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XPO Tops Q1 Estimates on Less‑Than‑Truckload Gains and Europe Growth

Pricing strength alongside share gains signals rising earnings power.

Overview

  • XPO posted adjusted earnings of $1.01 per share on $2.1 billion in revenue, beating Wall Street forecasts.
  • Its less‑than‑truckload business, which hauls partial loads for multiple customers, grew revenue 5% to $1.23 billion on higher prices and slightly more shipments.
  • The LTL unit delivered an adjusted operating ratio of 83.9%, a lower‑is‑better metric that improved by 2 percentage points year over year and even ticked 0.5 points better than the stronger fourth quarter.
  • Yield rose 5% as revenue per hundredweight increased, daily shipments climbed about 3%, and average weight per shipment edged lower with a modestly longer average haul.
  • In Europe, transportation revenue rose 11% to $868 million and adjusted EBITDA, a profit measure before interest, taxes, and non‑cash charges, increased to $33 million as management outlined a path to faster cash generation and shares moved about 1% higher in early trading.