XPO(US:XPO)2025-10-30 10:45Financial Performance - The company reported total revenue of $2.11 billion for Q3 2025, a 2.8% increase from $2.05 billion in Q3 2024[8] - Adjusted diluted earnings per share (EPS) increased to $1.07, up 4.9% from $1.02 in the same period last year[10] - Net income for Q3 2025 was $82 million, down 13.7% from $95 million in Q3 2024, impacted by a $35 million charge related to legal matters[9] - Basic earnings per share for Q3 2025 was $0.69, compared to $0.81 in Q3 2024[28] - Operating income for Q3 2025 was $164 million, a decrease of 6.8% from $176 million in Q3 2024[28] - Adjusted net income for Q3 2025 was $128 million, compared to $122 million in Q3 2024[54] Segment Performance - North American Less-Than-Truckload (LTL) segment revenue was $1.26 billion, a slight increase of 0.3% from $1.25 billion in Q3 2024[12] - Adjusted operating income for the North American LTL segment rose by 10% to $217 million, with an adjusted operating ratio improvement of 150 basis points to 82.7%[6] - European Transportation segment revenue increased to $857 million, a 6.7% rise from $803 million in Q3 2024, but operating income was a loss of $2 million[13] - Adjusted operating income for the European Transportation segment decreased by 30.8% to $9 million in Q3 2025 from $13 million in Q3 2024[43] Cash Flow and Assets - Cash flow from operating activities was $371 million, with $335 million in cash and cash equivalents at the end of the quarter[11] - Total assets increased to $8,189 million as of September 30, 2025, up from $7,712 million at the end of 2024[32] - Cash and cash equivalents rose to $335 million in Q3 2025, compared to $246 million in Q4 2024[32] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $760 million, up from $619 million in the same period of 2024[34] Debt and Liabilities - Total current liabilities increased to $1,667 million as of September 30, 2025, from $1,420 million at the end of 2024[32] - Long-term debt decreased to $3,222 million as of September 30, 2025, from $3,325 million at the end of 2024[32] Expenses and Costs - The company reported a 30.3% increase in insurance and claims expenses, rising to $43 million in Q3 2025 from $33 million in Q3 2024[28] - Restructuring costs increased by 150.0% to $5 million in Q3 2025 from $2 million in Q3 2024[43] - The company incurred restructuring costs of $6 million in Q3 2025, compared to $3 million in Q3 2024; for the nine months ended September 30, 2025, restructuring costs were $26 million, up from $17 million in the same period of 2024[54] Future Outlook - The company expects performance to accelerate as its strategy continues to gain traction, indicating a positive outlook for future growth[7] Other Financial Metrics - The company generated adjusted EBITDA of $342 million, a 2.7% increase from $333 million in Q3 2024[10] - Adjusted EBITDA for Q3 2025 was $342 million, reflecting a 2.7% increase from $333 million in Q3 2024; for the nine months ended September 30, 2025, adjusted EBITDA was $960 million, a slight decrease of 0.4% from $964 million in the same period of 2024[50] - The adjusted EBITDA margin for Q3 2025 remained stable at 16.2%, consistent with Q3 2024; for the nine months ended September 30, 2025, the margin was 15.6%, slightly down from 15.7% in the same period of 2024[50] - Interest expense for Q3 2025 was $54 million, a slight decrease from $56 million in Q3 2024; for the nine months ended September 30, 2025, interest expense totaled $166 million, down from $170 million in the same period of 2024[50] Legal Matters - The company reported a legal matter adjustment resulting in a tax benefit of $13 million in Q3 2025, compared to no such adjustment in Q3 2024[54] - Environmental and product liability claims related to a former subsidiary resulted in a pre-Con-way acquisition environmental matter cost of $35 million in both Q3 2025 and the nine months ended September 30, 2025[51]