XPO Reports Unchanged Revenue at $2.08 Billion for Q2
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XPO Inc. revenue during the second quarter remained essentially unchanged from the prior year amid efforts to improve operations, services and technology, .
The Greenwich, Conn.-based less-than-truckload carrier posted net income of $106 million, or 89 cents a diluted share, for the three months ending June 30. That compared with $150 million, $1.25, during the same time the previous year. Total revenue was $2.08 billion. The company noted that its focus on service drove above-market pricing growth and share gains with local customers despite the soft freight environment causing a tonnage decline.
“Over the past three years, we’ve improved our adjusted operating ratio by 470 basis points in a soft rate environment, underscoring the strength of our operating model, and in the second quarter, we outpaced both the industry and normal seasonality on margin expansion,” XPO CEO Mario Harik said on a call with investors. “This was underpinned by above-market yield growth, ongoing cost efficiencies, and most important, the superior service that supports our customers.”
Harik credited that customer-focused service for driving above-market pricing growth and share gains with local customers despite the soft freight environment. He highlighted how the company grew yields 6.1% and increased revenue per shipment 5.6% from the prior year. The company also realized labor productivity gains and reduced purchased transportation expenses.
“We reported another quarter of outperformance that showcased the operating momentum we’ve built across every part of the business,” Harik said. “We delivered strong yield growth, realized cost savings throughout the network, and deepened our competitive edge through world-class service and technology. Our AI initiatives are already generating measurable returns, and our investments in the network are unlocking new levels of efficiency and flexibility.”
North American Less-Than-Truckload segment revenue decreased 2.5% to $1.24 billion from $1.27 billion during the same time last year. The report noted shipments per day decreased 5.1%, while tonnage per day declined 6.7%. But yields increased 6.1%, while revenue per shipment grew 5.6%. Operating income decreased 2% to $199 million from $203 million last year.
European Transportation segment revenue increased 4.1% to $841 million from $808 million. Operating income increased 10% to $11 million from $10 million.
XPO ranks No. 5 on the Transport Topics Top 100 list of the largest for-hire carriers in North America and No. 35 on the TT Top 50 list of the largest global freight companies.
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