XPO reports fourth quarter 2025 results

XPO announced its financial results for the fourth quarter 2025. The company reported diluted earnings per share of $0.50, compared with $0.63 for the same period in 2024, and adjusted diluted earnings per share of $0.88, compared with $0.89 for the same period in 2024.

Mario Harik, chairman and chief executive officer of XPO, said, “We concluded a year of strong execution with another quarter of profitable growth. In the fourth quarter, we increased adjusted diluted EPS year-over-year by 18% and adjusted EBITDA by 11%, excluding real estate gains. These results reflect our focus on service excellence and continuous improvement of the business.

“In North American LTL, we grew adjusted operating income year-over-year by 14% and improved our adjusted operating ratio by 180 basis points to 84.4%, outperforming seasonality. Our initiatives for mix and pricing delivered our twelfth 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.”

Harik continued, “By pairing world-class service with our proprietary technology, we’re building durable earnings power unique to our business. We’re continuing to execute for market-leading margin expansion in the current environment, while positioning for outsized share and margin gains in a recovery. And the significant acceleration in free cash flow we expect to generate in the coming years will further compound shareholder value creation.”

Fourth Quarter Highlights

For the fourth quarter of 2025, the company generated revenue of $2.01 billion, compared with $1.92 billion for the same period in 2024.

Operating income was $143 million for the fourth quarter, compared with $148 million for the same period in 2024. Net income was $59 million for the fourth quarter, compared with $76 million for the same period in 2024. The year-over-year decrease in operating income and net income includes a $21 million reduction in real estate gains and a $23 million increase in restructuring expense, primarily from previously granted equity awards related to the transition in board leadership. This is reflected in diluted earnings per share of $0.50 for the fourth quarter, compared with $0.63 for the same period in 2024.

Adjusted net income, a non-GAAP financial measure, was $105 million for the fourth quarter, compared with $107 million for the same period in 2024. Adjusted diluted EPS, a non-GAAP financial measure, was $0.88 for the fourth quarter, compared with $0.89 for the same period in 2024.

Adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $312 million for the fourth quarter, compared with $303 million for the same period in 2024.

The company generated $226 million of cash flow from operating activities in the fourth quarter and ended the year with $310 million of cash and cash equivalents on hand, after completing $84 million of net capital expenditures, $65 million of common stock repurchases, and $65 million of term loan repayments.

Results by Business Segment
North American Less-Than-Truckload (LTL): The segment generated revenue of $1.17 billion for the fourth quarter 2025, compared with $1.16 billion for the same period in 2024. On a year-over-year basis, yield, excluding fuel, increased 5.2%, while shipments per day decreased 1.6%, and tonnage per day decreased 4.5%.
Operating income was $184 million for the fourth quarter, compared with $179 million for the same period in 2024. Adjusted operating income, a non-GAAP financial measure, was $181 million for the fourth quarter, compared with $159 million for the same period in 2024. Adjusted operating ratio, a non-GAAP financial measure, was 84.4%, reflecting a year-over-year improvement of 180 basis points.

Adjusted EBITDA for the fourth quarter was $285 million, compared with $280 million for the same period in 2024. The year-over-year increase in adjusted EBITDA was due primarily to yield growth and productivity improvements, partially offset by a decrease in gains on real estate transactions, lower tonnage per day, and wage inflation.
European Transportation: The segment generated revenue of $846 million for the fourth quarter 2025, compared with $765 million for the same period in 2024. Operating income was a loss of $13 million for the fourth quarter, compared with a loss of $11 million for the same period in 2024.
Adjusted EBITDA was $32 million for the fourth quarter, compared with $27 million for the same period in 2024.
Corporate: The segment generated an operating loss of $28 million for the fourth quarter 2025, compared with a loss of $19 million for the same period in 2024. The year-over-year increase in operating loss reflects a $7 million net increase in restructuring, transaction, and integration costs.
Adjusted EBITDA was a loss of $4 million for the fourth quarter 2025, compared with a loss of $4 million for the same period in 2024.