XPO Reports Second Quarter 2024 Results
XPO reported strong Q2 2024 results with revenue up 8.5% to $2.08 billion and diluted EPS from continuing operations at $1.25, up from $0.27 in Q2 2023. The company's adjusted EBITDA increased 40.6% to $343 million. North American Less-Than-Truckload (LTL) segment saw significant growth, with revenue up 12% to $1.27 billion and adjusted operating income up 50.7% to $214 million. The segment's adjusted operating ratio improved by 440 basis points to 83.2%. European Transportation segment revenue increased 3.5% to $808 million. XPO's strong performance was driven by improved service levels, yield growth, and increased efficiency in operations.
XPO ha riportato risultati solidi per il secondo trimestre del 2024, con ricavi in aumento dell'8,5% a 2,08 miliardi di dollari e utile per azione diluito da operazioni continuative a 1,25 dollari, rispetto ai 0,27 dollari del secondo trimestre del 2023. L'EBITDA rettificato dell'azienda è aumentato del 40,6% a 343 milioni di dollari. Il segmento Less-Than-Truckload (LTL) del Nord America ha mostrato una crescita significativa, con ricavi in aumento del 12% a 1,27 miliardi di dollari e reddito operativo rettificato in aumento del 50,7% a 214 milioni di dollari. Il rapporto operativo rettificato del segmento è migliorato di 440 punti base, raggiungendo l'83,2%. I ricavi del segmento Trasporti europeo sono aumentati del 3,5% a 808 milioni di dollari. Le forti performance di XPO sono state guidate da un miglioramento dei livelli di servizio, crescita del rendimento e maggiore efficienza nelle operazioni.
XPO reportó resultados fuertes para el segundo trimestre de 2024, con ingresos en aumento del 8.5% a 2.08 mil millones de dólares y EPS diluido de operaciones continuas de 1.25 dólares, en comparación con 0.27 dólares en el segundo trimestre de 2023. El EBITDA ajustado de la compañía aumentó un 40.6% a 343 millones de dólares. El segmento de Menos-Que-Carga de Camión (LTL) de América del Norte vio un crecimiento significativo, con ingresos en aumento del 12% a 1.27 mil millones de dólares y ingreso operativo ajustado en aumento del 50.7% a 214 millones de dólares. La relación de operación ajustada del segmento mejoró en 440 puntos básicos, alcanzando el 83.2%. Los ingresos del segmento de Transporte Europeo aumentaron un 3.5% a 808 millones de dólares. El fuerte desempeño de XPO fue impulsado por niveles de servicio mejorados, crecimiento de rendimiento y mayor eficiencia en las operaciones.
XPO는 2024년 2분기에 수익이 8.5% 증가한 20억 8천만 달러와 계속 운영에서의 희석 EPS가 1.25달러로, 2023년 2분기의 0.27달러에서 증가한 강력한 실적을 보고했습니다. 회사의 조정 EBITDA는 40.6% 증가하여 3억 4천 3백만 달러에 달했습니다. 북미의 Less-Than-Truckload (LTL) 부문은 수익이 12% 증가하여 12억 7천만 달러에 이르고, 조정 운영 수익은 50.7% 증가하여 2억 1천4백만 달러로 증가했습니다. 해당 부문의 조정 운영 비율은 440베이시스 포인트 개선되어 83.2%로 나타났습니다. 유럽 수송 부문 수익은 3.5% 증가하여 8억 8백만 달러에 달했습니다. XPO의 강력한 실적은 서비스 수준 향상, 수익 성장, 운영의 효율성 증가에 의해 촉진되었습니다.
XPO a rapporté de bons résultats pour le deuxième trimestre 2024, avec un chiffre d'affaires en hausse de 8,5 % à 2,08 milliards de dollars et un BPA dilué des opérations continues de 1,25 dollar, en hausse par rapport à 0,27 dollar au deuxième trimestre 2023. Le BAEBITDA ajusté de l'entreprise a augmenté de 40,6 % pour atteindre 343 millions de dollars. Le segment Less-Than-Truckload (LTL) en Amérique du Nord a connu une forte croissance, avec des revenus en hausse de 12 % à 1,27 milliard de dollars et un résultat opérationnel ajusté en hausse de 50,7 % à 214 millions de dollars. Le ratio opérationnel ajusté du segment s'est amélioré de 440 points de base pour atteindre 83,2 %. Les revenus du segment Transport européen ont augmenté de 3,5 % pour atteindre 808 millions de dollars. La forte performance de XPO a été soutenue par l'amélioration des niveaux de service, la croissance des rendements et une efficacité opérationnelle accrue.
XPO meldete starke Ergebnisse für das zweite Quartal 2024 mit Umsatzsteigerungen von 8,5% auf 2,08 Milliarden Dollar und verwässertem EPS aus fortgeführten Betrieben von 1,25 Dollar, eine Steigerung gegenüber 0,27 Dollar im zweiten Quartal 2023. Das bereinigte EBITDA des Unternehmens stieg um 40,6% auf 343 Millionen Dollar. Das Segment Less-Than-Truckload (LTL) in Nordamerika verzeichnete ein signifikantes Wachstum, mit Umsätzen, die um 12% auf 1,27 Milliarden Dollar stiegen und bereinigtem Betriebseinkommen, das um 50,7% auf 214 Millionen Dollar anstieg. Das bereinigte Betriebsverhältnis des Segments verbesserte sich um 440 Basispunkte auf 83,2%. Der Umsatz des europäischen Transportsegments stieg um 3,5% auf 808 Millionen Dollar. Die starke Leistung von XPO wurde durch verbesserte Servicelevels, Ertragswachstum und höhere Effizienz in den Betrieben angetrieben.
- Revenue increased 8.5% year-over-year to $2.08 billion
- Diluted EPS from continuing operations grew 363% to $1.25
- Adjusted EBITDA rose 40.6% to $343 million
- North American LTL segment revenue up 12% to $1.27 billion
- LTL adjusted operating income increased 50.7% to $214 million
- LTL adjusted operating ratio improved by 440 basis points to 83.2%
- LTL yield, excluding fuel, increased 9.0%
- LTL shipments per day increased 4.5%
- Company generated $210 million of cash flow from operating activities
- European Transportation segment operating income decreased 16.7% to $10 million
Insights
XPO's Q2 2024 results showcase impressive growth and operational efficiency improvements. The company reported a 12% increase in revenue for its North American Less-Than-Truckload (LTL) segment, reaching
The standout metric is the adjusted operating ratio improvement of 440 basis points to
Financially, XPO reported diluted EPS from continuing operations of
However, investors should note the
The European Transportation segment's performance was less stellar, with a slight decline in operating income. This suggests potential challenges in the European market that investors should monitor closely.
Overall, XPO's Q2 results reflect a company executing well on its strategy, particularly in its core North American LTL business. The focus on service quality, capacity expansion and operational efficiency appears to be yielding positive results, positioning XPO for continued growth in the competitive logistics industry.
XPO's Q2 2024 results offer valuable insights into the current state of the logistics and transportation industry. The company's strong performance in the North American LTL segment, with a
The
However, the European Transportation segment's performance, with only a
The logistics industry is increasingly focused on efficiency and technology adoption. XPO's improvement in labor productivity and reduction in purchased transportation costs demonstrate the company's success in leveraging technology and operational best practices to enhance profitability.
The emphasis on service quality, evidenced by the record-low damage claims ratio, aligns with industry trends towards customer-centric operations. In a competitive market, service differentiation can be a key driver of customer loyalty and market share gains.
Looking ahead, XPO's strategy of investing in capacity ahead of demand positions the company well for future growth. However, investors should monitor macroeconomic factors, such as consumer spending trends and potential recessionary pressures, which could impact shipping volumes and pricing power in the logistics sector.
GREENWICH, Conn., Aug. 01, 2024 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO) today announced its financial results for the second quarter 2024. The company reported diluted earnings from continuing operations per share of
| Second Quarter 2024 Summary Results | ||||||||||||||||||||
| Three months ended June 30, | Revenue | Operating Income (Loss) | ||||||||||||||||||
| (in millions) | 2024 | 2023 | Change % | 2024 | 2023 | Change % | ||||||||||||||
| North American Less-Than-Truckload Segment | $ | 1,272 | $ | 1,136 | 12.0 | % | $ | 203 | $ | 129 | 57.4 | % | ||||||||
| European Transportation Segment | 808 | 781 | 3.5 | % | 10 | 12 | -16.7 | % | ||||||||||||
| Corporate | - | - | 0.0 | % | (16 | ) | (34 | ) | -52.9 | % | ||||||||||
| Total | $ | 2,079 | $ | 1,917 | 8.5 | % | $ | 197 | $ | 107 | 84.1 | % | ||||||||
| Three months ended June 30, | Adjusted Operating Income(1) | Adjusted EBITDA(1) | ||||||||||||||||||
| (in millions) | 2024 | 2023 | Change % | 2024 | 2023 | Change % | ||||||||||||||
| North American Less-Than-Truckload Segment | $ | 214 | $ | 142 | 50.7 | % | $ | 297 | $ | 208 | 42.8 | % | ||||||||
| European Transportation Segment | 19 | 18 | 5.6 | % | 49 | 46 | 6.5 | % | ||||||||||||
| Corporate | NA | NA | NA | (3 | ) | (10 | ) | -70.0 | % | |||||||||||
| Total | $ | NA | $ | NA | NA | $ | 343 | $ | 244 | 40.6 | % | |||||||||
| Three months ended June 30, | Net Income(2) | Diluted EPS(3) | ||||||||||||||||||
| (in millions, except for per-share data) | 2024 | 2023 | Change % | 2024 | 2023 | Change % | ||||||||||||||
| Total | $ | 150 | $ | 31 | 383.9 | % | $ | 1.25 | $ | 0.27 | 363.0 | % | ||||||||
| Diluted Weighted-Average Common Shares Outstanding | ||||||||||||||||||||
| Three months ended June 30, | Adjusted Diluted EPS(1)(3) | |||||||||||||||||||
| (in millions, except for per-share data) | 2024 | 2023 | 2024 | 2023 | Change % | |||||||||||||||
| Total | 120 | 118 | $ | 1.12 | $ | 0.71 | 57.7 | % | ||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||
| NA - Not applicable | ||||||||||||||||||||
| (1) See the “Non-GAAP Financial Measures” section of the press release | ||||||||||||||||||||
| (2) Net income from continuing operations | ||||||||||||||||||||
| (3) Diluted earnings from continuing operations per share ("diluted EPS") | ||||||||||||||||||||
Mario Harik, chief executive officer of XPO, said, “We reported a strong second quarter of earnings growth, underpinned by a year-over-year increase in revenue of
“In North American LTL, we continued to deliver service at record levels, with the best damage claims ratio in our history at
Harik continued, “Our strong performance demonstrates the steady progress we’re making toward becoming the LTL service leader in North America. We’ll continue to build our service offering, invest in capacity ahead of demand and operate more efficiently. This strategy is creating a long runway for future margin expansion.”
Second Quarter Highlights
For the second quarter 2024, the company generated revenue of
Operating income was
Adjusted net income from continuing operations, a non-GAAP financial measure, was
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was
The company generated
Results by Business Segment
- North American Less-Than-Truckload (LTL): The segment generated revenue of
$1.27 billion for the second quarter 2024, compared with$1.14 billion for the same period in 2023. On a year-over-year basis, shipments per day increased4.5% , tonnage per day increased3.4% , and yield, excluding fuel, increased9.0% . Including fuel, yield increased7.8% .
Operating income was$203 million for the second quarter 2024, compared with$129 million for the same period in 2023. Adjusted operating income, a non-GAAP financial measure, was$214 million for the second quarter, compared with$142 million for the same period in 2023. Adjusted operating ratio, a non-GAAP financial measure, was83.2% , reflecting a year-over-year improvement of 440 basis points.
Adjusted EBITDA for the second quarter 2024 was$297 million , compared with$208 million for the same period in 2023. The year-over-year increase in adjusted EBITDA was due primarily to higher yield, excluding fuel, and an increase in tonnage per day.
- European Transportation: The segment generated revenue of
$808 million for the second quarter 2024, compared with$781 million for the same period in 2023. Operating income was$10 million for the second quarter, compared with$12 million for the same period in 2023.
Adjusted EBITDA was$49 million for the second quarter 2024, compared with$46 million for the same period in 2023.
- Corporate: The segment generated an operating loss of
$16 million for the second quarter 2024, compared with a loss of$34 million for the same period in 2023. The year-over-year improvement in operating loss was due primarily to a$6 million reduction in transaction and integration costs and a$4 million reduction in restructuring costs.
Adjusted EBITDA, a non-GAAP financial measure, was a loss of$3 million for the second quarter 2024, compared with a loss of$10 million for the same period in 2023, reflecting a year-over-year improvement from the company’s continued rationalization of corporate overhead costs.
Conference Call
The company will hold a conference call on Thursday, August 1, 2024, at 8:30 a.m. Eastern Time. Participants can call toll-free (from US/Canada) 1-877-269-7756; international callers dial +1-201-689-7817. 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 August 31, 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 13747657.
About XPO
XPO, Inc. (NYSE: XPO) is a leader in asset-based less-than-truckload (LTL) freight transportation in North America. The company’s customer-focused organization efficiently moves 18 billion pounds of freight per year, enabled by its proprietary technology. XPO serves approximately 53,000 customers with 615 locations and 38,000 employees in North America and Europe, with headquarters in Greenwich, Conn., USA. Visit xpo.com for more information, and connect with XPO on LinkedIn, Facebook, X, Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this press release.
XPO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) on a consolidated basis and for corporate; adjusted EBITDA margin on a consolidated basis; adjusted net income from continuing operations; adjusted diluted earnings from continuing operations per share (“adjusted diluted EPS”); adjusted operating income for our North American Less-Than-Truckload and European Transportation segments; and adjusted operating ratio for our North American Less-Than-Truckload segment.
We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, XPO and its business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should only be used as supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income from continuing operations, adjusted diluted EPS, adjusted operating income and adjusted operating ratio include adjustments for transaction and integration costs, as well as restructuring costs and other adjustments as set forth in the attached tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition, divestiture or spin-off and may include transaction costs, consulting fees, stock-based compensation, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems. Restructuring costs primarily relate to severance costs associated with business optimization initiatives. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating XPO’s and each business segment’s ongoing performance.
We believe that adjusted EBITDA and adjusted EBITDA margin improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables that management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses. We believe that adjusted net income from continuing operations and adjusted diluted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains that management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets, transaction and integration costs, restructuring costs and other adjustments as set out in the attached tables. We believe that adjusted operating income and adjusted operating ratio improve the comparability of our operating results from period to period by removing the impact of certain transaction and integration costs and restructuring costs, as well as amortization expenses as set out in the attached tables.
Forward-looking Statements
This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: the effects of business, economic, political, legal, and regulatory impacts or conflicts upon our operations; supply chain disruptions and shortages, strains on production or extraction of raw materials, cost inflation and labor and equipment shortages; our ability to align our investments in capital assets, including equipment, service centers, and warehouses to our customers’ demands; our ability to implement our cost and revenue initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; changes in expected growth in trade between the US and Mexico affecting demand; changes in the future needs of cross-border shippers; increased or decreased demand for cross-border LTL shipping; our ability to benefit from a sale, spin-off or other divestiture of one or more business units or to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; goodwill impairment; issues related to compliance with data protection laws, competition laws, and intellectual property laws; fluctuations in currency exchange rates, fuel prices and fuel surcharges; the expected benefits of the spin-offs of GXO Logistics, Inc. and RXO, Inc.; our ability to develop and implement suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our indebtedness; our ability to raise debt and equity capital; fluctuations in interest rates; seasonal fluctuations; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to attract and retain key employees including qualified drivers; labor matters; litigation; and competition and pricing pressures.
All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law.
Investor Contact
Brian Scasserra
+1 617-607-6429
brian.scasserra@xpo.com
Media Contact
Cole Horton
+1 203-609-6004
cole.horton@xpo.com
| XPO, Inc. | |||||||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||
| (In millions, except per share data) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| 2024 | 2023 | Change % | 2024 | 2023 | Change % | ||||||||||||||||
| Revenue | $ | 2,079 | $ | 1,917 | 8.5 | % | $ | 4,097 | $ | 3,824 | 7.1 | % | |||||||||
| Salaries, wages and employee benefits | 854 | 783 | 9.1 | % | 1,688 | 1,545 | 9.3 | % | |||||||||||||
| Purchased transportation | 436 | 444 | -1.8 | % | 874 | 901 | -3.0 | % | |||||||||||||
| Fuel, operating expenses and supplies | 402 | 390 | 3.1 | % | 814 | 817 | -0.4 | % | |||||||||||||
| Operating taxes and licenses | 21 | 15 | 40.0 | % | 40 | 30 | 33.3 | % | |||||||||||||
| Insurance and claims | 33 | 46 | -28.3 | % | 71 | 90 | -21.1 | % | |||||||||||||
| Gains on sales of property and equipment | (4 | ) | (2 | ) | 100.0 | % | (5 | ) | (5 | ) | 0.0 | % | |||||||||
| Depreciation and amortization expense | 122 | 107 | 14.0 | % | 239 | 208 | 14.9 | % | |||||||||||||
| Transaction and integration costs | 12 | 17 | -29.4 | % | 26 | 39 | -33.3 | % | |||||||||||||
| Restructuring costs | 6 | 10 | -40.0 | % | 14 | 34 | -58.8 | % | |||||||||||||
| Operating income | 197 | 107 | 84.1 | % | 335 | 165 | 103.0 | % | |||||||||||||
| Other income | (6 | ) | (3 | ) | 100.0 | % | (16 | ) | (8 | ) | 100.0 | % | |||||||||
| Debt extinguishment loss | - | 23 | -100.0 | % | - | 23 | -100.0 | % | |||||||||||||
| Interest expense | 56 | 43 | 30.2 | % | 114 | 85 | 34.1 | % | |||||||||||||
| Income from continuing operations before income tax provision | 147 | 44 | 234.1 | % | 237 | 65 | 264.6 | % | |||||||||||||
| Income tax provision (benefit) | (3 | ) | 13 | NM | 20 | 17 | 17.6 | % | |||||||||||||
| Income from continuing operations | 150 | 31 | 383.9 | % | 217 | 48 | 352.1 | % | |||||||||||||
| Income (loss) from discontinued operations, net of taxes | - | 2 | -100.0 | % | - | - | (1 | ) | -100.0 | % | |||||||||||
| Net income | $ | 150 | $ | 33 | 354.5 | % | $ | 217 | $ | 47 | 361.7 | % | |||||||||
| Net income (loss) | |||||||||||||||||||||
| Continuing operations | $ | 150 | $ | 31 | $ | 217 | $ | 48 | |||||||||||||
| Discontinued operations | - | 2 | - | (1 | ) | ||||||||||||||||
| Net income | $ | 150 | $ | 33 | $ | 217 | $ | 47 | |||||||||||||
| Basic earnings (loss) per share (1) | |||||||||||||||||||||
| Continuing operations | $ | 1.29 | $ | 0.27 | $ | 1.87 | $ | 0.42 | |||||||||||||
| Discontinued operations | - | 0.01 | - | (0.01 | ) | ||||||||||||||||
| Basic earnings per share | $ | 1.29 | $ | 0.28 | $ | 1.87 | $ | 0.41 | |||||||||||||
| Diluted earnings (loss) per share (1) | |||||||||||||||||||||
| Continuing operations | $ | 1.25 | $ | 0.27 | $ | 1.81 | $ | 0.41 | |||||||||||||
| Discontinued operations | - | 0.01 | - | (0.01 | ) | ||||||||||||||||
| Diluted earnings per share | $ | 1.25 | $ | 0.28 | $ | 1.81 | $ | 0.40 | |||||||||||||
| Weighted-average common shares outstanding | |||||||||||||||||||||
| Basic weighted-average common shares outstanding | 116 | 116 | 116 | 116 | |||||||||||||||||
| Diluted weighted-average common shares outstanding | 120 | 118 | 120 | 117 | |||||||||||||||||
| Amounts may not add due to rounding. | |||||||||||||||||||||
| NM - Not meaningful. | |||||||||||||||||||||
| (1) The sum of quarterly earnings (loss) per share may not equal year-to-date amounts due to differences in the weighted-average number of shares outstanding during the respective periods. | |||||||||||||||||||||
| XPO, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| (In millions, except per share data) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 250 | $ | 412 | ||||
| Accounts receivable, net of allowances of | 1,088 | 973 | ||||||
| Other current assets | 210 | 208 | ||||||
| Total current assets | 1,548 | 1,593 | ||||||
| Long-term assets | ||||||||
| Property and equipment, net of | 3,305 | 3,075 | ||||||
| Operating lease assets | 742 | 708 | ||||||
| Goodwill | 1,481 | 1,498 | ||||||
| Identifiable intangible assets, net of | 392 | 422 | ||||||
| Other long-term assets | 262 | 196 | ||||||
| Total long-term assets | 6,182 | 5,899 | ||||||
| Total assets | $ | 7,729 | $ | 7,492 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 477 | $ | 532 | ||||
| Accrued expenses | 772 | 775 | ||||||
| Short-term borrowings and current maturities of long-term debt | 64 | 69 | ||||||
| Short-term operating lease liabilities | 129 | 121 | ||||||
| Other current liabilities | 99 | 93 | ||||||
| Total current liabilities | 1,542 | 1,590 | ||||||
| Long-term liabilities | ||||||||
| Long-term debt | 3,330 | 3,335 | ||||||
| Deferred tax liability | 364 | 337 | ||||||
| Employee benefit obligations | 88 | 91 | ||||||
| Long-term operating lease liabilities | 613 | 588 | ||||||
| Other long-term liabilities | 294 | 285 | ||||||
| Total long-term liabilities | 4,688 | 4,636 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, | ||||||||
| as of June 30, 2024 and December 31, 2023, respectively | - | - | ||||||
| Additional paid-in capital | 1,322 | 1,298 | ||||||
| Retained earnings | 402 | 185 | ||||||
| Accumulated other comprehensive loss | (225 | ) | (217 | ) | ||||
| Total equity | 1,499 | 1,266 | ||||||
| Total liabilities and equity | $ | 7,729 | $ | 7,492 | ||||
| Amounts may not add due to rounding. | ||||||||
| XPO, Inc. | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| (Unaudited) | |||||||||
| (In millions) | |||||||||
| Six Months Ended | |||||||||
| June 30, | |||||||||
| 2024 | 2023 | ||||||||
| Cash flows from operating activities of continuing operations | |||||||||
| Net income | $ | 217 | $ | 47 | |||||
| Loss from discontinued operations, net of taxes | - | (1 | ) | ||||||
| Income from continuing operations | 217 | 48 | |||||||
| Adjustments to reconcile income from continuing operations to net cash from operating activities | |||||||||
| Depreciation and amortization | 239 | 208 | |||||||
| Stock compensation expense | 42 | 41 | |||||||
| Accretion of debt | 5 | 7 | |||||||
| Deferred tax expense (benefit) | 25 | (6 | ) | ||||||
| Gains on sales of property and equipment | (5 | ) | (5 | ) | |||||
| Other | 6 | 39 | |||||||
| Changes in assets and liabilities | |||||||||
| Accounts receivable | (135 | ) | (64 | ) | |||||
| Other assets | (67 | ) | (31 | ) | |||||
| Accounts payable | 14 | (57 | ) | ||||||
| Accrued expenses and other liabilities | 13 | 27 | |||||||
| Net cash provided by operating activities from continuing operations | 355 | 207 | |||||||
| Cash flows from investing activities of continuing operations | |||||||||
| Payment for purchases of property and equipment | (496 | ) | (355 | ) | |||||
| Proceeds from sale of property and equipment | 13 | 13 | |||||||
| Net cash used in investing activities from continuing operations | (483 | ) | (342 | ) | |||||
| Cash flows from financing activities of continuing operations | |||||||||
| Proceeds from issuance of debt | - | 1,977 | |||||||
| Repurchase of debt | - | (2,003 | ) | ||||||
| Repayment of debt and finance leases | (39 | ) | (35 | ) | |||||
| Payment for debt issuance costs | (4 | ) | (15 | ) | |||||
| Change in bank overdrafts | 27 | 51 | |||||||
| Payment for tax withholdings for restricted shares | (17 | ) | (12 | ) | |||||
| Other | (1 | ) | 1 | ||||||
| Net cash used in financing activities from continuing operations | (35 | ) | (36 | ) | |||||
| Cash flows from discontinued operations | |||||||||
| Operating activities of discontinued operations | - | (8 | ) | ||||||
| Investing activities of discontinued operations | - | 1 | |||||||
| Net cash used in discontinued operations | - | (7 | ) | ||||||
| Effect of exchange rates on cash, cash equivalents and restricted cash | - | 5 | |||||||
| Net decrease in cash, cash equivalents and restricted cash | (162 | ) | (173 | ) | |||||
| Cash, cash equivalents and restricted cash, beginning of period | 419 | 470 | |||||||
| Cash, cash equivalents and restricted cash, end of period | $ | 256 | $ | 297 | |||||
| Amounts may not add due to rounding. | |||||||||
| North American Less-Than-Truckload Segment | ||||||||||||||||||||||
| Summary Financial Table | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | Change % | 2024 | 2023 | Change % | |||||||||||||||||
| Revenue (excluding fuel surcharge revenue) | $ | 1,064 | $ | 940 | 13.2 | % | $ | 2,075 | $ | 1,843 | 12.6 | % | ||||||||||
| Fuel surcharge revenue | 208 | 196 | 6.1 | % | 418 | 413 | 1.2 | % | ||||||||||||||
| Revenue | 1,272 | 1,136 | 12.0 | % | 2,493 | 2,256 | 10.5 | % | ||||||||||||||
| Salaries, wages and employee benefits | 639 | 573 | 11.5 | % | 1,252 | 1,128 | 11.0 | % | ||||||||||||||
| Purchased transportation | 68 | 87 | -21.8 | % | 146 | 186 | -21.5 | % | ||||||||||||||
| Fuel, operating expenses and supplies (1) | 236 | 226 | 4.4 | % | 479 | 474 | 1.1 | % | ||||||||||||||
| Operating taxes and licenses | 16 | 12 | 33.3 | % | 32 | 24 | 33.3 | % | ||||||||||||||
| Insurance and claims | 20 | 33 | -39.4 | % | 41 | 61 | -32.8 | % | ||||||||||||||
| Losses on sales of property and equipment | 1 | 1 | 0.0 | % | 3 | 2 | 50.0 | % | ||||||||||||||
| Depreciation and amortization | 86 | 71 | 21.1 | % | 168 | 139 | 20.9 | % | ||||||||||||||
| Transaction and integration costs | - | - | 0.0 | % | 1 | - | NM | |||||||||||||||
| Restructuring costs | 1 | 4 | -75.0 | % | 2 | 10 | -80.0 | % | ||||||||||||||
| Operating income | 203 | 129 | 57.4 | % | 368 | 232 | 58.6 | % | ||||||||||||||
| Operating ratio (2) | 84.1 | % | 88.7 | % | 85.2 | % | 89.7 | % | ||||||||||||||
| Amortization expense | 9 | 9 | 18 | 17 | ||||||||||||||||||
| Transaction and integration costs | - | - | 1 | - | ||||||||||||||||||
| Restructuring costs | 1 | 4 | 2 | 10 | ||||||||||||||||||
| Adjusted operating income (3) | $ | 214 | $ | 142 | 50.7 | % | $ | 389 | $ | 259 | 50.2 | % | ||||||||||
| Adjusted operating ratio (3) (4) | 83.2 | % | 87.6 | % | 84.4 | % | 88.5 | % | ||||||||||||||
| Depreciation expense | 77 | 62 | 150 | 122 | ||||||||||||||||||
| Pension income | 6 | 4 | 13 | 8 | ||||||||||||||||||
| Other | - | - | - | 1 | ||||||||||||||||||
| Adjusted EBITDA (5) | $ | 297 | $ | 208 | 42.8 | % | $ | 551 | $ | 390 | 41.3 | % | ||||||||||
| Adjusted EBITDA margin (6) | 23.3 | % | 18.3 | % | 22.1 | % | 17.3 | % | ||||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||||
| NM - Not meaningful. | ||||||||||||||||||||||
| (1) Fuel, operating expenses and supplies includes fuel-related taxes. | ||||||||||||||||||||||
| (2) Operating ratio is calculated as (1 - (Operating income divided by Revenue)) using the underlying unrounded amounts. | ||||||||||||||||||||||
| (3) See the “Non-GAAP Financial Measures” section of the press release. | ||||||||||||||||||||||
| (4) Adjusted operating ratio is calculated as (1 - (Adjusted operating income divided by Revenue)) using the underlying unrounded amounts; adjusted operating margin is the inverse of adjusted operating ratio. | ||||||||||||||||||||||
| (5) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. | ||||||||||||||||||||||
| (6) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts. | ||||||||||||||||||||||
| North American Less-Than-Truckload | ||||||||||||||||||
| Summary Data Table | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
| 2024 | 2023 | Change % | 2024 | 2023 | Change % | |||||||||||||
| Pounds per day (thousands) | 72,658 | 70,290 | 3.4 | % | 71,687 | 69,587 | 3.0 | % | ||||||||||
| Shipments per day | 53,519 | 51,220 | 4.5 | % | 52,460 | 50,159 | 4.6 | % | ||||||||||
| Average weight per shipment (in pounds) | 1,358 | 1,372 | -1.1 | % | 1,367 | 1,387 | -1.5 | % | ||||||||||
| Revenue per shipment (including fuel surcharges) | $ | 370.98 | $ | 348.86 | 6.3 | % | $ | 372.39 | $ | 352.40 | 5.7 | % | ||||||
| Revenue per shipment (excluding fuel surcharges) | $ | 310.24 | $ | 288.75 | 7.4 | % | $ | 309.91 | $ | 287.83 | 7.7 | % | ||||||
| Gross revenue per hundredweight (including fuel surcharges) (1) | $ | 28.04 | $ | 26.01 | 7.8 | % | $ | 27.92 | $ | 26.00 | 7.4 | % | ||||||
| Gross revenue per hundredweight (excluding fuel surcharges) (1) | $ | 23.56 | $ | 21.63 | 9.0 | % | $ | 23.35 | $ | 21.34 | 9.4 | % | ||||||
| Average length of haul (in miles) | 847.8 | 836.7 | 848.1 | 834.1 | ||||||||||||||
| Total average load factor (2) | 22,884 | 22,822 | 0.3 | % | 22,877 | 22,956 | -0.3 | % | ||||||||||
| Average age of tractor fleet (years) | 4.0 | 5.1 | ||||||||||||||||
| Number of working days | 64.0 | 63.5 | 127.5 | 127.5 | ||||||||||||||
| (1) Gross revenue per hundredweight excludes the adjustment required for financial statement purposes in accordance with the company's revenue recognition policy. | ||||||||||||||||||
| (2) Total average load factor equals freight pound miles divided by total linehaul miles. | ||||||||||||||||||
| Note: Table excludes the company's trailer manufacturing operations. Percentages presented are calculated using the underlying unrounded amounts. | ||||||||||||||||||
| European Transportation Segment | ||||||||||||||||||||||
| Summary Financial Table | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | Change % | 2024 | 2023 | Change % | |||||||||||||||||
| Revenue | $ | 808 | $ | 781 | 3.5 | % | $ | 1,605 | $ | 1,568 | 2.4 | % | ||||||||||
| Salaries, wages and employee benefits | 212 | 203 | 4.4 | % | 428 | 406 | 5.4 | % | ||||||||||||||
| Purchased transportation | 368 | 357 | 3.1 | % | 728 | 715 | 1.8 | % | ||||||||||||||
| Fuel, operating expenses and supplies (1) | 165 | 162 | 1.9 | % | 335 | 337 | -0.6 | % | ||||||||||||||
| Operating taxes and licenses | 4 | 3 | 33.3 | % | 8 | 6 | 33.3 | % | ||||||||||||||
| Insurance and claims | 13 | 13 | 0.0 | % | 27 | 28 | -3.6 | % | ||||||||||||||
| Gains on sales of property and equipment | (5 | ) | (3 | ) | 66.7 | % | (9 | ) | (7 | ) | 28.6 | % | ||||||||||
| Depreciation and amortization | 35 | 33 | 6.1 | % | 70 | 65 | 7.7 | % | ||||||||||||||
| Transaction and integration costs | 1 | - | NM | 1 | 1 | 0.0 | % | |||||||||||||||
| Restructuring costs | 3 | 1 | 200.0 | % | 11 | 8 | 37.5 | % | ||||||||||||||
| Operating income | $ | 10 | $ | 12 | -16.7 | % | $ | 6 | $ | 9 | -33.3 | % | ||||||||||
| Amortization expense | 5 | 5 | 10 | 10 | ||||||||||||||||||
| Transaction and integration costs | 1 | - | 1 | 1 | ||||||||||||||||||
| Restructuring costs | 3 | 1 | 11 | 8 | ||||||||||||||||||
| Adjusted operating income (2) | $ | 19 | $ | 18 | 5.6 | % | $ | 28 | $ | 28 | 0.0 | % | ||||||||||
| Depreciation expense | 30 | 28 | 59 | 55 | ||||||||||||||||||
| Adjusted EBITDA (3) | $ | 49 | $ | 46 | 6.5 | % | $ | 87 | $ | 83 | 4.8 | % | ||||||||||
| Adjusted EBITDA margin (4) | 6.1 | % | 6.0 | % | 5.4 | % | 5.3 | % | ||||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||||
| NM - Not meaningful. | ||||||||||||||||||||||
| (1) Fuel, operating expenses and supplies includes fuel-related taxes. | ||||||||||||||||||||||
| (2) See the “Non-GAAP Financial Measures” section of the press release. | ||||||||||||||||||||||
| (3) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. | ||||||||||||||||||||||
| (4) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts. | ||||||||||||||||||||||
| Corporate | ||||||||||||||||||||||
| Summary Financial Table | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | Change % | 2024 | 2023 | Change % | |||||||||||||||||
| Revenue | $ | - | $ | - | 0.0 | % | $ | - | $ | - | 0.0 | % | ||||||||||
| Salaries, wages and employee benefits | 3 | 7 | -57.1 | % | 8 | 11 | -27.3 | % | ||||||||||||||
| Fuel, operating expenses and supplies | - | 2 | -100.0 | % | - | 6 | -100.0 | % | ||||||||||||||
| Operating taxes and licenses | - | - | 0.0 | % | - | - | 0.0 | % | ||||||||||||||
| Insurance and claims | - | - | 0.0 | % | 3 | 1 | 200.0 | % | ||||||||||||||
| Depreciation and amortization | 1 | 3 | -66.7 | % | 2 | 4 | -50.0 | % | ||||||||||||||
| Transaction and integration costs | 11 | 17 | -35.3 | % | 24 | 38 | -36.8 | % | ||||||||||||||
| Restructuring costs | 1 | 5 | -80.0 | % | 1 | 16 | -93.8 | % | ||||||||||||||
| Operating loss | $ | (16 | ) | $ | (34 | ) | -52.9 | % | $ | (39 | ) | $ | (76 | ) | -48.7 | % | ||||||
| Other income (expense) (1) | - | (1 | ) | 3 | (1 | ) | ||||||||||||||||
| Depreciation and amortization | 1 | 3 | 2 | 4 | ||||||||||||||||||
| Transaction and integration costs | 11 | 17 | 24 | 38 | ||||||||||||||||||
| Restructuring costs | 1 | 5 | 1 | 16 | ||||||||||||||||||
| Adjusted EBITDA (2) | $ | (3 | ) | $ | (10 | ) | -70.0 | % | $ | (8 | ) | $ | (19 | ) | -57.9 | % | ||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||||
| (1) Other income (expense) consists of foreign currency gain (loss) and other income (expense). | ||||||||||||||||||||||
| (2) See the “Non-GAAP Financial Measures” section of the press release. | ||||||||||||||||||||||
| XPO, Inc. | ||||||||||||||||||||||
| Reconciliation of Non-GAAP Measures | ||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||
| 2024 | 2023 | Change % | 2024 | 2023 | Change % | |||||||||||||||||
| Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA | ||||||||||||||||||||||
| Net income from continuing operations | $ | 150 | $ | 31 | 383.9 | % | $ | 217 | $ | 48 | 352.1 | % | ||||||||||
| Debt extinguishment loss | - | 23 | - | 23 | ||||||||||||||||||
| Interest expense | 56 | 43 | 114 | 85 | ||||||||||||||||||
| Income tax provision (benefit) | (3 | ) | 13 | 20 | 17 | |||||||||||||||||
| Depreciation and amortization expense | 122 | 107 | 239 | 208 | ||||||||||||||||||
| Transaction and integration costs | 12 | 17 | 26 | 39 | ||||||||||||||||||
| Restructuring costs | 6 | 10 | 14 | 34 | ||||||||||||||||||
| Adjusted EBITDA (1) | $ | 343 | $ | 244 | 40.6 | % | $ | 631 | $ | 454 | 39.0 | % | ||||||||||
| Revenue | $ | 2,079 | $ | 1,917 | 8.5 | % | $ | 4,097 | $ | 3,824 | 7.1 | % | ||||||||||
| Adjusted EBITDA margin (1) (2) | 16.5 | % | 12.7 | % | 15.4 | % | 11.9 | % | ||||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||||||
| (1) See the “Non-GAAP Financial Measures” section of the press release. | ||||||||||||||||||||||
| (2) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts. | ||||||||||||||||||||||
| XPO, Inc. | ||||||||||||||||||
| Reconciliation of Non-GAAP Measures (cont.) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | June 30, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||
| Reconciliation of Net Income from Continuing Operations and Diluted Earnings Per Share from Continuing Operations to Adjusted Net Income from Continuing Operations and Adjusted Earnings Per Share from Continuing Operations | ||||||||||||||||||
| Net income from continuing operations | $ | 150 | $ | 31 | $ | 217 | $ | 48 | ||||||||||
| Debt extinguishment loss | - | 23 | - | 23 | ||||||||||||||
| Amortization of acquisition-related intangible assets | 14 | 14 | 28 | 27 | ||||||||||||||
| Transaction and integration costs | 12 | 17 | 26 | 39 | ||||||||||||||
| Restructuring costs | 6 | 10 | 14 | 34 | ||||||||||||||
| Income tax associated with the adjustments above (1) | (6 | ) | (12 | ) | (12 | ) | (23 | ) | ||||||||||
| European legal entity reorganization (2) | (41 | ) | - | (41 | ) | - | ||||||||||||
| Adjusted net income from continuing operations (3) | $ | 135 | $ | 83 | $ | 232 | $ | 148 | ||||||||||
| Adjusted diluted earnings from continuing operations per share (3) | $ | 1.12 | $ | 0.71 | $ | 1.93 | $ | 1.27 | ||||||||||
| Weighted-average common shares outstanding | ||||||||||||||||||
| Diluted weighted-average common shares outstanding | 120 | 118 | 120 | 117 | ||||||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||
| (1) This line item reflects the aggregate tax benefit of all non-tax related adjustments reflected in the table above. The detail by line item is as follows: | ||||||||||||||||||
| Debt extinguishment loss | $ | - | $ | 5 | $ | - | $ | 5 | ||||||||||
| Amortization of acquisition-related intangible assets | 3 | 3 | 7 | 6 | ||||||||||||||
| Transaction and integration costs | 1 | 2 | 3 | 5 | ||||||||||||||
| Restructuring costs | 1 | 2 | 3 | 7 | ||||||||||||||
| $ | 6 | $ | 12 | $ | 12 | $ | 23 | |||||||||||
| Amounts may not add due to rounding. | ||||||||||||||||||
| The income tax rate applied to reconciling items is based on the GAAP annual effective tax rate, excluding discrete items, non-deductible compensation, and contribution- and margin-based taxes. | ||||||||||||||||||
| (2) Reflects a tax benefit recognized in the second quarter of 2024 related to a legal entity reorganization within our European Transportation business. | ||||||||||||||||||
| (3) See the "Non-GAAP Financial Measures" section of the press release. | ||||||||||||||||||
FAQ
What was XPO's revenue in Q2 2024?
How much did XPO's diluted EPS grow in Q2 2024?
What was the performance of XPO's North American LTL segment in Q2 2024?
How did XPO's European Transportation segment perform in Q2 2024?
What was XPO's adjusted EBITDA in Q2 2024?
