C.H. Robinson arranges truck, ocean and air transportation for customers and pays independent carriers to move their goods. In the second quarter ended June 30, 2026, operating profit rose 18.4%, but cash generated by operations fell to $35.9 million as higher freight bills left more money awaiting collection. The company’s operating improvements are visible, while its growing funding needs now matter more following the proposed RXO acquisition and a major trucking-accident judgment.
Analysis period: second quarter and first half of 2026. Research cutoff: October 21, 2026, New York date; the latest company development examined is dated October 16.
Sources: C.H. Robinson second-quarter 2026 Form 10-Q, statements on pp. 3–6 and liquidity discussion on pp. 33–35; July 29 earnings release, “Cash Flow Generation and Capital Distribution.” Subsequent developments are sourced in Sections 5 and 6.
1. Higher freight prices increased sales much faster than the money Robinson kept
Most of the sales increase paid for more expensive transportation. Robinson generally records the full customer bill as revenue on its transportation arrangements, then records what it pays carriers as a cost. Higher freight prices can therefore lift sales sharply without producing a similar increase in profit.
That is what happened in the second quarter. Revenue increased 19.3%, but gross profit—the amount remaining after direct costs—rose 6.8%. Those direct costs include part of earlier software spending, charged to expense as the software is used; accountants call that amortization. Gross profit as a share of revenue fell from 16.4% to 14.7%. Robinson retained more dollars overall, but a smaller portion of each dollar billed.
| Consolidated results, USD millions except margins | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| Revenue | 4,136.5 | 4,934.1 | 8,183.3 | 8,947.0 |
| Reported gross profit | 679.6 | 725.9 | 1,337.0 | 1,372.6 |
| Reported operating profit | 215.9 | 255.7 | 392.8 | 431.4 |
| Reported net income | 152.5 | 186.8 | 287.8 | 334.0 |
| Operating profit / revenue | 5.2% | 5.2% | 4.8% | 4.8% |
Source: 2026 Form 10-Q, p. 4 and gross-profit and margin reconciliations on p. 24. Figures are rounded after calculation; the first half covers January through June, not just the second quarter.
The pressure was particularly clear in North American truckload transportation, where one customer typically uses a whole trailer. Robinson paid carriers approximately 29.0% more per mile, excluding fuel surcharges, while charging customers 25.5% more. Existing customer contracts could not all be repriced immediately. Robinson honored those commitments while raising contract prices and pursuing individual shipments booked at current market prices.
The outcome depended on the type of shipment. Profit retained per transaction improved in the spot market, where rates are negotiated for current business, but declined in the contractual business. North American truckload volume rose just 0.5%, and its adjusted gross profit was almost unchanged. Expensive transportation alone did not deliver the earnings improvement.
Management attributed the rate increases mainly to fewer available carriers and drivers, higher operating costs and disruptions, rather than a broad recovery in goods demand. Its own measure of how many carriers must be contacted before one accepts a load rose from 1.3 to 1.4. That small-looking change means more work finding capacity and more exposure to higher replacement-carrier prices.
Source: 2026 Form 10-Q, “Market Trends” and “Business Trends,” pp. 24–25, and North American Surface Transportation discussion, pp. 29–30.
Independent industry data supports the distinction between prices and demand during the quarter. Cass reported that June shipment activity fell 4.1% from a year earlier while freight spending rose 11.2%. By September, the picture had improved: shipments rose 1.9% from a year earlier, the second consecutive positive month after a prolonged downturn, while truckload linehaul prices rose 10.1%.
Those later readings improve the demand backdrop for Robinson, but do not establish its third-quarter results. More loads could help spread employee and technology costs over additional business. Continued price increases could also require more cash to pay carriers while customer bills remain outstanding.
Sources: Cass June 2026 Transportation Index report, shipments and expenditures; Cass September 2026 report, shipments and truckload linehaul index. Cass measures its freight-payment customer base, not Robinson’s exact mix of customers and services.
2. Smaller shipments and a leaner forwarding business drove the profit gain
LTL growth and lower forwarding costs explain much more than headline revenue growth. Less-than-truckload, or LTL, combines smaller shipments from different customers. As whole-truck transport became more expensive, some customers moved freight into LTL services. Robinson benefited through both more orders and more profit retained per order.
The company measures service-level performance using adjusted gross profit: customer revenue minus purchased transport and products, before directly used software amortization. This company-defined measure sits outside standard US accounting measures, so it is labeled non-GAAP. Operating profit comes later, after the company pays its own operating expenses. It helps show how much is available to pay employees, technology and other company expenses.
Within North American Surface Transportation, LTL adjusted gross profit rose from $150.5 million to $183.2 million. That $32.7 million increase supplied approximately 88% of the division’s total adjusted-gross-profit increase. LTL volume rose 2.0%; most of the improvement therefore came from the amount retained on each order. Truckload adjusted gross profit increased only from $261.5 million to $261.9 million.
The North American division also handled 1.5% more combined truckload and LTL volume with 11.6% fewer employees on average. Its volume growth exceeded the 3.3% decline in the quarterly Cass shipment index cited in the filing, supporting management’s account of winning business in a weak market. Employee expense was approximately flat because higher incentive pay offset part of the benefit from fewer employees. Claims and allocated corporate expenses pushed other costs higher. The result was still a substantial increase in reported operating profit.
Source: 2026 Form 10-Q, North American Surface Transportation tables and discussion, pp. 29–30; adjusted-gross-profit definition, pp. 23–24. The approximately 88% contribution is calculated from the disclosed segment figures.
Global Forwarding, which arranges international ocean and air shipments and customs work, improved in a different way. Its adjusted gross profit increased only $1.2 million, but operating profit increased $9.6 million. Personnel and other operating expenses together fell $8.4 million. Lower staffing and incentive compensation, rather than a large increase in freight profit, explain most of this division’s earnings improvement.
Air freight was a useful offset to ocean weakness. Air tonnage fell 7.5%, but higher profit per metric ton lifted air adjusted gross profit 23.4%. Ocean shipments rose 1.0%, yet ocean adjusted gross profit fell 2.8% as carrier costs rose faster than customer prices. Customs adjusted gross profit also declined; the prior-year comparison had benefited from higher fees for advancing customs duties.
These results show the benefit of having several transport services. They also show why the forwarding recovery remains uneven: first-half reported operating profit was still slightly below the prior year despite the stronger second quarter.
| Reported operating profit by business, USD millions | Second quarter 2025 | Second quarter 2026 | First half 2025 | First half 2026 |
|---|---|---|---|---|
| North American Surface Transportation | 164.0 | 189.8 | 307.7 | 335.0 |
| Global Forwarding | 51.3 | 61.0 | 94.3 | 92.7 |
| All Other and Corporate | 0.6 | 4.9 | -9.2 | 3.8 |
| Consolidated total | 215.9 | 255.7 | 392.8 | 431.4 |
Source: 2026 Form 10-Q, Note 8, pp. 14–16, and Global Forwarding discussion, pp. 31–32. The segment totals include allocated corporate expenses and reconcile to the consolidated accounts.
The smaller businesses helped too. Robinson Fresh earned more from foodservice customers, while Managed Solutions benefited from managing more freight for customers. Their combined contribution sits within All Other and Corporate, which also includes unallocated expenses. Its first-half improvement partly reflects the absence of a prior-year Kansas City lease impairment and European disposal costs. The Europe Surface Transportation business was sold on February 1, 2025, so the first-half comparison includes one month of that former business only in 2025.
Source: 2026 Form 10-Q, Notes 10 and 14, pp. 18 and 21–22, and All Other and Corporate discussion, pp. 32–33.
There is evidence that the operating improvement extends beyond one quarter. Reported second-quarter operating profit rose from $178.1 million in 2024 to $215.9 million in 2025 and $255.7 million in 2026. Within the principal North American division, it rose from $141.1 million to $164.0 million and then $189.8 million. The European sale changes the consolidated comparison, but does not explain the North American progression.
Management’s restructuring program provides a concrete mechanism: automate manual work, reduce staffing needs and consolidate offices. It also costs money. Robinson recognized $27.7 million of program charges and paid $26.5 million in the first half of 2026. Management expects total program charges of $50 million–$75 million from 2025 through early 2028. These are continuing implementation costs, even when excluded from adjusted earnings.
Sources: July 31, 2024 earnings release, business-segment table; 2026 Form 10-Q, Note 13, pp. 20–21, and comparative operating statements.
Reported second-quarter net income grew 22.5%, faster than operating profit, helped by lower net interest and other expense, including smaller currency losses. The tax rate was nearly unchanged at 21.5%. Diluted earnings per share rose from $1.26 to $1.56, or 23.8%, with a modest extra lift from a 1.1% reduction in diluted average shares.
The first-half tax picture was different. The 17.4% effective rate included a large benefit from employee share awards; that item reduced the rate by 9.1 percentage points before offsetting tax costs. The full benefit is not a measure of freight performance. The stronger operating result remains visible before taxes and before management’s adjustments, which are reconciled in the calculation notes.
Source: 2026 Form 10-Q, p. 4, Note 5 on p. 11, and consolidated results discussion on pp. 27–28.
3. Larger customer bills absorbed cash before that money could be spent elsewhere
Higher profit did not cover the company’s cash distributions. First-half operating cash fell from $333.7 million to $104.5 million even though net income increased. The main cause was the growing amount of money moving through the freight-payment process. The quarter alone generated $35.9 million, compared with $227.1 million a year earlier.
Robinson recognizes transportation revenue while a shipment moves. Some revenue therefore appears as a contract asset: work already performed on a shipment that has not yet been completed or billed. Once billed, it becomes a customer receivable. Customers then pay according to their credit terms, typically around 30 days after completion, although terms vary.
At June 30, net customer receivables had increased $694.3 million since year-end, and contract assets had increased another $74.2 million. Higher rates made the freight bills larger. Robinson also owed carriers and other suppliers more money, which provided a partial offset, but the two sides did not grow equally.
The cash-flow statement shows the effect directly. Changes in receivables and contract assets used $778.8 million during the first half. Higher supplier payables, outstanding checks and accrued transportation costs supplied $508.9 million. These four items together absorbed $269.9 million, compared with providing $19.8 million a year earlier. Payments of previously accrued employee compensation were another significant cash use.
Sources: 2026 Form 10-Q, pp. 3 and 6, Note 9 on p. 17, and liquidity discussion on p. 34; 2025 Form 10-K, Note 1, revenue recognition and contract assets, pp. 45–47. Cash-flow changes exclude some acquisition, currency and other noncash balance-sheet movements, so they need not equal simple changes in closing balances.
Robinson increased its allowance for customer bills it expects not to collect. It began with $14.420 million, recorded another $3.471 million of expense and removed $2.568 million of bills written off, leaving $15.323 million. There was no net release of this allowance into profit. The evidence points to higher freight prices and costs as the main cash driver; the filing does not show whether customers paid faster or slower.
Source: 2026 Form 10-Q, Note 11, p. 19, and liquidity discussion, p. 34. Note 1 says a newly adopted option for estimating credit losses had no material financial-statement effect.
The cash available after investment was much smaller than the amount distributed to shareholders. Here, free cash flow means operating cash minus both property-and-equipment purchases and purchased or internally developed software. It excludes acquisitions.
| Cash generation and allocation, USD millions | First half 2025 | First half 2026 |
|---|---|---|
| Operating cash generated | 333.659 | 104.497 |
| Capital spending, shown as a positive use | 36.241 | 33.252 |
| Calculated free cash flow | 297.418 | 71.245 |
| Cash dividends paid | 152.355 | 154.300 |
| Cash used for share repurchases | 128.767 | 432.183 |
| Cash remaining after capital spending, dividends and repurchases | 16.296 | -515.238 |
Sources: 2026 Form 10-Q, cash-flow statement, p. 6; July 29 earnings release, quarterly operating cash. Free cash flow and the final row are calculated, non-GAAP measures; amounts retain three decimals so the cash allocation reconciles exactly.
Acquisition payments added $78.9 million of cash use, partly offset by $11.8 million received from the earlier European disposal. Net borrowing of $595.0 million supplied the funding. Management explicitly linked increased borrowing primarily to additional repurchases and acquisition payments. Cash ended June only slightly below December because borrowing offset the spending gap.
A reversal in the freight-billing buildup could release cash later. But if higher prices and growing shipment volumes keep increasing customer balances, the business will continue to need funding even while earning more. That makes collections, carrier-payment timing and the pace of discretionary repurchases central to financial flexibility.
Source: 2026 Form 10-Q, investing and financing cash flows, pp. 6 and 34–35.
4. Borrowing capacity remains available, but maturities cluster in 2027 and 2028
Robinson has financing options, with more debt to refinance and less equity than at year-end. Cash was $154.6 million at June 30, while financing debt was $1,685.0 million, up from $1,089.4 million. These borrowings are distinct from the bills owed to carriers and other suppliers.
The company’s $1 billion revolving credit facility—a line it can borrow from and repay—had $325 million drawn, leaving about $675 million of stated capacity before applicable restrictions. Its separate $500 million receivables-backed facility was much more heavily used. That facility turns eligible customer bills into borrowing support, so its usefulness depends on the receivables and the agreement’s conditions. Of total cash, $134.4 million was held outside the United States; the consolidated cash balance is therefore not all domestic cash.
| Financing debt at June 30, 2026, USD millions | Recorded debt | Interest rate at June 30 | Repayment date |
|---|---|---|---|
| Receivables securitization facility | 436.763 | 4.55% | August 2027 |
| Revolving credit facility | 325.000 | 4.74% | November 2027 |
| Public senior notes | 598.254 | 4.20% | April 2028 |
| Series B senior notes | 150.000 | 4.26% | August 2028 |
| Series C senior notes | 175.000 | 4.60% | August 2033 |
| Total | 1,685.017 | — | — |
Source: 2026 Form 10-Q, Note 4, pp. 9–11, and liquidity table, p. 33. Facility rates can change; the notes pay fixed interest. Receivables-facility and public-note balances are reduced by financing costs that have not yet been charged to expense.
Approximately $1.51 billion of the June recorded debt comes due between August 2027 and August 2028. The fixed-rate notes require $39.64 million of annual interest payments on their stated principal amounts. Floating-rate borrowing adds interest that changes with market rates. This maturity concentration matters more now that the planned RXO transaction could require substantial additional financing during the same period.
Robinson met all conditions in its loan agreements, known as covenants, at June 30. The agreements limit debt relative to a defined earnings measure: the revolver sets a maximum ratio of 3.75 times and the private notes 3.50 times. The private notes also require earnings coverage of interest of at least 2.00 times and limit debt that ranks ahead of these lenders to 10% of assets. The exact contract definitions govern these tests. Compliance establishes that the limits were met; the filing does not disclose the actual ratios needed to measure how much additional borrowing they permit.
Source: 2026 Form 10-Q, Note 4 and p. 35. Fixed-interest calculations appear in the calculation notes.
Office and warehouse commitments are another claim on future cash. Lease liabilities fell from $305.9 million to $287.6 million, and first-half lease cash payments fell from $52.3 million to $43.7 million. These movements fit the company’s consolidation of facilities. Future lease payments, before adjusting for the timing of payment, total $319.6 million, including $38.7 million in the remainder of 2026 and $80.9 million in 2027. Leases are shown separately from financing debt because they fund the use of operating space and equipment.
Share repurchases also changed the balance sheet. Equity—the recorded assets left after liabilities—fell from $1,845.6 million to $1,627.7 million despite higher accumulated profits. Repurchased shares are recorded as treasury stock, a deduction from equity. That deduction grew by more than profit added to equity.
Outstanding shares fell from 118.429 million to 117.113 million: 2.497 million shares were repurchased, partly offset by 1.181 million delivered through employee plans. Total issued shares remained 179.199 million because the repurchased shares were held by the company rather than canceled.
First-half stock compensation was $53.0 million, up from $44.0 million. It did not use cash when recognized as expense, but employee shares offset part of the share-count reduction. Repurchases reduced dilution and supported per-share earnings; their immediate business cost was cash that otherwise could have reduced borrowing.
Sources: 2026 Form 10-Q, balance sheet and equity statements, pp. 3–5; Note 6, pp. 11–12; Note 10, pp. 18–19. The equity-account reconciliation follows in the calculation notes.
5. Software investment and DeSpir support the model; RXO would test it at a much larger scale
The proposed RXO purchase would make integration and debt reduction major operating priorities. Management’s purpose is to extend Robinson’s automation and operating methods across a larger transport network, while adding services and customer relationships. The second-quarter results provide evidence that its methods can lower the work required to handle freight. Applying them to another large organization is a separate execution task.
Existing investment is concentrated in tools rather than a large owned transport fleet. Of first-half capital spending, $25.6 million went to software and $7.6 million to property and equipment. Management says software investment aims to improve customer and carrier service, data quality, development speed and efficiency. These figures do not divide spending into maintenance and growth projects.
Net property and equipment fell from $116.4 million to $108.5 million. Other assets, which primarily contain software under the annual accounting policy, were broadly stable at $96.8 million. Inventory is included within prepaid expenses and other current assets, rather than disclosed separately; that whole category was nearly unchanged at $120.6 million. Customer bills account for the major asset buildup.
Sources: 2026 Form 10-Q, pp. 3 and 6 and investment discussion on p. 34; 2025 Form 10-K, Note 1, “Prepaid Expenses and Other” and “Other Assets,” pp. 47–48.
The June 22 purchase of DeSpir added secure transportation and cargo-escort capabilities for valuable freight. Its approximately $77.8 million purchase consideration included $49.0 million of goodwill, representing acquired workforce and expected business benefits, and $24.9 million of identified customer relationships and trademarks. Goodwill is not cash available to pay bills; its recorded amount depends on the acquired operations supporting their value over time.
DeSpir explains almost all of the increase in goodwill to $1,508.3 million and the rise in other intangible assets to $38.7 million. Its results entered consolidation only from June 22, so the filing does not establish a meaningful full-quarter earnings contribution. Management reported no warning signs requiring an additional review of whether goodwill needed to be written down.
Source: 2026 Form 10-Q, Notes 2 and 15, pp. 8 and 22. Purchase accounting was preliminary; the cash-flow statement’s broader acquisition-payment total is kept separate in the calculation notes.
On October 5, Robinson announced an agreement to acquire RXO in a cash-and-stock transaction with an announced implied value of $5.8 billion. Management expects more shipments across its network and the addition of RXO’s urgent-delivery and final-delivery services, primarily within North American Surface Transportation. It targets approximately $300 million of annual net cost savings within two years after closing. That is a planned annual savings rate once implemented, not savings already earned or cumulative cash received.
Source: October 5, 2026 acquisition announcement, “Strategic & Financial Benefits” and “Transaction Details.”
The financing commitment makes the scale of the task concrete. Robinson secured a commitment for an unsecured bridge loan of up to $4.5 billion, with a 364-day term. This is temporary financing while longer-term funding is arranged. It is intended to support cash consideration, refinancing of RXO’s credit facility, fees and certain existing-debt amendments. Robinson plans permanent capital-market financing and term borrowing, using the bridge only as needed. The commitment is conditional funding support, not debt already drawn at June 30.
Closing is expected in the first half of 2027 and requires regulatory and RXO shareholder approvals, among other conditions. Management plans to suspend repurchases until post-transaction debt levels meet its leverage target. That would redirect cash toward paying down acquisition debt after a first half in which repurchases were a major use of borrowing.
Sources: October 5 transaction filing with the SEC, reproduced C.H. Robinson Form 8-K, Item 1.01, merger conditions and debt commitment; acquisition announcement, financial profile and repurchase policy.
RXO’s own results show why execution is important. It reported second-quarter revenue of $1,774 million but operating income of only $1 million and a net loss of $9 million. Its truck brokerage also faced carrier costs rising faster than contracted customer prices. These are RXO’s separate US-GAAP results; they are not combined with Robinson’s accounts here.
Robinson would gain a broader network, but the acquired sales do not automatically bring a comparable amount of profit or cash. The planned savings require successful changes to staffing, workflows and purchasing while retaining customers and service quality. Delays would leave debt-financing needs in place before the full cost benefit arrives.
Source: RXO second-quarter 2026 Form 10-Q, consolidated results and management discussion, pp. 17–19. RXO’s expenses use its own consolidated reporting categories.
6. The trucking-accident judgment remains a material claim on future cash
The small liability recorded for the case does not measure the full legal exposure. In the Lipe v. Lupus Superior case, a Texas jury awarded $604 million in damages on July 23. It allocated 23% to Robinson, but also found the company responsible for the carrier and driver’s conduct. The filing says Robinson may consequently be jointly and severally liable for the entire award—meaning it could be required to pay more than its allocated share.
The company recorded a liability it described as immaterial at June 30. It said it did not consider the full award likely to survive and could not reasonably estimate an additional possible loss. For the accident period, Robinson disclosed $155 million of liability and excess insurance coverage per occurrence, subject to a $5 million deductible.
The amount ultimately upheld, responsibility for payment, available coverage and the outcome of appeals will determine the cash loss. The stated insurance limit alone does not establish what insurers will pay. Bonding costs, interest and legal fees can also affect cash before final resolution. Nevertheless, an award of this size is material beside June cash of $154.6 million and first-half operating cash of $104.5 million.
Source: 2026 Form 10-Q, Note 7, p. 13, and updated transportation-liability risk factor, p. 36.
The case moved beyond the jury-verdict stage after filing. In its October 16 statement, Robinson said the judge had affirmed the ruling and that it was appealing. The company continues to dispute both negligence and responsibility for the driver, citing the carrier’s federal safety rating and prior operating record. Those are the company’s defenses, not a resolved court outcome or a revised estimate of what it will pay.
Source: C.H. Robinson’s October 16, 2026 statement, “How did the jury and judge rule?” and “What’s the status … and what happens next?”
The wider legal change also affects everyday operating costs. On May 14, the Supreme Court held in Montgomery v. Caribe Transport II that the relevant federal statute did not block the negligent-hiring claim against the broker because of its motor-vehicle safety exception. The decision allowed that claim to proceed; it did not decide every broker’s liability in an accident.
For Robinson, the business implication is more scrutiny of how carriers are selected and monitored, along with potential increases in defense costs, premiums or deductibles. Its September investor-conference summary said management expected manageable insurance inflation and that renewal discussions were underway. That is useful counterevidence to assuming an immediate, extreme cost increase, but it is not a completed renewal price or protection against the Lipe outcome.
Sources: Supreme Court opinion, May 14, 2026, syllabus and opinion pp. 4–8; C.H. Robinson investor-conference summary, dated September 10, 2026, “Legal and insurance discussions require context”; 2026 Form 10-Q, p. 36.
Tax uncertainty is smaller but still relevant to available cash. The filing reported $38.5 million for tax benefits that may not survive challenge, including related interest and penalties. Most tax years before 2022 were closed to examination. Deferred tax assets fell from $293.5 million to $269.0 million; these represent tax reductions expected in future periods, rather than cash already received.
Source: 2026 Form 10-Q, p. 3, Note 5 on p. 11 and cash-flow tax adjustments on p. 6.
7. The operating recovery is established; its cash demands now need equal attention
Robinson is earning more from its network, while financing and execution demands are increasing. LTL profit growth and the lower cost of running Global Forwarding support the earnings improvement. The trend in reported operating profit shows that the result extends beyond tax benefits or management’s adjusted measures.
The next stage depends on turning that operating progress into cash after carrier payments, investment and shareholder distributions. The later return of industry shipment growth offers a better demand backdrop. Robinson still needs customer pricing to keep pace with carrier costs, and additional business must be handled without rebuilding expenses at the same rate.
RXO could extend the operating model across a much larger network, provided integration delivers the planned savings and financing remains available on workable terms. The legal judgment adds a separate, potentially substantial cash demand whose outcome is unresolved. Successful cash collection, disciplined integration and controlled legal and insurance costs would strengthen the company’s ability to fund expansion; setbacks would consume the flexibility created by its improving operations.
Reporting basis and calculation notes
Reporting basis: C.H. Robinson Worldwide, Inc., CIK 0001043277, Form 10-Q, accession 0001043277-26-000031, filed July 31, 2026, for June 30, 2026. The unaudited statements consolidate the parent and its majority-owned or controlled subsidiaries, with intercompany items eliminated. Second-quarter comparisons cover April 1–June 30; first-half comparisons cover January 1–June 30. Balance-sheet comparisons use June 30, 2026 and December 31, 2025. The company uses US GAAP and a December fiscal year-end.
The supplied complete filing text was the foundation. The SEC filing index and company XBRL facts were checked against it, using the specified accession, actual start/end dates and units. A fact marked fiscal period Q2 can contain either a three-month or six-month amount; dates, rather than that label alone, determined the comparison. Dollar facts were converted to millions and share counts were kept separate. The 2025 annual filing supplied accounting-policy context. Subsequent evidence reviewed includes September industry data, the October 5 RXO agreement and the October 16 company legal statement. These updates do not replace the June financial statements with later financial results.
Sources: SEC filing index; SEC company XBRL facts; 2026 Form 10-Q, Note 1.
Calculation notes: The following checks use USD millions unless explicitly identified as shares or percentages.
- Gross profit and the margin denominator. Second-quarter 2026 revenue of 4,934.098 less purchased transport of 3,828.412, purchased products of 367.720 and direct software amortization of 12.038 equals reported gross profit of 725.928. Adding back that software amortization gives adjusted gross profit of 737.966. For second-quarter 2025, reported gross profit of 679.550 plus software amortization of 13.681 equals adjusted gross profit of 693.231. For the first half, reported gross profit of 1,372.559 plus direct software amortization of 25.900 equals adjusted gross profit of 1,398.459 in 2026. The corresponding 2025 amounts are reported gross profit of 1,336.972, software amortization of 29.347 and adjusted gross profit of 1,366.319. Software expense is not eliminated from reported operating profit.
The company’s “adjusted operating margin” divides reported operating profit by adjusted gross profit. On the disclosed amounts, it rose from 31.147% to 34.655%, approximately 3.51 percentage points. Operating profit divided by total revenue was 5.220% and 5.183%, respectively. The higher adjusted margin therefore describes more efficient use of retained freight revenue, not a rise to a 34.7% profit margin on customer sales.
Source: 2026 Form 10-Q, p. 24. The filing describes the adjusted-margin increase as 360 basis points; calculations here use its displayed dollar amounts.
- Removing selected charges does not change the direction of earnings. Management’s second-quarter reconciliation is shown below. The 2026 restructuring adjustment is net of a 0.526 gain in other operating expenses, rather than only the gross employee charges. The 2025 adjustment also removes European disposal costs.
| Management’s second-quarter reconciliation, USD millions | 2025 | 2026 |
|---|---|---|
| Reported operating profit | 215.919 | 255.743 |
| Add: restructuring costs, net | 3.881 | 7.490 |
| Add: disposal costs | 0.429 | 0.000 |
| Adjusted operating profit | 220.229 | 263.233 |
| Reported net income | 152.471 | 186.786 |
| Add: total pretax adjustments above | 4.310 | 7.490 |
| Tax effect, reducing the adjustment | -1.005 | -2.008 |
| Adjusted net income | 155.776 | 192.268 |
Adjusted operating profit grew 19.5%, versus reported growth of 18.4%. These adjustments retain ordinary stock compensation, currency effects and other tax benefits. They do not establish that all remaining profit will recur.
Source: July 29, 2026 earnings release, second-quarter GAAP-to-non-GAAP reconciliation; 2026 Form 10-Q, Notes 13–14.
- Payment timing absorbed more cash despite higher profit. The rows below reconcile profit to cash. A negative number reduces the cash available.
| First-half profit-to-cash bridge, USD millions | 2025 | 2026 |
|---|---|---|
| Reported net income | 287.773 | 334.019 |
| Add accounting adjustments listed below | 115.090 | 103.879 |
| Cash effect of customer bills and carrier/supplier balances | 19.786 | -269.929 |
| Cash effect of other operating balances | -88.990 | -63.472 |
| Operating cash generated | 333.659 | 104.497 |
The adjustments convert accounting profit into the starting point for measuring cash, before changes in customer bills and other operating balances:
| First-half profit-to-cash adjustments, USD millions | 2025 | 2026 |
|---|---|---|
| Depreciation and amortization: earlier asset spending charged as expense | 50.508 | 47.421 |
| Expense for employee share awards | 44.028 | 53.005 |
| Deferred income-tax adjustment | 15.419 | 24.903 |
| Subtraction for excess tax benefits on employee share awards | -8.155 | -27.386 |
| Credit-loss expense | 6.605 | 3.760 |
| Change in loss on the business held for sale | -0.569 | 0.000 |
| Other operating adjustments | 7.254 | 2.176 |
| Total adjustments before operating-balance changes | 115.090 | 103.879 |
These adjustments are not additional cash receipts. The tax items are not counted again as separate cash savings. The billed-receivables allowance in Section 3 has a narrower scope than total credit-loss expense in this table.
Source: 2026 Form 10-Q, p. 6 and Note 11.
- Cash movements reconcile to the reported balances. The 2025 comparison requires an adjustment for cash previously classified with the European business held for sale.
| First-half cash balance check, USD millions | 2025 | 2026 |
|---|---|---|
| Opening cash and equivalents | 145.762 | 160.871 |
| Operating cash generated | 333.659 | 104.497 |
| Investing cash used | -8.504 | -100.372 |
| Financing cash used | -332.685 | -10.615 |
| Exchange-rate effect | 6.985 | 0.209 |
| Decrease in cash classified within assets held for sale | 10.776 | 0.000 |
| Closing cash and equivalents | 155.993 | 154.590 |
Neither period’s cash-flow statement presents a separate restricted-cash reconciliation.
First-half 2026 capital spending is property and equipment 7.610 + software 25.642 = 33.252; the 2025 equivalent is 10.640 + 25.601 = 36.241. Acquisition cash use of 78.948 is the consolidated cash-flow amount. Note 15 separately gives approximately 77.8 for DeSpir’s purchase consideration, net of acquired cash; these amounts are not treated as identical.
Source: 2026 Form 10-Q, p. 6 and Note 15.
- Repurchases outweighed the increase in accumulated profits. The table checks how each part of equity changed. Additional paid-in capital records contributions and employee share-award transactions beyond the common-stock amount; retained earnings are accumulated profits after declared dividends.
| Equity account, USD millions | December 31, 2025 | First-half change | June 30, 2026 |
|---|---|---|---|
| Common-stock amount | 11.843 | -0.132 | 11.711 |
| Additional paid-in capital | 734.261 | -23.359 | 710.902 |
| Retained earnings | 6,071.118 | 183.647 | 6,254.765 |
| Accumulated currency translation loss | -77.674 | -0.032 | -77.706 |
| Treasury-stock deduction | -4,893.901 | -378.081 | -5,271.982 |
| Total equity | 1,845.647 | -217.957 | 1,627.690 |
Employee-plan entries reduced paid-in capital by 76.364, while stock-compensation expense added 53.005 to that account.
Reissued employee shares reduced the treasury-stock deduction by 57.114; repurchases increased it by 435.195. The remaining repurchase entry reduced common stock by 0.250, partly offset by 0.118 from employee shares.
Retained earnings increased by profit of 334.019 less declared dividends of 150.372.
These equity entries differ from cash dividends of 154.300 and repurchase cash payments of 432.183; the cash-allocation table uses the cash-flow statement throughout.
Source: 2026 Form 10-Q, pp. 3, 5 and 6.
- Assets, financing and acquired intangibles reconcile. June assets of 5,843.506 equal liabilities of 4,215.816 plus equity of 1,627.690. December assets of 5,058.381 equal liabilities of 3,212.734 plus equity of 1,845.647. Net debt, defined here as financing debt less cash, rose from 928.567 to 1,530.427; this calculation excludes lease obligations.
Annual fixed-note interest payments are Series B principal 150 × 4.26% = 6.390, Series C principal 175 × 4.60% = 8.050, and public-note principal 600 × 4.20% = 25.200, totaling 39.640. This excludes floating-facility interest, commitment fees and financing-cost amortization.
Goodwill reconciles as opening 1,457.976 + acquisition goodwill 49.042 + currency translation 1.317 = 1,508.335. Other intangible assets reconcile as opening 18.174 + acquired customer relationships 16.600 + trademarks 8.300 − amortization 4.336 = 38.738. These acquisition-related assets support future operations but do not supply current liquidity.
Source: 2026 Form 10-Q, p. 3 and Notes 2, 4 and 15.
This analysis is for general information and is not investment advice.
