XPO (NYSE: XPO) announced its Q4 2025 financial results, showing resilient performance amid seasonal pressures, highlighted by growth in adjusted metrics and operational efficiencies.
Financial Snapshot
Total revenue rose to $2.01 billion, up from $1.92 billion in Q4 2024. Operating income dipped slightly to $143 million from $148 million, while net income fell to $59 million versus $76 million year-over-year.
Diluted EPS came in at $0.50, down from $0.63. Adjusted figures held firm, with adjusted diluted EPS at $0.88 compared to $0.89, adjusted net income at $105 million versus $107 million, and adjusted EBITDA up 3% to $312 million from $303 million.
Cash flow from operations reached $226 million in the quarter. Year-end cash stood at $310 million after $84 million in net capex, $65 million in stock repurchases, and $65 million in term loan repayments.
Segment Breakdown
North American LTL drove results, generating $1.17 billion in revenue, up marginally from $1.16 billion. Yield excluding fuel grew 5.2% YoY, though shipments per day fell 1.6% and tonnage per day dropped 4.5%.
Adjusted operating income in LTL climbed 14% to $181 million, improving the adjusted operating ratio by 180 basis points to 84.4%. Adjusted EBITDA rose to $285 million from $280 million, fueled by yield gains, productivity, and AI-driven efficiencies, offset by lower real estate gains, tonnage declines, and wage inflation.
European Transportation revenue increased to $846 million from $765 million. Operating loss widened slightly to $13 million from $11 million, but adjusted EBITDA improved to $32 million from $27 million.
Corporate segment posted a larger operating loss of $28 million versus $19 million, reflecting higher restructuring and integration costs. Adjusted EBITDA loss remained stable at $4 million.
CEO Perspective
Chairman and CEO Mario Harik noted, “We concluded a year of strong execution with another quarter of profitable growth.” He highlighted 18% adjusted diluted EPS growth and 11% adjusted EBITDA growth excluding real estate gains.
In North American LTL, Harik emphasized 14% adjusted operating income growth and the twelfth straight quarter of sequential revenue per shipment gains excluding fuel. AI initiatives enhanced network efficiency and labor productivity.
Harik added, “By pairing world-class service with proprietary technology, we’re building durable earnings power… positioning for outsized share and margin gains in a recovery.”
Strategic Outlook
XPO’s focus on service excellence, pricing discipline, and technology positions it for margin expansion. The company anticipates significant free cash flow acceleration to compound shareholder value.
North American LTL’s outperformance against seasonality underscores operational leverage. Despite European challenges and one-offs like reduced real estate gains and restructuring costs, adjusted metrics signal underlying momentum heading into 2026.
