EXPD · 10-Q · 2026Q2 · Full report

Operating Expense Trends

EXPEDITORS INTERNATIONAL OF WASHINGTON INC · 2026-08-05 · Importance 59 · Surprise 48 · From source text

Second-quarter salaries and related costs increased 22% year over year to $573.7 million, while six-month salaries and related costs increased 15% to $1,073.3 million. The increase reflected a 4% increase in headcount, higher base salaries, increased incentive compensation, and termination costs related to the Global Technology restructuring. Other expenses decreased 10% in the quarter to $162.2 million, primarily because of a $16 million property-sale gain and lower indirect taxes, partly offset by higher technology and occupancy costs. Total overhead expenses increased 13% in the quarter and 11% for the first six months.

Key facts

• Airfreight services expenses for the three months ended June 30, 2026 were $1,134,773 thousand, up from $698,402 thousand in the same period in 2025. source
• Salaries and related costs were $573,698 thousand for the three months ended June 30, 2026 versus $471,336 thousand in 2025 (22% increase). source
• Total overhead expenses for the three months ended June 30, 2026 were $735,877 thousand versus $650,792 thousand in 2025. source
• Other expenses decreased 10% and 2% for the three and six months ended June 30, 2026, primarily due to recognition of a $16 million gain on the sale of a property in the second quarter 2026. source
• Salaries and other expenses increased 22% and 15% for the three and six months ended June 30, 2026, respectively, compared to 2025. source
• Total bonuses to field and executive management increased 21% for the six months ended June 30, 2026 versus the same period in 2025. source

Impact estimates