Core Insights - XPO reported diluted earnings per share of $0.89 for Q2 2025, down from $1.25 in Q2 2024, and adjusted diluted earnings per share of $1.05, down from $1.12 in the same period last year [1][7][8] - The company generated total revenue of $2.08 billion, unchanged from Q2 2024, with operating income slightly increasing to $198 million from $197 million [6][7][8] - Net income decreased by 29.3% to $106 million compared to $150 million in Q2 2024, primarily due to a one-time tax benefit in the previous year [7][8] Financial Performance - North American Less-Than-Truckload (LTL) segment revenue was $1.24 billion, a decrease of 2.5% from $1.27 billion in Q2 2024, with operating income at $199 million, down from $203 million [10][12] - European Transportation segment revenue increased by 4.1% to $841 million, with operating income rising to $11 million from $10 million [12][41] - Adjusted EBITDA for the total company was $340 million, slightly down from $343 million in Q2 2024, reflecting yield growth and lower transportation costs [8][11][49] Operational Highlights - In the North American LTL business, the adjusted operating ratio improved by 30 basis points to 82.9%, despite a decline in tonnage [5][10] - Yield, excluding fuel, increased by 6.1%, and revenue per shipment rose by 5.6% year-over-year [5][10] - The company achieved a 53% reduction in purchased transportation expenses by insourcing linehaul miles to a record level [5] Cash Flow and Capital Expenditures - XPO generated $247 million in cash flow from operating activities in Q2 2025, ending the quarter with $225 million in cash and cash equivalents after $191 million in net capital expenditures [9][30]