XPO Investor Overview Q4 2023 February 2024 This document 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, including statements relating to our full year 2024 expectations of gross capex, interest expense, pension income, adjusted effective tax rate, and diluted share count, and future financial targets of North American LTL revenue CAGR, adjusted EBITDA CAGR, adjusted operatin ...

Financial Performance - Consolidated revenue for Q3 2023 increased by 1.7% to $1.98 billion compared to Q3 2022, while revenue for the first nine months of 2023 decreased by 1.4% to $5.8 billion compared to the same period in 2022 [104]. - Operating income for Q3 2023 was $154 million, a 10.8% increase from $139 million in Q3 2022 [103]. - Net income for Q3 2023 was $84 million, a decrease of 35.9% from $131 million in Q3 2022 [103]. - Revenue for the North American LTL segment increased 1.9% to $1.23 billion in Q3 2023, while it decreased 1.9% to $3.48 billion for the first nine months of 2023 [122]. - Revenue in the European Transportation segment increased by 1.5% to $752 million for Q3 2023, compared to $741 million in Q3 2022 [129]. - Revenue for the first nine months of 2023 decreased by 0.6% to $2.32 billion, down from $2.34 billion in the same period of 2022 [129]. - Adjusted EBITDA for Q3 2023 was $241 million, or 19.6% of revenue, compared to $240 million, or 19.9% of revenue in Q3 2022 [126]. - Adjusted EBITDA for Q3 2023 was $44 million, or 5.8% of revenue, compared to $43 million, or 5.9% of revenue in Q3 2022 [130]. Operational Metrics - For the trailing 12 months ended September 30, 2023, the company delivered approximately 18 billion pounds of freight [93]. - The company aims to add 900 net new doors to its terminal footprint by the first half of 2024, having already added 531 net new doors since implementing the LTL 2.0 growth plan [94]. - The in-house trailer manufacturing facility produced 4,705 trailers in 2022, with a goal to exceed 6,000 trailers in 2023 [95]. - The average weight per shipment decreased to 1,347 pounds in Q3 2023, down 4.3% from 1,408 pounds in Q3 2022 [123]. Employee and Operational Costs - Salaries, wages, and employee benefits for Q3 2023 were $809 million, or 40.9% of revenue, up from $739 million, or 38.0% of revenue in Q3 2022 [106]. - Purchased transportation costs for Q3 2023 were $437 million, or 22.1% of revenue, down from $480 million, or 24.7% of revenue in Q3 2022 [107]. - Fuel, operating expenses, and supplies for Q3 2023 were $406 million, or 20.5% of revenue, compared to $425 million, or 21.8% of revenue in Q3 2022 [108]. - Interest expense increased to $41 million in Q3 2023 from $35 million in Q3 2022, primarily due to higher prevailing interest rates [116]. - Depreciation and amortization expense for Q3 2023 was $110 million, up from $99 million in Q3 2022 [111]. - Restructuring costs for Q3 2023 were $1 million, down from $7 million in Q3 2022 [113]. - Other income for Q3 2023 was $4 million, down from $15 million in Q3 2022, reflecting lower net periodic pension income [114]. Liquidity and Capital Expenditures - Total liquidity as of September 30, 2023, was approximately $944 million, down from $1.06 billion as of December 31, 2022 [132]. - Cash generated from operating activities for the first nine months of 2023 was $443 million, a decrease of $185 million compared to $628 million in the same period of 2022 [144]. - Cash used in investing activities increased to $473 million in the first nine months of 2023, compared to $315 million in the same period of 2022 [147]. - The company had $2.4 billion total outstanding principal amount of debt as of September 30, 2023, with $112 million maturing in 2025 [149]. - Future interest payments associated with the company's debt are estimated to aggregate approximately $1.0 billion [149]. - The company anticipates full-year gross capital expenditures to be between $675 million and $725 million in 2023 [150]. - A hypothetical 1% increase in interest rates would increase annual interest expense by $7 million based on the $700 million outstanding on the term loan facility [152]. Market Position - The North American Less-Than-Truckload (LTL) segment holds approximately 8% market share of the $59 billion U.S. market as of December 31, 2022 [91]. - The proprietary technology used by the company optimizes linehaul, pickup-and-delivery, and pricing, which are critical for managing its extensive LTL network [99].

Financial Data and Key Metrics Changes - The company reported revenue of $2 billion for Q3 2023, a 2% increase year-over-year and a 3% sequential increase from Q2 2023 [31] - Adjusted EBITDA improved to $278 million, reflecting a 6% year-over-year increase [7][35] - Adjusted diluted EPS was $0.88, higher than expected, although down 7% from the previous year [8][40] - Net income from continuing operations was $86 million, with diluted EPS of $0.72, compared to $92 million and $0.79 a year ago [38] Business Segment Data and Key Metrics Changes - In the LTL segment, revenue increased by 2% year-over-year and 8% sequentially, with adjusted EBITDA growing to $241 million [31][37] - The European Transportation segment saw adjusted EBITDA increase to $44 million for the quarter [37] - The claims ratio for damages improved to 0.4%, down from 0.7% in the prior quarter and significantly better than the 1.2% at the launch of LTL 2.0 [9][12] Market Data and Key Metrics Changes - The company experienced a 7.8% year-over-year increase in shipment count, driven by a 13% growth in the local sales channel [43] - Yield, excluding fuel, grew by 6.4% year-over-year, indicating strong pricing trends [47] - The average tractor age decreased from 5.9 years at the end of 2022 to 5.2 years, reflecting ongoing investments in fleet modernization [14] Company Strategy and Development Direction - The company is focused on four pillars of its LTL 2.0 strategy: customer service, network investment, yield growth, and cost efficiency [7][18][22] - More than two-thirds of the 2023 CapEx is allocated to increasing fleet capacity, with a target of 8% to 12% of revenue for CapEx allocation through 2027 [17] - The company aims to be the best-in-class LTL service provider, with ongoing investments in service improvements and technology [12][28] Management's Comments on Operating Environment and Future Outlook - Management noted a soft market for freight transportation but expressed confidence in the company's ability to capture market share and improve service levels [7][26] - There is optimism regarding demand recovery in 2024, although the macroeconomic environment remains uncertain [71] - The company expects to outperform typical seasonality in Q4, with anticipated yield growth in the high single-digit range [54][55] Other Important Information - The company ended the quarter with $355 million in cash and $944 million in total liquidity [40] - The company is targeting a reduction in third-party linehaul miles to at least 50% by 2027 compared to 2021 levels [24] Q&A Session Summary Question: Operating ratio and fourth-quarter outlook - Management expects Q4 tonnage to be up low single digits year-over-year, with yield growth expected to accelerate [54][55] Question: Pricing sustainability and accessorial revenue - Contract renewal pricing is currently up 9%, and management anticipates this to be sustainable in the near term [58][60] Question: Impact of lower claims on pricing - Improved service and lower claims ratios are expected to lead to higher pricing, with a goal of reaching a 0.1% claims ratio over time [61] Question: Yellow service centers and capacity - Management views the Yellow service centers as an opportunity to accelerate capacity growth, with expectations of a gradual return to LTL operations [64][65] Question: Yield improvement and local customer base - The most significant impact on yield in Q3 came from service improvements, with local sales channel shipments increasing by 13% year-over-year [68] Question: Freight market trends - The underlying demand environment has been soft but is showing signs of slight improvement, with more customers expressing optimism for demand recovery in 2024 [70][71]

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Washington, D.C. 20549 ___________________________________________ Form 10-Q ___________________________________________ For the transition period from____________to____________ Commission File Number: 001-32172 ___________ ...

Financial Data and Key Metrics Changes - Company-wide revenue for Q2 2023 was $1.9 billion, down 6% year-over-year but up 1% sequentially from Q1 2023 [20] - Adjusted EBITDA was $244 million, a decrease of 16% year-over-year, with an adjusted EBITDA margin of 12.7%, down 140 basis points year-over-year [23] - Net income from continuing operations was $31 million, translating to diluted earnings per share of $0.27, compared to $96 million and $0.83 per diluted share a year ago [25] - Adjusted EPS for the quarter was $0.71, down 38% from the previous year [26] Business Line Data and Key Metrics Changes - In the North American LTL segment, revenue decreased by 8% year-over-year, while adjusted EBITDA was $208 million, down 24% from a year ago [20][24] - LTL salaries, wages, and benefits increased by 4.6% year-over-year, primarily due to wage increases [20] - Purchased transportation expense decreased by 35% year-over-year, reflecting a shift towards insourcing more linehaul miles [21] Market Data and Key Metrics Changes - Organic revenue in the European Transportation segment was largely unchanged despite a soft operating environment, with strong pricing trends observed [15] - The UK and Central Europe markets outperformed the overall European segment, with pricing higher than the same period last year [35] Company Strategy and Development Direction - The company is focused on its LTL 2.0 plan, which includes four pillars: enhancing customer service, investing in network capacity, accelerating yield growth, and driving cost efficiencies [7][10][12][13] - Capital expenditures are expected to be between 8% to 12% of revenue, with potential to exceed the high end of this range in the near term due to increased capacity needs [10][42] - The company aims to achieve at least 600 basis points of adjusted operating ratio improvement through 2027 [16] Management's Comments on Operating Environment and Future Outlook - Management noted a soft operating environment but highlighted improvements in service metrics and customer satisfaction [7][8] - The company expects yield growth to accelerate in Q3 2023, with a baseline forecast of 3% year-over-year growth [53] - Management remains optimistic about the potential for pricing improvements and market share gains following recent industry disruptions [56][70] Other Important Information - The company completed the refinancing of its $2 billion term loan, improving its weighted average maturity timeline to approximately six years [28] - The transition to a new CFO is expected to be seamless, with the incoming CFO having significant experience in the industry [17] Q&A Session Summary Question: Impact of July volumes post-Yellow - Management reported a 4.2% year-over-year increase in tonnage and an 8.8% increase in shipment count for July, indicating strong performance despite typical seasonal trends [39] Question: Current shipment count and margin handling - Shipment counts increased by high single digits towards the end of July, with management confident in handling the increased volume without significant margin pressure [45][46] Question: Pricing and yield growth expectations - Management anticipates yield growth to accelerate in Q3, with a focus on maintaining service quality while selectively onboarding new freight [60][66] Question: Capacity management and market dynamics - The company currently operates with approximately 20% excess capacity, which is expected to decrease as volumes increase, but management aims to maintain a long-term target of 20% to 25% excess capacity [99] Question: European business strategy - The company has paused the sale of its European business, focusing instead on strengthening its North American LTL operations while still performing well in Europe [87][96]

XPO Investor Overview Q2 2023 August 2023 This document 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, including statements relating to our full year 2023 expectations of gross capex, interest expense, pension income, effective tax rate, and diluted share count, and future financial targets of North American LTL revenue CAGR, adjusted EBITDA CAGR, adjusted operating ratio imp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ Form 10-Q ___________________________________________ (Exact name of registrant as specified in its charter) _______________________________________________________ (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, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC ...

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 ...