XPO(US:XPO)2026-02-05 11:45Financial Performance - For Q4 2025, XPO reported total revenue of $2.01 billion, a 4.7% increase from $1.92 billion in Q4 2024[7] - Net income for Q4 2025 was $59 million, down 22.4% from $76 million in Q4 2024[8] - Adjusted diluted earnings per share (EPS) for Q4 2025 was $0.88, a decrease of 1.1% from $0.89 in Q4 2024[9] - Revenue for Q4 2025 was $2,011 million, a 4.7% increase from $1,921 million in Q4 2024[26] - Net income decreased by 22.4% to $59 million in Q4 2025 from $76 million in Q4 2024[26] - Basic earnings per share for Q4 2025 was $0.50, down from $0.65 in Q4 2024[26] - Operating income for the year was $656 million, a marginal decrease of 0.6% from $660 million in 2024[26] - Adjusted net income for Q4 2025 was $105 million, compared to $107 million in Q4 2024; for the full year, adjusted net income was $445 million, down from $460 million in 2024[53] Segment Performance - The North American Less-Than-Truckload (LTL) segment generated revenue of $1.17 billion, up 0.8% from $1.16 billion in Q4 2024[11] - The European Transportation segment reported revenue of $846 million, a 10.6% increase from $765 million in Q4 2024[13] - The adjusted operating income for the North American LTL segment increased by 13.8% year-over-year to $181 million[11] - Revenue for the European Transportation segment increased by 10.6% to $846 million for the three months ended December 31, 2025, compared to $765 million in 2024[41] - Operating income for the European Transportation segment was a loss of $13 million for the three months ended December 31, 2025, compared to a loss of $11 million in 2024[41] Cash Flow and Assets - Cash flow from operating activities for Q4 2025 was $226 million, with year-end cash and cash equivalents totaling $310 million[10] - Cash flows from operating activities rose to $986 million in 2025, compared to $808 million in 2024[32] - Total assets increased to $8,194 million in 2025 from $7,712 million in 2024, reflecting a growth of 6.3%[30] - The company’s total equity increased to $1,861 million in 2025 from $1,601 million in 2024[30] Costs and Expenses - The company incurred restructuring costs of $33 million in Q4 2025, a significant increase of 230% from $10 million in Q4 2024[26] - The company reported a 65.5% increase in insurance and claims expenses, rising to $48 million in Q4 2025 from $29 million in Q4 2024[26] - Restructuring costs increased by 2000.0% to $21 million for the three months ended December 31, 2025, compared to $1 million in 2024[45] - The company incurred transaction and integration costs of $1 million in Q4 2025, down from $14 million in Q4 2024; for the full year, these costs were $8 million compared to $53 million in 2024[53] EBITDA and Margins - Adjusted EBITDA for Q4 2025 was $312 million, reflecting a 3.0% increase from $303 million in Q4 2024[9] - Adjusted EBITDA for the three months ended December 31, 2025, was $285 million, reflecting a 1.8% increase from $280 million in 2024[34] - Adjusted EBITDA margin for Q4 2025 was 15.5%, compared to 15.8% in Q4 2024; for the full year, the margin was 15.6%, down from 15.7% in 2024[49] - The adjusted EBITDA margin for the European Transportation segment was 3.8% for the three months ended December 31, 2025, compared to 3.5% in 2024[41] Future Outlook - The company expects significant acceleration in free cash flow in the coming years, contributing to shareholder value creation[6] - XPO's initiatives in AI have improved network efficiency and labor productivity, lowering the cost to serve[6]