XPO Announces Financial Results for Third Quarter

October 29, 2026  by Karen Parrish in Business Strategy, Industry   

Mario Harik, chairman and chief executive officer of XPO, said, “We delivered another quarter of outstanding performance, accelerating growth in adjusted EBITDA to 27% and adjusted diluted EPS to 59% year-over-year. Our results show how effectively we’re converting more business into higher earnings through a combination of revenue growth and margin expansion.

“In North American LTL, we grew adjusted operating income by 35% year-over-year and improved our adjusted operating ratio by 260 basis points, significantly outperforming seasonality. This reflects sequential improvements in both yield and revenue per shipment, excluding fuel, alongside stronger volume growth from profitable share gains. Increasingly, we’re improving revenue quality with higher-margin freight as customers value our world-class service, including a damage claims ratio below 0.2%. And on the cost side, we’re operating more efficiently by expanding the use of AI across our network.”

Harik continued, “Our strong performance across North America and Europe underscores the substantial opportunities we have to continue compounding our earnings growth, with further upside as freight demand recovers. Additionally, we’re accelerating our free cash flow and capital return to shareholders, enhancing long-term value.”

Third Quarter Highlights

For the third quarter 2026, the company generated revenue of $2.37 billion, compared with $2.11 billion for the same period in 2025.

Operating income was $288 million for the third quarter, compared with $164 million for the same period in 2025. Net income was $181 million for the third quarter, compared with $82 million for the same period in 2025. Diluted earnings per share was $1.53 for the third quarter, compared with $0.68 for the same period in 2025.

Adjusted net income, a non-GAAP financial measure, was $200 million for the third quarter, compared with $128 million for the same period in 2025. Adjusted diluted EPS, a non-GAAP financial measure, was $1.70 for the third quarter, compared with $1.07 for the same period in 2025.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $433 million for the third quarter, compared with $342 million for the same period in 2025.

The company generated $415 million of cash flow from operating activities in the third quarter and ended the quarter with $260 million of cash and cash equivalents on hand, after completing $123 million of net capital expenditures, $150 million of common stock repurchases and $100 million of term loan repayments.

Conference Call

The company will hold a conference call on Thursday, October 29, 2026, at 8:30 a.m. Eastern Time. A live webcast of the conference will be available on the investor relations area of the company’s website, xpo.com/investors. The conference will be archived until November 28, 2026. 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 13762528.