XPO Reports Fourth Quarter 2025 Results
Rhea-AI Summary
XPO (NYSE: XPO) reported fourth-quarter 2025 results on Feb 5, 2026: revenue $2.01B (+4.7% YoY), net income $59M (-22.4% YoY) and diluted EPS $0.50 (-20.6% YoY). Adjusted diluted EPS was $0.88 versus $0.89 year-ago; adjusted EBITDA was $312M versus $303M. The company generated $226M cash from operations and ended the year with $310M cash.
Segment highlights: North American LTL revenue $1.17B, adjusted operating income +13.8% and an adjusted OR of 84.4%; European revenue $846M with adjusted EBITDA $32M. Company announced a Feb 5, 2026 conference call and webcast.
Positive
- North American LTL adjusted operating income +13.8% year-over-year
- Adjusted operating ratio improved by 180 basis points to 84.4%
- European transportation revenue +10.6% year-over-year
Negative
- Net income down 22.4% year-over-year to $59 million
- Diluted EPS declined 20.6% year-over-year to $0.50
- Corporate operating loss increased 47.4% year-over-year
- Real estate gains reduced by $21 million year-over-year and restructuring expense increased by $23 million
News Market Reaction – XPO
On the day this news was published, XPO gained 3.39%, reflecting a moderate positive market reaction. Argus tracked a peak move of +8.8% during that session. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $714M to the company's valuation, bringing the market cap to $21.79B at that time. Trading volume was very high at 4.0x the daily average, suggesting strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Key LTL peers such as ODFL (+8.93%) and SAIA (+8.3%) are also up strongly, while KNX, SNDR and TFII show smaller gains, suggesting broader strength in trucking but with XPO’s move captured outside the momentum scanner.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 2025 earnings | Positive | +9.0% | LTL strength, higher adjusted EPS and EBITDA, improved operating ratio. |
| Jul 31 | Q2 2025 earnings | Negative | -9.1% | Flat revenue, lower GAAP and adjusted EPS despite strong LTL pricing. |
| Apr 30 | Q1 2025 earnings | Neutral | +8.9% | Mixed results: higher GAAP EPS but lower adjusted EPS and revenue. |
| Feb 06 | Q4 2024 earnings | Positive | +7.8% | Stronger EPS, improved operating income and robust full-year growth metrics. |
| Oct 30 | Q3 2024 earnings | Positive | +11.4% | Revenue and EPS growth with notable EBITDA and LTL margin improvement. |
Recent earnings reports often triggered sizable moves, with most reactions aligning to the underlying tone of results and only one notable divergence.
Across the last five earnings releases from Oct 2024 through Oct 2025, XPO repeatedly highlighted North American LTL yield growth, improving adjusted operating ratios, and solid adjusted EBITDA performance. GAAP EPS trends were more mixed due to items like real estate gains and environmental or liability charges. European Transportation revenue generally grew but with choppier profitability. The current Q4 2025 report continues this pattern of LTL-driven margin focus and incremental European improvement within a soft freight backdrop.
Historical Comparison
In the past five earnings releases, XPO’s stock moved an average of ±5.61% in the following session, underscoring that quarterly results have been reliable catalysts for significant repricing.
Recent earnings show ongoing focus on North American LTL yield and operating ratio gains, gradual European revenue growth with variable margins, and periodic one-time items affecting GAAP EPS while adjusted metrics trend more steadily.
Market Pulse Summary
This announcement details Q4 2025 performance with revenue of $2.01B, adjusted diluted EPS of $0.88, and adjusted EBITDA of $312M. North American LTL again drove yield and margin improvement, while European Transportation showed revenue growth with modest profitability. GAAP EPS fell to $0.50 amid lower real estate gains and higher restructuring expense. Investors may track future quarters for continued LTL operating ratio gains, European margin progress, and consistency of cash generation against these mixed headline EPS trends.
Key Terms
adjusted diluted eps financial
adjusted operating income financial
adjusted ebitda financial
non-gaap financial measures financial
less-than-truckload technical
adjusted operating ratio financial
free cash flow financial
basis points financial
AI-generated analysis. Not financial advice.
GREENWICH, Conn., Feb. 05, 2026 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO) today announced its financial results for the fourth quarter 2025. The company reported diluted earnings per share of
| Fourth Quarter 2025 Summary Results | ||||||||||||||||
| Three Months Ended December 31, | ||||||||||||||||
| Revenue | Operating Income (Loss) (1) | |||||||||||||||
| (in millions) | 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||
| North American Less-Than-Truckload Segment | $ | 1,165 | $ | 1,156 | $ | 184 | $ | 179 | ||||||||
| European Transportation Segment | 846 | 765 | (13) | (11) | ||||||||||||
| Corporate | - | - | (28) | (19) | ||||||||||||
| Total | $ | 2,011 | $ | 1,921 | $ | 143 | $ | 148 | - | |||||||
| Adjusted Operating Income (Loss) (2) | Adjusted EBITDA (1)(2) | |||||||||||||||
| (in millions) | 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||
| North American Less-Than-Truckload Segment | $ | 181 | $ | 159 | $ | 285 | $ | 280 | ||||||||
| European Transportation Segment | 2 | (2) | NM | 32 | 27 | |||||||||||
| Corporate | NA | NA | NA | (4) | (4) | |||||||||||
| Total | $ | NA | $ | NA | NA | $ | 312 | $ | 303 | |||||||
| Net Income (1) | Diluted EPS (1) | |||||||||||||||
| (in millions, except for per-share data) | 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||
| Total | $ | 59 | $ | 76 | - | $ | 0.50 | $ | 0.63 | - | ||||||
| Diluted Weighted-Average Common Shares Outstanding | ||||||||||||||||
| Adjusted Diluted EPS (1)(2) | ||||||||||||||||
| (in millions, except for per-share data) | 2025 | 2024 | 2025 | 2024 | Change % | |||||||||||
| Total | 119 | 120 | $ | 0.88 | $ | 0.89 | - | |||||||||
| Amounts may not add due to rounding. | ||||||||||||||||
| NM - Not meaningful. | ||||||||||||||||
| NA - Not applicable. | ||||||||||||||||
| (1) Includes gains from sales of real estate of | ||||||||||||||||
| (2) See the “Non-GAAP Financial Measures” section of the press release. | ||||||||||||||||
Mario Harik, chairman and chief executive officer of XPO, said, “We concluded a year of strong execution with another quarter of profitable growth. In the fourth quarter, we increased adjusted diluted EPS year-over-year by
“In North American LTL, we grew adjusted operating income year-over-year by
Harik continued, “By pairing world-class service with our proprietary technology, we’re building durable earnings power unique to our business. We’re continuing to execute for market-leading margin expansion in the current environment, while positioning for outsized share and margin gains in a recovery. And the significant acceleration in free cash flow we expect to generate in the coming years will further compound shareholder value creation.”
Fourth Quarter Highlights
For the fourth 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 fourth quarter 2025, compared with$1.16 billion for the same period in 2024. On a year-over-year basis, yield, excluding fuel, increased5.2% , while shipments per day decreased1.6% , and tonnage per day decreased4.5% .
Operating income was$184 million for the fourth quarter, compared with$179 million for the same period in 2024. Adjusted operating income, a non-GAAP financial measure, was$181 million for the fourth quarter, compared with$159 million for the same period in 2024. Adjusted operating ratio, a non-GAAP financial measure, was84.4% , reflecting a year-over-year improvement of 180 basis points.
Adjusted EBITDA for the fourth quarter was$285 million , compared with$280 million for the same period in 2024. The year-over-year increase in adjusted EBITDA was due primarily to yield growth and productivity improvements, partially offset by a decrease in gains on real estate transactions, lower tonnage per day and wage inflation. - European Transportation: The segment generated revenue of
$846 million for the fourth quarter 2025, compared with$765 million for the same period in 2024. Operating income was a loss of$13 million for the fourth quarter, compared with a loss of$11 million for the same period in 2024.
Adjusted EBITDA was$32 million for the fourth quarter, compared with$27 million for the same period in 2024. - Corporate: The segment generated an operating loss of
$28 million for the fourth quarter 2025, compared with a loss of$19 million for the same period in 2024. The year-over-year increase in operating loss reflects a$7 million net increase in restructuring and transaction and integration costs.
Adjusted EBITDA was a loss of$4 million for the fourth quarter 2025, compared with a loss of$4 million for the same period in 2024.
Conference Call
The company will hold a conference call on Thursday, February 5, 2026, 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 March 7, 2026. 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 13757948.
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 16 billion pounds of freight per year, enabled by its proprietary technology. XPO serves 55,000 customers with 592 locations and 37,000 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 EBITDA, excluding gains on real estate transactions on a consolidated basis and for our North American Less-Than-Truckload segment; adjusted net income; adjusted diluted earnings per share (“adjusted diluted EPS”); adjusted diluted EPS, excluding gains on real estate transactions; 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 EBITDA, excluding gains on real estate transactions, adjusted net income, adjusted diluted EPS, adjusted diluted EPS, excluding gains on real estate transactions, 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, adjusted EBITDA margin and adjusted EBITDA, excluding gains on real estate transactions, 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, adjusted diluted EPS and adjusted diluted EPS, excluding gains on real estate transactions, 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 expense 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 capture profitable share gains, facilitate yield growth, and improve margins during an upcycle; 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; our ability to develop and implement proprietary technology and suitable information technology systems that contribute to cost and productivity improvements; 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 improve pricing growth.
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. | |||||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||||
| Three Months Ended | Years Ended | ||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||
| Revenue | $ | 2,011 | $ | 1,921 | 4.7 | % | $ | 8,157 | $ | 8,072 | 1.1 | % | |||||||||
| Salaries, wages and employee benefits | 845 | 837 | 1.0 | % | 3,424 | 3,377 | 1.4 | % | |||||||||||||
| Purchased transportation | 412 | 398 | 3.5 | % | 1,662 | 1,701 | -2.3 | % | |||||||||||||
| Fuel, operating expenses and supplies | 387 | 376 | 2.9 | % | 1,571 | 1,589 | -1.1 | % | |||||||||||||
| Operating taxes and licenses | 22 | 19 | 15.8 | % | 83 | 80 | 3.8 | % | |||||||||||||
| Insurance and claims | 48 | 29 | 65.5 | % | 167 | 134 | 24.6 | % | |||||||||||||
| Gains on sales of property and equipment | (14) | (35) | -60.0 | % | (17) | (40) | -57.5 | % | |||||||||||||
| Depreciation and amortization expense | 134 | 124 | 8.1 | % | 521 | 490 | 6.3 | % | |||||||||||||
| Pre-Con-way acquisition environmental matter (1) | - | - | 0.0 | % | 35 | - | NM | ||||||||||||||
| Legal matters (2) | - | - | 0.0 | % | (13) | - | NM | ||||||||||||||
| Transaction and integration costs | 1 | 14 | -92.9 | % | 8 | 53 | -84.9 | % | |||||||||||||
| Restructuring costs (3) | 33 | 10 | 230.0 | % | 59 | 27 | 118.5 | % | |||||||||||||
| Operating income | 143 | 148 | -3.4 | % | 656 | 660 | -0.6 | % | |||||||||||||
| Other income | (1) | (6) | -83.3 | % | (6) | (37) | -83.8 | % | |||||||||||||
| Debt extinguishment loss | - | - | 0.0 | % | 6 | - | NM | ||||||||||||||
| Interest expense | 53 | 53 | 0.0 | % | 219 | 223 | -1.8 | % | |||||||||||||
| Income before income tax provision | 91 | 102 | -10.8 | % | 437 | 473 | -7.6 | % | |||||||||||||
| Income tax provision | 32 | 26 | 23.1 | % | 121 | 86 | 40.7 | % | |||||||||||||
| Net income | $ | 59 | $ | 76 | -22.4 | % | $ | 316 | $ | 387 | -18.3 | % | |||||||||
| Earnings per share data (4) | |||||||||||||||||||||
| Basic earnings per share | $ | 0.50 | $ | 0.65 | $ | 2.69 | $ | 3.33 | |||||||||||||
| Diluted earnings per share | $ | 0.50 | $ | 0.63 | $ | 2.64 | $ | 3.23 | |||||||||||||
| Weighted-average common shares outstanding | |||||||||||||||||||||
| Basic weighted-average common shares outstanding | 117 | 116 | 118 | 116 | |||||||||||||||||
| Diluted weighted-average common shares outstanding | 119 | 120 | 119 | 120 | |||||||||||||||||
| Amounts may not add due to rounding. | |||||||||||||||||||||
| NM - Not meaningful. | |||||||||||||||||||||
| (1) Relates to environmental and product liability claims involving a former subsidiary of Con-way, which was sold prior to XPO's acquisition of Con-way in 2015, as described in Note 10 to the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2025. | |||||||||||||||||||||
| (2) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | |||||||||||||||||||||
| (3) Primarily reflects severance and related charges incurred in both 2025 and 2024 in our European Transportation segment, and share-based compensation charges incurred in the fourth quarter of 2025 for previously granted equity awards in connection with the change in the Executive Chairman role in Corporate. | |||||||||||||||||||||
| (4) The sum of quarterly earnings per share may not equal year-to-date amounts due to differences in the weighted-average number of shares outstanding during the respective periods. | |||||||||||||||||||||
| XPO, Inc. | |||||||
| Consolidated Balance Sheets | |||||||
| (Unaudited) | |||||||
| (In millions, except per share data) | |||||||
| December 31, | December 31, | ||||||
| 2025 | 2024 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 310 | $ | 246 | |||
| Accounts receivable, net of allowances of | 1,035 | 977 | |||||
| Other current assets | 285 | 283 | |||||
| Total current assets | 1,630 | 1,505 | |||||
| Long-term assets | |||||||
| Property and equipment, net of | 3,664 | 3,402 | |||||
| Operating lease assets | 777 | 727 | |||||
| Goodwill | 1,547 | 1,461 | |||||
| Identifiable intangible assets, net of | 311 | 361 | |||||
| Other long-term assets | 265 | 254 | |||||
| Total long-term assets | 6,564 | 6,206 | |||||
| Total assets | $ | 8,194 | $ | 7,712 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 455 | $ | 477 | |||
| Accrued expenses | 760 | 708 | |||||
| Short-term borrowings and current maturities of long-term debt | 60 | 62 | |||||
| Short-term operating lease liabilities | 166 | 127 | |||||
| Other current liabilities | 113 | 46 | |||||
| Total current liabilities | 1,555 | 1,420 | |||||
| Long-term liabilities | |||||||
| Long-term debt | 3,253 | 3,325 | |||||
| Deferred tax liability | 482 | 393 | |||||
| Employee benefit obligations | 86 | 85 | |||||
| Long-term operating lease liabilities | 611 | 603 | |||||
| Other long-term liabilities | 345 | 283 | |||||
| Total long-term liabilities | 4,778 | 4,690 | |||||
| Stockholders’ equity | |||||||
| Common stock, | |||||||
| December 31, 2025 and December 31, 2024, respectively | - | - | |||||
| Additional paid-in capital | 1,160 | 1,274 | |||||
| Retained earnings | 888 | 572 | |||||
| Accumulated other comprehensive loss | (187) | (246) | |||||
| Total equity | 1,861 | 1,601 | |||||
| Total liabilities and equity | $ | 8,194 | $ | 7,712 | |||
| Amounts may not add due to rounding. | |||||||
| XPO, Inc. | ||||||||
| Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| (In millions) | ||||||||
| Years Ended | ||||||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 316 | $ | 387 | ||||
| Adjustments to reconcile net income to net cash from operating activities | ||||||||
| Depreciation and amortization | 521 | 490 | ||||||
| Stock compensation expense | 77 | 87 | ||||||
| Accretion of debt | 10 | 11 | ||||||
| Deferred tax expense | 99 | 57 | ||||||
| Gains on sales of property and equipment | (17) | (40) | ||||||
| Other | 24 | 11 | ||||||
| Changes in assets and liabilities | ||||||||
| Accounts receivable | (47) | (47) | ||||||
| Other assets | (38) | (106) | ||||||
| Accounts payable | (22) | (8) | ||||||
| Accrued expenses and other liabilities | 62 | (33) | ||||||
| Net cash provided by operating activities | 986 | 808 | ||||||
| Cash flows from investing activities | ||||||||
| Payment for purchases of property and equipment | (657) | (789) | ||||||
| Proceeds from sale of property and equipment | 41 | 75 | ||||||
| Proceeds from sale of investment | - | 12 | ||||||
| Net cash used in investing activities | (616) | (702) | ||||||
| Cash flows from financing activities | ||||||||
| Repurchase of debt | (115) | - | ||||||
| Repayment of debt and finance leases | (73) | (82) | ||||||
| Payment for debt issuance costs | (3) | (4) | ||||||
| Repurchase of common stock | (125) | - | ||||||
| Change in bank overdrafts | 23 | (9) | ||||||
| Payment for tax withholdings for restricted shares | (50) | (129) | ||||||
| Other | 4 | (1) | ||||||
| Net cash used in financing activities | (339) | (226) | ||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | (1) | - | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 31 | (120) | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 298 | 419 | ||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 330 | $ | 298 | ||||
| Amounts may not add due to rounding. | ||||||||
| North American Less-Than-Truckload Segment | |||||||||||||||||||
| Summary Financial Table | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| (In millions) | |||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||
| Revenue (excluding fuel surcharge revenue) | $ | 990 | $ | 985 | $ | 4,101 | $ | 4,115 | - | ||||||||||
| Fuel surcharge revenue | 175 | 171 | 731 | 785 | - | ||||||||||||||
| Revenue | 1,165 | 1,156 | 4,832 | 4,899 | - | ||||||||||||||
| Salaries, wages and employee benefits | 614 | 621 | - | 2,520 | 2,515 | ||||||||||||||
| Purchased transportation | 24 | 44 | - | 123 | 248 | - | |||||||||||||
| Fuel, operating expenses and supplies (1) | 206 | 218 | - | 885 | 928 | - | |||||||||||||
| Operating taxes and licenses | 16 | 16 | 67 | 65 | |||||||||||||||
| Insurance and claims | 34 | 18 | 111 | 80 | |||||||||||||||
| Gains on sales of property and equipment | (12) | (34) | - | (9) | (27) | - | |||||||||||||
| Depreciation and amortization | 98 | 89 | 381 | 346 | |||||||||||||||
| Transaction and integration costs | - | - | - | 1 | - | ||||||||||||||
| Restructuring costs | 1 | 5 | - | 5 | 7 | - | |||||||||||||
| Operating income | 184 | 179 | 749 | 735 | |||||||||||||||
| Operating ratio (2) | |||||||||||||||||||
| Amortization expense | 9 | 9 | 36 | 36 | |||||||||||||||
| Transaction and integration costs | - | - | - | 1 | |||||||||||||||
| Restructuring costs | 1 | 5 | 5 | 7 | |||||||||||||||
| Gains on real estate transactions | (13) | (34) | (15) | (34) | |||||||||||||||
| Adjusted operating income (3) | $ | 181 | $ | 159 | $ | 775 | $ | 746 | |||||||||||
| Adjusted operating ratio (3) (4) | |||||||||||||||||||
| Depreciation expense | 89 | 80 | 345 | 310 | |||||||||||||||
| Pension income | 2 | 6 | 6 | 25 | |||||||||||||||
| Gains on real estate transactions | 13 | 34 | 15 | 34 | |||||||||||||||
| Adjusted EBITDA (5) | $ | 285 | $ | 280 | $ | 1,142 | $ | 1,115 | |||||||||||
| Adjusted EBITDA margin (5) | |||||||||||||||||||
| Gains on real estate transactions | 13 | 34 | 15 | 34 | |||||||||||||||
| Adjusted EBITDA, excluding gains on real estate transactions (3) | $ | 272 | $ | 246 | $ | 1,126 | $ | 1,081 | |||||||||||
| 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 December 31, | Years Ended December 31, | ||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||
| Pounds per day (thousands) | 62,486 | 65,433 | - | 65,268 | 69,606 | - | |||||||||
| Shipments per day | 48,348 | 49,109 | - | 49,420 | 51,508 | - | |||||||||
| Average weight per shipment (in pounds) | 1,292 | 1,332 | - | 1,321 | 1,351 | - | |||||||||
| Revenue per shipment (including fuel surcharges) | $ | 394.78 | $ | 382.32 | $ | 388.49 | $ | 376.37 | |||||||
| Revenue per shipment (excluding fuel surcharges) | $ | 335.28 | $ | 325.62 | $ | 329.69 | $ | 316.05 | |||||||
| Gross revenue per hundredweight (including fuel surcharges) (1) | $ | 30.72 | $ | 29.09 | $ | 29.84 | $ | 28.40 | |||||||
| Gross revenue per hundredweight (excluding fuel surcharges) (1) | $ | 26.12 | $ | 24.84 | $ | 25.39 | $ | 23.94 | |||||||
| Average length of haul (in miles) | 862.8 | 854.7 | 854.9 | 851.5 | |||||||||||
| Total average load factor (2) | 22,002 | 22,128 | - | 22,418 | 22,642 | - | |||||||||
| Average age of tractor fleet (years) | 3.7 | 4.1 | 3.8 | 4.2 | |||||||||||
| Number of working days | 61.0 | 61.5 | 251.5 | 252.5 | |||||||||||
| (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 December 31, | Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||
| Revenue | $ | 846 | $ | 765 | $ | 3,324 | $ | 3,173 | |||||||||||||
| Salaries, wages and employee benefits | 228 | 212 | 888 | 846 | |||||||||||||||||
| Purchased transportation | 387 | 354 | 1,539 | 1,454 | |||||||||||||||||
| Fuel, operating expenses and supplies (1) | 181 | 158 | 686 | 661 | |||||||||||||||||
| Operating taxes and licenses | 5 | 4 | 17 | 15 | |||||||||||||||||
| Insurance and claims | 14 | 12 | 55 | 51 | |||||||||||||||||
| Gains on sales of property and equipment | (2) | (2) | (8) | (14) | - | ||||||||||||||||
| Depreciation and amortization | 35 | 34 | 136 | 140 | - | ||||||||||||||||
| Legal matters (2) | - | - | (13) | - | NM | ||||||||||||||||
| Transaction and integration costs | - | - | - | 2 | - | ||||||||||||||||
| Restructuring costs (3) | 11 | 4 | 27 | 17 | |||||||||||||||||
| Operating income (loss) | $ | (13) | $ | (11) | $ | (3) | $ | - | NM | ||||||||||||
| Other expense | - | - | (1) | (1) | |||||||||||||||||
| Amortization expense | 5 | 5 | 21 | 21 | |||||||||||||||||
| Legal matters (2) | - | - | (13) | - | |||||||||||||||||
| Transaction and integration costs | - | - | - | 2 | |||||||||||||||||
| Restructuring costs (3) | 11 | 4 | 27 | 17 | |||||||||||||||||
| Adjusted operating income (4) | $ | 2 | $ | (2) | NM | $ | 32 | $ | 39 | - | |||||||||||
| Depreciation expense | 29 | 29 | 115 | 119 | |||||||||||||||||
| Pension expense | - | - | (1) | (1) | |||||||||||||||||
| Adjusted EBITDA (5) | $ | 32 | $ | 27 | $ | 147 | $ | 158 | - | ||||||||||||
| Adjusted EBITDA margin (5) | |||||||||||||||||||||
| 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) Primarily reflects severance and related charges incurred in both 2025 and 2024. | |||||||||||||||||||||
| (4) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||||||||||||
| (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. | |||||||||||||||||||||
| Corporate | |||||||||||||||||||||
| Summary Financial Table | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In millions) | |||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||
| Revenue | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| Salaries, wages and employee benefits | 3 | 3 | 15 | 16 | - | ||||||||||||||||
| Fuel, operating expenses and supplies | - | - | 1 | - | NM | ||||||||||||||||
| Insurance and claims | 1 | - | NM | 1 | 3 | - | |||||||||||||||
| Depreciation and amortization | 1 | 1 | 4 | 4 | |||||||||||||||||
| Pre-Con-way acquisition environmental matter (1) | - | - | 35 | - | NM | ||||||||||||||||
| Transaction and integration costs | 1 | 14 | - | 8 | 50 | - | |||||||||||||||
| Restructuring costs (2) | 21 | 1 | 26 | 3 | |||||||||||||||||
| Operating loss | $ | (28) | $ | (19) | $ | (90) | $ | (76) | |||||||||||||
| Other income (expense) (3) | - | - | 1 | 12 | |||||||||||||||||
| Depreciation and amortization | 1 | 1 | 4 | 4 | |||||||||||||||||
| Pre-Con-way acquisition environmental matter (1) | - | - | 35 | - | |||||||||||||||||
| Transaction and integration costs | 1 | 14 | 8 | 50 | |||||||||||||||||
| Restructuring costs (2) | 21 | 1 | 26 | 3 | |||||||||||||||||
| Adjusted EBITDA (4) | $ | (4) | $ | (4) | $ | (16) | $ | (7) | |||||||||||||
| Amounts may not add due to rounding. | |||||||||||||||||||||
| NM - Not meaningful. | |||||||||||||||||||||
| (1) Relates to environmental and product liability claims involving a former subsidiary of Con-way, which was sold prior to XPO's acquisition of Con-way in 2015, as described in Note 10 to the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2025. | |||||||||||||||||||||
| (2) Primarily reflects share-based compensation charges incurred in the fourth quarter of 2025 for previously granted equity awards in connection with the change in the Executive Chairman role. | |||||||||||||||||||||
| (3) Other income (expense) consists of foreign currency gain (loss) and other income (expense), which is primarily comprised of investment income in 2024. | |||||||||||||||||||||
| (4) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||||||||||||
| XPO, Inc. | |||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In millions) | |||||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | Change % | 2025 | 2024 | Change % | ||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | |||||||||||||||||||||
| Net income | $ | 59 | $ | 76 | - | $ | 316 | $ | 387 | - | |||||||||||
| Debt extinguishment loss | - | - | 6 | - | |||||||||||||||||
| Interest expense | 53 | 53 | 219 | 223 | |||||||||||||||||
| Income tax provision | 32 | 26 | 121 | 86 | |||||||||||||||||
| Depreciation and amortization expense | 134 | 124 | 521 | 490 | |||||||||||||||||
| Pre-Con-way acquisition environmental matter (1) | - | - | 35 | - | |||||||||||||||||
| Legal matters (2) | - | - | (13) | - | |||||||||||||||||
| Transaction and integration costs | 1 | 14 | 8 | 53 | |||||||||||||||||
| Restructuring costs (3) | 33 | 10 | 59 | 27 | |||||||||||||||||
| Adjusted EBITDA (4) | $ | 312 | $ | 303 | $ | 1,272 | $ | 1,266 | |||||||||||||
| Revenue | $ | 2,011 | $ | 1,921 | $ | 8,157 | $ | 8,072 | |||||||||||||
| Adjusted EBITDA margin (4) (5) | |||||||||||||||||||||
| Gains on real estate transactions | 13 | 34 | 15 | 34 | |||||||||||||||||
| Adjusted EBITDA, excluding gains on real estate transactions (4) | $ | 299 | $ | 269 | $ | 1,257 | $ | 1,232 | |||||||||||||
| Amounts may not add due to rounding. | |||||||||||||||||||||
| (1) Relates to environmental and product liability claims involving a former subsidiary of Con-way, which was sold prior to XPO's acquisition of Con-way in 2015, as described in Note 10 to the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2025. | |||||||||||||||||||||
| (2) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | |||||||||||||||||||||
| (3) Primarily reflects severance and related charges incurred in both 2025 and 2024 in our European Transportation segment, and share-based compensation charges incurred in the fourth quarter of 2025 for previously granted equity awards in connection with the change in the Executive Chairman role in Corporate. | |||||||||||||||||||||
| (4) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||||||||||||
| (5) 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 | Years Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Earnings Per Share | ||||||||||||||||
| Net income (1) | $ | 59 | $ | 76 | $ | 316 | $ | 387 | ||||||||
| Debt extinguishment loss | - | - | 6 | - | ||||||||||||
| Amortization of acquisition-related intangible assets | 15 | 14 | 58 | 57 | ||||||||||||
| Pre-Con-way acquisition environmental matter (2) | - | - | 35 | - | ||||||||||||
| Legal matter (3) | - | - | (13) | - | ||||||||||||
| Transaction and integration costs | 1 | 14 | 8 | 53 | ||||||||||||
| Restructuring costs (4) | 33 | 10 | 59 | 27 | ||||||||||||
| Income tax associated with the adjustments above (5) | (3) | (6) | (24) | (24) | ||||||||||||
| European legal entity reorganization (6) | - | (1) | 1 | (41) | ||||||||||||
| Adjusted net income (1)(7) | $ | 105 | $ | 107 | $ | 445 | $ | 460 | ||||||||
| Adjusted diluted earnings per share (1)(7) | $ | 0.88 | $ | 0.89 | $ | 3.73 | $ | 3.83 | ||||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Diluted weighted-average common shares outstanding | 119 | 120 | 119 | 120 | ||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||
| (1) Includes gains from sales of real estate of | ||||||||||||||||
| (2) Relates to environmental and product liability claims involving a former subsidiary of Con-way, which was sold prior to XPO's acquisition of Con-way in 2015, as described in Note 10 to the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2025. | ||||||||||||||||
| (3) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015. | ||||||||||||||||
| (4) Primarily reflects severance and related charges incurred in both 2025 and 2024 in our European Transportation segment, and share-based compensation charges incurred in the fourth quarter of 2025 for previously granted equity awards in connection with the change in the Executive Chairman role in Corporate. | ||||||||||||||||
| (5) 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 | 10 | 13 | ||||||||||||
| Pre-Con-way acquisition environmental matter | - | - | 8 | - | ||||||||||||
| Transaction and integration costs | - | 1 | 2 | 5 | ||||||||||||
| Restructuring costs | - | 2 | 3 | 6 | ||||||||||||
| $ | 3 | $ | 6 | $ | 24 | $ | 24 | |||||||||
| 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. | ||||||||||||||||
| (6) Reflects a tax benefit recognized in the second quarter of 2024 and the subsequent adjustments recognized related to a legal entity reorganization within our European Transportation business. | ||||||||||||||||
| (7) See the "Non-GAAP Financial Measures" section of the press release. | ||||||||||||||||
FAQ
What were XPO's fourth-quarter 2025 earnings per share and adjusted EPS (XPO)?
How much revenue did XPO (XPO) report for Q4 2025 and how did it change year-over-year?
What did XPO report for adjusted EBITDA and operating cash flow in Q4 2025?
How did XPO's North American LTL segment perform in Q4 2025 (XPO)?
Why did XPO's net income and EPS decline in Q4 2025 compared with Q4 2024?
