This Shipping Company's Earnings Show The Industrial Economy Is Improving -- Barrons.com

Dow Jones04-30 20:04

Al Root

The industrial economy has weathered the oil storm -- so far. Exhibit 1: Logistics provider XPO, which delivered better-than-expected first-quarter earnings on Thursday. The stock was up in early trading.

The less-than-truckload service provider reported first-quarter earnings per share of $1.01 from sales of $2.1 billion. Wall Street was looking for earnings per share of 88 cents from sales of $2 billion, according to FactSet. A year ago, XPO reported earnings per share of 73 cents from sales of $2 billion.

XPO stock was up 0.9% at $218.61 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up 0.4% and 0.6%, respectively.

Less-than-truckload, or LTL, services are typically for industrial customers who don't need to contract a full truck and move goods relatively short distances. LTL shippers can offer investors a near-real-time view of the health of the industrial economy.

Things are getting better. XPO's North American LTL segment grew revenue to $1.23 billion, up from $1.17 billion for the same period in 2025. Pricing increased by 4%, and shipments a day rose by 3.0%. Tonnage a day increased 0.1%.

Investors have been betting on a recovery after a brutal three-year freight recession that coincided with weak U.S. industrial activity.

Coming into Thursday trading, XPO shares were up 59% year to date and up 122% over the past 12 months. Investors have been betting on a recovery in freight markets.

Shares jumped 3.4% after reporting fourth-quarter numbers in February.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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April 30, 2026 08:04 ET (12:04 GMT)

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