XPO, Inc. (NYSE:XPO) Q1 2023 Earnings Conference Call May 4, 2023 8:30 AM ET Company Participants Mario Harik - Chief Executive Officer Carl Anderson - Chief Financial Officer Ali Faghri - Chief Strategy Officer Conference Call Participants Fadi Chamoun - BMO Scott Group - Wolfe Research Jon Chappell - Evercore ISI Chris Wetherbee - Citigroup Brian Ossenbeck - JPMorgan Brandon Oglenski - Barclays Tom Wadewitz - UBS Ken Hoexter - Bank of America Joe Hafling - Jefferies James Monigan - Wells Fargo Scott Schne ...

Company Overview - XPO, Inc. serves approximately 48,000 customers with a workforce of about 38,000 employees across 554 locations in 17 countries as of December 31, 2022[15]. - XPO has approximately 23,000 employees in North America, 14,500 in Europe, and 300 in Asia, with 61% of total employees based in North America[64]. - XPO operated approximately 554 locations globally as of December 31, 2022, including 342 in North America and 205 in Europe[178]. Financial Performance - Consolidated revenue for 2022 increased by 7.2% to $7.7 billion, compared to $7.2 billion in 2021, primarily driven by growth in the North American Less-Than-Truckload (LTL) segment[199]. - Net income for 2022 was $666 million, compared to $341 million in 2021, reflecting improved operational performance[197]. - Income from discontinued operations, net of taxes, was $482 million in 2022, compared to $245 million in 2021, indicating significant gains from divestitures[197]. - Interest expense decreased by 36.0% to $135 million in 2022, down from $211 million in 2021, due to lower average debt balances[210]. - The effective income tax rate increased to 28.6% in 2022 from 10.4% in 2021, primarily due to increased pre-tax book income[212]. Market Position - The North American Less-Than-Truckload (LTL) segment holds approximately 8% of the $51 billion U.S. market, delivering around 18 billion pounds of freight in 2022[17][18]. - Approximately 59% of XPO's 2022 revenue was generated in the U.S., with 17% from France, 11% from the U.K., and 11% from the rest of Europe[49]. - The combined revenue from XPO's top five customers accounted for approximately 6% of global revenue in 2022, with the largest customer contributing only 2%[50]. Operational Initiatives - The company aims to add 900 net new doors to its terminal footprint by Q1 2024, having already added six terminals and 369 net new doors as of December 31, 2022[19]. - In 2022, XPO produced 4,705 trailers, nearly doubling the output from 2021, and expanded driver training at its 130 commercial driver schools[20]. - The company completed the spin-off of its tech-enabled brokered transportation platform, RXO, Inc., on November 1, 2022, making LTL its sole business in North America[24]. Employee and Diversity Initiatives - In 2022, the number of females in managerial positions grew by 23% cumulatively since 2020, while ethnically or racially diverse representation grew by 34% in the same period[66]. - Over 55% of new hires in the U.S. self-identified as ethnically or racially diverse in 2022, representing a 1.4% increase from 2021[69]. - Approximately 30% of executive positions in North America are held by women, reflecting increases of 2.7% from 2021[68]. - The company provided up to $5,250 in annual tuition reimbursement for continuing education, alongside various comprehensive benefits tailored to employee needs[89]. Environmental and Sustainability Goals - XPO is committed to achieving carbon neutrality by 2050, with ongoing initiatives to reduce carbon emissions and improve fleet sustainability[38][44]. - The company’s commitment to ESG initiatives includes linking 25% of top executives' long-term incentive compensation to performance in various categories[74]. Risks and Challenges - The company is subject to risks from economic recessions that could reduce freight volumes and adversely impact its business[96]. - The company faces significant risks related to attracting and retaining qualified management, particularly at the executive level, due to competitive market conditions[114]. - The ongoing shortage of qualified drivers in the transportation industry may lead to increased compensation costs and affect the company's ability to meet customer demand, impacting profitability[140]. - Labor disputes, including strikes and negotiations, could disrupt operations and negatively affect revenues and financial results[141]. - The company is exposed to currency exchange rate fluctuations, with a significant portion of net assets and income in non-U.S. dollar currencies, primarily the euro and British pound sterling[120]. Strategic Outlook - The company’s growth strategy includes organic growth through new customer acquisitions and increased business with existing customers, as well as additional acquisitions[104]. - The company has undertaken a specific action plan to enhance network efficiencies and drive growth in its North American LTL business, which includes increasing prices and expanding driver school enrollment[100]. - The company may divest its European business, which could adversely affect its results of operations and cash flows, as well as the market price of its common stock[106]. Spin-off and Tax Implications - The spin-offs of GXO and RXO may not achieve the expected strategic and financial benefits, potentially adversely affecting the company's business and financial condition[153]. - The company faces potential tax liabilities if the spin-off of RXO does not qualify as a tax-free transaction, which could significantly affect its financial position[156]. - The IRS may challenge the tax-free status of the GXO spin-off, which could result in significant tax liabilities[161]. Financial Management - The company's outstanding indebtedness could negatively affect its financial condition and limit its ability to fund future capital expenditures and acquisitions[134]. - Failure to generate sufficient cash flows to satisfy debt obligations could materially impact the company's financial position and results of operations[135]. - The company’s strategy execution may depend on its ability to raise capital, which could impact growth objectives if financing is not available on acceptable terms[137].

Investor Presentation February 2023 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 document to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this document. This document contains the following non-GAAP financial measures: adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") on ...

XPO Logistics, Inc. (NYSE:XPO) Q4 2022 Earnings Conference Call February 9, 2023 8:30 AM ET Company Participants Carl Anderson - CFO Mario Harik - CEO & Director Conference Call Participants Stephanie Moore - Jefferies Scott Schneeberger - Oppenheimer Chris Wetherbee - Citigroup Jordan Alliger - Goldman Sachs Brandon Oglenski - Barclays Scott Group - Wolfe Research Allison Poliniak - Wells Fargo Tom Wadewitz - UBS Ken Hoexter - Bank of America Jeff Kauffman - Vertical Research Partners Brian Ossenbeck - JPM ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 ___________________________________________ For the quarterly period ended September 30, 2022 For the transition period from____________to____________ Form 10-Q ___________________________________________ Commission File Number: 001-32172 _______________________________________________________ or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) ...

XPO Logistics, Inc. (NYSE:XPO) Q3 2022 Earnings Conference Call October 31, 2022 8:30 AM ET Company Participants Brad Jacobs - Chairman and Chief Executive Officer Ravi Tulsyan - Senior Vice President and Chief Financial Officer Mario Harik - President, LTL Matt Fassler - Chief Strategy Officer Drew Wilkerson - President, Transportation, North America Conference Call Participants Ravi Shanker - Morgan Stanley Scott Group - Wolfe Research Chris Wetherbee - Citigroup Allison Poliniak - Wells Fargo Tom Wadewit ...

Form 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____________to____________ Commission File Number: 001-32172 _______________________________________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ...

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $3.2 billion, with an 11% year-over-year increase when adjusted for the sale of the intermodal business [21][22] - Adjusted EBITDA grew by 23% year-over-year to $405 million, reflecting strong earnings growth across all businesses [22] - Adjusted diluted EPS increased by 48% to $1.81, driven by higher adjusted EBITDA and lower interest expense [25] - The adjusted EBITDA margin reached a record 12.5%, improving by 210 basis points year-over-year [23] Business Line Data and Key Metrics Changes - North American LTL revenue grew 15% year-over-year to $1.2 billion, with adjusted EBITDA increasing by 14% [36] - In North American truck brokerage, gross profit margin was a record 20.8%, up 610 basis points year-over-year, with a 16% increase in volume [15][66] - The brokerage segment's adjusted EBITDA increased by 17% to $152 million, with a margin expansion of 140 basis points [41] Market Data and Key Metrics Changes - Organic revenue growth in Europe was 7% year-over-year, an improvement from 5% in the first quarter [16][44] - The company maintained its highest level of LTL network fluidity since 2020, contributing to increased customer satisfaction [14][50] Company Strategy and Development Direction - The company is focused on creating two pure-play transportation powerhouses through the planned spin-off of RXO [19][75] - Investments in technology and capacity are prioritized, with a goal of adding 900 net new doors by the end of next year [52][62] - The company aims to achieve at least $1 billion of LTL adjusted EBITDA and improve the adjusted operating ratio by over 100 basis points year-over-year [62][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong pricing environment and expected continued yield improvements [90] - The company anticipates a moderation in purchased transportation costs and improved network fluidity, which will positively impact margins [82][92] - There is optimism regarding new business wins and customer onboarding, which are expected to drive volume growth in the second half of the year [118] Other Important Information - The company achieved a trailing 12-month ROIC of 38%, significantly higher in North American LTL and truck brokerage [18] - The net leverage ratio decreased from 2.7x to 1.8x, indicating strong financial health [19][28] Q&A Session Summary Question: Update on the process with Europe and LTL margin expectations - Management indicated that the sales process in Europe is active, with a potential deal signing in the fourth quarter [79] - For LTL, a sequential margin improvement of at least 150 basis points is expected in the third quarter [80] Question: Insights on LTL seasonality and insourcing - Management noted that purchased transportation costs are expected to moderate, with a focus on long-term insourcing strategies [82] Question: Clarification on third-quarter operating ratio and cost dynamics - Management expects a typical seasonal transition of 200 to 250 basis points in operating ratio from Q2 to Q3 [94] Question: Discussion on new top 10 customers and guidance outlook - Management highlighted the use of proprietary costing technology to manage new customer onboarding effectively [99] - The guidance for the second half reflects strong visibility in both LTL and brokerage services [100] Question: Competitive advantage through proprietary technology - Management emphasized the importance of technology in pricing and operational efficiency, which is expected to enhance customer service [110] Question: Volume decline in LTL and cultural focus on service - Management acknowledged a 5.5% decline in tonnage but expressed optimism about sales momentum and customer satisfaction improvements [116][120]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ Form 10-Q ___________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from____________to____________ Commission File Number: 001-32172 __________ ...

XPO Logistics, Inc. (NYSE:XPO) Q1 2022 Earnings Conference Call May 10, 2022 8:30 AM ET Company Participants Brad Jacobs - Chairman & CEO Ravi Tulsyan - Senior VP & CFO Matthew Jeremy Fassler - Chief Strategy Officer Mario Harik - CIO & Acting President of Less-Than-Truckload Drew Wilkerson - President of Transportation, North America Conference Call Participants Kenneth Scott Hoexter - BofA Securities, Research Division Scott Group - Wolfe Research, LLC Christian Wetherbee - Citigroup Inc. Brandon Robe ...