Xpo Logistics Stock Earnings Reports

XPO reported a strong start to 2026 with record Q1 results and clear operational momentum. Company adjusted EBITDA rose 15% to $319M and adjusted diluted EPS was $1.01 (up 38% YoY). LTL was the primary driver: adjusted operating income grew 20%, adjusted OR improved 200 bps YoY to 83.9% and LTL adjusted EBITDA margin expanded to 23.6%. Management highlighted service improvements (damage claims below 0.2%), rapid adoption of AI-driven planning and P&D optimization (P&D tools rolled out to ~50% of the network), productivity gains of 4% in Q1 (well above the 1.5% long‑term target), and a younger fleet/expanded terminal density (>30% excess door capacity). Pricing/yield trends accelerated through Q1 and management expects yield and revenue-per-shipment (ex-fuel) to accelerate sequentially in Q2 and through the year. Q2 seasonality is expected to be outperformed, and management reiterated a path to an LTL operating ratio in the 70s over time driven by service, pricing, mix/premium services, and cost efficiency. Cash flow: operating cash flow was $183M, net capex $104M, ended quarter with $237M cash and total liquidity of $837M; net leverage was 2.3x TTM adjusted EBITDA. Capital allocation priorities: continued share repurchases and debt paydown as free cash flow ramps, with management expecting “billions” of cumulative FCF over coming years. Europe continued to grow (Q1 revenue +11% YoY) with margin improvement plans underway. Overall, the company positioned itself to capture share gains and margin expansion as volumes recover, with technology/AI and capacity investments framed as durable competitive advantages.