XPO (NYSE: XPO) today announced its financial results for the third quarter 2025. The company reported diluted earnings per share of $0.68, compared with $0.79 for the same period in 2024, and adjusted diluted earnings per share of $1.07, compared with $1.02 for the same period in 2024.

Mario Harik, chief executive officer of XPO, said, “We continued to exceed expectations in the third quarter, delivering adjusted EBITDA of $342 million and adjusted diluted EPS of $1.07, both up year-over-year in a soft freight environment.

“In North American LTL, we grew adjusted operating income by 10% to $217 million and improved our adjusted operating ratio by 150 basis points to 82.7%, significantly outperforming seasonality. Additionally, we drove meaningful year-over-year and sequential improvements in yield, and our eleventh consecutive quarter of sequential growth in revenue per shipment, excluding fuel. A combination of profitable share gains in the local channel and AI-driven productivity improvements generated strong margin outperformance in the quarter.”

Harik continued, “Our intense execution is resulting in record service quality and margin expansion at the trough of the cycle. We’re in the early innings of realizing our long-term margin opportunity, and we expect performance to accelerate as our strategy continues to gain traction.”

Third Quarter Highlights

For the third quarter 2025, the company generated revenue of $2.11 billion, compared with $2.05 billion for the same period in 2024.

Operating income was $164 million for the third quarter, compared with $176 million for the same period in 2024. Net income was $82 million for the third quarter, compared with $95 million for the same period in 2024. The year-over-year decrease in operating income and net income reflects a $35 million charge in the Corporate segment for a legal matter related to a subsidiary owned by Con-way pre-acquisition. This is reflected in diluted earnings per share of $0.68 for the third quarter, compared with $0.79 for the same period in 2024.

Adjusted net income, a non-GAAP financial measure, was $128 million for the third quarter, compared with $122 million for the same period in 2024. Adjusted diluted EPS, a non-GAAP financial measure, was $1.07 for the third quarter, compared with $1.02 for the same period in 2024.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $342 million for the third quarter, compared with $333 million for the same period in 2024.

The company generated $371 million of cash flow from operating activities in the third quarter and ended the quarter with $335 million of cash and cash equivalents on hand, after $150 million of net capital expenditures. The company repurchased $50 million of common stock and repaid $50 million of term loan financing in the third quarter.

Results by Business Segment

• North American Less-Than-Truckload (LTL): The segment generated revenue of $1.26 billion for the third quarter 2025, compared with $1.25 billion for the same period in 2024. On a year-over-year basis, shipments per day decreased 3.5%, and tonnage per day decreased 6.1%, while yield, excluding fuel, increased 5.9%.
  
  Operating income was $208 million for the third quarter, compared with $188 million for the same period in 2024. Adjusted operating income, a non-GAAP financial measure, was $217 million for the third quarter, compared with $198 million for the same period in 2024. Adjusted operating ratio, a non-GAAP financial measure, was 82.7%, reflecting a year-over-year improvement of 150 basis points.
  
  Adjusted EBITDA for the third quarter was $308 million, compared with $284 million for the same period in 2024. The year-over-year increase in adjusted EBITDA was due primarily to yield growth and improved productivity, partially offset by lower tonnage per day and wage inflation.
  
  
• European Transportation: The segment generated revenue of $857 million for the third quarter 2025, compared with $803 million for the same period in 2024. Operating income was a loss of $2 million for the third quarter, compared with income of $6 million for the same period in 2024.
  
  Adjusted EBITDA was $38 million for the third quarter, compared with $44 million for the same period in 2024.
  
  
• Corporate: The segment generated an operating loss of $42 million for the third quarter 2025, compared with a loss of $18 million for the same period in 2024. The year-over-year increase in operating loss reflects the $35 million charge for a legal matter, partially offset by a reduction of $11 million in transaction and integration costs.
  
  Adjusted EBITDA was a loss of $4 million for the third quarter 2025, compared with income of $5 million for the same period in 2024, as the company lapped a gain on a past investment in a private company that was sold a year ago.

Conference Call

The company will hold a conference call on Thursday, October 30, 2025, 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 November 29, 2025. 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 13756037.

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 17 billion pounds of freight per year, enabled by its proprietary technology. XPO serves 55,000 customers with 605 locations and 38,000 employees in North America and Europe, and is headquartered 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; adjusted diluted earnings 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, 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 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 expense and other adjustments 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 and realize growth and expansion as a result of those initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; our ability to continue insourcing linehaul in ways that enhance our network efficiency and productivity; the anticipated impact of a freight market recovery on our business; our ability to capture profitable share gains, facilitate yield growth, and improve margins during an upcycle; 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 proprietary technology and suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our ability to repurchase shares on favorable terms; 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 management talent and key employees including qualified drivers; labor matters; litigation; competition; and our ability to deliver improve pricing growth driven by service quality.

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.