Xpo Logistics Stock Earnings Reports

XPO reported a strong Q3 2025 driven by record LTL results and continued margin expansion. Key financials: total revenue $2.1B (+3% YoY), company adjusted EBITDA $342M (+3% YoY), LTL adjusted EBITDA $308M (+9% YoY) and LTL adjusted operating income $217M (+10% YoY). Adjusted EPS was $1.07 (up 5% YoY). Operational highlights include best-ever LTL quarterly EBITDA, yield ex-fuel +5.9% YoY, sequential revenue-per-shipment improvement for the 11th quarter, damage frequency at record low and on-time performance improved for the 14th consecutive quarter. Cost/capability actions: aggressive in‑sourcing reduced purchased transportation to a record low 5.9% of miles, investments lowered tractor average age to 3.6 years, and AI-driven tools produced meaningful productivity gains (linehaul empty miles down, pickups/delivery route optimization piloted, dock labor forecasting). Margin performance: LTL adjusted EBITDA margin 24.5% (expanded 180 bps YoY) and adjusted OR improved 150 bps YoY; management expects Q4 to materially outperform typical seasonal OR deterioration and to deliver a meaningful year‑over‑year OR improvement. Liquidity and capital allocation: $335M cash, $935M total liquidity, net leverage 2.4x; repurchased $50M stock and paid $50M term loan; CapEx to moderate (from ~15% of revenue last year toward mid‑range of long‑term 8–12%), with free cash flow expected to strengthen. Outlook/strategy: management expects continued above‑market yield growth, further AI productivity gains, and another year of OR and earnings improvement in 2026 even without assuming a macro recovery; incremental margins on a volume rebound are expected to be comfortably above 40%. Risks noted include macro weakness, legal charge that affected GAAP EPS, and typical industry/forward-looking uncertainties.