EX-99.1 2 tm2521904d2_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

 

XPO Reports Second Quarter 2025 Results

 

GREENWICH, Conn. – July 31, 2025 – XPO (NYSE: XPO) today announced its financial results for the second quarter 2025. The company reported diluted earnings per share of $0.89, compared with $1.25 for the same period in 2024, and adjusted diluted earnings per share of $1.05, compared with $1.12 for the same period in 2024.

 

Second Quarter 2025 Summary Results

 

   Three Months Ended June 30, 
   Revenue   Operating Income (Loss) 
(in millions)  2025  2024  Change %   2025  2024  Change % 
North American Less-Than-Truckload Segment  $1,240  $1,272   -2.5%  $199  $203   -2.0%
European Transportation Segment   841   808   4.1%   11   10   10.0%
Corporate   -   -   0.0%   (11)  (16)  -31.3%
Total  $2,080  $2,079   0.0%  $198  $197   0.5%

 

   Adjusted Operating Income(1)  Adjusted EBITDA(1) 
(in millions)  2025  2024  Change %   2025   2024  Change % 
North American Less-Than-Truckload Segment  $211  $214  -1.4%  $300   $297   1.0%
European Transportation Segment   15   19  -21.1%   44    49   -10.2%
Corporate    NA     NA   NA    (4)   (3)  33.3%
Total  $ NA   $ NA   NA   $340   $343   -0.9%

 

   Net Income   Diluted EPS 
(in millions, except for per-share data)  2025  2024  Change %   2025  2024  Change % 
Total  $106  $150   -29.3%  $0.89  $1.25   -28.8%

 

   Diluted Weighted-Average
Common Shares Outstanding		   Adjusted Diluted EPS (1) 
(in millions, except for per-share data)  2025   2024   2025   2024   Change % 
Total   119    120   $1.05   $1.12    -6.3%

 

Amounts may not add due to rounding.
NA - Not applicable
(1) See the “Non-GAAP Financial Measures” section of the press release

 

Mario Harik, chief executive officer of XPO, said, “We delivered strong results in the second quarter, with adjusted EBITDA of $340 million and adjusted diluted EPS of $1.05, both exceeding expectations.

 

“In our North American LTL business, we achieved an adjusted operating ratio of 82.9%, reflecting an industry-best year-over-year improvement of 30 basis points. While our tonnage declined in the soft freight environment, our world-class service culture drove above-market pricing growth and share gains with local customers. We grew yield, excluding fuel, by 6.1% and increased revenue per shipment by 5.6% from the prior year, with sequential growth in both metrics. On the cost side, we reduced purchased transportation expense by 53% as we insourced linehaul miles to a record level. And we generated another gain in labor productivity, supported by our proprietary technology.”

 

Harik continued, “We’re executing at a high level and consistently outperforming the industry, with a strategy that positions us to deliver long-term margin expansion and earnings growth.”

 

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Second Quarter Highlights

 

For the second quarter 2025, the company generated revenue of $2.08 billion, compared with $2.08 billion for the same period in 2024.

 

Operating income was $198 million for the second quarter, compared with $197 million for the same period in 2024. Net income was $106 million for the second quarter, compared with $150 million for the same period in 2024, as the company lapped a one-time tax benefit related to the European business. Diluted earnings per share was $0.89 for the second quarter, compared with $1.25 for the same period in 2024.

 

Adjusted net income, a non-GAAP financial measure, was $125 million for the second quarter, compared with $135 million for the same period in 2024. Adjusted diluted EPS, a non-GAAP financial measure, was $1.05 for the second quarter, compared with $1.12 for the same period in 2024.

 

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $340 million for the second quarter, compared with $343 million for the same period in 2024.

 

The company generated $247 million of cash flow from operating activities in the second quarter and ended the quarter with $225 million of cash and cash equivalents on hand, after $191 million of net capital expenditures.

 

Results by Business Segment

 

·North American Less-Than-Truckload (LTL): The segment generated revenue of $1.24 billion for the second quarter 2025, compared with $1.27 billion for the same period in 2024. On a year-over-year basis, shipments per day decreased 5.1%, tonnage per day decreased 6.7%, while yield, excluding fuel, increased 6.1%. Including fuel, yield increased 4.2%.

 

Operating income was $199 million for the second quarter, compared with $203 million for the same period in 2024. Adjusted operating income, a non-GAAP financial measure, was $211 million for the second quarter, compared with $214 million for the same period in 2024. Adjusted operating ratio, a non-GAAP financial measure, was 82.9%, reflecting a year-over-year improvement of 30 basis points.

 

Adjusted EBITDA for the second quarter was $300 million, compared with $297 million for the same period in 2024. The year-over-year increase in adjusted EBITDA was due primarily to yield growth and lower purchased transportation costs, partially offset by lower fuel surcharge revenue, lower tonnage per day and wage inflation.

 

·European Transportation: The segment generated revenue of $841 million for the second quarter 2025, compared with $808 million for the same period in 2024. Operating income was $11 million for the second quarter, compared with $10 million for the same period in 2024.

 

Adjusted EBITDA was $44 million for the second quarter, compared with $49 million for the same period in 2024.

 

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·Corporate: The segment generated an operating loss of $11 million for the second quarter 2025, compared with a loss of $16 million for the same period in 2024. The year-over-year improvement in operating loss was due primarily to a reduction in transaction and integration costs, partially offset by higher restructuring costs.

 

Adjusted EBITDA was a loss of $4 million for the second quarter 2025, compared with a loss of $3 million for the same period in 2024.

 

Conference Call

 

The company will hold a conference call on Thursday, July 31, 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 August 30, 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 13754630.

 

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 608 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.

 

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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.

 

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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 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 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.

 

Investor Contact

Brian Scasserra

+1 617-607-6429

brian.scasserra@xpo.com

 

Media Contact

Cole Horton

+1 203-609-6004

cole.horton@xpo.com

 

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XPO, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(In millions, except per share data)

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2025  2024  Change %   2025   2024  Change % 
Revenue  $2,080  $2,079   0.0%  $4,034   $4,097   -1.5%
Salaries, wages and employee benefits   871   854   2.0%   1,703    1,688   0.9%
Purchased transportation   426   436   -2.3%   826    874   -5.5%
Fuel, operating expenses and supplies   384   402   -4.5%   777    814   -4.5%
Operating taxes and licenses   21   21   0.0%   40    40   0.0%
Insurance and claims   40   33   21.2%   75    71   5.6%
Gains on sales of property and equipment   (1)  (4)  -75.0%   (3)   (5)  -40.0%
Depreciation and amortization expense   131   122   7.4%   254    239   6.3%
Legal matter (1)   (2)  -   NM    (13)   -   NM 
Transaction and integration costs   3   12   -75.0%   6    26   -76.9%
Restructuring costs   8   6   33.3%   20    14   42.9%
Operating income   198   197   0.5%   349    335   4.2%
Other income   (2)  (6)  -66.7%   (3)   (16)  -81.3%
Debt extinguishment loss   -   -   0.0%   5    -   NM 
Interest expense   56   56   0.0%   112    114   -1.8%
Income before income tax provision (benefit)   143   147   -2.7%   234    237   -1.3%
Income tax provision (benefit)   37   (3)  NM    59    20   195.0%
Net income  $106  $150   -29.3%  $175   $217   -19.4%
                            
Earnings per share data (2)                           
Basic earnings per share  $0.90  $1.29       $1.49   $1.87     
Diluted earnings per share  $0.89  $1.25       $1.47   $1.81     
                            
Weighted-average common shares outstanding                           
Basic weighted-average common shares outstanding   118   116        118    116     
Diluted weighted-average common shares outstanding   119   120        119    120     

 

Amounts may not add due to rounding.
NM - Not meaningful.
(1) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015.
(2) The sum of quarterly earnings per share may not equal year-to-date amounts due to differences in the weighted-average number of shares outstanding during the respective periods.

 

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XPO, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In millions, except per share data)

 

   June 30,   December 31, 
   2025   2024 
ASSETS          
Current assets          
Cash and cash equivalents  $225   $246 
Accounts receivable, net of allowances of $46 and $50, respectively   1,132    977 
Other current assets   265    283 
Total current assets   1,623    1,505 
Long-term assets          
Property and equipment, net of $2,219 and $2,019 in accumulated depreciation, respectively   3,646    3,402 
Operating lease assets   756    727 
Goodwill   1,553    1,461 
Identifiable intangible assets, net of $552 and $499 in accumulated amortization, respectively   340    361 
Other long-term assets   214    254 
Total long-term assets   6,510    6,206 
Total assets  $8,133   $7,712 
           
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities          
Accounts payable  $498   $477 
Accrued expenses   777    708 
Short-term borrowings and current maturities of long-term debt   63    62 
Short-term operating lease liabilities   148    127 
Other current liabilities   113    46 
Total current liabilities   1,599    1,420 
Long-term liabilities          
Long-term debt   3,344    3,325 
Deferred tax liability   383    393 
Employee benefit obligations   85    85 
Long-term operating lease liabilities   612    603 
Other long-term liabilities   329    283 
Total long-term liabilities   4,753    4,690 
           
Stockholders’ equity          
Common stock, $0.001 par value; 300 shares authorized; 118 and 117 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively   -    - 
Additional paid-in capital   1,233    1,274 
Retained earnings   747    572 
Accumulated other comprehensive loss   (199)   (246)
Total equity   1,781    1,601 
Total liabilities and equity  $8,133   $7,712 

 

Amounts may not add due to rounding.

 

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XPO, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In millions)

 

   Six Months Ended 
   June 30, 
   2025   2024 
Cash flows from operating activities          
Net income  $175   $217 
Adjustments to reconcile net income to net cash from operating activities          
Depreciation and amortization   254    239 
Stock compensation expense   31    42 
Accretion of debt   5    5 
Deferred tax expense   6    25 
Gains on sales of property and equipment   (3)   (5)
Other   14    6 
Changes in assets and liabilities          
Accounts receivable   (124)   (135)
Other assets   26    (67)
Accounts payable   (22)   14 
Accrued expenses and other liabilities   26    13 
Net cash provided by operating activities   389    355 
Cash flows from investing activities          
Payment for purchases of property and equipment   (395)   (496)
Proceeds from sale of property and equipment   12    13 
Net cash used in investing activities   (382)   (483)
Cash flows from financing activities          
Repayment of debt and finance leases   (36)   (39)
Payment for debt issuance costs   (3)   (4)
Repurchase of common stock   (10)   - 
Change in bank overdrafts   22    27 
Payment for tax withholdings for restricted shares   (48)   (17)
Other   2    (1)
Net cash used in financing activities   (74)   (35)
Effect of exchange rates on cash, cash equivalents and restricted cash   2    - 
Net decrease in cash, cash equivalents and restricted cash   (65)   (162)
Cash, cash equivalents and restricted cash, beginning of period   298    419 
Cash, cash equivalents and restricted cash, end of period  $233   $256 

 

Amounts may not add due to rounding.

 

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North American Less-Than-Truckload Segment
Summary Financial Table
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   Change %   2025   2024   Change % 
Revenue (excluding fuel surcharge revenue)  $1,057   $1,064   -0.7%  $2,051   $2,075   -1.2%
Fuel surcharge revenue   183    208   -12.0%   361    418   -13.6%
Revenue   1,240    1,272   -2.5%   2,412    2,493   -3.2%
Salaries, wages and employee benefits   643    639   0.6%   1,259    1,252   0.6%
Purchased transportation   32    68   -52.9%   69    146   -52.7%
Fuel, operating expenses and supplies (1)   222    236   -5.9%   454    479   -5.2%
Operating taxes and licenses   17    16   6.3%   33    32   3.1%
Insurance and claims   25    20   25.0%   49    41   19.5%
Losses on sales of property and equipment   2    1   100.0%   2    3   -33.3%
Depreciation and amortization   96    86   11.6%   185    168   10.1%
Transaction and integration costs   -    -   0.0%   -    1   -100.0%
Restructuring costs   4    1   300.0%   4    2   100.0%
Operating income   199    203   -2.0%   357    368   -3.0%
Operating ratio (2)   84.0%   84.1%       85.2%   85.2%    
Amortization expense   9    9        18    18     
Transaction and integration costs   -    -        -    1     
Restructuring costs   4    1        4    2     
Gains on real estate transactions   -    -        (2)   -     
Adjusted operating income (3)  $211   $214   -1.4%  $377   $389   -3.1%
Adjusted operating ratio (3) (4)   82.9%   83.2%       84.4%   84.4%    
Depreciation expense   87    77        167    150     
Pension income   2    6        3    13     
Gains on real estate transactions   -    -        2    -     
Adjusted EBITDA (5)  $300   $297   1.0%  $550   $551   -0.2%
Adjusted EBITDA margin (5)   24.2%   23.3%       22.8%   22.1%    

 

Amounts may not add due to rounding.
(1) Fuel, operating expenses and supplies includes fuel-related taxes.
(2) Operating ratio is calculated as (1 - (Operating income divided by Revenue)) using the underlying unrounded amounts.
(3) See the “Non-GAAP Financial Measures” section of the press release.
(4) Adjusted operating ratio is calculated as (1 - (Adjusted operating income divided by Revenue)) using the underlying unrounded amounts; adjusted operating margin is the inverse of adjusted operating ratio.
(5) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.
 

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North American Less-Than-Truckload
Summary Data Table
(Unaudited)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2025  2024  Change %   2025  2024  Change % 
Pounds per day (thousands)   67,813   72,658   -6.7%   66,625   71,687   -7.1%
                           
Shipments per day   50,782   53,519   -5.1%   49,596   52,460   -5.5%
                           
Average weight per shipment (in pounds)   1,335   1,358   -1.6%   1,343   1,367   -1.7%
                           
Revenue per shipment (including fuel surcharges)  $384.13  $370.98   3.5%  $384.20  $372.39   3.2%
                           
Revenue per shipment (excluding fuel surcharges)  $327.53  $310.24   5.6%  $326.66  $309.91   5.4%
                           
Gross revenue per hundredweight (including fuel surcharges) (1)  $29.23  $28.04   4.2%  $29.15  $27.92   4.4%
                           
Gross revenue per hundredweight (excluding fuel surcharges) (1)  $24.99  $23.56   6.1%  $24.86  $23.35   6.5%
                           
Average length of haul (in miles)   845.5   847.8        845.5   848.1     
                           
Total average load factor (2)   22,765   22,884   -0.5%   22,602   22,877   -1.2%
                           
Average age of tractor fleet (years)   3.7   4.0                  
                           
Number of working days   63.5   64.0        126.5   127.5     

 

(1) Gross revenue per hundredweight excludes the adjustment required for financial statement purposes in accordance with the company’s revenue recognition policy.
(2) Total average load factor equals freight pound miles divided by total linehaul miles.
 
Note: Table excludes the company’s trailer manufacturing operations. Percentages presented are calculated using the underlying unrounded amounts.

 

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European Transportation Segment
Summary Financial Table
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   Change %   2025   2024   Change % 
Revenue  $841   $808   4.1%  $1,622   $1,605   1.1%
Salaries, wages and employee benefits   224    212   5.7%   436    428   1.9%
Purchased transportation   394    368   7.1%   757    728   4.0%
Fuel, operating expenses and supplies (1)   163    165   -1.2%   324    335   -3.3%
Operating taxes and licenses   4    4   0.0%   7    8   -12.5%
Insurance and claims   15    13   15.4%   26    27   -3.7%
Gains on sales of property and equipment   (3)   (5)  -40.0%   (5)   (9)  -44.4%
Depreciation and amortization   34    35   -2.9%   67    70   -4.3%
Legal matter (2)   (2)   -   NM    (13)   -   NM 
Transaction and integration costs   -    1   -100.0%   -    1   -100.0%
Restructuring costs   1    3   -66.7%   12    11   9.1%
Operating income  $11   $10   10.0%  $12   $6   100.0%
Amortization expense   5    5        10    10     
Legal matter (2)   (2)   -        (13)   -     
Transaction and integration costs   -    1        -    1     
Restructuring costs   1    3        12    11     
Adjusted operating income (3)  $15   $19   -21.1%  $20   $28   -28.6%
Depreciation expense   29    30        56    59     
Adjusted EBITDA (4)  $44   $49   -10.2%  $76   $87   -12.6%
Adjusted EBITDA margin (4)   5.2%   6.1%       4.7%   5.4%    

 

Amounts may not add due to rounding.

NM - Not meaningful.

(1) Fuel, operating expenses and supplies includes fuel-related taxes.

(2) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015.

(3) See the “Non-GAAP Financial Measures” section of the press release.

(4) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.

 

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Corporate
Summary Financial Table
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   Change %   2025   2024   Change % 
Revenue  $-   $-    0.0%  $-   $-    0.0%
Salaries, wages and employee benefits   4    3    33.3%   8    8    0.0%
Insurance and claims   -    -    0.0%   -    3    -100.0%
Depreciation and amortization   1    1    0.0%   2    2    0.0%
Transaction and integration costs   2    11    -81.8%   6    24    -75.0%
Restructuring costs   4    1    300.0%   5    1    400.0%
Operating loss  $(11)  $(16)   -31.3%  $(20)  $(39)   -48.7%
Other income (expense) (1)   -    -       -    3      
Depreciation and amortization   1    1       2    2      
Transaction and integration costs   2    11         6    24      
Restructuring costs   4    1         5    1      
Adjusted EBITDA (2)  $(4)  $(3)   33.3%  $(8)  $(8)   0.0%

 

Amounts may not add due to rounding.
(1) Other income (expense) consists of foreign currency gain (loss) and other income (expense).
(2) See the “Non-GAAP Financial Measures” section of the press release.

 

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XPO, Inc.
Reconciliation of Non-GAAP Measures
(Unaudited)
(In millions)

 

   Three Months Ended June 30,   Six Months Ended June 30, 
   2025   2024   Change %   2025   2024   Change % 
Reconciliation of Net Income to Adjusted EBITDA                        
Net income  $106   $150    -29.3%  $175   $217    -19.4%
Debt extinguishment loss   -    -         5    -      
Interest expense   56    56         112    114      
Income tax provision (benefit)   37    (3)        59    20      
Depreciation and amortization expense   131    122         254    239      
Legal matter (1)   (2)   -         (13)   -      
Transaction and integration costs   3    12         6    26      
Restructuring costs   8    6         20    14      
Adjusted EBITDA (2)  $340   $343    -0.9%  $618   $631    -2.1%
Revenue  $2,080   $2,079    0.0%  $4,034   $4,097    -1.5%
Adjusted EBITDA margin (2) (3)   16.3%   16.5%        15.3%   15.4%     

 

Amounts may not add due to rounding.

(1) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015.

(2) See the “Non-GAAP Financial Measures” section of the press release.

(3) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.

 

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XPO, Inc.

Reconciliation of Non-GAAP Measures (cont.)

(Unaudited)

(In millions, except per share data)

 

   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2025   2024   2025   2024 
Reconciliation of Net Income and Diluted Earnings Per Share to Adjusted Net Income and Adjusted Earnings Per Share                
Net income  $106   $150   $175   $217 
Debt extinguishment loss   -    -    5    - 
Amortization of acquisition-related intangible assets   15    14    29    28 
Legal matter (1)   (2)   -    (13)   - 
Transaction and integration costs   3    12    6    26 
Restructuring costs   8    6    20    14 
Income tax associated with the adjustments above (2)   (5)   (6)   (10)   (12)
European legal entity reorganization (3)   -    (41)   1    (41)
                     
Adjusted net income (4)  $125   $135   $212   $232 
                     
Adjusted diluted earnings per share (4)  $1.05   $1.12   $1.78   $1.93 
                     
Weighted-average common shares outstanding                    
Diluted weighted-average common shares outstanding   119    120    119    120 

 

Amounts may not add due to rounding.
                         
(1) Reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to 2015.
                         
(2) This line item reflects the aggregate tax benefit of all non-tax related adjustments reflected in the table above. The detail by line item is as follows:

 

  Debt extinguishment loss  $-   $-   $1   $- 
  Amortization of acquisition-related intangible assets   2    3    5    7 
  Transaction and integration costs   1    1    1    3 
  Restructuring costs   2    1    3    3 
     $5   $6   $10   $12 

 

Amounts may not add due to rounding.
 
The income tax rate applied to reconciling items is based on the GAAP annual effective tax rate, excluding discrete items, non-deductible compensation, losses for which no tax benefit can be recognized, and contribution- and margin-based taxes.
                         
(3) Reflects a tax benefit recognized in the second quarter of 2024 and the subsequent adjustments recognized related to a legal entity reorganization within our European Transportation business.
 
(4) See the “Non-GAAP Financial Measures” section of the press release.

 

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