Core Viewpoint - XPO reported its financial results for Q4 2025, showing a decline in net income and diluted earnings per share compared to the same period in 2024, despite an increase in total revenue and adjusted operating income in certain segments [1][9][10]. Financial Performance Summary - The company generated total revenue of $2.01 billion in Q4 2025, a 4.7% increase from $1.92 billion in Q4 2024 [8]. - Operating income decreased to $143 million in Q4 2025 from $148 million in Q4 2024, reflecting a 3.4% decline [9]. - Net income fell by 22.4% to $59 million in Q4 2025, down from $76 million in Q4 2024, resulting in diluted earnings per share of $0.50 compared to $0.63 in the previous year [9][10]. Segment Performance North American Less-Than-Truckload (LTL) - Revenue for the North American LTL segment was $1.17 billion in Q4 2025, up 0.8% from $1.16 billion in Q4 2024 [12]. - Adjusted operating income increased by 13.8% to $181 million, with an adjusted operating ratio improving by 180 basis points to 84.4% [12][13]. - Yield, excluding fuel, increased by 5.2%, while shipments per day decreased by 1.6% and tonnage per day decreased by 4.5% [12]. European Transportation - The European Transportation segment reported revenue of $846 million in Q4 2025, a 10.6% increase from $765 million in Q4 2024 [13]. - Operating income was a loss of $13 million, compared to a loss of $11 million in the same period last year [13]. - Adjusted EBITDA for this segment rose to $32 million, up from $27 million in Q4 2024, reflecting an 18.5% increase [13]. Corporate - The corporate segment experienced an operating loss of $28 million in Q4 2025, worsening from a loss of $19 million in Q4 2024 [14]. - Adjusted EBITDA for the corporate segment remained a loss of $4 million, unchanged from the previous year [14]. Cash Flow and Capital Expenditures - The company generated $226 million in cash flow from operating activities in Q4 2025, ending the year with $310 million in cash and cash equivalents [11]. - Capital expenditures totaled $84 million, with $65 million allocated for common stock repurchases and $65 million for term loan repayments [11].

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]