XPO Inc. 2Q adj. EBITDA $434M, est. $408.6M

XPO Inc. (NYSE: XPO) reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $340 million for the second quarter of 2025, exceeding the estimated range of $408.6 million. The company’s total revenue for the quarter was $2.08 billion, consistent with the same period in 2024.

The North American Less-Than-Truckload (LTL) segment, XPO’s core business, generated $1.24 billion in revenue, a 2.5% decline compared to $1.27 billion in the prior year. Despite the soft freight environment, the segment achieved an adjusted operating ratio of 82.9%, reflecting an industry-best year-over-year improvement of 30 basis points. Adjusted EBITDA for the segment was $300 million, up slightly from $297 million in the same period in 2024.

The European Transportation segment reported revenue of $841 million, a 4.1% increase from $808 million in the prior year. Adjusted EBITDA for the segment was $44 million, down from $49 million in the same period in 2024. Corporate expenses, which include transaction and integration costs, showed a reduction in operating losses, with a loss of $11 million compared to $16 million in the prior year.

XPO’s CEO, Mario Harik, highlighted the company’s strong performance, noting that the North American LTL business achieved above-market pricing growth and share gains with local customers. The company also reduced purchased transportation expenses by 53% and improved labor productivity through its proprietary technology.

For the quarter, XPO reported net income of $106 million, or $0.89 per diluted share, compared to $150 million, or $1.25 per diluted share, in the same period in 2024. Adjusted diluted EPS was $1.05, down from $1.12 in the prior year.

The company generated $247 million in cash flow from operating activities and ended the quarter with $225 million in cash and cash equivalents after $191 million in net capital expenditures. XPO’s financial performance reflects its focus on operational efficiency, cost management, and leveraging technology to enhance productivity and service quality.