Expeditors International of Washington (EXPD) risk factors, FY2025 10-K

Expeditors International of Washington's FY2025 10-K, filed Feb 25, 2026, lists 20 risk factors in 3 groups. Against the prior year's 19: 2 new, 1 dropped, 3 substantially reworded.

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Risk factors listed
203 groups
New this year
2vs 19 last year
Dropped
1since the prior 10-K
Substantially reworded
3of those kept
Section length
5k wordsItem 1A

What the changes say

  • Trade friction with China poses direct revenue risks, as China and Hong Kong exports generated 19% of revenues in 2025.
  • Internal control risk shifted from past weaknesses to general evaluation and IT system uncertainty.
  • Tax disclosures now explicitly incorporate the U.S. 2025 Tax Act alongside OECD Pillar Two minimums.

What changed since the prior 10-K

New

  • NewIndustry Risks

    The current volatile international trade environment as a result of intergovernmental disputes, trade actions, increased tariffs and other geo-political risks may adversely impact our business and operating results

    Global tariff rebalancing and trade disputes between the U.S. and China or Canada could reduce trade volumes, heavily impacting our China and Hong Kong export revenue.

  • NewGeneral Risks

    We are exposed to risks relating to evaluations of internal control over financial reporting and disclosure controls and procedures

    Inability to maintain effective internal controls over financial reporting or IT systems could lead to financial misstatements, regulatory investigations, and stock price decline.

Dropped

  • DroppedGeneral Risks

    We identified material weaknesses in our internal control over financial reporting related to ineffective information technology general controls which, if not remediated appropriately or timely, could result in loss of investor confidence and adversely impact our stock price

Reworded

  • 70% rewrittenOperational Risks

    Any significant disruptions or unapproved third-party access to our network and systems continuity could have an adverse impact to our business and financial results

    Added specific language noting that network disruptions and unauthorized access can harm business by interrupting critical operations and degrading systems continuity.

  • 49% rewrittenOperational Risks

    We face material risks associated with the handling, transporting, and storing of customer inventory including some products classified as hazardous materials, dangerous goods, and/or high value products

    Expanded dangerous goods description to explicitly include hazardous materials and specified potential claims as material.

    Was: We face risks associated with the handling, transporting, and storing of customer inventory including classified dangerous goods and high value commodities

  • 33% rewrittenOperational Risks

    We are subject to taxation in multiple jurisdictions, and although we believe our tax estimates are reasonable, any adverse determinations in tax audits could negatively impact our financial results

    Added a specific reference to the U.S. 2025 Tax Act alongside ongoing OECD Pillar Two minimum tax implementations.

All 20 risk factors

Headings as the filing states them, in filing order.

Industry Risks

  1. 01The current volatile international trade environment as a result of intergovernmental disputes, trade actions, increased tariffs and other geo-political risks may adversely impact our business and operating resultsNew
  2. 02Any reduction in international commerce or disruption in global trade may adversely impact our business and operating results
  3. 03Our industry is highly competitive, and failure to compete or respond to customer requirements could damage our business and results of operations

Operational Risks

  1. 04We are dependent on our personnel and any inability to hire, develop or retain our key employees may have a negative impact on our operations
  2. 05We rely heavily upon the flexibility and sophistication of the technologies used in our core business and failure to properly manage, enhance and update technologies could lead to disruptions in our operations or our ability to remain competitive
  3. 06Any significant disruptions or unapproved third-party access to our network and systems continuity could have an adverse impact to our business and financial results70% rewritten
  4. 07We rely on service providers, including air, ocean, ground freight carriers and others and if they have insufficient capacity available relative to market demand or have reduced capacity to provide service, it may adversely impact our business and operating results
  5. 08Failure to grow and gain profitable market share could adversely impact our ability to remain competitive and could adversely impact our business
  6. 09Any disruption of our business caused by a catastrophic event could harm our ability to conduct normal business operations and impact our operating results
  7. 10We face material risks associated with the handling, transporting, and storing of customer inventory including some products classified as hazardous materials, dangerous goods, and/or high value products49% rewritten
  8. 11Our insurance coverage does not cover all potential losses and significant uninsured losses could adversely impact our financial results
  9. 12Difficulty in forecasting timing or volumes of customer shipments or rate changes by carriers could adversely impact our margins and operating results
  10. 13Climate change, including measures to address climate change, could adversely impact our business and financial results
  11. 14We are subject to a complex regulatory environment, and failure to comply with and adapt to these regulations could result in penalties or otherwise adversely impact our business
  12. 15We operate globally and any inability to safeguard our operations or comply with anti-corruption laws and trade compliance regulations would adversely impact our reputation and business
  13. 16We are subject to taxation in multiple jurisdictions, and although we believe our tax estimates are reasonable, any adverse determinations in tax audits could negatively impact our financial results33% rewritten

General Risks

  1. 17Investigations and litigation could require management time and or to incur substantial legal costs or fines, penalties or damages, any of which could adversely impact on our financial results
  2. 18Global health emergencies on the scale of the COVID-19 pandemic may significantly impact worldwide economic conditions and global trade and can have a disruptive effect on our operations, and the operations of our service providers and our customers, which may impact our business
  3. 19We are exposed to risks relating to evaluations of internal control over financial reporting and disclosure controls and proceduresNew
  4. 20Actions of activist investors could disrupt our business

Other Expeditors International of Washington 10-Ks

  • FY2024 10-K risk factors
    19 risks

    Expeditors relies heavily on third-party air, ocean, and ground carriers for non-asset-based global logistics operations.

    Filed Feb 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.