Xpo, Inc. ( (XPO) ) has realeased its Q3 earnings. Here is a breakdown of the information Xpo, Inc. presented to its investors.
XPO, Inc. is a leading provider of less-than-truckload (LTL) freight transportation services in North America and Europe, leveraging proprietary technology to enhance operational efficiency and customer service.
In the third quarter of 2024, XPO, Inc. reported a strong financial performance with an increase in both revenue and earnings. The company achieved a diluted earnings per share of $0.79, up from $0.72 in the same period in 2023, and an adjusted diluted EPS of $1.02, rising from $0.88. These results highlight the company’s ongoing ability to improve its operations even in a challenging freight environment.
XPO’s North American LTL segment was a significant driver of growth, reporting a 1.9% increase in revenue to $1.25 billion and a 16.8% rise in operating income to $188 million. The segment also achieved a notable 17.8% increase in adjusted EBITDA due to improved yield and cost management. Meanwhile, the European Transportation segment saw a 6.8% rise in revenue to $803 million, though its operating income declined. Across the company, adjusted EBITDA increased by 19.8% to $333 million, reflecting robust operational enhancements and strategic pricing initiatives.
The company closed the quarter with $378 million in cash and cash equivalents and generated $264 million in cash flow from operating activities, underscoring its solid financial footing. Management remains optimistic about future growth, especially as the freight market is expected to recover, and believes that maintaining high service levels will continue to expand margins.
Looking ahead, XPO’s management is focused on driving further efficiencies and positioning the company for accelerated earnings growth in a recovering freight market, aiming to deliver value and enhanced service to its customers through strategic initiatives and technological advancements.
