Adjusted EPS Growth
Adjusted earnings per share increased 15% year over year in Q1 2026, driven by gross profit optimization, disciplined revenue management, and productivity gains.
CH Robinson
· CHRW
April 29th, 2026
Summary
- Earnings Call Date:
- 2026-04-29
- Change Since:
- -4.58%
- Next Earnings Date:
- 2026-08-05
Earnings Call Sentiment
PositiveThe call emphasized resilient earnings and margin expansion driven by disciplined revenue management, rapid Lean AI adoption, strong productivity gains, and consistent market-share growth despite a challenging freight backdrop. Key positives include a 15% rise in adjusted EPS, NAST margin resilience (14.6%), operating margin expansion (210 bps), and robust shareholder returns, while negatives include a ~12% YoY decline in revenue and AGP, higher spot and fuel costs (spot costs +~19% YoY), and Global Forwarding volume/AGP pressure. Overall, management reaffirmed full-year targets and expressed confidence in execution and the ability to perform in varied market conditions.
Company Guidance
Management reaffirmed its 2026 targets, including a $6.00 adjusted EPS outlook (assuming no market growth) and the operating income target raised in October, while guiding 2026 personnel expenses of $1.25B–$1.35B, SG&A of $540M–$590M (including D&A $95M–$105M), capital expenditures of $75M–$85M, and a full‑year effective tax rate of 18%–20%; they expect double‑digit productivity gains in NAST and Global Forwarding in 2026 (over‑indexed to H2). In Q1 the company generated $68.6M cash from operations, ended with ~$1.24B liquidity and net debt/EBITDA of 1.32x, returned ~ $360M to shareholders (repurchases $280.7M, dividends $79M), and spent $15M of capex; Q1 personnel expense was $352.7M (incl. $18.8M restructuring; ex‑restructuring $334M) with average headcount down 12.3% YoY, Q1 SG&A $132.1M (incl. $1.5M restructuring), and operating margin (ex‑restructuring) expanded +210 bps YoY (+310 bps YoY in NAST). Operationally, total revenue and AGP were down ~12% YoY, Global Forwarding AGP down ~12%, NAST gross margin was 14.6% in Q1, AGP per business day was -4% Jan / -2% Feb / flat Mar, truckload spot costs rose ~19% YoY (DAT) and management now expects full‑year dry‑van spot rates ~+17% YoY (vs. +8% three months ago), while volumes showed LTL +2% YoY, truckload -3.5% YoY and total NAST volume flat (vs. CAS index -6.2% YoY).
NAST Margin Resilience
North American Surface Transportation (NAST) gross margin held at 14.6% in Q1 despite elevated spot-market costs, reflecting targeted repricing, capture of higher-margin transactional volume, and a widened cost-of-hire advantage.
Market Share Gains
Gained market share in NAST for the twelfth consecutive quarter; total NAST volume was flat YoY while outgrowing the CAS Freight Shipment Index (which declined 6.2% YoY). LTL volume rose ~2% YoY and the company reported market share gains in both LTL and truckload despite truckload volume decline.
Productivity and Operating-Leverage Improvement
Delivered double-digit productivity increases in NAST in Q1 and achieved a >50% increase in shipments per person per day since 2022. Company expanded operating margin (excluding restructuring) by 210 basis points YoY, and NAST operating margin (excluding restructuring) expanded by 310 basis points YoY.
Lean AI and Technology Scaling
Lean AI strategy scaled with over 450 in-house engineers/data scientists and rapid deployment of custom AI agents across quote-to-cash workflows; management cites measurable P&L impacts and ongoing runway for automation-driven cost-to-serve reduction.
Repricing and Revenue Management Effectiveness
Management highlighted faster, more targeted repricing and better tools enabling capture of higher-margin transactional business as tender rejection rates rose; AGP per business day improved sequentially (Jan -4%, Feb -2%, Mar flat YoY).
Strong Capital Returns and Liquidity
Returned approximately $360 million to shareholders in Q1 (share repurchases $280.7M and dividends $79M), more than twofold YoY increase. Ended Q1 with ~$1.24 billion liquidity and generated $68.6 million cash from operations.
Global Forwarding Margin Expansion
Global Forwarding expanded gross margins by 60 basis points YoY in Q1 despite a challenging international freight environment and excess vessel capacity depressing ocean rates.
Operator
Good afternoon, ladies and gentlemen, and welcome to C.H. Robinson Worldwide, Inc.'s First Quarter 2026 Conference Call. At this time, participants are in a listen-only mode. Following the company's prepared remarks, we will open the line for a live question and answer session. As a reminder, this conference is being recorded Wednesday, April 29, 2026. I would now like to turn the conference over to Charles S. Ives, Senior Director of Investor Relations.
Charles S. Ives
Thank you, operator, and good afternoon, everyone. On the call with me today is David P. Bozeman, our President and Chief Executive Officer, Michael D. Castagnetto, our President of North American Surface Transportation, Arun D. Rajan, our Chief Strategy and Innovation Officer, and Damon J. Lee, our Chief Financial Officer. I would like to remind you that our remarks today contain forward-looking statements. Slide two in today's presentation lists factors that could cause our actual results to differ from management's expectations.
Earnings presentation slides are supplemental to our earnings release and can be found in the Investors section of our website at investor.chrobinson.com. Today's remarks also contain certain non-GAAP measures, and reconciliations of those measures to GAAP measures are included in the presentation. With that, I will turn the call over to David.
David P. Bozeman
Thank you, Charles. Good afternoon, everyone, and thank you for joining us today. As has been widely discussed in recent months, the North American trucking market has entered a period of supply-driven tightening. If that has occurred, we have heard old tap...
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