XPO Logistics Exceeds Q2 Revenue Estimates

Logistics firm XPO beats Q2 revenue estimates with $2.08B revenue, surpassing FactSet's estimate of $2.05B. Adjusted EPS also exceeded expectations at $1.05 per share, compared to the estimated $0.99. The company's results show improved operational efficiency despite macro headwinds.

Logistics giant XPO, Inc. (NYSE: XPO) has released its second-quarter 2025 financial results, which show a strong performance despite challenging macroeconomic conditions. The company reported revenue of $2.08 billion, surpassing FactSet's estimate of $2.05 billion. Adjusted earnings per share (EPS) also exceeded expectations at $1.05 per share, compared to the estimated $0.99 [1].

XPO's North American Less-Than-Truckload (LTL) segment generated $1.24 billion in revenue, down 2.5% from the same period in 2024. However, the segment's adjusted operating ratio improved to 82.9%, reflecting a 30 basis point year-over-year improvement. This was achieved despite a decline in tonnage per day and shipments per day, which decreased by 6.7% and 5.1% respectively. The company's proprietary technology and service culture drove above-market pricing growth and share gains with local customers [1].

The European Transportation segment reported revenue of $841 million, up 4.1% from the same period in 2024. Operating income for this segment increased to $11 million, up from $10 million in the same period in 2024. Adjusted EBITDA for this segment was $44 million, down 10.2% from the same period in 2024 [1].

Mario Harik, XPO's CEO, commented on the company's performance, stating, "We delivered strong results in the second quarter, with adjusted EBITDA of $340 million and adjusted diluted EPS of $1.05, both exceeding expectations. We’re executing at a high level and consistently outperforming the industry, with a strategy that positions us to deliver long-term margin expansion and earnings growth" [1].

The company's corporate segment reported an operating loss of $11 million, an improvement of 31.3% from the same period in 2024. Adjusted EBITDA for this segment was a loss of $4 million, compared to a loss of $3 million in the same period in 2024 [1].

XPO's results demonstrate improved operational efficiency, with the company generating $247 million of cash flow from operating activities and ending the quarter with $225 million of cash and cash equivalents on hand. The company's ability to navigate macro headwinds and maintain strong financial performance positions it well for future growth [1].

References:
[1] https://www.morningstar.com/news/globe-newswire/9503630/xpo-reports-second-quarter-2025-results