduction in net operating working capital.
For the full year, however, operating cash flow slipped by $222.9 million to $509.1 million, primarily due to increased net operating working capital linked to higher ocean freight rates.
C.H. Robinson returned $82.8 million to shareholders in Q4 through dividends and share repurchases, underscoring its disciplined approach to capital allocation. Capital expenditures for the quarter totaled $15.2 million, with annual capex reaching $74.3 million.
The company forecasts 2025 capital expenditures in the range of $75–85 million.
CEO Dave Bozeman emphasised that the success of the “new Robinson operating model” represents a sustainable approach to navigating fluctuating market cycles.
“Our team is delivering higher quality volume and enhanced productivity, even when market conditions are less than ideal,” Bozeman said. “We’re well-positioned to further advance our productivity while maintaining a strong balance sheet.”