XPO(US:XPO)2025-04-30 20:06Financial Performance - Consolidated revenue for Q1 2025 decreased by 3.2% to $1.95 billion compared to Q1 2024, with foreign currency movement impacting revenue by approximately 1.4 percentage points [94]. - Operating income for Q1 2025 increased by 9.4% to $151 million, compared to $138 million in Q1 2024 [93]. - Revenue in the North American LTL segment decreased by 4.0% to $1.17 billion in Q1 2025, down from $1.22 billion in Q1 2024, with fuel surcharge revenue also declining from $210 million to $178 million [110]. - The European Transportation segment's revenue decreased by 1.9% to $782 million in Q1 2025, compared to $797 million in Q1 2024, with foreign currency movements negatively impacting revenue by approximately 3.4 percentage points [116]. Cost and Expenses - Salaries, wages, and employee benefits for Q1 2025 were $832 million, representing 42.6% of revenue, slightly up from 41.3% in Q1 2024 [95]. - Purchased transportation costs decreased to $399 million, or 20.4% of revenue, down from 21.7% in Q1 2024 [96]. - Fuel, operating expenses, and supplies were $393 million, or 20.1% of revenue, compared to 20.5% in Q1 2024, reflecting lower fuel costs [97]. - Depreciation and amortization expense increased to $123 million in Q1 2025, up from $117 million in Q1 2024, due to capital investments [100]. - Restructuring costs rose to $12 million in Q1 2025 from $8 million in Q1 2024, primarily related to European Transportation segment actions [103]. - Adjusted EBITDA for the North American LTL segment was $250 million in Q1 2025, a decrease of 2.0% from $255 million in Q1 2024, primarily due to lower revenue and pension income [113]. - Adjusted EBITDA for the European Transportation segment was $32 million in Q1 2025, down 15.8% from $38 million in Q1 2024, mainly due to higher purchased transportation costs [117]. Tax and Interest - Interest expense decreased to $56 million in Q1 2025, down from $58 million in Q1 2024, due to lower interest rates on variable rate debt [105]. - The effective income tax rates for Q1 2025 and Q1 2024 were 24.2% and 25.2%, respectively, with a decrease attributed to lower non-deductible executive compensation and losses without tax benefits [106]. Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $212 million, down from $246 million as of December 31, 2024, with total liquidity of approximately $811 million [119][121]. - The company generated $142 million from operating activities in Q1 2025, a decrease from $145 million in Q1 2024, primarily due to cash utilization from operating assets and liabilities [128][129]. - Capital expenditures for 2025 are anticipated to be between $600 million and $700 million, funded by cash on hand and generated from operations [132]. - The company has $599 million available to draw under its Revolving Credit Facility as of March 31, 2025, after accounting for outstanding letters of credit [119]. - The weighted average interest rate of the company's term loans was approximately 6.07% as of March 31, 2025 [126]. Market Position - North American LTL segment holds approximately 9% market share in a $53 billion industry as of 2024 [81]. - The company moved approximately 17 billion pounds of freight over 800 million miles in the trailing 12 months ended March 31, 2025 [91].