XPO stock falls 9.1% after Q2 earnings reveal drop in profitability.

XPO (XPO) shares fell 9.1% after the company reported a significant drop in net income, falling to $106 million from $150 million a year earlier. Earnings per share also dropped to $0.89 from $1.25. Revenue held flat at $2.08 billion, but the North American Less-Than-Truckload (LTL) division experienced a 2.5% revenue decrease and a 6.7% drop in tonnage per day.

XPO Inc. (XPO) reported its financial results for the second quarter of 2025, with the company's shares falling 9.1% following a significant drop in net income. Net income fell to $106 million from $150 million a year earlier, while earnings per share decreased to $0.89 from $1.25 [1]. Revenue remained flat at $2.08 billion, but the North American Less-Than-Truckload (LTL) division experienced a 2.5% revenue decrease and a 6.7% drop in tonnage per day [2].

Despite these declines, CEO Mario Harik highlighted the company's operational efficiency and customer-focused service as driving factors. The company achieved a 6.1% yield growth and a 5.6% increase in revenue per shipment from the prior year. Operating income increased modestly to $198 million from $197 million, with the European Transportation segment experiencing a 4.1% revenue increase [2].

The company's adjusted diluted earnings per share (EPS) for the quarter was $1.05, down from $1.12 a year earlier. This was partially attributed to a one-time tax benefit in 2024 [2]. Adjusted EBITDA remained stable at $340 million, reflecting resilience in performance despite external challenges.

Analysts have issued a mix of ratings for XPO, with 14 firms issuing buy ratings and none issuing sell ratings. The median price target is $140.0, with targets ranging from $130.0 to $150.0 [2].

References:
[1] https://www.ttnews.com/articles/xpo-earnings-q2-2025
[2] https://www.quiverquant.com/news/XPO+Inc.+Reports+Second+Quarter+2025+Financial+Results+with+Decline+in+Earnings+Per+Share+and+Stable+Revenue