XPO Reports First Quarter 2025 Results
XPO reported its Q1 2025 financial results, showing mixed performance amid challenging market conditions. The company's diluted earnings per share increased to $0.58 from $0.56 year-over-year, while adjusted diluted EPS decreased to $0.73 from $0.81.
Total revenue declined 3.2% to $1.95 billion, primarily due to lower fuel surcharge revenue in North American LTL operations. Despite this, operating income improved 9.4% to $151 million. The North American LTL segment demonstrated strong yield growth of 6.9% excluding fuel, though shipments per day decreased 5.8%.
CEO Mario Harik highlighted a sequential improvement in adjusted operating ratio to 85.9% and a cumulative improvement of 370 basis points over two years in a soft freight environment. The company maintained strong liquidity with $212 million in cash after $191 million in net capital expenditures, while generating $142 million in operating cash flow.
XPO ha comunicato i risultati finanziari del primo trimestre 2025, evidenziando una performance mista in un contesto di mercato difficile. L'utile diluito per azione è aumentato a 0,58 $ da 0,56 $ rispetto all'anno precedente, mentre l'utile diluito rettificato per azione è diminuito a 0,73 $ da 0,81 $.
I ricavi totali sono calati del 3,2% a 1,95 miliardi di dollari, principalmente a causa della riduzione dei ricavi da sovrapprezzo carburante nelle operazioni LTL nordamericane. Nonostante ciò, l'utile operativo è migliorato del 9,4% raggiungendo 151 milioni di dollari. Il segmento LTL nordamericano ha mostrato una forte crescita del rendimento del 6,9% escludendo il carburante, anche se le spedizioni giornaliere sono diminuite del 5,8%.
Il CEO Mario Harik ha sottolineato un miglioramento sequenziale del rapporto operativo rettificato al 85,9% e un miglioramento cumulativo di 370 punti base in due anni in un ambiente di trasporto merci debole. L'azienda ha mantenuto una solida liquidità con 212 milioni di dollari in contanti dopo 191 milioni di dollari di spese in conto capitale nette, generando inoltre 142 milioni di dollari di flusso di cassa operativo.
XPO presentó sus resultados financieros del primer trimestre de 2025, mostrando un desempeño mixto en medio de condiciones de mercado desafiantes. Las ganancias diluidas por acción aumentaron a $0.58 desde $0.56 interanual, mientras que las ganancias diluidas ajustadas por acción disminuyeron a $0.73 desde $0.81.
Los ingresos totales disminuyeron un 3.2% hasta $1.95 mil millones, principalmente debido a menores ingresos por recargos de combustible en las operaciones LTL de Norteamérica. A pesar de esto, el ingreso operativo mejoró un 9.4% hasta $151 millones. El segmento LTL de Norteamérica mostró un fuerte crecimiento del rendimiento del 6.9% excluyendo el combustible, aunque los envíos diarios disminuyeron un 5.8%.
El CEO Mario Harik destacó una mejora secuencial en la relación operativa ajustada al 85.9% y una mejora acumulada de 370 puntos básicos en dos años en un entorno de transporte de carga débil. La compañía mantuvo una sólida liquidez con $212 millones en efectivo después de $191 millones en gastos netos de capital, generando además $142 millones en flujo de caja operativo.
XPO는 2025년 1분기 재무 실적을 발표하며 어려운 시장 환경 속에서 혼합된 성과를 보였습니다. 희석 주당순이익은 전년 동기 대비 0.58달러로 증가했으나, 조정 희석 주당순이익은 0.81달러에서 0.73달러로 감소했습니다.
총 매출은 북미 LTL 사업부의 연료 할증료 수익 감소로 인해 3.2% 감소한 19억 5천만 달러를 기록했습니다. 그럼에도 불구하고 영업이익은 9.4% 증가한 1억 5,100만 달러를 달성했습니다. 북미 LTL 부문은 연료를 제외한 강한 수익률 6.9% 성장을 보였으나, 일일 출하량은 5.8% 감소했습니다.
CEO 마리오 하릭은 조정 영업비율이 순차적으로 85.9%로 개선되었으며, 2년간 누적 370 베이시스 포인트 개선을 이뤄냈다고 강조했습니다. 회사는 1억 9,100만 달러의 순자본 지출 후에도 2억 1,200만 달러의 현금을 유지하며 1억 4,200만 달러의 영업 현금 흐름을 창출했습니다.
XPO a publié ses résultats financiers du premier trimestre 2025, affichant des performances mitigées dans un contexte de marché difficile. Le bénéfice dilué par action est passé à 0,58 $ contre 0,56 $ un an plus tôt, tandis que le BPA dilué ajusté a diminué à 0,73 $ contre 0,81 $.
Le chiffre d'affaires total a diminué de 3,2 % pour atteindre 1,95 milliard de dollars, principalement en raison d'une baisse des revenus liés aux surtaxes carburant dans les opérations LTL nord-américaines. Malgré cela, le résultat d'exploitation a progressé de 9,4 % pour atteindre 151 millions de dollars. Le segment LTL nord-américain a affiché une forte croissance du rendement de 6,9 % hors carburant, bien que les expéditions quotidiennes aient diminué de 5,8 %.
Le PDG Mario Harik a souligné une amélioration séquentielle du ratio d'exploitation ajusté à 85,9 % et une amélioration cumulative de 370 points de base sur deux ans dans un environnement de fret faible. L'entreprise a maintenu une forte liquidité avec 212 millions de dollars en liquidités après 191 millions de dollars de dépenses nettes en immobilisations, tout en générant 142 millions de dollars de flux de trésorerie d'exploitation.
XPO veröffentlichte seine Finanzergebnisse für das erste Quartal 2025 und zeigte eine gemischte Leistung angesichts herausfordernder Marktbedingungen. Der verwässerte Gewinn je Aktie stieg von 0,56 $ auf 0,58 $ im Jahresvergleich, während der bereinigte verwässerte Gewinn je Aktie von 0,81 $ auf 0,73 $ sank.
Der Gesamtumsatz sank um 3,2 % auf 1,95 Milliarden US-Dollar, hauptsächlich aufgrund geringerer Kraftstoffzuschlagserlöse im nordamerikanischen LTL-Geschäft. Trotz dessen verbesserte sich das Betriebsergebnis um 9,4 % auf 151 Millionen US-Dollar. Das nordamerikanische LTL-Segment zeigte ein starkes Ertragswachstum von 6,9 % ohne Berücksichtigung des Kraftstoffs, obwohl die täglichen Sendungen um 5,8 % zurückgingen.
CEO Mario Harik hob eine sequenzielle Verbesserung des bereinigten Betriebsverhältnisses auf 85,9 % hervor sowie eine kumulative Verbesserung von 370 Basispunkten über zwei Jahre in einem schwachen Frachtumfeld. Das Unternehmen hielt eine starke Liquidität mit 212 Millionen US-Dollar in bar nach 191 Millionen US-Dollar an Nettoinvestitionen und generierte 142 Millionen US-Dollar an operativem Cashflow.
- Operating income increased 9.4% YoY to $151M in Q1 2025
- Net income grew 3% YoY to $69M with EPS up 3.6% to $0.58
- LTL yield (excluding fuel) increased 6.9% YoY
- Adjusted operating ratio improved 30 basis points sequentially to 85.9%
- Reduced purchased transportation expense by 53% YoY through insourcing
- Strong cash position with $212M cash on hand after $191M capital expenditures
- Corporate operating loss improved from -$23M to -$9M YoY
- Total revenue declined 3.2% YoY to $1.95B
- Adjusted EBITDA decreased 3.5% YoY to $278M
- Adjusted diluted EPS fell 9.9% YoY from $0.81 to $0.73
- North American LTL shipments per day decreased 5.8%
- LTL tonnage per day dropped 7.5%
- European Transportation revenue declined 1.9% YoY
- European adjusted EBITDA fell 15.8% YoY to $32M
Insights
XPO delivers mixed Q1 results with improved operating income (+9.4%) despite revenue decline (-3.2%), maintaining profitability through operational efficiencies in challenging freight environment.
XPO's Q1 2025 financial performance presents a mixed picture with some operational bright spots amid overall revenue pressure. Revenue declined
The earnings metrics show divergent trends. Diluted EPS increased slightly to
Looking at segment performance, North American LTL showed significant efficiency gains with an adjusted operating ratio of
The company maintained strong cash generation with
XPO outperforms soft freight market through strategic yield growth (+6.9%) and operational efficiencies, reducing purchased transportation costs by 53% while improving service quality.
XPO's Q1 results demonstrate remarkable operational execution in a challenging freight environment. The company's
The
Most impressive is the
The European Transportation segment's transition from a
XPO's focus on "tech-driven labor productivity" aligns with industry best practices as digital transformation becomes increasingly critical to logistics efficiency. Their balanced approach of enhancing yield while improving operational metrics positions them well regardless of when broader freight market conditions improve.
GREENWICH, Conn., April 30, 2025 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO) today announced its financial results for the first quarter 2025. The company reported diluted earnings per share of
| First Quarter 2025 Summary Results | ||||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||||
| Revenue | Operating Income (Loss) | |||||||||||||||||||||||
| (in millions) | 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||||
| North American Less-Than-Truckload Segment | $ | 1,172 | $ | 1,221 | -4.0 | % | $ | 158 | $ | 165 | -4.2 | % | ||||||||||||
| European Transportation Segment | 782 | 797 | -1.9 | % | 1 | (4 | ) | NM | ||||||||||||||||
| Corporate | - | - | 0.0 | % | (9 | ) | (23 | ) | -60.9 | % | ||||||||||||||
| Total | $ | 1,954 | $ | 2,018 | -3.2 | % | $ | 151 | $ | 138 | 9.4 | % | ||||||||||||
| Adjusted Operating Income(1) | Adjusted EBITDA(1) | |||||||||||||||||||||||
| (in millions) | 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||||
| North American Less-Than-Truckload Segment | $ | 165 | $ | 175 | -5.7 | % | $ | 250 | $ | 255 | -2.0 | % | ||||||||||||
| European Transportation Segment | 6 | 9 | -33.3 | % | 32 | 38 | -15.8 | % | ||||||||||||||||
| Corporate | NA | NA | NA | (4 | ) | (5 | ) | -20.0 | % | |||||||||||||||
| Total | $ | NA | $ | NA | NA | $ | 278 | $ | 288 | -3.5 | % | |||||||||||||
| Net Income | Diluted EPS | |||||||||||||||||||||||
| (in millions, except for per-share data) | 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||||
| Total | $ | 69 | $ | 67 | 3.0 | % | $ | 0.58 | $ | 0.56 | 3.6 | % | ||||||||||||
| Diluted Weighted-Average Common Shares Outstanding | ||||||||||||||||||||||||
| Adjusted Diluted EPS (1) | ||||||||||||||||||||||||
| (in millions, except for per-share data) | 2025 | 2024 | 2025 | 2024 | Change % | |||||||||||||||||||
| Total | 120 | 120 | $ | 0.73 | $ | 0.81 | -9.9 | % | ||||||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||||||
| NM - Not meaningful | ||||||||||||||||||||||||
| NA - Not applicable | ||||||||||||||||||||||||
| (1) See the “Non-GAAP Financial Measures” section of the press release | ||||||||||||||||||||||||
Mario Harik, chief executive officer of XPO, said, “We carried our momentum into 2025 and delivered first quarter financial results that outperformed the industry. Companywide, we reported adjusted EBITDA of
“In North American LTL, we reported a sequential improvement in adjusted operating ratio to
Harik continued, “Our plan is driving results, with a long runway for margin expansion, supported by superior service and high-return investments in our network. We’re executing to achieve years of outperformance, regardless of the freight market environment.”
First Quarter Highlights
For the first quarter 2025, the company generated revenue of
Operating income was
Adjusted net income, a non-GAAP financial measure, was
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was
The company generated
Results by Business Segment
- North American Less-Than-Truckload (LTL): The segment generated revenue of
$1.17 billion for the first quarter 2025, compared with$1.22 billion for the same period in 2024. On a year-over-year basis, shipments per day decreased5.8% , tonnage per day decreased7.5% , and yield, excluding fuel, increased6.9% . Including fuel, yield increased4.5% .
Operating income was$158 million for the first quarter 2025, compared with$165 million for the same period in 2024. Adjusted operating income, a non-GAAP financial measure, was$165 million for the first quarter, compared with$175 million for the same period in 2024. Adjusted operating ratio, a non-GAAP financial measure, was85.9% , reflecting a sequential improvement of 30 basis points, compared with the fourth quarter in 2024.
Adjusted EBITDA for the first quarter 2025 was$250 million , compared with$255 million for the same period in 2024. The year-over-year reduction in adjusted EBITDA was due primarily to lower fuel surcharge revenue, lower tonnage per day, and wage inflation, partially offset by yield growth and productivity gains. - European Transportation: The segment generated revenue of
$782 million for the first quarter 2025, compared with$797 million for the same period in 2024. Operating income was$1 million for the first quarter 2025, compared with a loss of$4 million for the same period in 2024.
Adjusted EBITDA was$32 million for the first quarter 2025, compared with$38 million for the same period in 2024. - Corporate: The segment generated an operating loss of
$9 million for the first quarter 2025, compared with a loss of$23 million for the same period in 2024. The year-over-year improvement in operating loss was due primarily to a$10 million reduction in transaction and integration costs.
Adjusted EBITDA was a loss of$4 million for the first quarter 2025, compared with a loss of$5 million for the same period in 2024.
Conference Call
The company will hold a conference call on Wednesday, April 30, 2025, at 8:30 a.m. Eastern Time. Participants can call toll-free (from US/Canada) 1-877-269-7756; international callers dial +1-201-689-7817. A live webcast of the conference will be available on the investor relations area of the company’s website, xpo.com/investors. The conference will be archived until May 30, 2025. To access the replay by phone, call toll-free (from US/Canada) 1-877-660-6853; international callers dial +1-201-612-7415. Use participant passcode 13753296.
About XPO
XPO, Inc. (NYSE: XPO) is a leader in asset-based less-than-truckload (LTL) freight transportation in North America. The company’s customer-focused organization efficiently moves 17 billion pounds of freight per year, enabled by its proprietary technology. XPO serves approximately 55,000 customers with 606 locations and 38,000 employees in North America and Europe, and is headquartered in Greenwich, Conn., USA. Visit xpo.com for more information, and connect with XPO on LinkedIn, Facebook, X, Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this press release.
XPO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) on a consolidated basis and for corporate; adjusted EBITDA margin on a consolidated basis; adjusted net income; adjusted diluted earnings per share (“adjusted diluted EPS”); adjusted operating income for our North American Less-Than-Truckload and European Transportation segments; and adjusted operating ratio for our North American Less-Than-Truckload segment.
We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, XPO and its business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should only be used as supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted EPS, adjusted operating income and adjusted operating ratio include adjustments for transaction and integration costs, as well as restructuring costs and other adjustments as set forth in the attached tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition, divestiture or spin-off and may include transaction costs, consulting fees, stock-based compensation, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems. Restructuring costs primarily relate to severance costs associated with business optimization initiatives. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating XPO’s and each business segment’s ongoing performance.
We believe that adjusted EBITDA and adjusted EBITDA margin, improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables that management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses. We believe that adjusted net income and adjusted diluted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains that management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets, transaction and integration costs, restructuring costs and other adjustments as set out in the attached tables. We believe that adjusted operating income and adjusted operating ratio improve the comparability of our operating results from period to period by removing the impact of certain transaction and integration costs and restructuring costs, as well as amortization expenses and other adjustments as set out in the attached tables.
Forward-looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: the effects of business, economic, political, legal, and regulatory impacts or conflicts upon our operations; supply chain disruptions and shortages, strains on production or extraction of raw materials, cost inflation and labor and equipment shortages; our ability to align our investments in capital assets, including equipment, service centers, and warehouses to our customers’ demands; our ability to implement our cost and revenue initiatives and realize growth and expansion as a result of those initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; our ability to continue insourcing linehaul in ways that enhance our network efficiency and productivity; the anticipated impact of a freight market recovery on our business; our ability to benefit from a sale, spin-off or other divestiture of one or more business units or to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; goodwill impairment; issues related to compliance with data protection laws, competition laws, and intellectual property laws; fluctuations in currency exchange rates, fuel prices and fuel surcharges; the expected benefits of the spin-offs of GXO Logistics, Inc. and RXO, Inc.; our ability to develop and implement proprietary technology and suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our ability to repurchase shares on favorable terms; our indebtedness; our ability to raise debt and equity capital; fluctuations in interest rates; seasonal fluctuations; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to attract and retain management talent and key employees including qualified drivers; labor matters; litigation; competition; and our ability to deliver pricing growth driven by service quality.
All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law.
Investor Contact
Brian Scasserra
+1 617-607-6429
brian.scasserra@xpo.com
Media Contact
Cole Horton
+1 203-609-6004
cole.horton@xpo.com
| XPO, Inc. | |||||||||||
| Condensed Consolidated Statements of Income | |||||||||||
| (Unaudited) | |||||||||||
| (In millions, except per share data) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2025 | 2024 | Change % | |||||||||
| Revenue | $ | 1,954 | $ | 2,018 | -3.2 | % | |||||
| Salaries, wages and employee benefits | 832 | 834 | -0.2 | % | |||||||
| Purchased transportation | 399 | 438 | -8.9 | % | |||||||
| Fuel, operating expenses and supplies | 393 | 413 | -4.8 | % | |||||||
| Operating taxes and licenses | 19 | 19 | 0.0 | % | |||||||
| Insurance and claims | 35 | 38 | -7.9 | % | |||||||
| Gains on sales of property and equipment | (2 | ) | (2 | ) | 0.0 | % | |||||
| Depreciation and amortization expense | 123 | 117 | 5.1 | % | |||||||
| Legal matter (1) | (11 | ) | - | NM | |||||||
| Transaction and integration costs | 3 | 14 | -78.6 | % | |||||||
| Restructuring costs | 12 | 8 | 50.0 | % | |||||||
| Operating income | 151 | 138 | 9.4 | % | |||||||
| Other income | (1 | ) | (10 | ) | -90.0 | % | |||||
| Debt extinguishment loss | 5 | - | NM | ||||||||
| Interest expense | 56 | 58 | -3.4 | % | |||||||
| Income before income tax provision | 91 | 90 | 1.1 | % | |||||||
| Income tax provision | 22 | 23 | -4.3 | % | |||||||
| Net income | $ | 69 | $ | 67 | 3.0 | % | |||||
| Earnings per share data | |||||||||||
| Basic earnings per share | $ | 0.59 | $ | 0.58 | |||||||
| Diluted earnings per share | $ | 0.58 | $ | 0.56 | |||||||
| Weighted-average common shares outstanding | |||||||||||
| Basic weighted-average common shares outstanding | 117 | 116 | |||||||||
| Diluted weighted-average common shares outstanding (2) | 120 | 120 | |||||||||
| Amounts may not add due to rounding. | |||||||||||
| NM - Not meaningful. | |||||||||||
| (1) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | |||||||||||
| (2) The dilutive effect of stock-based awards for the first quarter of 2025 was 2 million, compared with 4 million for the same period in 2024. The year-over-year decrease is primarily driven by recent significant vest events. | |||||||||||
| XPO, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| (In millions, except per share data) | |||||||
| March 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 212 | $ | 246 | |||
| Accounts receivable, net of allowances of | 1,083 | 977 | |||||
| Other current assets | 286 | 283 | |||||
| Total current assets | 1,580 | 1,505 | |||||
| Long-term assets | |||||||
| Property and equipment, net of | 3,539 | 3,402 | |||||
| Operating lease assets | 709 | 727 | |||||
| Goodwill | 1,491 | 1,461 | |||||
| Identifiable intangible assets, net of | 350 | 361 | |||||
| Other long-term assets | 210 | 254 | |||||
| Total long-term assets | 6,299 | 6,206 | |||||
| Total assets | $ | 7,879 | $ | 7,712 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 501 | $ | 477 | |||
| Accrued expenses | 758 | 708 | |||||
| Short-term borrowings and current maturities of long-term debt | 61 | 62 | |||||
| Short-term operating lease liabilities | 131 | 127 | |||||
| Other current liabilities | 101 | 46 | |||||
| Total current liabilities | 1,551 | 1,420 | |||||
| Long-term liabilities | |||||||
| Long-term debt | 3,336 | 3,325 | |||||
| Deferred tax liability | 392 | 393 | |||||
| Employee benefit obligations | 85 | 85 | |||||
| Long-term operating lease liabilities | 583 | 603 | |||||
| Other long-term liabilities | 292 | 283 | |||||
| Total long-term liabilities | 4,688 | 4,690 | |||||
| Stockholders’ equity | |||||||
| Common stock, | |||||||
| as of March 31, 2025 and December 31, 2024, respectively | - | - | |||||
| Additional paid-in capital | 1,227 | 1,274 | |||||
| Retained earnings | 641 | 572 | |||||
| Accumulated other comprehensive loss | (228 | ) | (246 | ) | |||
| Total equity | 1,640 | 1,601 | |||||
| Total liabilities and equity | $ | 7,879 | $ | 7,712 | |||
| Amounts may not add due to rounding. | |||||||
| - | - | ||||||
| XPO, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| (In millions) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 69 | $ | 67 | ||||
| Adjustments to reconcile net income to net cash from operating activities | ||||||||
| Depreciation and amortization | 123 | 117 | ||||||
| Stock compensation expense | 15 | 19 | ||||||
| Accretion of debt | 3 | 3 | ||||||
| Deferred tax expense | 4 | 8 | ||||||
| Gains on sales of property and equipment | (2 | ) | (2 | ) | ||||
| Other | 9 | 1 | ||||||
| Changes in assets and liabilities | ||||||||
| Accounts receivable | (107 | ) | (117 | ) | ||||
| Other assets | 1 | (20 | ) | |||||
| Accounts payable | (7 | ) | 48 | |||||
| Accrued expenses and other liabilities | 35 | 21 | ||||||
| Net cash provided by operating activities | 142 | 145 | ||||||
| Cash flows from investing activities | ||||||||
| Payment for purchases of property and equipment | (199 | ) | (306 | ) | ||||
| Proceeds from sale of property and equipment | 7 | 7 | ||||||
| Net cash used in investing activities | (191 | ) | (299 | ) | ||||
| Cash flows from financing activities | ||||||||
| Repayment of debt and finance leases | (18 | ) | (21 | ) | ||||
| Payment for debt issuance costs | (3 | ) | (4 | ) | ||||
| Change in bank overdrafts | 38 | 11 | ||||||
| Payment for tax withholdings for restricted shares | (47 | ) | (15 | ) | ||||
| Other | 1 | - | ||||||
| Net cash used in financing activities | (30 | ) | (29 | ) | ||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 1 | - | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (78 | ) | (183 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of period | 298 | 419 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 221 | $ | 235 | ||||
| Amounts may not add due to rounding. | ||||||||
| North American Less-Than-Truckload Segment | |||||||||||
| Summary Financial Table | |||||||||||
| (Unaudited) | |||||||||||
| (In millions) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | Change % | |||||||||
| Revenue (excluding fuel surcharge revenue) | $ | 994 | $ | 1,011 | -1.7 | % | |||||
| Fuel surcharge revenue | 178 | 210 | -15.2 | % | |||||||
| Revenue | 1,172 | 1,221 | -4.0 | % | |||||||
| Salaries, wages and employee benefits | 615 | 613 | 0.3 | % | |||||||
| Purchased transportation | 37 | 78 | -52.6 | % | |||||||
| Fuel, operating expenses and supplies (1) | 232 | 243 | -4.5 | % | |||||||
| Operating taxes and licenses | 16 | 16 | 0.0 | % | |||||||
| Insurance and claims | 24 | 21 | 14.3 | % | |||||||
| (Gains) losses on sales of property and equipment | - | 2 | -100.0 | % | |||||||
| Depreciation and amortization | 90 | 82 | 9.8 | % | |||||||
| Operating income | 158 | 165 | -4.2 | % | |||||||
| Operating ratio (2) | 86.5 | % | 86.4 | % | |||||||
| Amortization expense | 9 | 9 | |||||||||
| Gains on real estate transactions | (2 | ) | - | ||||||||
| Adjusted operating income (3) | $ | 165 | $ | 175 | -5.7 | % | |||||
| Adjusted operating ratio (3) (4) | 85.9 | % | 85.7 | % | |||||||
| Depreciation expense | 80 | 73 | |||||||||
| Pension income | 2 | 6 | |||||||||
| Gains on real estate transactions | 2 | - | |||||||||
| Adjusted EBITDA (5) | $ | 250 | $ | 255 | -2.0 | % | |||||
| Adjusted EBITDA margin (5) | 21.3 | % | 20.9 | % | |||||||
| Amounts may not add due to rounding. | |||||||||||
| (1) Fuel, operating expenses and supplies includes fuel-related taxes. | |||||||||||
| (2) Operating ratio is calculated as (1 - (Operating income divided by Revenue)) using the underlying unrounded amounts. | |||||||||||
| (3) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||
| (4) Adjusted operating ratio is calculated as (1 - (Adjusted operating income divided by Revenue)) using the underlying unrounded amounts; adjusted operating margin is the inverse of adjusted operating ratio. | |||||||||||
| (5) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts. | |||||||||||
| North American Less-Than-Truckload | |||||||||||
| Summary Data Table | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | Change % | |||||||||
| Pounds per day (thousands) | 65,427 | 70,709 | -7.5 | % | |||||||
| Shipments per day | 48,400 | 51,392 | -5.8 | % | |||||||
| Average weight per shipment (in pounds) | 1,352 | 1,376 | -1.8 | % | |||||||
| Revenue per shipment (including fuel surcharges) | $ | 384.27 | $ | 373.88 | 2.8 | % | |||||
| Revenue per shipment (excluding fuel surcharges) | $ | 325.74 | $ | 309.57 | 5.2 | % | |||||
| Gross revenue per hundredweight (including fuel surcharges) (1) | $ | 29.06 | $ | 27.80 | 4.5 | % | |||||
| Gross revenue per hundredweight (excluding fuel surcharges) (1) | $ | 24.73 | $ | 23.13 | 6.9 | % | |||||
| Average length of haul (in miles) | 845.6 | 848.3 | |||||||||
| Total average load factor (2) | 22,434 | 22,869 | -1.9 | % | |||||||
| Average age of tractor fleet (years) | 4.0 | 4.2 | |||||||||
| Number of working days | 63.0 | 63.5 | |||||||||
| (1) Gross revenue per hundredweight excludes the adjustment required for financial statement purposes in accordance with the company's revenue recognition policy. | |||||||||||
| (2) Total average load factor equals freight pound miles divided by total linehaul miles. | |||||||||||
| Note: Table excludes the company's trailer manufacturing operations. Percentages presented are calculated using the underlying unrounded amounts. | |||||||||||
| European Transportation Segment | |||||||||||
| Summary Financial Table | |||||||||||
| (Unaudited) | |||||||||||
| (In millions) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | Change % | |||||||||
| Revenue | $ | 782 | $ | 797 | -1.9 | % | |||||
| Salaries, wages and employee benefits | 212 | 215 | -1.4 | % | |||||||
| Purchased transportation | 363 | 360 | 0.8 | % | |||||||
| Fuel, operating expenses and supplies (1) | 162 | 170 | -4.7 | % | |||||||
| Operating taxes and licenses | 3 | 3 | 0.0 | % | |||||||
| Insurance and claims | 10 | 14 | -28.6 | % | |||||||
| Gains on sales of property and equipment | (1 | ) | (4 | ) | -75.0 | % | |||||
| Depreciation and amortization | 32 | 34 | -5.9 | % | |||||||
| Legal matter (2) | (11 | ) | - | NM | |||||||
| Transaction and integration costs | - | 1 | -100.0 | % | |||||||
| Restructuring costs | 11 | 8 | 37.5 | % | |||||||
| Operating income (loss) | $ | 1 | $ | (4 | ) | NM | |||||
| Amortization expense | 5 | 5 | |||||||||
| Legal matter (2) | (11 | ) | - | ||||||||
| Transaction and integration costs | - | 1 | |||||||||
| Restructuring costs | 11 | 8 | |||||||||
| Adjusted operating income (loss) (3) | $ | 6 | $ | 9 | -33.3 | % | |||||
| Depreciation expense | 27 | 29 | |||||||||
| Adjusted EBITDA (4) | $ | 32 | $ | 38 | -15.8 | % | |||||
| Adjusted EBITDA margin (4) | 4.1 | % | 4.8 | % | |||||||
| Amounts may not add due to rounding. | |||||||||||
| NM - Not meaningful. | |||||||||||
| (1) Fuel, operating expenses and supplies includes fuel-related taxes. | |||||||||||
| (2) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | |||||||||||
| (3) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||
| (4) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts. | |||||||||||
| Corporate | |||||||||||
| Summary Financial Table | |||||||||||
| (Unaudited) | |||||||||||
| (In millions) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | Change % | |||||||||
| Revenue | $ | - | $ | - | 0.0 | % | |||||
| Salaries, wages and employee benefits | 4 | 5 | -20.0 | % | |||||||
| Insurance and claims | - | 3 | -100.0 | % | |||||||
| Depreciation and amortization | 1 | 1 | 0.0 | % | |||||||
| Transaction and integration costs | 3 | 13 | -76.9 | % | |||||||
| Restructuring costs | 1 | - | NM | ||||||||
| Operating loss | $ | (9 | ) | $ | (23 | ) | -60.9 | % | |||
| Other income (expense) (1) | - | 3 | |||||||||
| Depreciation and amortization | 1 | 1 | |||||||||
| Transaction and integration costs | 3 | 13 | |||||||||
| Restructuring costs | 1 | - | |||||||||
| Adjusted EBITDA (2) | $ | (4 | ) | $ | (5 | ) | -20.0 | % | |||
| Amounts may not add due to rounding. | |||||||||||
| NM - Not meaningful. | |||||||||||
| (1) Other income (expense) consists of foreign currency gain (loss) and other income (expense). | |||||||||||
| (2) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||
| XPO, Inc. | |||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||
| (Unaudited) | |||||||||||
| (In millions) | |||||||||||
| Three Months Ended March 31, | |||||||||||
| 2025 | 2024 | Change % | |||||||||
| Reconciliation of Net Income to Adjusted EBITDA | |||||||||||
| Net income | $ | 69 | $ | 67 | 3.0 | % | |||||
| Debt extinguishment loss | 5 | - | |||||||||
| Interest expense | 56 | 58 | |||||||||
| Income tax provision | 22 | 23 | |||||||||
| Depreciation and amortization expense | 123 | 117 | |||||||||
| Legal matter (1) | (11 | ) | - | ||||||||
| Transaction and integration costs | 3 | 14 | |||||||||
| Restructuring costs | 12 | 8 | |||||||||
| Adjusted EBITDA (2) | $ | 278 | $ | 288 | -3.5 | % | |||||
| Revenue | $ | 1,954 | $ | 2,018 | -3.2 | % | |||||
| Adjusted EBITDA margin (2) (3) | 14.2 | % | 14.2 | % | |||||||
| Amounts may not add due to rounding. | |||||||||||
| (1) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | |||||||||||
| (2) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||
| (3) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts. | |||||||||||
| XPO, Inc. | ||||||||
| Reconciliation of Non-GAAP Measures (cont.) | ||||||||
| (Unaudited) | ||||||||
| (In millions, except per share data) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Earnings Per Share | ||||||||
| Net income | $ | 69 | $ | 67 | ||||
| Debt extinguishment loss | 5 | - | ||||||
| Amortization of acquisition-related intangible assets | 14 | 14 | ||||||
| Legal matter (1) | (11 | ) | - | |||||
| Transaction and integration costs | 3 | 14 | ||||||
| Restructuring costs | 12 | 8 | ||||||
| Income tax associated with the adjustments above (2) | (5 | ) | (7 | ) | ||||
| European legal entity reorganization (3) | 1 | - | ||||||
| Adjusted net income (4) | $ | 87 | $ | 97 | ||||
| Adjusted diluted earnings per share (4) | $ | 0.73 | $ | 0.81 | ||||
| Weighted-average common shares outstanding | ||||||||
| Diluted weighted-average common shares outstanding | 120 | 120 | ||||||
| Amounts may not add due to rounding. | ||||||||
| (1) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | ||||||||
| (2) This line item reflects the aggregate tax benefit of all non-tax related adjustments reflected in the table above. The detail by line item is as follows: | ||||||||
| Debt extinguishment loss | $ | 1 | $ | - | ||||
| Amortization of acquisition-related intangible assets | 2 | 3 | ||||||
| Transaction and integration costs | 1 | 2 | ||||||
| Restructuring costs | 1 | 2 | ||||||
| $ | 5 | $ | 7 | |||||
| Amounts may not add due to rounding. | ||||||||
| The income tax rate applied to reconciling items is based on the GAAP annual effective tax rate, excluding discrete items, non-deductible compensation, losses for which no tax benefit can be recognized, and contribution- and margin-based taxes. | ||||||||
| (3) Reflects an adjustment recognized during the first quarter of 2025 to the tax benefit recognized in the second quarter of 2024 related to a legal entity reorganization within our European Transportation business. | ||||||||
| (4) See the "Non-GAAP Financial Measures" section of the press release. | ||||||||
| North American Less-Than-Truckload Segment | |||||||||||
| Summary Financial Table vs Prior Quarter and First Quarter 2023 | |||||||||||
| (Unaudited) | |||||||||||
| (In millions) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2025 | 2024 | 2023 | |||||||||
| Revenue (excluding fuel surcharge revenue) | $ | 994 | $ | 985 | $ | 903 | |||||
| Fuel surcharge revenue | 178 | 171 | 217 | ||||||||
| Revenue | 1,172 | 1,156 | 1,120 | ||||||||
| Salaries, wages and employee benefits | 615 | 621 | 555 | ||||||||
| Purchased transportation | 37 | 44 | 99 | ||||||||
| Fuel, operating expenses and supplies (1) | 232 | 218 | 248 | ||||||||
| Operating taxes and licenses | 16 | 16 | 12 | ||||||||
| Insurance and claims | 24 | 18 | 28 | ||||||||
| (Gains) losses on sales of property and equipment | - | (34 | ) | 1 | |||||||
| Depreciation and amortization | 90 | 89 | 68 | ||||||||
| Restructuring costs | - | 5 | 6 | ||||||||
| Operating income | 158 | 179 | 103 | ||||||||
| Operating ratio (2) | 86.5 | % | 84.5 | % | 90.8 | % | |||||
| Amortization expense | 9 | 9 | 8 | ||||||||
| Restructuring costs | - | 5 | 6 | ||||||||
| Gains on real estate transactions | (2 | ) | (34 | ) | - | ||||||
| Adjusted operating income (3) | $ | 165 | $ | 159 | $ | 117 | |||||
| Adjusted operating ratio (3) (4) | 85.9 | % | 86.2 | % | 89.6 | % | |||||
| Amounts may not add due to rounding. | |||||||||||
| (1) Fuel, operating expenses and supplies includes fuel-related taxes. | |||||||||||
| (2) Operating ratio is calculated as (1 - (Operating income divided by Revenue)) using the underlying unrounded amounts. | |||||||||||
| (3) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||
| (4) Adjusted operating ratio is calculated as (1 - (Adjusted operating income divided by Revenue)) using the underlying unrounded amounts; adjusted operating margin is the inverse of adjusted operating ratio. | |||||||||||
FAQ
What was XPO's earnings per share (EPS) in Q1 2025?
How much revenue did XPO generate in first quarter 2025?
What was XPO's North American LTL yield growth in Q1 2025?
How did XPO's adjusted EBITDA perform in Q1 2025 vs Q1 2024?
What was XPO's cash position at the end of Q1 2025?
How did XPO's European Transportation segment perform in Q1 2025?
