XPO, Inc. (XPO)

XPO reported third-quarter 2026 revenue of $2.37 billion on 29 October, compared with $2.11 billion a year earlier 1. Net income was $181 million, compared with $82 million 1. Operating income was $288 million, compared with $164 million 1.

North American LTL, the freight business that carries shipments too small to fill a trailer, grew revenue to $1.47 billion 1. Its adjusted operating ratio was 80.1 percent, which is operating costs as a share of revenue, so a lower figure is better 1. The ratio improved by 260 basis points 1.

Chairman and chief executive Mario Harik said the company is converting more business into higher earnings through revenue growth and margin expansion 1. He also pointed to wider use of AI across the network 1.

European Transportation reported operating income of $12 million, compared with a loss of $2 million a year earlier 1. The latest 10-Q says the board's authorization to divest the European business remains in effect, with no assurance that a deal will occur 2.

XPO began breaking up its conglomerate in late 2020, a plan that would leave it a pure less-than-truckload carrier, FreightWaves reported 6. It spun off its contract logistics business GXO in 2021, then sold its intermodal unit and spun off its brokerage business RXO in 2022 6.

Trucking Dive reported that the spin-off strategy paused in March 2020 as the pandemic reached the U.S. and later resumed 5. The RXO spin-off took place on 1 November 2022 5.

In December 2022 XPO said it did not expect to divest its European business in the near term because capital markets had weakened 5. It also dropped Logistics from its name effective 19 December 5.

FreightWaves reported in August 2024, citing Bloomberg, that XPO had resumed efforts to divest the European unit 6. A company spokesperson told FreightWaves that XPO does not comment on market rumors or speculation 6.

The company began its LTL growth plan in the fourth quarter of 2021 and has since added more than 2,500 net new doors, the bays where trucks load, to its network 2. It also built more than 30 percent of spare door capacity ahead of demand 2.

In 2025 consolidated revenue rose 1.1 percent to $8.2 billion 4. Revenue was essentially flat once currency movements are set aside 4. Net income was $316 million, compared with $387 million in 2024 4.

North American LTL revenue fell 1.4 percent to $4.8 billion in 2025, because fuel surcharge revenue dropped on lower diesel prices and lower volume 4. Pounds per day fell 6.2 percent, almost offset by gross revenue per hundredweight, excluding fuel surcharges, which rose 6.0 percent to $25.39 4.

European Transportation revenue rose 4.8 percent to $3.3 billion in 2025, and currency added about 3.6 percentage points to that growth 4.

Revenue for the first nine months of 2026 rose 11.0 percent to $6.8 billion 2. In that period XPO repaid $1.1 billion on its term loans and spent less on equipment and property than a year before 2.

The company says its LTL adjusted operating ratio improved by 610 basis points over three years in a historically soft freight environment 3.

North American LTL

North American LTL is the largest part of XPO 2. The company says it has about 9 percent of a U.S. market it estimates at $52 billion in 2025, and serves about 38,000 shippers with day-definite service to about 99 percent of U.S. ZIP codes 2.

The investor presentation calls it the fourth largest LTL carrier by 2025 revenue, with 300 service centers, 13,000 drivers, 35,000 trailers and 23,000 employees 3.

In the third quarter, shipments per day rose 5.8 percent, tonnage per day rose 5.0 percent and yield excluding fuel, a measure of pricing, rose 3.6 percent from a year earlier 1. The company puts its damage claims ratio below 0.2 percent 1.

The segment also includes a trailer manufacturing operation, and the company runs commercial truck driver schools, which it calls self-reliant competitive advantages 2. In 2025 it built linehaul models that use AI to improve freight flows 4.

European Transportation

XPO says it is the #1 full truckload broker and the #1 pallet network provider in France, and the #1 full truckload broker and the #1 LTL provider in Iberia 2. In the U.K. it has the largest single-owner LTL network 2.

The segment had revenue of $3.3 billion in 2025 and adjusted EBITDA, a measure of operating earnings before interest, tax and depreciation, of $147 million 4. Its services range from dedicated truckload and warehousing to last mile delivery and freight forwarding 2.

Sites, people and problems

At the end of 2025 XPO had 592 locations, of which 424 were leased, 164 owned and 4 on customer premises 4. North American LTL had 206 leased and 150 owned 4. The company leases its executive offices in Greenwich, Connecticut 4.

Mario Harik is chairman and chief executive officer 1. Kyle Wismans has been chief financial officer since August 2023, and David Bates chief operating officer since April 2023 4.

On 24 July 2026 the board appointed Michael Kneeland, non-executive chairman of United Rentals, as a director effective 27 July 7.

At 30 September 2026 XPO had about 38,000 employees and 575 locations in 17 countries 2. At the end of 2025 none of its North American employees were represented by a union, while 85 percent of its European employees were covered by a collective bargaining or similar agreement 4.

In the third quarter of 2025 XPO took a $35 million charge for environmental and product liability claims tied to a former subsidiary of Con-way, sold in 1981 4. The charges for this matter in 2026 were not material 2.

The umbrella, in words

XPO, Inc. maintains approximately 97 subsidiaries, according to the exhibit to its annual report, which names certain wholly owned or at least 90 percent owned ones that provide freight transportation or support services 8. The list includes XPO Logistics Freight, Inc. and XPO LTL Properties, LLC in Delaware and XPO Logistics Europe in France 8.

BlackRock, Inc. reported beneficial ownership of 12,249,467 shares, 10.4 percent of XPO common stock, in a Schedule 13G/A for 31 May 2026, as a passive institutional holder 9.

Chief financial officer Kyle Wismans has served personally as a director of GXO Logistics, Inc. since May 2025, a seat of his own and not a stake held by the company 4.

For 2026 the company expects gross capital spending of $500 million to $600 million and interest expense of $205 million to $215 million 3. It also expects pension income of about $14 million, an adjusted tax rate of 23 percent to 24 percent and about 118 million diluted shares 3.

The company's targets for 2021 to 2027 are LTL revenue growth of 6 percent to 8 percent a year and adjusted EBITDA growth of 11 percent to 13 percent a year 3. It also targets an adjusted operating ratio improvement of at least 600 basis points and capital spending averaging 8 percent to 12 percent of revenue through 2027 3.

The board's authorization to divest the European business remains in effect, but the 10-Q says there is no assurance that a divestiture will occur, or of its terms or timing 2.

At 30 September 2026 the remaining share repurchase authorization was $375 million 2. Harik said the company is accelerating its free cash flow and capital return to shareholders 1.

Michael Kneeland's initial term as a director runs until the 2027 annual meeting of stockholders 7.