XPO(US:XPO)2025-10-30 12:27Financial Performance - Consolidated revenue for Q3 2025 increased by 2.8% to $2.11 billion compared to Q3 2024, while revenue for the first nine months of 2025 remained flat at $6.15 billion[109] - Operating income for Q3 2025 was $164 million, a decrease of 6.8% compared to Q3 2024[108] - Revenue for the North American LTL segment increased 0.3% to $1.26 billion in Q3 2025, while revenue for the first nine months decreased 2.0% to $3.67 billion[132] - Adjusted EBITDA for Q3 2025 was $308 million, an increase of 8.5% from $284 million in Q3 2024[135] - Adjusted EBITDA decreased to $38 million in Q3 2025 from $44 million in Q3 2024, reflecting higher salaries and transportation costs[139] Expenses and Costs - Salaries, wages, and employee benefits for Q3 2025 totaled $876 million, representing 41.5% of revenue, consistent with Q3 2024[110] - Insurance and claims expenses increased by 30.3% in Q3 2025, totaling $43 million compared to $33 million in Q3 2024[108] - Purchased transportation costs for Q3 2025 were $424 million, or 20.1% of revenue, down from $430 million, or 20.9% in Q3 2024[112] - Fuel, operating expenses, and supplies for Q3 2025 were $406 million, or 19.2% of revenue, compared to $399 million, or 19.4% in Q3 2024[113] - Depreciation and amortization expense rose to $134 million in Q3 2025 from $126 million in Q3 2024, reflecting capital investments[117] - Insurance and claims costs increased to $43 million in Q3 2025 from $33 million in Q3 2024, primarily due to higher vehicular insurance costs[115] - Restructuring costs for Q3 2025 were $6 million, up from $3 million in Q3 2024, related to actions in the European Transportation segment[121] Market and Operations - The North American LTL segment holds approximately 9% market share in a $53 billion industry, with 37,000 shippers served across 99% of U.S. zip codes[96][97] - The company moved approximately 17 billion pounds of freight over 779 million miles in the trailing 12 months ended September 30, 2025[106] - The company added over 2,000 net new doors to its network since Q4 2021, including the acquisition of service centers from Yellow Corporation in December 2023[99] - In 2024, the company produced over 4,400 trailers and continued to invest in training commercial drivers at its driver schools[100] - The year-over-year revenue decline in the first nine months of 2025 was primarily due to lower fuel surcharge revenue and reduced shipments per day in the North American LTL segment[109] Cash Flow and Liquidity - Cash and cash equivalents increased to $335 million as of September 30, 2025, up from $246 million as of December 31, 2024[141] - Total liquidity as of September 30, 2025, was approximately $935 million, sufficient to support operations over the next 12 months[143] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $760 million, an increase of $141 million compared to the same period in 2024[153] - Cash used in investing activities was $532 million for the nine months ended September 30, 2025, down from $598 million in the same period in 2024[156] - The company repurchased 388 thousand shares for $50 million at an average price of $128.86 per share in Q3 2025[151] Capital Expenditures and Financing - The company anticipates full-year gross capital expenditures to be between $600 million and $700 million in 2025[158] - The maximum net cash proceeds available under the securitization program is €200 million (approximately $235 million) as of September 30, 2025[145] - The weighted average interest rate of the company's term loans was approximately 5.88% as of September 30, 2025[149] - Interest expense decreased to $54 million in Q3 2025 from $56 million in Q3 2024, attributed to lower interest rates on variable rate debt[124] Taxation - The effective income tax rate for Q3 2025 was 26.9%, down from 29.7% in Q3 2024, primarily due to a decrease in losses with no tax benefit[125] European Operations - Revenue in the European Transportation segment increased by 6.7% to $857 million for Q3 2025, compared to $803 million in Q3 2024[138]