XPO Releases Q1 Results That Beat Some Expectations

April 30, 2025  by Karen Parrish in Business Strategy, Industry   

First Quarter Highlights
For the first quarter 2025, the company generated revenue of $1.95 billion, compared with $2.02 billion for the same period in 2024. The year-over-year decrease in revenue was due primarily to lower fuel surcharge revenue in the North American LTL segment.

Operating income was $151 million for the first quarter, compared with $138 million for the same period in 2024. Net income was $69 million for the first quarter, compared with $67 million for the same period in 2024. Diluted earnings per share was $0.58 for the first quarter, compared with $0.56 for the same period in 2024.

Adjusted net income, a non-GAAP financial measure, was $87 million for the first quarter, compared with $97 million for the same period in 2024. Adjusted diluted EPS, a non-GAAP financial measure, was $0.73 for the first quarter, compared with $0.81 for the same period in 2024.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $278 million for the first quarter, compared with $288 million for the same period in 2024.

The company generated $142 million of cash flow from operating activities in the first quarter and ended the quarter with $212 million of cash and cash equivalents on hand, after $191 million of net capital expenditures.

Remarks from CEO Mario Harik
Mario Harik, chief executive officer of XPO, said, “We carried our momentum into 2025 and delivered first quarter financial results that outperformed the industry. Companywide, we reported adjusted EBITDA of $278 million and adjusted diluted EPS of $0.73, while operating more efficiently.

“In North American LTL, we reported a sequential improvement in adjusted operating ratio to 85.9%, which outpaced seasonality. This brings our cumulative improvement in adjusted operating ratio to 370 basis points over two years in a soft freight environment. We accelerated first quarter yield growth, excluding fuel, to 6.9% and improved revenue per shipment sequentially for the ninth consecutive quarter, underpinned by record service quality. At the same time, we became more cost-efficient through tech-driven labor productivity and third-party linehaul insourcing. This included a year-over-year reduction in purchased transportation expense of 53%.”

Harik continued, “Our plan is driving results, with a long runway for margin expansion, supported by superior service and high-return investments in our network. We’re executing to achieve years of outperformance, regardless of the freight market environment.”

Results by Business Segment

North American Less-Than-Truckload (LTL): The segment generated revenue of $1.17 billion for the first quarter 2025, compared with $1.22 billion for the same period in 2024. On a year-over-year basis, shipments per day decreased 5.8%, tonnage per day decreased 7.5%, and yield, excluding fuel, increased 6.9%. Including fuel, yield increased 4.5%.

Operating income was $158 million for the first quarter 2025, compared with $165 million for the same period in 2024. Adjusted operating income, a non-GAAP financial measure, was $165 million for the first quarter, compared with $175 million for the same period in 2024. Adjusted operating ratio, a non-GAAP financial measure, was 85.9%, reflecting a sequential improvement of 30 basis points, compared with the fourth quarter in 2024.

Adjusted EBITDA for the first quarter 2025 was $250 million, compared with $255 million for the same period in 2024. The year-over-year reduction in adjusted EBITDA was due primarily to lower fuel surcharge revenue, lower tonnage per day, and wage inflation, partially offset by yield growth and productivity gains. 

European Transportation: The segment generated revenue of $782 million for the first quarter 2025, compared with $797 million for the same period in 2024. Operating income was $1 million for the first quarter 2025, compared with a loss of $4 million for the same period in 2024.

Adjusted EBITDA was $32 million for the first quarter 2025, compared with $38 million for the same period in 2024.

Corporate: The segment generated an operating loss of $9 million for the first quarter 2025, compared with a loss of $23 million for the same period in 2024. The year-over-year improvement in operating loss was due primarily to a $10 million reduction in transaction and integration costs.

Adjusted EBITDA was a loss of $4 million for the first quarter 2025, compared with a loss of $5 million for the same period in 2024.

Conference Call
The conference will be archived until May 30, 2025, on the investor relations area of the company’s website, xpo.com/investors. 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 13753296.