Core Insights - XPO has demonstrated resilience in a challenging freight environment, with stock performance quadrupling since early 2023 following the spinoff of GXO Logistics and RXO [1][2] Financial Performance - XPO reported flat revenue of $2.08 billion, exceeding estimates of $2.05 billion [4] - Revenue in the North American LTL business decreased by 2.5% to $1.24 billion, while the European Transportation segment increased by 4.1% to $841 million [5] - Tonnage declined by 6.7% per day, but yield increased by 6.1% excluding fuel [5] - Adjusted EBITDA was nearly flat, decreasing from $343 million to $340 million, and adjusted EPS fell from $1.12 to $1.05, still surpassing the consensus estimate of $0.99 [8] Strategic Initiatives - Share buybacks have resumed, with $10 million repurchased in Q2, and expectations for increased repurchases in the second half of the year due to seasonal cash flow [10][11] - Capital expenditures are expected to decline as a percentage of revenue, allowing for more cash to be allocated to share repurchases and debt reduction, which will enhance EPS [12] - Nearshoring trends may boost growth in the industrial economy, as increased U.S. manufacturing could drive demand for LTL transportation, benefiting XPO [13][14] - The local business segment is accelerating, with high single-digit growth in Q2, driven by investments in local sales and improved service quality [15][16] Long-term Goals - XPO aims to achieve a compound annual revenue growth of 6% to 8%, adjusted EBITDA growth of 11% to 13%, and a 600-basis-point decline in adjusted operating ratio by 2027 [17]