XPO
Xpo, INC
NYSE
8-K: XPO Reports Preliminary February 2025 LTL Operating Metrics: Tonnage Declines
Sentiment:
Press Release
4 March 2025 4:05 PM
XPO reports a decrease in LTL tonnage per day for February 2025, driven by lower shipments and weight per shipment.
Worse than expected
The document contains worse than expected results because LTL tonnage per day decreased by 8.1% compared to February 2024.
Summary
- XPO, Inc. released preliminary operating metrics for its North American Less-Than-Truckload (LTL) segment for February 2025.
- LTL tonnage per day decreased by 8.1% compared to February 2024.
- This decrease is attributed to a 6.2% year-over-year decrease in shipments per day and a 2.0% decrease in weight per shipment.
- The company notes that actual results for February 2025 may vary from these preliminary figures.
- XPO's CEO, Mario Harik, stated that February volume outperformed seasonal trends relative to January and aligns with expectations for the quarter-to-date.
- Harik also mentioned a favorable industry pricing environment and ongoing initiatives to drive sequential pricing growth throughout 2025, supporting the company's margin outlook.
Sentiment
Score: 5
Explanation: The sentiment is neutral. While there's a decline in tonnage, management expresses optimism about pricing and future growth. The forward-looking statements are tempered by risk disclosures.
Positives
- February volume outperformed seasonal trends relative to January.
- The industry pricing environment is favorable.
- XPO is executing initiatives to drive sequential pricing growth throughout 2025.
Negatives
- LTL tonnage per day decreased by 8.1% compared to the previous year.
- Shipments per day and weight per shipment also experienced decreases.
Risks
- The release includes forward-looking statements that are subject to various risks and uncertainties.
- These risks include economic and political impacts, supply chain disruptions, cost inflation, labor shortages, and the company's ability to implement its cost and revenue initiatives.
- Other risks include potential cyber-attacks, data security breaches, indebtedness, fluctuations in interest rates and fuel prices, and competition.
Future Outlook
XPO anticipates sequential pricing growth throughout 2025, which is expected to support the company's margin outlook.
Management Comments
- Mario Harik, CEO of XPO, stated that February volume outperformed seasonal trends relative to January.
- Harik also noted that the industry pricing environment is favorable and that XPO is executing initiatives to drive sequential pricing growth throughout 2025.
Industry Context
The LTL industry is sensitive to economic conditions, and XPO's results reflect broader trends in freight demand and pricing. Competitors like Old Dominion Freight Line (ODFL) and Saia (SAIA) also provide insights into the overall health of the LTL market.
Comparison to Industry Standards
- It's important to compare XPO's 8.1% tonnage decline with the performance of its peers, such as Old Dominion Freight Line and Saia, to gauge its relative performance.
- For example, if ODFL and SAIA report tonnage declines of a similar magnitude, it would suggest a broader industry slowdown.
- However, if XPO's decline is significantly larger, it could indicate company-specific challenges.
- Investors should also consider the pricing environment and whether XPO's pricing initiatives are keeping pace with industry averages.
Stakeholder Impact
- Shareholders may be concerned about the decline in LTL tonnage, but reassured by the company's focus on pricing and margin improvement.
- Employees may be affected by any operational adjustments made in response to the changing market conditions.
- Customers may experience changes in pricing or service levels as XPO implements its initiatives.
Key Dates
- 2025-03-04: Date of report and press release regarding February 2025 LTL operating data.
Keywords
XPO
Xpo, INC
NYSE
Sector: Industrials
Filings with Classifications
Worse than expected
4 June 2025 4:05 PM
Operating Metrics Update
- All reported key operating metrics for both April and May 2025 showed year-over-year decreases, indicating a decline in freight volume and activity for the North American LTL segment.
Worse than expected
30 April 2025 4:06 PM
Quarterly Report (Form 10-Q)
- Revenue decreased by 3.2% year-over-year, indicating a weaker performance compared to the previous year.
- North American LTL revenue declined by 4.0%, with a decrease in volume (pounds per day) by 7.5%.
Worse than expected
30 April 2025 6:45 AM
Earnings Release
- The company's revenue and adjusted EBITDA decreased compared to the same period last year.
Better than expected
2 April 2025 8:12 PM
Proxy Statement
- The company's 2024 financial results outpaced expectations, with significant growth in operating income, net income, and adjusted EBITDA.
- XPO's LTL segment revenue and profitability improved, with the adjusted operating ratio exceeding the target range.
- The company achieved all-time-high employee engagement and a 50% increase in total shareholder return, outperforming the transportation sector and the broader market.
Worse than expected
4 March 2025 4:05 PM
Press Release
- The document contains worse than expected results because LTL tonnage per day decreased by 8.1% compared to February 2024.
Better than expected
7 February 2025 6:47 AM
Annual Results
- The company's operating income increased significantly compared to the previous year.
- The North American LTL segment saw strong yield growth.
- The company reduced outsourced linehaul miles, improving cost efficiency.
Better than expected
6 February 2025 6:49 AM
Investor Presentation
- The company's operating income increased by 24% year-over-year, indicating better than expected performance.
- The company's adjusted EBITDA increased by 15% year-over-year, indicating better than expected performance.
- The company's adjusted diluted EPS increased by 16% year-over-year, indicating better than expected performance.
Better than expected
6 February 2025 6:47 AM
Earnings Release
- XPO's full year adjusted EBITDA increased by 27% compared to the prior year.
- Adjusted diluted EPS for the full year increased by 31% compared to the prior year.
- North American LTL business saw adjusted operating income growth of 27% for the full year.
- The adjusted operating ratio in North American LTL improved by 260 basis points for the full year.
Worse than expected
3 December 2024 4:05 PM
Operating Metrics Update
- The document reports a decrease in LTL tonnage per day and shipments per day for both November and October, indicating worse performance compared to the previous year.
Better than expected
30 October 2024 4:05 PM
Quarterly Report
- The company's net income and operating income showed significant year-over-year improvements.
- The North American LTL segment's Adjusted EBITDA increased significantly.
- The company's revenue increased in both the North American LTL and European Transportation segments.
Better than expected
30 October 2024 6:47 AM
Investor Presentation
- The company's Q3 2024 results exceeded expectations with significant year-over-year improvements in revenue, operating income, and adjusted EBITDA.
- The LTL segment's performance was particularly strong, with a 17% increase in adjusted operating income and a 200 basis point improvement in the adjusted operating ratio.
- The company's LTL yield and revenue per shipment, excluding fuel, also showed strong growth, indicating effective pricing strategies.
Better than expected
30 October 2024 6:45 AM
Quarterly Report
- XPO's adjusted EBITDA increased by 20% year-over-year, exceeding expectations.
- Adjusted diluted EPS grew by 16% year-over-year, surpassing prior period results.
- The North American LTL segment's adjusted operating income increased by 17%, indicating better than expected performance.
- The North American LTL segment achieved an adjusted operating ratio of 84.2%, which was 200 basis points better than the prior year.
Worse than expected
4 September 2024 4:05 PM
Operating Metrics Update
- The document indicates a decrease in key metrics such as LTL tonnage per day and shipments per day, suggesting worse than expected results.
Better than expected
1 August 2024 4:06 PM
Quarterly Report
- The company's net income and adjusted EBITDA significantly exceeded the previous year's results, indicating better than expected performance.
- The North American LTL segment's revenue and profitability growth was substantially higher than the previous year, demonstrating better than expected results.
- The company's strategic initiatives, such as the acquisition of service centers and in-house trailer manufacturing, are contributing to better than expected operational efficiency and cost control.
Better than expected
1 August 2024 6:48 AM
Investor Presentation
- The company's Q2 2024 results exceeded expectations with significant year-over-year growth in revenue, adjusted EBITDA, and adjusted diluted EPS.
- The LTL segment's performance was particularly strong, with substantial improvements in operating income and operating ratio.
- The company's LTL damage claims ratio reached a record low, indicating better than expected operational efficiency.
Better than expected
1 August 2024 6:46 AM
Quarterly Report
- The company's diluted EPS from continuing operations increased significantly to $1.25, compared to $0.27 in the same period last year.
- Adjusted EBITDA grew by 40.6% to $343 million, indicating better than expected profitability.
- The North American LTL segment showed strong growth in revenue and operating income, exceeding expectations.
Better than expected
6 June 2024 4:06 PM
Operating Metrics Update
- The company reported a 2.4% increase in LTL tonnage per day and a 3.8% increase in shipments per day, indicating better than expected performance in a soft freight market.
Better than expected
3 May 2024 4:06 PM
Quarterly Report
- The company's net income, operating income, and adjusted EBITDA all showed significant improvements compared to the same period last year.
- The North American LTL segment's revenue and profitability exceeded expectations, driving the overall positive results.
Better than expected
3 May 2024 6:49 AM
Investor Presentation
- The company's Q1 2024 results exceeded expectations with significant year-over-year growth in revenue, adjusted EBITDA, and adjusted diluted EPS.
- The LTL segment's performance was particularly strong, with a 50% increase in adjusted operating income and a 390 basis point improvement in adjusted operating ratio.
- The company's LTL yield, excluding fuel, increased by 9.8% year-over-year, indicating strong pricing power.
Better than expected
3 May 2024 6:46 AM
Quarterly Report
- The company's financial results exceeded expectations, with significant improvements in revenue, EBITDA, and earnings per share.
- The North American LTL segment showed substantial growth and efficiency gains, surpassing previous performance.
- The company's damage claims ratio was one of the best in the industry, indicating better operational performance.
Better than expected
2 April 2024 4:05 PM
Proxy Statement
- XPO increased total company operating income by 16% and adjusted EBITDA by 6% year-over-year in 2023.
- XPO's stock price increased by 163% in 2023.
Worse than expected
8 February 2024 6:46 AM
Annual Results
- Net income decreased significantly from $666 million in 2022 to $189 million in 2023, primarily due to the absence of gains from discontinued operations and higher operating expenses.
Better than expected
7 February 2024 6:52 AM
Investor Presentation
- The company's Q4 2023 results exceeded expectations with significant year-over-year improvements in revenue, adjusted EBITDA, and LTL operating income.
- The LTL adjusted operating ratio improved by 380 basis points year-over-year, indicating better than expected operational efficiency.
- LTL yield, excluding fuel, increased by 10.3% year-over-year, demonstrating better than expected pricing power.
Better than expected
7 February 2024 6:50 AM
Quarterly Report
- The company's fourth quarter results were solidly above expectations, with significant improvements in revenue, operating income, and key operating metrics in the North American LTL segment.
- The company's adjusted EBITDA increased by 28% year-over-year, excluding real estate gains in 2022, indicating better than expected profitability.
- The North American LTL segment outperformed on every key operating metric, including yield growth, adjusted operating income growth, and adjusted operating ratio improvement.
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