XPO Q3 2026 net income jumps 120.7% to $181M
North American LTL adjusted operating income rose 35.0%, while quarterly cash flow from operating activities was $415 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 Filing Summary
XPO, Inc. reported third-quarter 2026 revenue of $2.373 billion, up 12.4% from $2.111 billion a year earlier. Operating income was $288 million, up 75.6% from $164 million, and net income was $181 million, up 120.7% from $82 million. Diluted EPS was $1.53 versus $0.68; adjusted diluted EPS, a non-GAAP measure, was $1.70 versus $1.07, up 58.9%. Adjusted EBITDA, also non-GAAP, was $433 million, up 26.6% from $342 million.
North American LTL revenue increased 17.4% to $1.473 billion; segment adjusted operating income rose 35.0% to $293 million, and its adjusted operating ratio was 80.1%, an improvement of 260 basis points year over year. European Transportation revenue increased 5.0% to $900 million. XPO generated $415 million of quarterly cash flow from operating activities and ended the quarter with $260 million in cash and cash equivalents, after $123 million of net capital expenditures, $150 million of common stock repurchases and $100 million of term loan repayments.
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 pointRevenue rose 12.4% to $2.373 billion year over year.
- Moderate pointNet income rose 120.7% to $181 million year over year.
- Moderate pointAdjusted EBITDA rose 26.6% to $433 million year over year.
Negative
- None.
Filing Explained
North American LTL revenue increased 17.4% year over year, compared with 8.5% excluding fuel surcharges; fuel-surcharge revenue increased 66.5%, so total revenue growth differs materially from growth excluding surcharges.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Adjusted operating ratio financial
Fuel surcharge revenue financial
Adjusted diluted EPS financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did XPO (XPO) report for Q3 2026?
What was XPO's (XPO) net income in Q3 2026?
How did XPO's (XPO) North American LTL revenue excluding fuel surcharges change?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13
or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date
of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State
or other jurisdiction of incorporation) |
(Commission File Number) | (I.R.S.
Employer Identification No.) |
(Address of principal executive offices)
(
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
| Emerging
growth company |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ |
Item 2.02. Results of Operations and Financial Condition.
On October 29, 2026, XPO, Inc. (the “Company”) issued a press release announcing its results of operations for the fiscal quarter ended September 30, 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities under that Section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit No. | Exhibit Description | |
| 99.1 | Press Release, dated October 29, 2026, issued by XPO, Inc. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: October 29, 2026 | XPO, INC. | |
| By: | /s/ Kyle Wismans | |
| Kyle Wismans | ||
| Chief Financial Officer | ||
Exhibit 99.1
XPO Reports Third Quarter 2026 Results
GREENWICH, Conn. – October 29, 2026 – XPO (NYSE: XPO) today announced its financial results for the third quarter 2026. The company reported diluted earnings per share of $1.53, compared with $0.68 for the same period in 2025, and adjusted diluted earnings per share of $1.70, compared with $1.07 for the same period in 2025.
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 | 17.4 | % | $ | 284 | $ | 208 | 36.5 | % | ||||||||||||
| European Transportation Segment | 900 | 857 | 5.0 | % | 12 | (2 | ) | NM | ||||||||||||||||
| Corporate | - | - | 0.0 | % | (8 | ) | (42 | ) | -81.0 | % | ||||||||||||||
| Total | $ | 2,373 | $ | 2,111 | 12.4 | % | $ | 288 | $ | 164 | 75.6 | % | ||||||||||||
| Adjusted Operating Income (2) | Adjusted EBITDA (2) | |||||||||||||||||||||||
| (in millions) | 2026 | 2025 | Change % | 2026 | 2025 | Change % | ||||||||||||||||||
| North American Less-Than-Truckload Segment | $ | 293 | $ | 217 | 35.0 | % | $ | 389 | $ | 308 | 26.3 | % | ||||||||||||
| European Transportation Segment | 22 | 9 | 144.4 | % | 48 | 38 | 26.3 | % | ||||||||||||||||
| Corporate | NA | NA | NA | (4 | ) | (4 | ) | 0.0 | % | |||||||||||||||
| Total | $ | NA | $ | NA | NA | $ | 433 | $ | 342 | 26.6 | % | |||||||||||||
| Net Income (1) | Diluted EPS (1) | |||||||||||||||||||||||
| (in millions, except for per-share data) | 2026 | 2025 | Change % | 2026 | 2025 | Change % | ||||||||||||||||||
| Total | $ | 181 | $ | 82 | 120.7 | % | $ | 1.53 | $ | 0.68 | 125.0 | % | ||||||||||||
| 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 | 58.9 | % | ||||||||||||
Amounts may not add due to rounding.
NM - Not meaningful
NA - Not applicable
(1) Third quarter 2025 includes a $35 million charge ($27 million after-tax or -$0.23 per share) related 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.
(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 27% and adjusted diluted EPS to 59% year-over-year. Our results show how effectively we’re converting more business into higher earnings through a combination of revenue growth and margin expansion.
“In North American LTL, we grew adjusted operating income by 35% year-over-year and improved our adjusted operating ratio by 260 basis points, significantly outperforming seasonality. This reflects sequential improvements in both yield and revenue per shipment, excluding fuel, alongside stronger volume growth from profitable share gains. Increasingly, we’re improving revenue quality with higher-margin freight as customers value our world-class service, including a damage claims ratio below 0.2%. And on the cost side, we’re operating more efficiently by expanding the use of AI across our network.”
1
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 $2.37 billion, compared with $2.11 billion for the same period in 2025.
Operating income was $288 million for the third quarter, compared with $164 million for the same period in 2025. Net income was $181 million for the third quarter, compared with $82 million for the same period in 2025. Diluted earnings per share was $1.53 for the third quarter, compared with $0.68 for the same period in 2025.
Adjusted net income, a non-GAAP financial measure, was $200 million for the third quarter, compared with $128 million for the same period in 2025. Adjusted diluted EPS, a non-GAAP financial measure, was $1.70 for the third quarter, compared with $1.07 for the same period in 2025.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $433 million for the third quarter, compared with $342 million for the same period in 2025.
The company generated $415 million of cash flow from operating activities in the third quarter and ended the quarter with $260 million of cash and cash equivalents on hand, after completing $123 million of net capital expenditures, $150 million of common stock repurchases and $100 million of term loan repayments.
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, increased 3.6%, shipments per day increased 5.8%, and tonnage per day increased 5.0%. |
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, was 80.1%, 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. |
2
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.
3
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.
4
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
5
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.
6
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 $41 and $40, respectively | 1,250 | 1,035 | ||||||
| Other current assets | 249 | 285 | ||||||
| Total current assets | 1,759 | 1,630 | ||||||
| Long-term assets | ||||||||
| Property and equipment, net of $2,481 and $2,360 in accumulated depreciation, respectively | 3,679 | 3,664 | ||||||
| Operating lease assets | 798 | 777 | ||||||
| Goodwill | 1,524 | 1,547 | ||||||
| Identifiable intangible assets, net of $617 and $580 in accumulated amortization, respectively | 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, $0.001 par value; 300 shares authorized; 117 shares issued and outstanding as of | ||||||||
| 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.
7
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.
8
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.
9
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.
10
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.
11
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.
12
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.
13
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 $8 million ($10 million pre-tax), or $0.06 per diluted share, and $2 million ($2 million pre-tax), or $0.02 per diluted share, for the nine months ended September 30, 2026 and 2025, respectively. Excluding these gains, adjusted diluted earnings per share is $4.35 and $2.83 for the nine months ended September 30, 2026 and 2025, respectively. The gains from sales of real estate transactions in the third quarters of 2026 and 2025 were not material.
(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.
14