XPO Announces Financial Results for Fourth Quarter 2023

February 7, 2024  by HFBusiness Staff in Business Strategy, Industry   

Mario Harik, chief executive officer of XPO, said, “We delivered fourth quarter results that were solidly above expectations, reflecting substantial momentum in service quality, pricing and productivity. Companywide, year-over-year, we grew revenue by 6% and adjusted EBITDA by 28%, excluding real estate gains in 2022.

“In North American LTL, we outperformed on every key operating metric. This includes fourth quarter yield growth, excluding fuel, of 10.3%, adjusted operating income growth of 51%, and adjusted operating ratio improvement of 380 basis points. Our tonnage per day was 2% higher than a year ago, with nearly 6% more shipments per day.

“Behind each of these gains is our LTL 2.0 growth plan and our commitment to provide premium customer service. In the fourth quarter, we improved our damage claims ratio to a new company record of 0.3%. The more service quality we deliver, the more value our customers realize from doing business with us. This dynamic is a key driver of our margin expansion.”

Harik continued, “It was gratifying to see our strategy take root in 2023, XPO’s first full year as a standalone LTL company in North America. Every positive trend in the business comes from our team’s strong execution. We’re excited to continue to capitalize on our momentum, while laying more groundwork for the years ahead."

Fourth Quarter Highlights

For the fourth quarter 2023, revenue was $1.94 billion, compared to $1.83 billion for the same period in 2022. The year-over-year increase in revenue was due primarily to higher yield, excluding fuel, and an increase in tonnage per day in the North American LTL segment, partially offset by lower fuel surcharge revenue.

Net income from continuing operations was $58 million for the fourth quarter, compared with a net loss of $36 million for the same period in 2022. Operating income was $119 million for the fourth quarter, compared with $4 million for the same period in 2022. Diluted earnings from continuing operations per share was $0.49 for the fourth quarter, compared with a loss per share of $0.31 for the same period in 2022.

Adjusted net income from continuing operations, a non-GAAP financial measure, was $93 million for the fourth quarter, compared with $113 million for the same period in 2022. Adjusted diluted earnings from continuing operations per share (“adjusted diluted EPS”), a non-GAAP financial measure, was $0.77 for the fourth quarter, compared with $0.98 for the same period in 2022.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $264 million for the fourth quarter, compared with $262 million for the same period in 2022. The fourth quarter 2022 included $55 million of real estate gains.

The company generated $251 million of cash flow from operating activities in the fourth quarter and ended the quarter with $412 million of cash and cash equivalents on hand, after $1.03 billion of net capital expenditures, including $878 million related to the acquisition of 28 service center locations.
 
An archived webcast of the conference including the results by each business segment will be available on the investor relations area of the company’s website, xpo.com/investors until March 9, 2024. To access the replay by phone, call toll-free (from US/Canada) 1-877-660-6853; international callers dial +1-201-612-7415. Use participant passcode 13743551.