XPO, Inc. (NYSE:XPO) shares are trading higher on Thursday after the company reported upbeat fourth-quarter 2025 financial results.
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Details
Revenue reached $2.01 billion for the quarter, up 4.7% year over year (Y/Y), surpassing estimates of $1.96 billion.
Adjusted net income was $105 million for the quarter, compared to $107 million in the fourth quarter of 2024. Adjusted EPS of 88 cents exceeded the analyst consensus of 77 cents.
XPO’s operating income declined to $143 million from $148 million in the same period last year.
Adjusted EBITDA for the quarter was $312 million, an increase from $303 million in the prior year.
XPO generated $226 million in operating cash flow and ended the quarter with $310 million in cash and cash equivalents.
The company repurchased $65 million of shares in the quarter.
Segment Performance
XPO’s North American Less-Than-Truckload (LTL) segment revenue stood at $1.17 billion, a 0.8% increase year-over-year (Y/Y). Yield, excluding fuel, rose 5.2% Y/Y, while shipments per day fell 1.6% Y/Y, and tonnage per day declined 4.5% Y/Y.
LTL segment achieved an adjusted operating ratio of 84.4%, a 180-basis-point improvement year-over-year, which CEO Mario Harik referred to as “outperforming seasonality.”
Adjusted EBITDA for the North American LTL segment increased 1.8% Y/Y to $285 million in the quarter.
Meanwhile, the European Transportation segment reported revenue of $846 million, up 10.6% Y/Y. Adjusted EBITDA for this segment rose to $32 million from $27 million in the prior year.
Harik added, ”Our initiatives for mix and pricing delivered our 12th consecutive quarter of sequential growth in revenue per shipment, excluding fuel. At the same time, our AI developments lowered our cost to serve by improving network efficiency and labor productivity."
XPO Price Action: XPO shares are up 5.29% at $188.99 at publication on Thursday.
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