0001043277false00010432772024-07-312024-07-31
    
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report: July 31, 2024
(Date of earliest event reported)
CHR_Logomark_299CP_CMYK (003).jpg
C.H. ROBINSON WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)

Commission File Number: 000-23189
Delaware 41-1883630
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)

14701 Charlson Road
Eden Prairie, Minnesota 55347
(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: 952-937-8500

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.10 par valueCHRWNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐



    
Item 2.02    Results of Operations and Financial Condition.

The following information is being "furnished" in accordance with the General Instruction B.2 of Form 8-K and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

Furnished herewith as Exhibits 99.1 and 99.2, respectively, and incorporated by reference herein are the text of the Company's announcement regarding its financial results for the quarter ended June 30, 2024 and its earnings conference call slides.


Item 9.01    Financial Statements and Exhibits.

(d)    Exhibits

NumberDescription
99.1
99.2
104The cover page from the Current Report on Form 8-K formatted in Inline XBRL



    
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
C.H. ROBINSON WORLDWIDE, INC.
By:/s/ Ben G. Campbell
Ben G. Campbell
Chief Legal Officer and Secretary
Date: July 31, 2024



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C.H. Robinson
14701 Charlson Rd.
Eden Prairie, MN 55347
www.chrobinson.com

FOR IMMEDIATE RELEASE
FOR INQUIRIES, CONTACT:
Chuck Ives, Director of Investor Relations
Email: chuck.ives@chrobinson.com

C.H. Robinson Reports 2024 Second Quarter Results
Eden Prairie, MN, July 31, 2024 - C.H. Robinson Worldwide, Inc. (“C.H. Robinson”) (Nasdaq: CHRW) today reported financial results for the quarter ended June 30, 2024.
Second Quarter Key Metrics:
•Gross profits increased 3.0% year-over-year to $676.5 million, and increased 4.5% sequentially
•Income from operations increased 34.3% year-over-year to $178.1 million, and increased 40.1% sequentially
•Adjusted operating margin(1) increased 600 basis points to 25.9%
•Diluted earnings per share (EPS) increased 29.6% to $1.05
•Adjusted EPS(1) increased 25.0% to $1.15
•Cash generated by operations decreased by $58.4 million to $166.4 million provided by operations
(1) Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

"Our second quarter results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle," said C.H. Robinson's President and Chief Executive Officer, Dave Bozeman. "Our truckload business grew market share for the fourth consecutive quarter, and we took share the right way, with margin improvement in mind. And our adjusted income from operations increased 32 percent year-over-year for the full enterprise."

1

"I also want to commend our people for continuing to embrace the changes that we’re making to deliver a higher and more consistent level of performance and for the high quality second quarter results that they delivered in what continues to be a challenging market," added Bozeman. "With ongoing efforts to improve the customer experience and our cost to serve, we continue to focus on ensuring that we’ll be ready for the eventual freight market rebound, with a disciplined operating model that decouples headcount growth from volume growth and drives operating leverage."

"All of the changes that we’re making are aimed at our North Star of generating incremental operating income and delivering higher highs and higher lows over the course of freight market cycles. We will do this by focusing on two main fronts…growing market share and expanding our operating income margins," said Bozeman. "We’ll continue to grow market share by leveraging our robust capabilities to power vertical-centric solutions, by reclaiming share in targeted segments, and by expanding our addressable market through value-added services and solutions that drive new volume to our four core modes. We’ll also be more intentional with our go-to market strategy to drive additional synergies and cross-selling across our portfolio."

"We’ll expand our operating income margins by embedding Lean practices, removing waste and expanding our digital capabilities. This will enable us to strengthen our productivity and optimize our organization structure in order to be the most efficient operator, in addition to the highest value provider. We’ll optimize our gross profit by monitoring key input metrics and responding faster to error states and changing market conditions with countermeasures and innovative technology that improves our execution. As we take action on all of these fronts, I’m excited about the work that we’re doing to reinvigorate Robinson’s winning culture and to instill discipline with our new operating model. The operating model is helping us execute a solid strategy even better, and we expect further improvement as we continue to cascade the new operating model deeper into the organization and as our team continues to embrace it and build operational muscle. I know from my past experiences of implementing Lean operating models, that improvement isn’t always linear, and we still have a lot of grass to cut. I’m confident in the team’s willingness and ability to drive a higher level of discipline in our operational execution," Bozeman concluded.
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Summary of Second Quarter of 2024 Results Compared to the Second Quarter of 2023
•Total revenues increased 1.4% to $4.5 billion, primarily driven by higher pricing in our ocean services, partially offset by lower pricing in our truckload services.
•Gross profits increased 3.0% to $676.5 million. Adjusted gross profits increased 3.3% to $687.4 million, primarily driven by higher adjusted gross profit per transaction in truckload and less than truckload (“LTL”) services.
•Operating expenses decreased 4.4% to $509.3 million. Personnel expenses decreased 4.3% to $361.2 million, primarily due to cost optimization efforts. Average employee headcount declined 10.0%. Other selling, general and administrative (“SG&A”) expenses decreased 4.8% to $148.1 million, with reductions across several expense categories.
•Income from operations totaled $178.1 million, up 34.3% due to the increase in adjusted gross profits and decrease in operating expenses. Adjusted operating margin(1) of 25.9% increased 600 basis points.
•Interest and other income/expense, net totaled $21.5 million of expense, consisting primarily of $22.9 million of interest expense, which decreased $0.3 million versus last year, due to a lower average debt balance, and a $0.5 million net gain from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate in the quarter was 19.4%, compared to 14.9% in the second quarter last year. The higher rate in the second quarter of this year was driven by lower benefits from foreign tax credits, a higher foreign tax rate, and the impact of higher pretax income, partially offset by higher U.S. tax credits and incentives.
•Net income totaled $126.3 million, up 29.7% from a year ago. Diluted EPS of $1.05 increased 29.6%. Adjusted EPS(1) of $1.15 increased 25.0%.
(1) Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

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Summary of 2024 Year-to-Date Results Compared to 2023

•Total revenues decreased 1.5% to $8.9 billion, primarily driven by lower pricing in our truckload services, partially offset by higher pricing in our ocean services and increased volume in our ocean and air services.
•Gross profits decreased 0.8% to $1.3 billion. Adjusted gross profits decreased 0.4% to $1.3 billion, primarily driven by lower adjusted gross profit per transaction in truckload and air services, partially offset by increased volume in our ocean services.
•Operating expenses decreased 1.7% to $1.0 billion. Personnel expenses decreased 2.6% to $740.3 million, primarily due to cost optimization efforts. Average employee headcount declined 10.8%. Other SG&A expenses increased 0.8% to $299.6 million.
•Income from operations totaled $305.2 million, up 3.9% from last year, due to the decrease in operating expenses. Adjusted operating margin(1) of 22.7% increased 100 basis points.
•Interest and other income/expense, net totaled $38.3 million of expense, primarily consisting of $45.0 million of interest expense, which decreased $1.8 million versus last year, due to a lower average debt balance. The year-to-date results also include a $4.4 million net gain from foreign currency revaluation and realized foreign currency gains and losses.
•The effective tax rate for the six months ended June 30, 2024 was 17.9% compared to 14.1% in the year-ago period. The higher rate in the current period was driven by lower tax benefits related to stock-based compensation deliveries, a higher foreign tax rate, and lower foreign tax credit utilization, partially offset by higher U.S. tax credits and incentives.
•Net income totaled $219.2 million, up 3.3% from a year ago. Diluted EPS of $1.83 increased 3.4%. Adjusted EPS(1) of $2.01 increased 4.7%.
(1) Adjusted operating margin and adjusted EPS are non-GAAP financial measures. The same factors described in this release that impacted these non-GAAP measures also impacted the comparable GAAP measures. Refer to pages 11 through 13 for further discussion and GAAP to Non-GAAP Reconciliations.

4

North American Surface Transportation (“NAST”) Results
Summarized financial results of our NAST segment are as follows (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Total revenues$2,989,909 $3,079,268 (2.9)%$5,990,222 $6,383,455 (6.2)%
Adjusted gross profits(1)
419,657 400,532 4.8 %816,767 827,187 (1.3)%
Income from operations141,102 117,859 19.7 %249,997 251,881 (0.7)%
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Second quarter total revenues for the NAST segment totaled $3.0 billion, a decrease of 2.9% over the prior year, primarily driven by lower truckload pricing, reflecting an oversupply of truckload capacity compared to freight demand. NAST adjusted gross profits increased 4.8% in the quarter to $419.7 million. Adjusted gross profits in truckload increased 7.9% due to a 6.5% increase in adjusted gross profit per shipment and a 1.5% increase in truckload shipments. Our average truckload linehaul rate per mile charged to our customers, which excludes fuel surcharges, decreased approximately 2.0% in the quarter compared to the prior year, while truckload linehaul cost per mile, excluding fuel surcharges, also decreased approximately 3.5%, resulting in an 8.0% increase in truckload adjusted gross profit per mile. LTL adjusted gross profits increased 6.5% versus the year-ago period, driven by a 1.5% increase in LTL volume and a 5.0% increase in adjusted gross profit per order. NAST overall volume growth increased 1.5% for the quarter. Operating expenses decreased 1.5%, primarily due to lower technology expenses and cost optimization efforts, which were partially offset by higher variable compensation. NAST average employee headcount was down 9.7% in the quarter. Income from operations increased 19.7% to $141.1 million, and adjusted operating margin expanded 420 basis points to 33.6%.


5

Global Forwarding Results
Summarized financial results of our Global Forwarding segment are as follows (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Total revenues$921,223 $779,867 18.1 %$1,779,860 $1,569,845 13.4 %
Adjusted gross profits(1)
184,067 179,231 2.7 %364,112 357,150 1.9 %
Income from operations40,982 29,647 38.2 %72,534 59,763 21.4 %
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Second quarter total revenues for the Global Forwarding segment increased 18.1% to $921.2 million, primarily driven by higher pricing in our ocean services. Adjusted gross profits increased 2.7% in the quarter to $184.1 million. Ocean adjusted gross profits increased 8.6%, driven by a 4.0% increase in shipments and a 4.5% increase in adjusted gross profit per shipment. Air adjusted gross profits decreased 8.9%, driven by an 18.0% decrease in adjusted gross profit per metric ton shipped, partially offset by a 11.0% increase in metric tons shipped. Customs adjusted gross profits increased 6.1%, driven by a 6.0% increase in transaction volume. Operating expenses decreased 4.3%, primarily due to lower technology expenses and due to cost optimization efforts. Second quarter average employee headcount decreased 11.0%. Income from operations increased 38.2% to $41.0 million, and adjusted operating margin expanded 580 basis points to 22.3% in the quarter.


6

All Other and Corporate Results

Total revenues and adjusted gross profits for Robinson Fresh, Managed Services and Other Surface Transportation are summarized as follows (dollars in thousands):
Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Total revenues$572,216 $562,721 1.7 %$1,125,577 $1,080,226 4.2 %
Adjusted gross profits(1):
Robinson Fresh$39,883 $37,895 5.2 %$73,619 $69,040 6.6 %
Managed Services28,752 28,953 (0.7)%57,688 57,923 (0.4)%
Other Surface Transportation15,050 18,885 (20.3)%32,952 39,836 (17.3)%
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.

Second quarter Robinson Fresh adjusted gross profits increased 5.2% to $39.9 million due to an increase in integrated supply chain solutions for retail and foodservice customers. Managed Services adjusted gross profits decreased 0.7%. Other Surface Transportation adjusted gross profits decreased 20.3% to $15.1 million, primarily due to a 23.3% decrease in Europe truckload adjusted gross profits.

Other Income Statement Items
Interest and other income/expense, net totaled $21.5 million of expense, consisting primarily of $22.9 million of interest expense, which decreased $0.3 million versus the second quarter of 2023 due to a lower average debt balance, and a $0.5 million net gain from foreign currency revaluation and realized foreign currency gains and losses.
The second quarter effective tax rate was 19.4%, up from 14.9% last year. The higher rate in the second quarter of this year was driven by lower benefits from foreign tax credits, a higher foreign tax rate, and the impact of higher pretax income, partially offset by higher U.S. tax credits and incentives. For 2024, we expect our full-year effective tax rate to be 17% to 19%.
Diluted weighted average shares outstanding in the quarter were up 0.1%.


7

Cash Flow Generation and Capital Distribution
Cash generated from operations totaled $166.4 million in the second quarter, compared to $224.8 million of cash generated from operations in the second quarter of 2023. The $58.4 million decrease in cash flow from operations was primarily related to a $166.7 million decline in cash provided by changes in net operating working capital, due to a $23.1 million sequential increase in net operating working capital in the second quarter of 2024 compared to a $143.7 million sequential decrease in the second quarter of 2023.
In the second quarter of 2024, cash returned to shareholders totaled $76.4 million, with $72.7 million in cash dividends and $3.7 million in repurchases of common stock.
Capital expenditures totaled $19.3 million in the quarter. Capital expenditures for 2024 are expected to be toward the lower end of the previously provided range of $85 million to $95 million.

8


About C.H. Robinson
C.H. Robinson is one of the original logistics leaders. Companies around the world look to us to reimagine supply chains, advance freight technology, and solve logistics challenges—from the simple to the most complex. Over 90,000 customers and 450,000 contract carriers in our network trust us to manage $22 billion in freight annually. Through our unmatched expertise, unrivaled scale, and tailored solutions, we ensure the seamless delivery of goods across industries and continents via truckload, less-than-truckload, ocean, air, and beyond. As a responsible global citizen, we make supply chains more sustainable and proudly contribute millions to the causes that matter most to our employees. For more information, visit us at chrobinson.com (Nasdaq: CHRW).

Except for the historical information contained herein, the matters set forth in this release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to, factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. All remarks made during our financial results conference call will be current at the time of the call, and we undertake no obligation to update the replay.

Conference Call Information:
C.H. Robinson Worldwide Second Quarter 2024 Earnings Conference Call
Wednesday, July 31, 2024; 5:00 p.m. Eastern Time
Presentation slides and a simultaneous live audio webcast of the conference call may be accessed through the Investor Relations link on C.H. Robinson’s website at chrobinson.com.
To participate in the conference call by telephone, please call ten minutes early by dialing: 877-269-7756

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Adjusted Gross Profit by Service Line
(in thousands)

This table of summary results presents our service line adjusted gross profits on an enterprise basis. The service line adjusted gross profits in the table differ from the service line adjusted gross profits discussed within the segments as our segments may have revenues from multiple service lines.

Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Adjusted gross profits(1):
  Transportation
     Truckload$274,187 $261,147 5.0 %$531,600 $549,801 (3.3)%
     LTL145,823 137,185 6.3 %286,959 275,822 4.0 %
     Ocean116,659 107,497 8.5 %229,517 217,576 5.5 %
     Air30,906 33,728 (8.4)%61,438 65,045 (5.5)%
     Customs26,652 25,128 6.1 %52,747 48,462 8.8 %
     Other logistics services57,320 66,582 (13.9)%116,878 131,495 (11.1)%
     Total transportation651,547 631,267 3.2 %1,279,139 1,288,201 (0.7)%
  Sourcing35,862 34,229 4.8 %65,999 62,935 4.9 %
Total adjusted gross profits$687,409 $665,496 3.3 %$1,345,138 $1,351,136 (0.4)%
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained later in this release. The difference between adjusted gross profits and gross profits is not material.
10

GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)
Our adjusted gross profit is a non-GAAP financial measure. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. We believe adjusted gross profit is a useful measure of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. Accordingly, the discussion of our results of operations often focuses on the changes in our adjusted gross profit. The reconciliation of gross profit to adjusted gross profit is presented below (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Revenues:
Transportation$4,121,930 $4,084,827 0.9 %$8,204,518 $8,412,792 (2.5)%
Sourcing361,418 337,029 7.2 %691,141 620,734 11.3 %
Total revenues4,483,348 4,421,856 1.4 %8,895,659 9,033,526 (1.5)%
Costs and expenses:
Purchased transportation and related services3,470,383 3,453,560 0.5 %6,925,379 7,124,591 (2.8)%
Purchased products sourced for resale325,556 302,800 7.5 %625,142 557,799 12.1 %
Direct internally developed software amortization10,883 8,749 24.4 %21,105 16,066 31.4 %
Total direct expenses3,806,822 3,765,109 1.1 %7,571,626 7,698,456 (1.6)%
Gross profit$676,526 $656,747 3.0 %$1,324,033 $1,335,070 (0.8)%
Plus: Direct internally developed software amortization10,883 8,749 24.4 %21,105 16,066 31.4 %
Adjusted gross profit$687,409 $665,496 3.3 %$1,345,138 $1,351,136 (0.4)%
Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring is a similar non-GAAP financial measure as adjusted operating margin, but also excludes the impact of restructuring. We believe adjusted operating margin and adjusted operating margin - excluding restructuring are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring are presented below:
Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Total revenues$4,483,348 $4,421,856 1.4 %$8,895,659 $9,033,526 (1.5 %)
Income from operations178,090 132,623 34.3 %305,223 293,656 3.9 %
Operating margin4.0 %3.0 %100 bps3.4 %3.3 %10 bps
Adjusted gross profit$687,409 $665,496 3.3 %$1,345,138 $1,351,136 (0.4 %)
Income from operations178,090 132,623 34.3 %305,223 293,656 3.9 %
Adjusted operating margin25.9 %19.9 %600  bps22.7 %21.7 %100  bps
Adjusted gross profit$687,409 $665,496 3.3 %$1,345,138 $1,351,136 (0.4 %)
Adjusted income from operations193,279 146,755 31.7 %333,355 311,510 7.0 %
Adjusted operating margin - excluding restructuring28.1 %22.1 %600  bps24.8 %23.1 %170  bps
11

GAAP to Non-GAAP Reconciliation
(unaudited, in thousands)

Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) excluding the impact of restructuring. The adjustments to net income per share (diluted) include restructuring-related costs and a foreign currency loss on divested operations. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted). The reconciliation of income (loss) from operations to adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) to adjusted income (loss) from operations and adjusted net income per share (diluted) is presented below (in thousands except per share data):
NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Three Months Ended June 30, 2024
Non-GAAP Reconciliation:
Income (loss) from operations$141,102 $40,982 $(3,994)$178,090 
Severance and other personnel expenses4,758 2,179 2,508 9,445 
Other selling, general, and administrative expenses3,776 1,331 637 5,744 
Total adjustments to income (loss) from operations(1)
8,534 3,510 3,145 15,189 
Adjusted income (loss) from operations$149,636 $44,492 $(849)$193,279 
Adjusted gross profit$419,657 $184,067 $83,685 $687,409 
Adjusted income (loss) from operations149,636 44,492 (849)193,279 
Adjusted operating margin - excluding restructuring35.7 %24.2 %N/M28.1 %
NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Six Months Ended June 30, 2024
Income (loss) from operations$249,997 $72,534 $(17,308)$305,223 
Severance and other personnel expenses7,784 5,394 4,209 17,387 
Other selling, general, and administrative expenses5,654 1,592 3,499 10,745 
Total adjustments to income (loss) from operations(2)
13,438 6,986 7,708 28,132 
Adjusted income (loss) from operations$263,435 $79,520 $(9,600)$333,355 
Adjusted gross profit$816,767 $364,112 $164,259 $1,345,138 
Adjusted income (loss) from operations263,435 79,520 (9,600)333,355 
Adjusted operating margin - excluding restructuring32.3 %21.8 %N/M24.8 %
Three Months Ended June 30, 2024Six Months Ended June 30, 2024
$ in 000'sper share$ in 000'sper share
Net income and per share (diluted)$126,251 $1.05 $219,155 $1.83 
Restructuring and related costs, pre-tax(1)(2)
15,189 0.13 28,132 0.24 
Tax effect of adjustments(3,645)(0.03)(6,746)(0.06)
Adjusted net income and per share (diluted)$137,795 $1.15 $240,541 $2.01 
____________________________________________
(1) The three months ended June 30, 2024 include restructuring expenses of $9.4 million related to workforce reductions and $5.7 million of other charges, primarily related to reducing our facilities footprint including early termination or abandonment of office buildings under operating leases.
(2) The six months ended June 30, 2024 include restructuring expenses of $17.4 million related to workforce reductions and $10.7 million of
other charges, primarily related to an impairment of internally developed software and charges related to reducing our facilities footprint including early termination or abandonment of office buildings under operating leases.
12

NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Three Months Ended June 30, 2023
Non-GAAP Reconciliation:
Income (loss) from operations$117,859 $29,647 $(14,883)$132,623 
Severance and other personnel expenses327 691 12,109 13,127 
Other selling, general, and administrative expenses4 39 962 1,005 
Total adjustments to income (loss) from operations(1)
331 730 13,071 14,132 
Adjusted income (loss) from operations$118,190 $30,377 $(1,812)$146,755 
Adjusted gross profit$400,532 $179,231 $85,733 $665,496 
Adjusted income (loss) from operations118,190 30,377 (1,812)146,755 
Adjusted operating margin - excluding restructuring29.5 %16.9 %N/M22.1 %
NASTGlobal ForwardingAll
Other and Corporate		Consolidated
Six Months Ended June 30, 2023
Income (loss) from operations$251,881 $59,763 $(17,988)$293,656 
Severance and other personnel expenses1,156 2,229 13,340 16,725 
Other selling, general, and administrative expenses4 163 962 1,129 
Total adjustments to income (loss) from operations(2)
1,160 2,392 14,302 17,854 
Adjusted income (loss) from operations$253,041 $62,155 $(3,686)$311,510 
Adjusted gross profit$827,187 $357,150 $166,799 $1,351,136 
Adjusted income (loss) from operations253,041 62,155 (3,686)311,510 
Adjusted operating margin - excluding restructuring30.6 %17.4 %N/M23.1 %
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
$ in 000'sper share$ in 000'sper share
Net income and per share (diluted)$97,316 $0.81 $212,207 $1.77 
Restructuring and related costs, pre-tax(1)(2)
14,132 0.12 17,854 0.15 
Foreign currency loss on divested operations, pre-tax2,051 0.02 3,808 0.04 
Tax effect of adjustments(3,393)(0.03)(4,287)(0.04)
Adjusted net income and per share (diluted)$110,106 $0.92 $229,582 $1.92 

____________________________________________
(1) The three months ended June 30, 2023 includes restructuring expenses of $13.1 million related to workforce reductions and $1.0 million of other charges.
(2) The six months ended June 30, 2023 includes restructuring expenses of $16.7 million related to workforce reductions and $1.1 million of other charges.
13

Condensed Consolidated Statements of Income
(unaudited, in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
20242023% change20242023% change
Revenues:
 Transportation$4,121,930 $4,084,827 0.9 %$8,204,518 $8,412,792 (2.5)%
 Sourcing361,418 337,029 7.2 %691,141 620,734 11.3 %
   Total revenues4,483,348 4,421,856 1.4 %8,895,659 9,033,526 (1.5)%
Costs and expenses:
 Purchased transportation and related services3,470,383 3,453,560 0.5 %6,925,379 7,124,591 (2.8)%
 Purchased products sourced for resale325,556 302,800 7.5 %625,142 557,799 12.1 %
 Personnel expenses361,222 377,277 (4.3)%740,309 760,383 (2.6)%
Other selling, general, and administrative expenses148,097 155,596 (4.8)%299,606 297,097 0.8 %
   Total costs and expenses4,305,258 4,289,233 0.4 %8,590,436 8,739,870 (1.7)%
Income from operations178,090 132,623 34.3 %305,223 293,656 3.9 %
Interest and other income/expense, net(21,525)(18,259)17.9 %(38,305)(46,524)(17.7)%
Income before provision for income taxes156,565 114,364 36.9 %266,918 247,132 8.0 %
Provision for income taxes30,314 17,048 77.8 %47,763 34,925 36.8 %
Net income$126,251 $97,316 29.7 %$219,155 $212,207 3.3 %
Net income per share (basic)$1.06 $0.82 29.3 %$1.84 $1.79 2.8 %
Net income per share (diluted)$1.05 $0.81 29.6 %$1.83 $1.77 3.4 %
Weighted average shares outstanding (basic)119,418 118,500 0.8 %119,381 118,567 0.7 %
Weighted average shares outstanding (diluted)119,920 119,807 0.1 %119,732 119,820 (0.1)%


14

Business Segment Information
(unaudited, in thousands, except average employee headcount)
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Three Months Ended June 30, 2024
Total revenues$2,989,909 $921,223 $572,216 $4,483,348 
Adjusted gross profits(1)
419,657 184,067 83,685 687,409 
Income (loss) from operations141,102 40,982 (3,994)178,090 
Depreciation and amortization5,525 2,793 16,736 25,054 
Total assets(2)
3,053,769 1,306,075 1,152,502 5,512,346 
Average employee headcount5,868 4,652 3,954 14,474 
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Three Months Ended June 30, 2023
Total revenues$3,079,268 $779,867 $562,721 $4,421,856 
Adjusted gross profits(1)
400,532 179,231 85,733 665,496 
Income (loss) from operations117,859 29,647 (14,883)132,623 
Depreciation and amortization5,856 5,484 14,635 25,975 
Total assets(2)
3,106,092 1,149,091 1,150,078 5,405,261 
Average employee headcount6,497 5,225 4,363 16,085 
____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.
(2) All cash and cash equivalents are included in All Other and Corporate.


15

Business Segment Information
(unaudited, in thousands, except average employee headcount)
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Six Months Ended June 30, 2024
Total revenues$5,990,222 $1,779,860 $1,125,577 $8,895,659 
Adjusted gross profits(1)
816,767 364,112 164,259 1,345,138 
Income (loss) from operations249,997 72,534 (17,308)305,223 
Depreciation and amortization10,875 5,637 32,420 48,932 
Total assets(2)
3,053,769 1,306,075 1,152,502 5,512,346 
Average employee headcount5,929 4,770 4,032 14,731 
NASTGlobal Forwarding
All
Other and Corporate
Consolidated
Six Months Ended June 30, 2023
Total revenues$6,383,455 $1,569,845 $1,080,226 $9,033,526 
Adjusted gross profits(1)
827,187 357,150 166,799 1,351,136 
Income (loss) from operations251,881 59,763 (17,988)293,656 
Depreciation and amortization11,507 10,964 27,884 50,355 
Total assets(2)
3,106,092 1,149,091 1,150,078 5,405,261 
Average employee headcount6,713 5,356 4,454 16,523 

____________________________________________
(1) Adjusted gross profits is a non-GAAP financial measure explained above. The difference between adjusted gross profits and gross profits is not material.
(2) All cash and cash equivalents are included in All Other and Corporate.




16

Condensed Consolidated Balance Sheets
(unaudited, in thousands)
June 30, 2024December 31, 2023
Assets
   Current assets:
     Cash and cash equivalents$113,166 $145,524 
     Receivables, net of allowance for credit loss2,650,800 2,381,963 
     Contract assets, net of allowance for credit loss260,401 189,900 
     Prepaid expenses and other154,807 163,307 
        Total current assets3,179,174 2,880,694 
 
  Property and equipment, net of accumulated depreciation and amortization139,636 144,718 
  Right-of-use lease assets351,823 353,890 
  Intangible and other assets, net of accumulated amortization1,841,713 1,845,978 
Total assets$5,512,346 $5,225,280 
Liabilities and stockholders’ investment
  Current liabilities:
     Accounts payable and outstanding checks$1,488,632 $1,370,334 
     Accrued expenses:
        Compensation120,819 135,104 
        Transportation expense211,310 147,921 
        Income taxes2,483 4,748 
        Other accrued liabilities158,846 159,435 
Current lease liabilities74,123 74,451 
Current portion of debt188,000 160,000 
        Total current liabilities2,244,213 2,051,993 
Long-term debt1,421,066 1,420,487 
Noncurrent lease liabilities299,564 297,563 
Noncurrent income taxes payable21,611 21,289 
Deferred tax liabilities11,929 13,177 
Other long-term liabilities3,522 2,074 
Total liabilities4,001,905 3,806,583 
Total stockholders’ investment1,510,441 1,418,697 
Total liabilities and stockholders’ investment$5,512,346 $5,225,280 

17

Condensed Consolidated Statements of Cash Flow
(unaudited, in thousands, except operational data)
Six Months Ended June 30,
Operating activities:2024
2023(1)
Net income$219,155 $212,207 
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
 Depreciation and amortization48,932 50,355 
 Provision for credit losses4,298 (8,397)
 Stock-based compensation42,245 21,642 
 Deferred income taxes(13,392)(21,825)
 Excess tax benefit on stock-based compensation(2,274)(8,645)
Other operating activities10,841 3,080 
Changes in operating elements:
Receivables(290,042)501,210 
Contract assets (70,514)69,662 
Prepaid expenses and other8,034 (23,834)
Right of use asset(3,093)28,728 
Accounts payable and outstanding checks122,404 (125,090)
Accrued compensation(13,276)(130,197)
Accrued transportation expenses63,389 (56,524)
Accrued income taxes(60)3,308 
Other accrued liabilities1,108 (9,611)
Lease liability3,248 (26,663)
Other assets and liabilities2,096 (30)
Net cash provided by operating activities133,099 479,376 
Investing activities:
Purchases of property and equipment(15,238)(21,679)
Purchases and development of software(26,573)(29,622)
Net cash used for investing activities(41,811)(51,301)
Financing activities:
Proceeds from stock issued for employee benefit plans19,026 36,684 
Stock tendered for payment of withholding taxes(19,808)(21,853)
Repurchase of common stock— (62,754)
Cash dividends(147,283)(146,195)
Proceeds from short-term borrowings1,653,000 1,861,750 
Payments on short-term borrowings(1,625,000)(2,099,750)
Net cash used for financing activities(120,065)(432,118)
Effect of exchange rates on cash and cash equivalents(3,581)(3,284)
Net change in cash and cash equivalents(32,358)(7,327)
Cash and cash equivalents, beginning of period145,524 217,482 
Cash and cash equivalents, end of period$113,166 $210,155 
As of June 30,
Operational Data:20242023
Employees 14,213 15,763 

____________________________________________
(1) The six months ended June 30, 2023 has been adjusted to conform to current year presentation.

Source: C.H. Robinson
CHRW-IR
18
1 Q2 2024 July 31, 2024 Earnings Presentation Dave Bozeman, President & CEO Arun Rajan, Chief Strategy & Innovation Officer Mike Zechmeister, Chief Financial Officer Damon Lee, Chief Financial Officer Elect Michael Castagnetto, President of NAST Chuck Ives, Director of Investor Relations

 
Safe Harbor Statement Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward- looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to factors such as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; fuel price increases or decreases, or fuel shortages; competition and growth rates within the global logistics industry that could adversely impact our profitability; freight levels and increasing costs and availability of truck capacity or alternative means of transporting freight; risks associated with seasonal changes or significant disruptions in the transportation industry; risks associated with identifying and completing suitable acquisitions; our dependence on and changes in relationships with existing contracted truck, rail, ocean, and air carriers; risks associated with the loss of significant customers; risks associated with reliance on technology to operate our business; cyber-security related risks; our ability to staff and retain employees; risks associated with operations outside of the U.S.; our ability to successfully integrate the operations of acquired companies with our historic operations; climate change related risks; risks associated with our indebtedness; risks associated with interest rates; risks associated with litigation, including contingent auto liability and insurance coverage; risks associated with the potential impact of changes in government regulations including environmental-related regulations; risks associated with the changes to income tax regulations; risks associated with the produce industry, including food safety and contamination issues; the impact of changes in political and governmental conditions; changes to our capital structure; changes due to catastrophic events; risks associated with the usage of artificial intelligence technologies; and other risks and uncertainties detailed in our Annual and Quarterly Reports. Any forward- looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update such statement to reflect events or circumstances arising after such date. 2©2024 C.H. Robinson Worldwide, Inc. All Rights Reserved.

 
Thoughts from President & CEO, Dave Bozeman 3 ■ Our Q2 results reflect a higher quality of execution and performance, as we continue to implement the new Robinson operating model. And although we continue to fight through an elongated freight recession, we are winning and executing better at this point in the cycle. ■ Our truckload business grew market share for the fourth consecutive quarter, and we took share the right way, with margin improvement in mind. And our adjusted income from operations increased 32% year-over-year for the full enterprise. ■ We continue to focus on ensuring that we’ll be ready for the eventual freight market rebound, with a disciplined operating model that decouples headcount growth from volume growth and drives operating leverage. ■ All of the changes that we’re making are aimed at our North Star of generating incremental operating income and delivering higher highs and higher lows over the course of freight market cycles. We will do this by focusing on two main fronts… growing market share and expanding our operating income margins.

 
IMPROVEPLAN ACTIVATE • Enterprise Strategy Map • Divisional Strategy Maps • Shared Services Strategy Maps • Regular operating review cadence (daily, weekly, monthly, quarterly) • Binary view of success (green) or opportunity (red) • Enterprise • Divisional • Shared Services • Accountable action plans on all scorecards with red • Embrace and attack the red! • e.g., Gemba walks (go to the desk) Scorecard: Measurable and Actionable Inputs Defined Strategic Workstreams Clear Long-Term Strategy and Goals Continuous and Rigorous Measurement and Action Plans Continuously Improving. Never Stops. 1 2 3 4 5 Robinson Operating Model 4

 
Q2 Highlights 5 ■ Global freight markets continue to be impacted by low demand and excess capacity, resulting in suppressed transportation rates. ■ Q2 NAST truckload & LTL volume increased 1.5% Y/Y, which outpaced the market indices for the fourth consecutive quarter, and truckload AGP/load improved Y/Y and sequentially, driving NAST adjusted income from operations up 26.6% Y/Y ■ Q2 ocean and air volume grew Y/Y and Global Forwarding adjusted income from operations increased 46.5% Y/Y ■ Focused on deploying our new operating model, providing best- in-class service to our customers and carriers, gaining profitable share in targeted market segments, optimizing our structure costs, streamlining our processes by continuing to remove waste and manual touches and ensuring readiness for the eventual freight market rebound ■ Continuing to invest through cycles in improving the customer and carrier experience and in decoupling volume growth from headcount growth $4.5B Total Revenues +1.4% Y/Y $687M Adj. Gross Profits(1) +3.3% Y/Y $178M Income from Ops. +34.3% Y/Y $1.05 Net Income/Share +29.6% Y/Y Q2 2024 1. Adjusted gross profits, adjusted income from operations and adjusted net income per share are non-GAAP financial measures. Refer to pages 21 through 24 for further discussion and a GAAP to Non-GAAP reconciliation. $1.15 of adjusted net income per share(1)

 
All Other & Corporate ■ Robinson Fresh integrated supply chain solutions generating increased AGP ■ Managed Services Q2 AGP down 0.7% Y/Y ■ Other Surface Transportation AGP declined 20.3% Y/Y Global Forwarding (GF) ■ Ongoing conflict in the Red Sea has strained ocean capacity and driven rates higher ■ Ocean volume grew 4.0% Y/Y & air tonnage grew 11.0% Y/Y ■ Continuing to diversify our trade lane and industry vertical exposure North American Surface Transportation (NAST) ■ Adjusted gross profit (AGP) per load/order increased Y/Y in both TL and LTL ■ Truckload volume performance outpaced the market indices for the fourth quarter in a row ■ Significant opportunities for profitable growth remain in a highly fragmented market ■ Focused on initiatives that improve the customer and carrier experience and lower our cost to serve ■ Productivity improvements are being driven by removing waste and increasing automation Complementary Global Suite of Services 6 Q2 2024 Adjusted Gross Profits(2) 4.8% Y/Y -2.4% Y/Y 2.7% Y/Y 1. Measured over trailing twelve months. 2. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. Over half of total revenues is garnered from customers to whom we provide both surface transportation and global forwarding services.(1)

 
NAST Q2’24 Results by Service 7 ■ Truckload volume up 1.5% year-over-year(2) ■ Truckload AGP per shipment increased 6.5% due to increasing profit per shipment on transactional volume(2) ■ LTL volume up 1.5% and AGP per order increased 5.0%(2) ■ Other AGP decreased primarily due to a decrease in warehousing and intermodal services 2Q24 2Q23 %▲ Truckload (“TL”) $254.8 $236.1 7.9% Less than Truckload (“LTL”) $144.2 $135.4 6.5% Other $20.6 $29.0 (28.9)% Total Adjusted Gross Profits $419.7 $400.5 4.8% Adjusted Gross Profit Margin % 14.0% 13.0% 100 bps Adjusted Gross Profits(1) ($ in millions) 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Growth rates are rounded to the nearest 0.5 percent. Second Quarter Highlights

 
Truckload Price and Cost Change (1)(2)(3) 8 Truckload Q2 Volume(2)(4) +1.5 % Price/Mile(1)(2)(3) -2.0 % Cost/Mile(1)(2)(3) -3.5 % Adjusted Gross Profit(4) +7.9 % 1. Price and cost change represents YoY change for North America truckload shipments across all segments. 2. Growth rates are rounded to the nearest 0.5 percent. 3. Pricing and cost measures exclude fuel surcharges and costs. 4. Truckload volume and adjusted gross profit growth represents YoY change for NAST truckload. ■ 70% / 30% truckload contractual / transactional volume mix in Q2 ■ Average routing guide depth of 1.2 in Managed Services business vs. 1.1 in Q2 last year Yo Y % C ha ng e in P ric e an d C os t p er M ile YoY Price Change YoY Cost Change 2016 2017 2018 2019 2020 2021 2022 2023 2024 -30% -20% -10% 0% 10% 20% 30% 40% 50%

 
Truckload AGP $ per Shipment Trend 9 ■ Disciplined pricing and capacity procurement efforts resulted in improved optimization of volume and AGP per truckload, primarily in our transactional business.(1) ■ Increasing adoption of digital brokerage offerings are improving our cost of hire. N A ST A dj us te d G ro ss P ro fit $ p er T ru ck lo ad Sh ip m en t N A ST A djusted G ross Profit M argin % NAST Adjusted Gross Profit $ per Truckload Shipment (left axis) NAST Adjusted Gross Profit Margin % (right axis) Average NAST AGP $ per Truckload Shipment (left axis) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

 
Global Forwarding Q2’24 Results by Service 10 2Q24 2Q23 %▲ Ocean $116.6 $107.4 8.6% Air $30.5 $33.5 (8.9)% Customs $26.7 $25.1 6.1% Other $10.3 $13.2 (22.0)% Total Adjusted Gross Profits $184.1 $179.2 2.7% Adjusted Gross Profit Margin % 20.0% 23.0% (300 bps) Adjusted Gross Profits (1) ($ in millions) ■ Ongoing conflict in the Red Sea is causing transit interruptions and vessel re-routing, which has put a strain on ocean capacity, resulted in port congestion and equipment shortages and driven rates higher Y/Y ■ Ocean AGP increased due to a 4.0% increase in shipments and a 4.5% increase in AGP per shipment(2) ■ Air AGP decreased due to an 18.0% decrease in AGP per metric ton shipped, partially offset by an 11.0% increase in metric tons shipped(2) ■ Customs AGP increased due to a 6.0% increase in volume(2) 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Growth rates are rounded to the nearest 0.5 percent. Second Quarter Highlights

 
All Other & Corporate Q2’24 Results 11 Robinson Fresh ■ Increased AGP due to an increase in integrated supply chain solutions for retail and foodservice customers Managed Services ■ Total freight under management of $1.5B in Q2 up Y/Y Other Surface Transportation ■ Decline in AGP primarily driven by a 23.3% decrease in Europe truckload AGP 2Q24 2Q23 %▲ Robinson Fresh $39.9 $37.9 5.2% Managed Services $28.8 $29.0 (0.7)% Other Surface Transportation $15.1 $18.9 (20.3)% Total $83.7 $85.8 (2.4)% Adjusted Gross Profits (1) ($ in millions) 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Growth rates are rounded to the nearest 0.5 percent. Second Quarter Highlights

 
Streamlining & Automating Processes to Drive Profitable Growth 12 12

 
New Customer & Carrier Experiences Driving Digital Adoption 13 ■ Improving customer and carrier outcomes with technology that supports our people and processes ■ Leveraging GenAI to capitalize on our data and information advantage ■ Concurrent workstreams are delivering process optimization by eliminating productivity bottlenecks ■ Accelerating the digital execution of critical touch points in the lifecycle of a load: • Reducing manual tasks per shipment • Reducing time per task 13

 
© C.H. Robinson Worldwide, Inc. All rights reserved. © C.H. Robinson Worldwide, Inc. All rights reserved. 14 Our Customer Promise

 
Capital Allocation Priorities: Balanced and Opportunistic 15 Cash Flow from Operations & Capital Distribution ($M) ■ $76 million of cash returned to shareholders in Q2 2024 ■ Q2 2024 capital distribution declined 28% Y/Y due to the decrease in cash from operations ■ More than 25 years of annually increasing dividends, on a per share basis ■ 45K shares deemed repurchased, upon surrender of shares to satisfy tax withholding, at an average price of $81.66 ■ The decline in the cost and price of purchased surface transportation (inclusive of fuel surcharges) has slowed year-over-year, and the cost and price of ocean transportation have risen, resulting in growth of net operating working capital and lower cash from operations. ■ We'll continue to manage our capital structure to maintain our investment grade credit rating.

 
16 Appendix

 
Q2 2024 Transportation Results(1) 17 Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 4,121,930 $ 4,084,827 0.9 % $ 8,204,518 $ 8,412,792 (2.5) % Total Adjusted Gross Profits(2) $ 651,547 $ 631,267 3.2 % $ 1,279,139 $ 1,288,201 (0.7) % Adjusted Gross Profit Margin % 15.8% 15.5% 30 bps 15.6% 15.3% 30 bps Transportation Adjusted Gross Profit Margin % 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 16.8% 19.7% 17.3% 16.4% 18.6% 15.3% 14.9% 13.5% 15.2% 15.4% Q2 17.5% 19.3% 16.2% 16.2% 18.3% 17.5% 13.8% 15.4% 15.5% 15.8% Q3 18.4% 17.6% 16.4% 16.6% 16.9% 14.4% 13.7% 15.1% 15.1% Q4 19.0% 17.2% 16.6% 17.7% 15.6% 14.3% 13.3% 15.5% 15.0% Total 17.9% 18.4% 16.6% 16.7% 17.3% 15.3% 13.8% 14.8% 15.2% 1. Includes results across all segments. 2. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material.

 
Q2 2024 NAST Results 18 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Includes $8.5 million of restructuring charges in the Three Months Ended June 30, 2024 related to workforce reductions and charges to reduce our facilities footprint including early termination or abandonment of office buildings under operating leases and $13.4 million of restructuring charges in the Six Months Ended June 30, 2024 related to workforce reductions, impairment of internally developed software due to reprioritizing the efforts of our product and technology teams, and charges to reduce our facilities footprint including early termination or abandonment of office buildings under operating leases. Includes $0.3 million of restructuring charges in the Three Months Ended June 30, 2023 and $1.2 million in the Six Months Ended June 30, 2023 mainly related to workforce reductions. Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 2,989,909 $ 3,079,268 (2.9) % $ 5,990,222 $ 6,383,455 (6.2) % Total Adjusted Gross Profits(1) $ 419,657 $ 400,532 4.8 % $ 816,767 $ 827,187 (1.3) % Adjusted Gross Profit Margin % 14.0% 13.0% 100 bps 13.6% 13.0% 60 bps Income from Operations(2) $ 141,102 $ 117,859 19.7 % $ 249,997 $ 251,881 (0.7) % Adjusted Operating Margin % 33.6% 29.4% 420 bps 30.6% 30.5% 10 bps Depreciation and Amortization $ 5,525 $ 5,856 (5.7) % $ 10,875 $ 11,507 (5.5) % Total Assets $ 3,053,769 $ 3,106,092 (1.7) % $ 3,053,769 $ 3,106,092 (1.7) % Average Headcount 5,868 6,497 (9.7) % 5,929 6,713 (11.7) %

 
Q2 2024 Global Forwarding Results 19 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Includes $3.5 million of restructuring charges in the Three Months Ended June 30, 2024 and $7.0 million of restructuring charges in the Six Months Ended June 30, 2024 mainly related to workforce reductions. Includes $0.7 million of restructuring charges in the Three Months Ended June 30, 2023 and $2.4 million in the Six Months Ended June 30, 2023 mainly related to workforce reductions. Three Months Ended June 30 Six Months Ended June 30 $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 921,223 $ 779,867 18.1 % $ 1,779,860 $ 1,569,845 13.4 % Total Adjusted Gross Profits(1) $ 184,067 $ 179,231 2.7 % $ 364,112 $ 357,150 1.9 % Adjusted Gross Profit Margin % 20.0% 23.0% (300 bps) 20.5% 22.8% (230 bps) Income from Operations(2) $ 40,982 $ 29,647 38.2 % $ 72,534 $ 59,763 21.4 % Adjusted Operating Margin % 22.3% 16.5% 580 bps 19.9% 16.7% 320 bps Depreciation and Amortization $ 2,793 $ 5,484 (49.1) % $ 5,637 $ 10,964 (48.6) % Total Assets $ 1,306,075 $ 1,149,091 13.7 % $ 1,306,075 $ 1,149,091 13.7 % Average Headcount 4,652 5,225 (11.0) % 4,770 5,356 (10.9) %

 
Q2 2024 All Other and Corporate Results 20 1. Adjusted gross profits is a non-GAAP financial measure explained later in this presentation. The difference between adjusted gross profits and gross profits is not material. 2. Includes $3.1 million of restructuring charges in the Three Months Ended June 30, 2024 mainly related to workforce reductions and $7.7 million of restructuring charges in the Six Months Ended June 30, 2024 related to workforce reductions and impairment of internally developed software due to reprioritizing the efforts of our product and technology teams. Includes $13.1 million of restructuring charges in the Three Months Ended June 30, 2023 and $14.3 million in the Six Months Ended June 30, 2023 mainly related to workforce reductions. Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2024 2023 % Change 2024 2023 % Change Total Revenues $ 572,216 $ 562,721 1.7% $ 1,125,577 $ 1,080,226 4.2% Total Adjusted Gross Profits(1) $ 83,685 $ 85,733 (2.4%) $ 164,259 $ 166,799 (1.5%) Income (loss) from Operations(2) $ (3,994) $ (14,883) (73.2%) $ (17,308) $ (17,988) (3.8%) Depreciation and Amortization $ 16,736 $ 14,635 14.4% $ 32,420 $ 27,884 16.3% Total Assets $ 1,152,502 $ 1,150,078 0.2% $ 1,152,502 $ 1,150,078 0.2% Average Headcount 3,954 4,363 (9.4%) 4,032 4,454 (9.5%)

 
21 Our adjusted gross profit and adjusted gross profit margin are non-GAAP financial measures. Adjusted gross profit is calculated as gross profit excluding amortization of internally developed software utilized to directly serve our customers and contracted carriers. Adjusted gross profit margin is calculated as adjusted gross profit divided by total revenues. We believe adjusted gross profit and adjusted gross profit margin are useful measures of our ability to source, add value, and sell services and products that are provided by third parties, and we consider adjusted gross profit to be a primary performance measurement. The reconciliation of gross profit to adjusted gross profit and gross profit margin to adjusted gross profit margin are presented below: Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2024 2023 2024 2023 Revenues: Transportation $ 4,121,930 $ 4,084,827 $ 8,204,518 $ 8,412,792 Sourcing 361,418 337,029 691,141 620,734 Total Revenues $ 4,483,348 $ 4,421,856 $ 8,895,659 $ 9,033,526 Costs and expenses: Purchased transportation and related services 3,470,383 3,453,560 6,925,379 7,124,591 Purchased produced sourced for resale 325,556 302,800 625,142 557,799 Direct internally developed software amortization 10,883 8,749 21,105 16,066 Total direct costs $ 3,806,822 $ 3,765,109 $ 7,571,626 $ 7,698,456 Gross profit & Gross profit margin $ 676,526 15.1% $ 656,747 14.9% $ 1,324,033 14.9% $ 1,335,070 14.8% Plus: Direct internally developed software amortization 10,883 8,749 21,105 16,066 Adjusted gross profit/Adjusted gross profit margin $ 687,409 15.3% $ 665,496 15.1% $ 1,345,138 15.1% $ 1,351,136 15.0% Non-GAAP Reconciliations

 
Non-GAAP Reconciliations 22 Our adjusted operating margin is a non-GAAP financial measure calculated as operating income divided by adjusted gross profit. Our adjusted operating margin - excluding restructuring is a similar non-GAAP financial measure to adjusted operating margin, but also excludes the impact of restructuring. We believe adjusted operating margin and adjusted operating margin - excluding restructuring are useful measures of our profitability in comparison to our adjusted gross profit, which we consider a primary performance metric as discussed above. The comparisons of operating margin to adjusted operating margin and adjusted operating margin - excluding restructuring are presented below: Three Months Ended June 30 Six Months Ended June 30, $ in thousands 2024 2023 2024 2023 Total Revenues $ 4,483,348 $ 4,421,856 $ 8,895,659 $ 9,033,526 Income from operations 178,090 132,623 305,223 293,656 Operating margin 4.0% 3.0% 3.4% 3.3% Adjusted gross profit $ 687,409 $ 665,496 $ 1,345,138 $ 1,351,136 Income from operations 178,090 132,623 305,223 293,656 Adjusted operating margin 25.9% 19.9% 22.7% 21.7% Adjusted gross profit $ 687,409 $ 665,496 $ 1,345,138 $ 1,351,136 Adjusted income from operations(1) 193,279 146,755 333,355 311,510 Adjusted operating margin - excluding restructuring 28.1% 22.1% 24.8% 23.1% 1. In the Three Months Ended June 30, 2024, we incurred restructuring expenses of $9.4 million related to workforce reductions and $5.7 million of other charges, primarily related to charges to reduce our facilities footprint. In the Six Months Ended June 30, 2024 we incurred restructuring expenses of $17.4 million related to workforce reductions and $10.7 million of other charges, primarily related to an impairment of internally developed software and charges to reduce our facilities footprint. In the Three Months Ended June 30, 2023, we incurred restructuring expenses of $13.1 million related to workforce reductions and $1.0 million of other charges. In the Six Months Ended June 30, 2023, we incurred restructuring expenses of $16.7 million related to workforce reductions and $1.1 million of other charges.

 
Non-GAAP Reconciliations 23 Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) excluding the impact of restructuring. The adjustments to net income per share (diluted) include restructuring-related costs and a foreign currency loss on divested operations. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted). The reconciliation of income (loss) from operations to adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) to adjusted income (loss) from operations and adjusted net income per share (diluted) is presented below (in thousands except per share data): Three Months Ended June 30, 2024 Six Months Ended June 30, 2024 NAST Global Forwarding All Other and Corporate Consolidated NAST Global Forwarding All Other and Corporate Consolidated Income (loss) from operations $ 141,102 $ 40,982 $ (3,994) $ 178,090 $ 249,997 $ 72,534 $ (17,308) $ 305,223 Severance and other personnel expenses 4,758 2,179 2,508 9,445 7,784 5,394 4,209 17,387 Other selling, general, and administrative expenses 3,776 1,331 637 5,744 5,654 1,592 3,499 10,745 Total adjustments to income (loss) from operations(1)(2) 8,534 3,510 3,145 15,189 13,438 6,986 7,708 28,132 Adjusted income (loss) from operations $ 149,636 $ 44,492 $ (849) $ 193,279 $ 263,435 $ 79,520 $ (9,600) $ 333,355 Adjusted gross profit $ 419,657 $ 184,067 $ 83,685 $ 687,409 $ 816,767 $ 364,112 $ 164,259 $ 1,345,138 Adjusted income (loss) from operations 149,636 44,492 (849) 193,279 263,435 79,520 (9,600) 333,355 Adjusted operating margin - excluding restructuring 35.7% 24.2% N/M 28.1% 32.3% 21.8% N/M 24.8% $ in 000's per share $ in 000's per share Net income and per share (diluted) $ 126,251 $ 1.05 $ 219,155 $ 1.83 Restructuring and related costs, pre-tax(1)(2) 15,189 0.13 28,132 0.24 Tax effect of adjustments (3,645) (0.03) (6,746) (0.06) Adjusted net income and per share (diluted) $ 137,795 $ 1.15 $ 240,541 $ 2.01 1. The Three Months Ended June 30, 2024 includes restructuring expenses of $9.4 million related to workforce reductions and $5.7 million of other charges to reduce our facilities footprint including early termination or abandonment of office buildings under operating leases. 2. The Six Months Ended June 30, 2024 includes restructuring expenses of $17.4 million related to workforce reductions and $10.7 million of other charges, primarily related to an impairment of internally developed software due to reprioritizing the efforts of our product and technology teams and charges to reduce our facilities footprint including early termination or abandonment of office buildings under operating leases.

 
Non-GAAP Reconciliations 24 Our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted) are non-GAAP financial measures. Adjusted income (loss) from operations and adjusted net income per share (diluted) is calculated as income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) excluding the impact of restructuring. The adjustments to net income per share (diluted) include restructuring-related costs and a foreign currency loss on divested operations. We believe that these measures provide useful information to investors and include them within our internal reporting to our chief operating decision maker. Accordingly, the discussion of our results of operations includes discussion on the changes in our adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and adjusted net income per share (diluted). The reconciliation of income (loss) from operations to adjusted income (loss) from operations, adjusted operating margin - excluding restructuring, and net income per share (diluted) to adjusted income (loss) from operations and adjusted net income per share (diluted) is presented below (in thousands except per share data): Three Months Ended June 30, 2023 Six Months Ended June 30, 2023 NAST Global Forwarding All Other and Corporate Consolidated NAST Global Forwarding All Other and Corporate Consolidated Income (loss) from operations $ 117,859 $ 29,647 $ (14,883) $ 132,623 $ 251,881 $ 59,763 $ (17,988) $ 293,656 Severance and other personnel expenses 327 691 12,109 13,127 1,156 2,229 13,340 16,725 Other selling, general, and administrative expenses 4 39 962 1,005 4 163 962 1,129 Total adjustments to income (loss) from operations(1)(2) 331 730 13,071 14,132 1,160 2,392 14,302 17,854 Adjusted income (loss) from operations $ 118,190 $ 30,377 $ (1,812) $ 146,755 $ 253,041 $ 62,155 $ (3,686) $ 311,510 Adjusted gross profit $ 400,532 $ 179,231 $ 85,733 $ 665,496 $ 827,187 $ 357,150 $ 166,799 $ 1,351,136 Adjusted income (loss) from operations 118,190 30,377 (1,812) 146,755 253,041 62,155 (3,686) 311,510 Adjusted operating margin - excluding restructuring 29.5% 16.9% N/M 22.1% 30.6% 17.4% N/M 23.1% $ in 000's per share $ in 000's per share Net income and per share (diluted) $ 97,316 $ 0.81 $ 212,207 $ 1.77 Restructuring and related costs, pre-tax(1)(2) 14,132 0.12 17,854 0.15 Foreign currency loss on divested operations, pre-tax 2,051 0.02 3,808 0.04 Tax effect of adjustments (3,393) (0.03) (4,287) (0.04) Adjusted net income and per share (diluted) $ 110,106 $ 0.92 $ 229,582 $ 1.92 1. The Three Months Ended June 30, 2023 includes restructuring expenses of $13.1 million related to workforce reductions and $1.0 million of other charges. 2. The Six Months Ended June 30, 2023 includes restructuring expenses of $16.7 million related to workforce reductions and $1.1 million of other charges.

 
25 Thank you INVESTOR RELATIONS: Chuck Ives 952-683-2508 chuck.ives@chrobinson.com

 
v3.24.2
Cover Page
Jul. 31, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 31, 2024
Entity Registrant Name C.H. ROBINSON WORLDWIDE, INC.
Entity Central Index Key 0001043277
Amendment Flag false
Entity File Number 000-23189
Entity Incorporation, State or Country Code DE
Entity Tax Identification Number 41-1883630
Entity Address, Address Line One 14701 Charlson Road
Entity Address, City or Town Eden Prairie
Entity Address, State or Province MN
Entity Address, Postal Zip Code 55347
City Area Code 952
Local Phone Number 937-8500
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.10 par value
Trading Symbol CHRW
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
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