XPO Reports Third Quarter 2026 Results
Nine-month net income increased 72.8% to $444 million, while revenue rose 11.0% to $6,823 million.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
XPO (NYSE: XPO) reported third-quarter 2026 diluted earnings per share of $1.53, more than double the year-earlier result. Revenue rose 12.4% to $2,373 million, operating income increased 75.6% to $288 million, and net income rose to $181 million from $82 million. Adjusted diluted EPS was $1.70 versus $1.07, while adjusted EBITDA, earnings before interest, taxes, depreciation and amortization, reached $433 million versus $342 million.
North American less-than-truckload revenue increased 17.4%, with higher pricing and shipment volumes; its adjusted operating ratio, operating costs as a share of revenue, improved 260 basis points to 80.1%. Europe returned to an operating profit of $12 million. Operating cash flow totaled $415 million. XPO completed $150 million of share repurchases, $100 million of term loan repayments and $123 million of net capital expenditures, ending September with $260 million in cash.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter revenue increased 12.4% year over year to $2,373 million.
- Moderate pointThird-quarter diluted EPS rose to $1.53 from $0.68 a year earlier.
- Moderate pointThird-quarter net income increased 120.7% year over year to $181 million.
- Moderate pointThird-quarter operating income increased 75.6% year over year to $288 million.
- Moderate pointAdjusted EBITDA increased 26.6% year over year to $433 million in the third quarter.
- Moderate pointOperating cash flow totaled $415 million in the third quarter.
- Moderate pointNorth American revenue increased 17.4% year over year to $1,473 million in the third quarter.
- Moderate pointNorth American operating income increased 36.5% year over year to $284 million in the third quarter.
- Moderate pointNorth American adjusted operating ratio improved 260 basis points year over year to 80.1%.
- Moderate pointEuropean revenue increased 5.0% year over year to $900 million in the third quarter.
- Moderate pointEuropean operating income reached $12 million versus a $2 million loss in the year-earlier third quarter.
19 minor points
- Minor pointAdjusted diluted EPS increased 58.9% year over year to $1.70 in the third quarter.
- Minor pointAdjusted net income reached $200 million versus $128 million in the year-earlier third quarter.
- Minor pointShare repurchases returned $150 million to shareholders in the third quarter.
- Minor pointTerm loan repayments reduced debt by $100 million in the third quarter.
- Minor pointNorth American pricing excluding fuel increased 3.6% year over year in the third quarter.
- Minor pointNorth American shipments per day increased 5.8% year over year in the third quarter.
- Minor pointNorth American tonnage per day increased 5.0% year over year in the third quarter.
- Minor pointNorth American adjusted operating income increased 35.0% year over year to $293 million in the third quarter.
- Minor pointNorth American adjusted EBITDA increased 26.3% year over year to $389 million in the third quarter.
- Minor pointEuropean adjusted operating income increased to $22 million from $9 million in the year-earlier third quarter.
- Minor pointEuropean adjusted EBITDA increased 26.3% year over year to $48 million in the third quarter.
- Minor pointCorporate operating loss narrowed to $8 million from $42 million in the year-earlier third quarter.
- Minor pointInterest expense declined 7.4% year over year to $50 million in the third quarter.
- Minor pointInsurance and claims expense declined 25.6% year over year to $32 million in the third quarter.
- Minor pointNine-month revenue increased 11.0% year over year to $6,823 million.
- Minor pointNine-month operating income increased 42.9% year over year to $733 million.
- Minor pointNine-month net income increased 72.8% year over year to $444 million.
- Minor pointNine-month diluted EPS increased to $3.75 from $2.15 a year earlier.
- Minor pointLong-term debt declined to $2,995 million at September 30, 2026, from $3,253 million at December 31, 2025.
Negative
- Moderate pointSalaries, wages and employee benefits increased 8.3% year over year to $949 million in the third quarter.
- Moderate pointPurchased transportation expense increased 6.4% year over year to $451 million in the third quarter.
- Moderate pointFuel, operating expenses and supplies increased 20.2% year over year to $488 million in the third quarter.
- Minor pointCash and cash equivalents declined to $260 million at September 30, 2026, from $310 million at December 31, 2025.
- Minor pointFuel costs and wage inflation partially offset North American third-quarter adjusted EBITDA growth; fuel costs also offset European growth.
4 minor points
- Minor pointTransaction and integration costs increased to $3 million from $1 million in the year-earlier third quarter.
- Minor pointNine-month restructuring costs rose to $36 million from $26 million, although third-quarter costs fell to $5 million from $6 million.
- Minor pointThird-quarter debt extinguishment loss was $1 million versus none a year earlier.
- Minor pointShort-term borrowings and current debt maturities rose to $129 million at September 30, 2026, from $60 million at December 31, 2025.
News Explained
The reported year-over-year diluted-EPS comparison has a prior-year qualifier: third-quarter 2025 included a
Key Figures
- Revenue
- $2.37 billion vs. $2.11 billion
- Q3 2026 vs. Q3 2025
- Operating income
- $288 million vs. $164 million
- Q3 2026 vs. Q3 2025
- Net income
- $181 million vs. $82 million
- Q3 2026 vs. Q3 2025
- Diluted EPS
- $1.53 vs. $0.68
- Q3 2026 vs. Q3 2025
- Adjusted diluted EPS
- $1.70 vs. $1.07
- Q3 2026 vs. Q3 2025
- Adjusted EBITDA
- $433 million vs. $342 million
- Q3 2026 vs. Q3 2025
- Cash flow from operating activities
- $415 million
- Q3 2026
- Common stock repurchases
- $150 million
- Q3 2026
Previous Earnings Reports
-
Reported adjusted diluted EPS of $1.70 and adjusted EBITDA of $434 million.
-
Reported diluted EPS of $0.85 and adjusted diluted EPS of $1.01.
-
Reported revenue of $2.11 billion and adjusted EBITDA of $342 million; GAAP EPS was $0.68.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
less-than-truckload technical
basis points financial
non-gaap financial measure financial
term loan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
GREENWICH, Conn., Oct. 29, 2026 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO) today announced its financial results for the third quarter 2026. The company reported diluted earnings per share of
| Third Quarter 2026 Summary Results | |||||||||||||||
| Three Months Ended September 30, | |||||||||||||||
| Revenue | Operating Income (Loss)(1) | ||||||||||||||
| (in millions) | 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||
| North American Less-Than-Truckload Segment | $ | 1,473 | $ | 1,255 | $ | 284 | $ | 208 | |||||||
| European Transportation Segment | 900 | 857 | 12 | (2) | NM | ||||||||||
| Corporate | - | - | (8) | (42) | - | ||||||||||
| Total | $ | 2,373 | $ | 2,111 | $ | 288 | $ | 164 | |||||||
| Adjusted Operating Income(2) | Adjusted EBITDA(2) | ||||||||||||||
| (in millions) | 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||
| North American Less-Than-Truckload Segment | $ | 293 | $ | 217 | $ | 389 | $ | 308 | |||||||
| European Transportation Segment | 22 | 9 | 48 | 38 | |||||||||||
| Corporate | NA | NA | NA | (4) | (4) | ||||||||||
| Total | $ | NA | $ | NA | NA | $ | 433 | $ | 342 | ||||||
| Net Income(1) | Diluted EPS(1) | ||||||||||||||
| (in millions, except for per-share data) | 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||
| Total | $ | 181 | $ | 82 | $ | 1.53 | $ | 0.68 | |||||||
| Diluted Weighted-Average Common Shares Outstanding | Adjusted Diluted EPS(2) | ||||||||||||||
| (in millions, except for per-share data) | 2026 | 2025 | 2026 | 2025 | Change % | ||||||||||
| Total | 118 | 120 | $ | 1.70 | $ | 1.07 | |||||||||
| Amounts may not add due to rounding. | |||||||||||||||
| NM - Not meaningful | |||||||||||||||
| NA - Not applicable | |||||||||||||||
| (1) Third quarter 2025 includes a | |||||||||||||||
| (2) See the “Non-GAAP Financial Measures” section of the press release. | |||||||||||||||
Mario Harik, chairman and chief executive officer of XPO, said, “We delivered another quarter of outstanding performance, accelerating growth in adjusted EBITDA to
“In North American LTL, we grew adjusted operating income by
Harik continued, “Our strong performance across North America and Europe underscores the substantial opportunities we have to continue compounding our earnings growth, with further upside as freight demand recovers. Additionally, we’re accelerating our free cash flow and capital return to shareholders, enhancing long-term value.”
Third Quarter Highlights
For the third quarter 2026, 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 grew revenue to
$1.47 billion for the third quarter 2026, compared with$1.26 billion for the same period in 2025. On a year-over-year basis, yield, excluding fuel, increased3.6% , shipments per day increased5.8% , and tonnage per day increased5.0% .
Operating income increased to$284 million for the third quarter, compared with$208 million for the same period in 2025. Adjusted operating income, a non-GAAP financial measure, increased to$293 million for the third quarter, compared with$217 million for the same period in 2025. Adjusted operating ratio, a non-GAAP financial measure, was80.1% , reflecting a year-over-year improvement of 260 basis points.
Adjusted EBITDA for the third quarter was$389 million , compared with$308 million for the same period in 2025. The increase in adjusted EBITDA reflects yield growth, higher tonnage per day, cost efficiencies and higher fuel surcharge revenue, partially offset by higher fuel costs and wage inflation.
- European Transportation: The segment grew revenue to
$900 million for the third quarter 2026, compared with$857 million for the same period in 2025. Operating income increased to$12 million for the third quarter, compared with a loss of$2 million for the same period in 2025.
Adjusted EBITDA increased to$48 million for the third quarter, compared with$38 million for the same period in 2025. The increase in adjusted EBITDA reflects higher revenue and cost efficiencies, partially offset by higher fuel costs.
- Corporate: The segment generated an operating loss of
$8 million for the third quarter 2026, compared with a loss of$42 million for the same period in 2025.
Adjusted EBITDA was a loss of$4 million for the third quarter, consistent with the same period in 2025.
Conference Call
The company will hold a conference call on Thursday, October 29, 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 November 28, 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 13762528.
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 55,000 customers with 575 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 measures 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 accelerate growth and expansion as a result of those initiatives; our ability to improve pricing growth; 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, accelerate free cash flow, and improve margins to enhance shareholder value; 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 financial, operational, competitive and productivity efficiencies and 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; and competition.
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 | Nine Months Ended | ||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | ||||||||||||||||
| Revenue | $ | 2,373 | $ | 2,111 | 12.4 | % | $ | 6,823 | $ | 6,146 | 11.0 | % | |||||||||
| Salaries, wages and employee benefits | 949 | 876 | 8.3 | % | 2,759 | 2,579 | 7.0 | % | |||||||||||||
| Purchased transportation | 451 | 424 | 6.4 | % | 1,338 | 1,250 | 7.0 | % | |||||||||||||
| Fuel, operating expenses and supplies | 488 | 406 | 20.2 | % | 1,387 | 1,183 | 17.2 | % | |||||||||||||
| Operating taxes and licenses | 20 | 21 | -4.8 | % | 63 | 61 | 3.3 | % | |||||||||||||
| Insurance and claims | 32 | 43 | -25.6 | % | 107 | 118 | -9.3 | % | |||||||||||||
| (Gains) losses on sales of property and equipment | 2 | 1 | 100.0 | % | (6 | ) | (2 | ) | 200.0 | % | |||||||||||
| Depreciation and amortization expense | 134 | 134 | 0.0 | % | 398 | 388 | 2.6 | % | |||||||||||||
| Pre-Con-way acquisition environmental matter(1) | - | 35 | -100.0 | % | 1 | 35 | -97.1 | % | |||||||||||||
| Legal matters(2) | - | - | 0.0 | % | - | (13 | ) | -100.0 | % | ||||||||||||
| Transaction and integration costs | 3 | 1 | 200.0 | % | 7 | 7 | 0.0 | % | |||||||||||||
| Restructuring costs | 5 | 6 | -16.7 | % | 36 | 26 | 38.5 | % | |||||||||||||
| Operating income | 288 | 164 | 75.6 | % | 733 | 513 | 42.9 | % | |||||||||||||
| Other income | (3 | ) | (2 | ) | 50.0 | % | (10 | ) | (4 | ) | 150.0 | % | |||||||||
| Debt extinguishment loss | 1 | - | NM | 6 | 5 | 20.0 | % | ||||||||||||||
| Interest expense | 50 | 54 | -7.4 | % | 155 | 166 | -6.6 | % | |||||||||||||
| Income before income tax provision | 240 | 112 | 114.3 | % | 582 | 346 | 68.2 | % | |||||||||||||
| Income tax provision | 60 | 30 | 100.0 | % | 138 | 89 | 55.1 | % | |||||||||||||
| Net income | $ | 181 | $ | 82 | 120.7 | % | $ | 444 | $ | 257 | 72.8 | % | |||||||||
| Earnings per share data(3) | |||||||||||||||||||||
| Basic earnings per share | $ | 1.55 | $ | 0.69 | $ | 3.79 | $ | 2.18 | |||||||||||||
| Diluted earnings per share | $ | 1.53 | $ | 0.68 | $ | 3.75 | $ | 2.15 | |||||||||||||
| Weighted-average common shares outstanding | |||||||||||||||||||||
| Basic weighted-average common shares outstanding | 117 | 118 | 117 | 118 | |||||||||||||||||
| Diluted weighted-average common shares outstanding | 118 | 120 | 118 | 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 17 to the Company's Annual Report on Form 10-K for the period ended December 31, 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) 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. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| (In millions, except per share data) | ||||||||
| September 30, | December 31, | |||||||
| 2026 | 2025 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 260 | $ | 310 | ||||
| Accounts receivable, net of allowances of | 1,250 | 1,035 | ||||||
| Other current assets | 249 | 285 | ||||||
| Total current assets | 1,759 | 1,630 | ||||||
| Long-term assets | ||||||||
| Property and equipment, net of | 3,679 | 3,664 | ||||||
| Operating lease assets | 798 | 777 | ||||||
| Goodwill | 1,524 | 1,547 | ||||||
| Identifiable intangible assets, net of | 266 | 311 | ||||||
| Other long-term assets | 282 | 265 | ||||||
| Total long-term assets | 6,549 | 6,564 | ||||||
| Total assets | $ | 8,308 | $ | 8,194 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 485 | $ | 455 | ||||
| Accrued expenses | 878 | 760 | ||||||
| Short-term borrowings and current maturities of long-term debt | 129 | 60 | ||||||
| Short-term operating lease liabilities | 170 | 166 | ||||||
| Other current liabilities | 123 | 113 | ||||||
| Total current liabilities | 1,785 | 1,555 | ||||||
| Long-term liabilities | ||||||||
| Long-term debt | 2,995 | 3,253 | ||||||
| Deferred tax liability | 524 | 482 | ||||||
| Employee benefit obligations | 82 | 86 | ||||||
| Long-term operating lease liabilities | 627 | 611 | ||||||
| Other long-term liabilities | 322 | 345 | ||||||
| Total long-term liabilities | 4,550 | 4,778 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, | ||||||||
| September 30, 2026 and December 31, 2025, respectively | - | - | ||||||
| Additional paid-in capital | 834 | 1,160 | ||||||
| Retained earnings | 1,332 | 888 | ||||||
| Accumulated other comprehensive loss | (192 | ) | (187 | ) | ||||
| Total equity | 1,973 | 1,861 | ||||||
| Total liabilities and equity | $ | 8,308 | $ | 8,194 | ||||
| Amounts may not add due to rounding. | ||||||||
| XPO, Inc. | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| (Unaudited) | |||||||||
| (In millions) | |||||||||
| Nine Months Ended | |||||||||
| September 30, | |||||||||
| 2026 | 2025 | ||||||||
| Cash flows from operating activities | |||||||||
| Net income | $ | 444 | $ | 257 | |||||
| Adjustments to reconcile net income to net cash from operating activities | |||||||||
| Depreciation and amortization | 398 | 388 | |||||||
| Stock compensation expense | 45 | 46 | |||||||
| Accretion of debt | 8 | 8 | |||||||
| Deferred tax expense | 35 | 72 | |||||||
| Gains on sales of property and equipment | (6 | ) | (2 | ) | |||||
| Other | 25 | 19 | |||||||
| Changes in assets and liabilities | |||||||||
| Accounts receivable | (256 | ) | (106 | ) | |||||
| Other assets | 32 | 18 | |||||||
| Accounts payable | 47 | (14 | ) | ||||||
| Accrued expenses and other liabilities | 133 | 76 | |||||||
| Net cash provided by operating activities | 906 | 760 | |||||||
| Cash flows from investing activities | |||||||||
| Payment for purchases of property and equipment | (369 | ) | (551 | ) | |||||
| Proceeds from sale of property and equipment | 40 | 18 | |||||||
| Payment for settlement of cross-currency swaps | (3 | ) | - | ||||||
| Net cash used in investing activities | (331 | ) | (532 | ) | |||||
| Cash flows from financing activities | |||||||||
| Proceeds from issuance of debt | 885 | - | |||||||
| Repayment of debt | (1,085 | ) | (50 | ) | |||||
| Repayment of finance leases and other debt | (60 | ) | (56 | ) | |||||
| Payment for debt issuance costs | (1 | ) | (3 | ) | |||||
| Repurchase of common stock | (250 | ) | (57 | ) | |||||
| Change in bank overdrafts | 9 | 24 | |||||||
| Payment for tax withholdings for restricted shares | (124 | ) | (47 | ) | |||||
| Other | 4 | 3 | |||||||
| Net cash used in financing activities | (622 | ) | (185 | ) | |||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | 1 | (1 | ) | ||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | (46 | ) | 42 | ||||||
| Cash, cash equivalents and restricted cash, beginning of period | 330 | 298 | |||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 284 | $ | 341 | |||||
| Amounts may not add due to rounding. | |||||||||
| North American Less-Than-Truckload Segment | ||||||||||||||||||||||
| Summary Financial Table | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||||||||||
| Revenue (excluding fuel surcharge revenue) | $ | 1,150 | 1,060 | 8.5 | % | $ | 3,292 | $ | 3,112 | 5.8 | % | |||||||||||
| Fuel surcharge revenue | 323 | 194 | 66.5 | % | 838 | 555 | 51.0 | % | ||||||||||||||
| Revenue | 1,473 | 1,255 | 17.4 | % | 4,130 | 3,667 | 12.6 | % | ||||||||||||||
| Salaries, wages and employee benefits | 720 | 648 | 11.1 | % | 2,051 | 1,907 | 7.6 | % | ||||||||||||||
| Purchased transportation | 40 | 30 | 33.3 | % | 109 | 99 | 10.1 | % | ||||||||||||||
| Fuel, operating expenses and supplies(1) | 291 | 225 | 29.3 | % | 803 | 679 | 18.3 | % | ||||||||||||||
| Operating taxes and licenses | 16 | 17 | -5.9 | % | 49 | 50 | -2.0 | % | ||||||||||||||
| Insurance and claims | 18 | 27 | -33.3 | % | 60 | 77 | -22.1 | % | ||||||||||||||
| (Gains) losses on sales of property and equipment | 3 | 2 | 50.0 | % | (1 | ) | 4 | NM | ||||||||||||||
| Depreciation and amortization | 101 | 98 | 3.1 | % | 298 | 283 | 5.3 | % | ||||||||||||||
| Restructuring costs | 1 | - | NM | 2 | 4 | -50.0 | % | |||||||||||||||
| Operating income | 284 | 208 | 36.5 | % | 758 | 565 | 34.2 | % | ||||||||||||||
| Operating ratio(2) | 80.7 | % | 83.4 | % | 81.6 | % | 84.6 | % | ||||||||||||||
| Amortization expense | 9 | 9 | 27 | 27 | ||||||||||||||||||
| Restructuring costs | 1 | - | 2 | 4 | ||||||||||||||||||
| Gains on real estate transactions | (1 | ) | - | (10 | ) | (2 | ) | |||||||||||||||
| Adjusted operating income(3) | $ | 293 | 217 | 35.0 | % | $ | 778 | $ | 594 | 31.0 | % | |||||||||||
| Adjusted operating ratio(3) (4) | 80.1 | % | 82.7 | % | 81.2 | % | 83.8 | % | ||||||||||||||
| Depreciation expense | 92 | 89 | 271 | 256 | ||||||||||||||||||
| Pension income | 4 | 2 | 11 | 5 | ||||||||||||||||||
| Gains on real estate transactions | 1 | - | 10 | 2 | ||||||||||||||||||
| Adjusted EBITDA(5) | $ | 389 | 308 | 26.3 | % | $ | 1,070 | $ | 857 | 24.9 | % | |||||||||||
| Adjusted EBITDA margin(5) | 26.4 | % | 24.5 | % | 25.9 | % | 23.4 | % | ||||||||||||||
| Gains on real estate transactions | 1 | - | 10 | 3 | ||||||||||||||||||
| Adjusted EBITDA, excluding gains on real estate transactions(3) | $ | 389 | 308 | 26.3 | % | $ | 1,060 | $ | 855 | 24.0 | % | |||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||||
| NM - Not meaningful. | ||||||||||||||||||||||
| (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 September 30, | Nine Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||||||
| Pounds per day (thousands) | 68,494 | 65,236 | 5.0 | % | 67,502 | 66,158 | 2.0 | % | ||||||||||
| Shipments per day | 52,988 | 50,094 | 5.8 | % | 51,697 | 49,763 | 3.9 | % | ||||||||||
| Average weight per shipment (in pounds) | 1,293 | 1,302 | -0.7 | % | 1,306 | 1,329 | -1.8 | % | ||||||||||
| Revenue per shipment (including fuel surcharges) | $ | 434.37 | 391.13 | 11.1 | % | $ | 420.13 | $ | 386.54 | 8.7 | % | |||||||
| Revenue per shipment (excluding fuel surcharges) | $ | 339.12 | 330.48 | 2.6 | % | $ | 334.85 | $ | 327.95 | 2.1 | % | |||||||
| Gross revenue per hundredweight (including fuel surcharges)(1) | $ | 34.06 | 30.42 | 12.0 | % | $ | 32.71 | $ | 29.57 | 10.6 | % | |||||||
| Gross revenue per hundredweight (excluding fuel surcharges)(1) | $ | 26.70 | 25.77 | 3.6 | % | $ | 26.18 | $ | 25.16 | 4.0 | % | |||||||
| Average length of haul (in miles) | 854.7 | 866.7 | 853.6 | 852.5 | ||||||||||||||
| Total average load factor(2) | 22,164 | 22,442 | -1.2 | % | 22,247 | 22,548 | -1.3 | % | ||||||||||
| Average age of tractor fleet (years) | 4.1 | 3.6 | ||||||||||||||||
| Number of working days | 64.0 | 64.0 | 190.0 | 190.5 | ||||||||||||||
| (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 reflects the results of the North American Less-Than-Truckload segment and excludes the European Transportation segment. Percentages presented are calculated using the underlying unrounded amounts. | ||||||||||||||||||
| European Transportation Segment | ||||||||||||||||||||||
| Summary Financial Table | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||||||||||
| Revenue | $ | 900 | 857 | 5.0 | % | $ | 2,694 | $ | 2,479 | 8.7 | % | |||||||||||
| Salaries, wages and employee benefits | 225 | 224 | 0.4 | % | 696 | 660 | 5.5 | % | ||||||||||||||
| Purchased transportation | 411 | 394 | 4.3 | % | 1,229 | 1,151 | 6.8 | % | ||||||||||||||
| Fuel, operating expenses and supplies(1) | 196 | 180 | 8.9 | % | 584 | 505 | 15.6 | % | ||||||||||||||
| Operating taxes and licenses | 4 | 4 | 0.0 | % | 14 | 11 | 27.3 | % | ||||||||||||||
| Insurance and claims | 15 | 16 | -6.3 | % | 46 | 42 | 9.5 | % | ||||||||||||||
| Gains on sales of property and equipment | (1 | ) | (1 | ) | 0.0 | % | (5 | ) | (6 | ) | -16.7 | % | ||||||||||
| Depreciation and amortization | 32 | 35 | -8.6 | % | 98 | 101 | -3.0 | % | ||||||||||||||
| Legal matters(2) | - | - | 0.0 | % | - | (13 | ) | -100.0 | % | |||||||||||||
| Transaction and integration costs | 1 | - | NM | 1 | - | NM | ||||||||||||||||
| Restructuring costs | 4 | 5 | -20.0 | % | 31 | 17 | 82.4 | % | ||||||||||||||
| Operating income (loss) | $ | 12 | (2 | ) | NM | $ | 1 | $ | 10 | -90.0 | % | |||||||||||
| Other expense | - | - | (1 | ) | (1 | ) | ||||||||||||||||
| Amortization expense | 5 | 6 | 16 | 16 | ||||||||||||||||||
| Legal matters(2) | - | - | - | (13 | ) | |||||||||||||||||
| Transaction and integration costs | 1 | - | 1 | - | ||||||||||||||||||
| Restructuring costs | 4 | 5 | 31 | 17 | ||||||||||||||||||
| Adjusted operating income(3) | $ | 22 | 9 | 144.4 | % | $ | 48 | $ | 30 | 60.0 | % | |||||||||||
| Depreciation expense | 26 | 29 | 81 | 85 | ||||||||||||||||||
| Adjusted EBITDA(4) | $ | 48 | 38 | 26.3 | % | $ | 129 | $ | 115 | 12.2 | % | |||||||||||
| Adjusted EBITDA margin(4) | 5.3 | % | 4.5 | % | 4.8 | % | 4.6 | % | ||||||||||||||
| 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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||||||||||
| Revenue | $ | - | $ | - | 0.0 | % | $ | - | $ | - | 0.0 | % | ||||||||||
| Salaries, wages and employee benefits | 4 | 4 | 0.0 | % | 12 | 12 | 0.0 | % | ||||||||||||||
| Depreciation and amortization | 1 | 1 | 0.0 | % | 3 | 3 | 0.0 | % | ||||||||||||||
| Pre-Con-way acquisition environmental matter(1) | - | 35 | -100.0 | % | 1 | 35 | -97.1 | % | ||||||||||||||
| Transaction and integration costs | 2 | 1 | 100.0 | % | 5 | 7 | -28.6 | % | ||||||||||||||
| Restructuring costs | - | - | 0.0 | % | 4 | 5 | -20.0 | % | ||||||||||||||
| Operating loss | $ | (8 | ) | $ | (42 | ) | -81.0 | % | $ | (25 | ) | $ | (63 | ) | -60.3 | % | ||||||
| Other income (expense) | - | - | - | 1 | ||||||||||||||||||
| Depreciation and amortization | 1 | 1 | 3 | 3 | ||||||||||||||||||
| Pre-Con-way acquisition environmental matter(1) | - | 35 | 1 | 35 | ||||||||||||||||||
| Transaction and integration costs | 2 | 1 | 5 | 7 | ||||||||||||||||||
| Restructuring costs | - | - | 4 | 5 | ||||||||||||||||||
| Adjusted EBITDA(2) | $ | (4 | ) | $ | (4 | ) | 0.0 | % | $ | (13 | ) | $ | (12 | ) | 8.3 | % | ||||||
| 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 17 to the Company's Annual Report on Form 10-K for the period ended December 31, 2025. | ||||||||||||||||||||||
| (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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
| 2026 | 2025 | Change % | 2026 | 2025 | Change % | |||||||||||||||||
| Reconciliation of Net Income to Adjusted EBITDA | ||||||||||||||||||||||
| Net income | $ | 181 | $ | 82 | 120.7 | % | $ | 444 | $ | 257 | 72.8 | % | ||||||||||
| Debt extinguishment loss | 1 | - | 6 | 5 | ||||||||||||||||||
| Interest expense | 50 | 54 | 155 | 166 | ||||||||||||||||||
| Income tax provision | 60 | 30 | 138 | 89 | ||||||||||||||||||
| Depreciation and amortization expense | 134 | 134 | 398 | 388 | ||||||||||||||||||
| Pre-Con-way acquisition environmental matter(1) | - | 35 | 1 | 35 | ||||||||||||||||||
| Legal matters(2) | - | - | - | (13 | ) | |||||||||||||||||
| Transaction and integration costs | 3 | 1 | 7 | 7 | ||||||||||||||||||
| Restructuring costs | 5 | 6 | 36 | 26 | ||||||||||||||||||
| Adjusted EBITDA(3) | $ | 433 | $ | 342 | 26.6 | % | $ | 1,186 | $ | 960 | 23.5 | % | ||||||||||
| Revenue | $ | 2,373 | $ | 2,111 | 12.4 | % | $ | 6,823 | $ | 6,146 | 11.0 | % | ||||||||||
| Adjusted EBITDA margin(3) (4) | 18.2 | % | 16.2 | % | 17.4 | % | 15.6 | % | ||||||||||||||
| Gains on real estate transactions | 1 | - | 10 | 2 | ||||||||||||||||||
| Adjusted EBITDA, excluding gains on real estate transactions(3) | $ | 432 | $ | 342 | 26.3 | % | $ | 1,176 | $ | 958 | 22.8 | % | ||||||||||
| 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 17 to the Company's Annual Report on Form 10-K for the period ended December 31, 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) See the “Non-GAAP Financial Measures” section of the press release. | ||||||||||||||||||||||
| (4) 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 | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Earnings Per Share | ||||||||||||||||
| Net income(1) | $ | 181 | $ | 82 | $ | 444 | $ | 257 | ||||||||
| Debt extinguishment loss | 1 | - | 6 | 5 | ||||||||||||
| Amortization of acquisition-related intangible assets | 15 | 15 | 44 | 43 | ||||||||||||
| Pre-Con-way acquisition environmental matter(2) | - | 35 | 1 | 35 | ||||||||||||
| Legal matters(3) | - | - | - | (13 | ) | |||||||||||
| Transaction and integration costs | 3 | 1 | 7 | 7 | ||||||||||||
| Restructuring costs | 5 | 6 | 36 | 26 | ||||||||||||
| Income tax associated with the adjustments above(4) | (3 | ) | (12 | ) | (11 | ) | (21 | ) | ||||||||
| European legal entity reorganization(5) | - | - | (3 | ) | 1 | |||||||||||
| Other tax adjustments | - | - | (2 | ) | - | |||||||||||
| Adjusted net income(1)(6) | $ | 200 | $ | 128 | $ | 522 | $ | 340 | ||||||||
| Adjusted diluted earnings per share(1)(6) | $ | 1.70 | $ | 1.07 | $ | 4.41 | $ | 2.85 | ||||||||
| Weighted-average common shares outstanding | ||||||||||||||||
| Diluted weighted-average common shares outstanding | 118 | 120 | 118 | 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 17 to the Company's Annual Report on Form 10-K for the period ended December 31, 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) 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 | $ | 1 | ||||||||
| Amortization of acquisition-related intangible assets | 2 | 2 | 7 | 7 | ||||||||||||
| Pre-Con-way acquisition environmental matter | - | 8 | - | 8 | ||||||||||||
| Transaction and integration costs | 1 | - | 1 | 2 | ||||||||||||
| Restructuring costs | - | 1 | 1 | 3 | ||||||||||||
| $ | 3 | $ | 12 | $ | 11 | $ | 21 | |||||||||
| 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. | ||||||||||||||||
| (5) Reflects an adjustment recognized during the first quarters of 2026 and 2025 to the tax benefit recognized in the second quarter of 2024 related to a legal entity reorganization within our European Transportation business. | ||||||||||||||||
| (6) See the "Non-GAAP Financial Measures" section of the press release. | ||||||||||||||||
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were XPO's third-quarter 2026 earnings and revenue?
XPO reported $1.53 in diluted EPS and $2,373 million in revenue for the third quarter of 2026. Year-earlier diluted EPS was $0.68, and revenue increased 12.4%. Adjusted diluted EPS was $1.70, compared with $1.07 a year earlier.
How much stock did XPO repurchase and debt did it repay in the third quarter of 2026?
XPO completed $150 million of common stock repurchases and $100 million of term loan repayments in the third quarter. It also completed $123 million of net capital expenditures and ended the quarter with $260 million of cash and cash equivalents.
What drove XPO's segment adjusted EBITDA growth in the third quarter of 2026?
North American adjusted EBITDA growth reflected pricing growth, higher tonnage per day, cost efficiencies and higher fuel surcharge revenue, partially offset by higher fuel costs and wage inflation. European adjusted EBITDA growth reflected higher revenue and cost efficiencies, partially offset by higher fuel costs.