GREENWICH, Conn., Sept. 03, 2025 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO), a leading provider of freight transportation in North America, today reported certain preliminary LTL segment operating metrics for August 2025. LTL tonnage per day decreased 4.7%, as compared with August 2024, attributable to a year-over-year decrease of 3.4% in shipments per day and a decrease of 1.3% in weight per shipment. Actual results for August 2025 may vary from the preliminary results reported above.About XPO XPO, Inc. (NYSE: XP ...

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage growth companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7][8] Investment Opportunities - Companies such as Precision Drilling (PDS), The Greenbrier Companies, Inc. (GBX), Green Dot (GDOT), The Mosaic Company (MOS), and PagSeguro Digital (PAGS) exhibit low P/S ratios and potential for higher returns [4][10] - Low P/S stocks can reveal hidden strengths when earnings are volatile or growth is in early stages [10] Company Profiles - **Precision Drilling (PDS)**: Focuses on optimizing operational performance in the oil and gas sector, with a positive long-term outlook supported by upcoming LNG facilities and pipeline expansions. Currently holds a Value Score of A and Zacks Rank 1 [12][13] - **The Greenbrier Companies, Inc. (GBX)**: A leading supplier in global freight transportation, benefiting from strong market demand and a profitable leasing business. Holds a Value Score of A and Zacks Rank 2 [14][15] - **Green Dot (GDOT)**: A pro-consumer bank holding company with a strong position in prepaid cards and Banking-as-a-Service (BaaS). It has low debt and significant cash reserves, currently holding a Value Score of A and Zacks Rank 1 [16][17] - **The Mosaic Company (MOS)**: A major producer of phosphate and potash, experiencing strong demand in agriculture. The company is focused on cost-cutting and maintaining a strong operating cost structure, with a Value Score of A and Zacks Rank 1 [18][20] - **PagSeguro Digital (PAGS)**: Offers a range of financial solutions in Brazil, focusing on digital banking and payment services. The company is well-positioned for growth with a disciplined strategy, holding a Value Score of A and Zacks Rank 2 [21][22]

Core Insights - XPO drivers excelled at the 2025 National Truck Driving Championships, showcasing their skills and commitment to safety [1][2] - The competition featured 37 XPO drivers from 24 states, all of whom qualified by winning their state championships and maintaining accident-free records [2] Company Achievements - Jeff Langenhahn secured first place in the Tank Truck class, marking his 12th appearance at nationals with over two million consecutive accident-free miles [5] - Ernie Budlowski achieved second place in the Tank Truck class, also with over two million consecutive accident-free miles, and has participated in nationals 14 times [5] - Jeremy Steger placed second in the 4-Axle class, having been named Grand Champion at the 2025 Wisconsin State Truck Driving Championships [5] - Leroy Williams received the Neill Darmstadter Professional Excellence Award, recognizing his 35 years of service and 15 appearances at the NTDC [5] Company Overview - XPO, Inc. is a leader in asset-based less-than-truckload (LTL) freight transportation in North America, moving 17 billion pounds of freight annually [4] - The company serves 55,000 customers through 608 locations and employs 38,000 people across North America and Europe [4]

Key Takeaways Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popular tool for gauging value, it has its limitations, especially when evaluating companies that are unprofitable or still in their early growth phases. In such cases, the price-to-sales (P/S) ratio becomes particularly valuable. By comparing a company's market capitalization to its revenues, the P/S ratio offers a clearer ...

Group 1 - The article highlights Old Dominion Freight Line (ODFL) as a highly efficient less-than-truckload carrier in the U.S. market [1] - The author expresses a beneficial long position in ODFL shares, indicating confidence in the company's growth potential [1] Group 2 - The article is part of a broader discussion on undervalued dividend growers, suggesting a focus on income-generating investments [1]

Financial Data and Key Metrics Changes - The company reported enterprise revenues excluding fuel surcharge of $1.3 billion, a 10% increase year over year [22] - Adjusted income from operations was $57 million, reflecting a 9% year-over-year increase [22] - Adjusted diluted earnings per share for the second quarter was 21 cents [23] Business Line Data and Key Metrics Changes - Truckload revenue, excluding fuel surcharge, was $622 million, up 15% year over year, driven by acquisitions and higher revenue per truck per week [24] - Intermodal revenues, excluding fuel surcharge, were $265 million, a 5% increase year over year, attributed to volume growth [25] - Logistics revenue, excluding fuel surcharge, totaled $340 million, up 7% from the previous year, driven by the Cowen acquisition [26] Market Data and Key Metrics Changes - The company experienced a 30% year-over-year volume growth in Mexico, which was a key driver for second quarter growth [18] - The dedicated segment now represents about 70% of the truckload fleet, indicating a strategic shift towards dedicated capacity [13] Company Strategy and Development Direction - The company is focused on restoring margins and maximizing through-cycle returns while leaning into areas of differentiation for growth [7][15] - The long-term strategy includes shifting towards dedicated and variable cost capacity to improve earnings resilience [15] - Recent acquisitions, including Cowen Systems, are expected to contribute positively to income from operations [20] Management's Comments on Operating Environment and Future Outlook - The management anticipates economic uncertainty to persist, but expects the freight environment to continue moving towards recovery [21] - There is a belief that strong execution on structural improvements will drive earnings higher in 2025 [22] - The company is monitoring trade policy and broader economic uncertainty as part of its guidance considerations [29] Other Important Information - The company is targeting over $40 million in cost reductions, with synergies from Cowen Systems expected to fully materialize by 2026 [12] - The net debt leverage improved to 0.6 times at the end of the quarter, down from 0.8 times [29] Q&A Session Summary Question: Long-term truckload target of 12% to 16% - Management indicated that the dedicated business is performing resiliently, while the network business requires price recovery to reach long-term targets [38][40] Question: Peak season development and guidance - Management noted a wide range of behaviors among customers regarding peak season, with intermodal peak surcharges already in place [44][45] Question: Competitive environment in segments - Management acknowledged that mid-sized competitors are exiting the market, which could lead to a meaningful amount of capacity leaving the truckload space [66][70] Question: Impact of gain on sale in truckload - The company expects a modest impact from gains on the sale of equipment, with improvements anticipated in the second half of the year [95][96] Question: Intermodal growth and rail consolidation - Management emphasized the importance of strategic partnerships and differentiation in intermodal services, particularly in light of potential rail consolidation [100][102]

Old Dominion Freight Line, Inc. (NASDAQ:ODFL) Q2 2025 Earnings Call July 30, 2025 10:00 AM ET I would now like to turn the conference over to Jack Atkins, Director of Investor Relations. Please go ahead. Jack Lawrence Atkins Thank you, Wyatt. Good morning, everyone, and welcome to the Second Quarter 2025 Conference Call for Old Dominion Freight Line. Today's call is being recorded and will be available for replay beginning today and through August 6, 2025, by dialing 1 (877) 344-7529 access code 8056479. Th ...

Financial Data and Key Metrics Changes - Overall revenue decreased by 1% year over year, while truck revenue increased year over year for the first time since 2022 [6][9] - Truck revenue per load increased by 2.6% compared to the second quarter of 2024, with a sequential increase of 3.2% from the first quarter of 2025 [15][27] - Gross profit was $109.3 million compared to $120 million in the second quarter of 2024, with a gross profit margin of 9% [23][27] Business Line Data and Key Metrics Changes - Heavy haul revenue increased by 9% year over year, driven by a 5% increase in revenue per heavy haul load and a 4% increase in heavy haul volume [7][17] - Non-truck transportation service revenue decreased by 22% or $21 million compared to the second quarter of 2024, primarily due to a 20% decrease in ocean revenue per shipment [18][19] - Transportation Logistics segment revenue was down 1% year over year on a 2% decrease in loadings, partially offset by a 1% increase in revenue per load [19] Market Data and Key Metrics Changes - The freight environment in the second quarter of 2025 was characterized by soft demand, with truck capacity readily available and market conditions favoring shippers [8][9] - Revenue hauled on behalf of other truck transportation companies was 19% below the second quarter of 2024, indicating accessible capacity in the marketplace [21] - The U.S.-Mexico and U.S.-Canada cross-border businesses underperformed compared to domestic revenue performance [19] Company Strategy and Development Direction - The company remains focused on accelerating its business model and executing strategic growth initiatives despite ongoing challenges in the freight environment [6][9] - Continuous improvement in service and support for customers, agents, BCOs, and carriers is a priority [8] - The company is committed to investing in technology solutions and refreshing its fleet of trailing equipment [10][27] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges from volatile federal trade policy and inflation concerns but highlighted positive developments in heavy haul services [6][7] - The company will provide revenue commentary for the third quarter instead of formal guidance due to the uncertain economic environment [28] - Management expressed optimism about the performance of heavy haul services and the potential for recovery in the freight market [6][9] Other Important Information - The company reported an accident frequency rate of 0.67 DOT reportable accidents per million miles, below the national average [11] - Cash flow from operations for the first half of 2025 was $63 million, with significant capital returned to stockholders through dividends and share repurchases [27] Q&A Session Summary Question: Clarification on SG&A outlook for Q3 - Management confirmed that the SG&A outlook for Q3 should be adjusted based on the reclassification impact and the expected decline from the agent convention [33][34] Question: Insights on end market performance - Management indicated that automotive demand remains sluggish, while sectors like data centers and heavy haul are performing well [45][46] Question: Trends in insurance and claims costs - Management noted an increase in insurance and claims costs due to higher severity of trucking accidents and strategic cargo theft [25][92] Question: Heavy haul segment outlook - Management expressed confidence in the heavy haul segment's performance, noting broad-based demand across various industries [82][84] Question: Impact of new regulations on capacity - Management stated that they do not foresee unique exposure to new regulations affecting their BCO fleet, maintaining a disciplined approach to recruitment and retention [87][88] Question: Overall freight market trends - Management acknowledged the challenges in sustaining revenue per load increases, attributing fluctuations to unique circumstances in Q2 and tariff uncertainties [62][64] Question: Substitute line haul performance - Management indicated that demand for substitute line haul services is less diversified and influenced by a few key shippers, with expectations for a flat peak season [71][73] Question: Future of non-truck transportation services - Management noted a significant drop in non-truck transportation revenue, primarily due to tariff-related issues, with no immediate improvement expected [74]

Financial Performance - Revenue decreased slightly by 1.1%, from $1,225.0 million in 2Q 2024 to $1,211.4 million in 2Q 2025 [17] - Operating income decreased by 17.3%, from $68.1 million in 2Q 2024 to $56.3 million in 2Q 2025 [17] - Earnings per share decreased by 18.9%, from $1.48 in 2Q 2024 to $1.20 in 2Q 2025 [17] - Variable contribution margin decreased from 14.3% in 2Q 2024 to 14.1% in 2Q 2025 [37, 38] Truckload Operations - Truck revenue was $1.12 billion [22] - Truck loadings totaled 501,000 [22] - Truck revenue per load was $2,234 [22] Capacity Providers - Total available truck capacity providers were 77,358 as of June 28, 2025 [24] - BCO independent contractors numbered 7,844 as of June 28, 2025 [24] - The number of trucks provided by BCO independent contractors was 8,611 as of June 28, 2025 [24] Cash Flow and Returns - Net cash was $340.7 million as of June 28, 2025 [43] - Free cash flow was $58.4 million year-to-date [43] - Share repurchases totaled $102.3 million year-to-date [43]

Core Viewpoint - Landstar System, Inc. reported a decline in revenue and earnings per share for the second quarter of 2025 compared to the same period in 2024, while maintaining a strong focus on safety and service in a challenging freight transportation environment [1][2]. Financial Performance - The company reported total revenue of $1.211 billion in Q2 2025, down from $1.225 billion in Q2 2024, representing a decrease of approximately 1.1% [2]. - Basic and diluted earnings per share were $1.20 in Q2 2025, compared to $1.48 in Q2 2024, reflecting a decline of about 19% [1][12]. - Gross profit for Q2 2025 was $109 million, down from $120 million in Q2 2024, indicating a decrease of approximately 9.2% [4][12]. - Variable contribution in Q2 2025 was $170 million, compared to $175 million in Q2 2024, a decline of about 2.9% [4][12]. Revenue Breakdown - Truck transportation revenue accounted for 92% of total revenue in Q2 2025, amounting to $1.118 billion, compared to $1.106 billion (90% of revenue) in Q2 2024 [2]. - Truckload transportation revenue via van equipment was $591 million in Q2 2025, down from $619 million in Q2 2024 [2]. - Revenue from unsided/platform equipment increased to $401 million in Q2 2025 from $381 million in Q2 2024 [2]. - Revenue from other truck transportation services rose to $101 million in Q2 2025, compared to $78 million in Q2 2024 [2]. Operational Metrics - Truck revenue per load increased by 2.6% in Q2 2025 compared to Q2 2024, despite a 1.5% decline in the number of loads hauled [3]. - The number of independent business capacity owners (BCOs) remained flat sequentially, marking the best performance since Q2 2022 [1]. Capital Management - Landstar returned capital to shareholders through stock repurchases and dividends, purchasing 300,141 shares for $42.4 million in Q2 2025, totaling 686,459 shares for approximately $103.3 million in the first half of 2025 [1]. - The Board of Directors declared a quarterly dividend of $0.40 per share, payable on September 9, 2025 [1]. Balance Sheet Strength - As of June 28, 2025, Landstar had cash and short-term investments totaling approximately $426 million [5]. - The trailing twelve-month return on average shareholders' equity was 17%, and return on invested capital was 16% [6].