XPO Q2 2025: $2.08 bln rev, $0.89 EPS, $1.05 adj. EPS.

• XPO reports Q2 diluted EPS of $0.89, down from $1.25 in 2024 • Adjusted diluted EPS of $1.05, down from $1.12 in 2024 • North American LTL revenue down 2.5% to $1.24bn • European transportation revenue up 4.1% to $841m • Adjusted operating income up 0.5% to $198m • Adjusted EBITDA up 0.5% to $198m • Digital data not specifically mentioned in the article.

XPO (NYSE: XPO) reported mixed financial results for the second quarter of 2025, with total revenue remaining flat at $2.08 billion compared to the same period in 2024. The company's diluted earnings per share (EPS) decreased to $0.89 from $1.25 year-over-year, while adjusted diluted EPS came in at $1.05 compared to $1.12 in Q2 2024. The North American Less-Than-Truckload (LTL) segment saw a 2.5% revenue decline to $1.24 billion, but achieved an industry-leading adjusted operating ratio of 82.9%, improving by 30 basis points year-over-year. The European Transportation segment reported revenue growth of 4.1% to $841 million, though adjusted EBITDA declined to $44 million from $49 million year-over-year. XPO generated strong cash flow from operations of $247 million and ended the quarter with $225 million in cash [1].

The North American LTL segment demonstrated resilience despite challenging market conditions. Revenue declined 2.5% to $1.24 billion due to lower shipment and tonnage volumes (down 5.1% and 6.7% respectively). However, the company successfully drove yield improvements, with yield excluding fuel increasing by 6.1%. The adjusted operating ratio improved 30 basis points to 82.9%, representing the best-in-class performance improvement for the LTL industry. The company also reduced purchased transportation expense by 53% through insourcing linehaul miles [1].

The European Transportation segment presented a more complex picture. While revenue grew 4.1% to $841 million and operating income increased 10%, adjusted EBITDA declined 10.2% to $44 million. This divergence suggests margin compression and operational challenges in the European market. Management's strategic shift toward insourcing linehaul miles and technology-driven labor productivity improvements positions XPO well for long-term structural margin expansion despite current cyclical headwinds [1].

XPO's cash flow generation remains solid at $247 million from operations, though net capital expenditures of $191 million consumed a significant portion of this cash, leaving $225 million in cash and equivalents on the balance sheet [1].

The company will hold a conference call on Thursday, July 31, 2025, 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 [1].

References:
[1] https://www.stocktitan.net/news/XPO/xpo-reports-second-quarter-2025-7ik1xz716ui0.html