XPO blew past analysts’ expectations for the second quarter.
A better freight mix and numerous AI-fueled efficiency initiatives produced record operating results in its less-than-truckload unit
XPO (NYSE: XPO) reported second-quarter adjusted earnings per share of $1.70, which was 23 cents ahead of the consensus estimate and 65 cents higher year over year. The adjusted EPS number excluded transaction and restructuring costs among other items. Consolidated revenue of $2.36 billion was 13% higher y/y and $85 million better than expectations.
Less-than-truckload revenue increased 15% y/y to $1.43 billion. Revenue was 5% higher excluding fuel surcharges. (Diesel prices were roughly 50% higher y/y in the quarter.) Tonnage increased 1% y/y with yield up 14% (4% higher excluding fuel surcharges). A 3% increase in daily shipments and a 2% decline in weight per shipment formed the tonnage increase.