RXO Boss Optimistic About Supply-Side Recovery

RXO is optimistic that reduced capacity in the market due to regulations and enforcement is setting up the freight market for a multiyear recovery when demand improves. (RXO)

RXO CEO Drew Wilkerson expressed optimism that the freight market is recovering and that his company is well positioned for the upturn while reporting first-quarter results May 7.

The Charlotte, N.C.-based asset-light transportation provider posted a net loss of $36 million, or negative 21 cents a diluted share, for the three months ending March 31. That compared with a loss of $31 million, or negative 18 cents, during the same time the previous year. Total revenue was virtually unchanged from the prior year at $1.43 billion.

“We’re seeing clear signs of improvement in the freight market, primarily driven by supply-side tightening, despite overall soft demand, typical seasonality and severe weather,” Wilkerson said during a call with investors. “Second, we have significant momentum within the business.”

Truck brokerage segment revenue increased 2.8% to $1.1 billion from $1.07 billion. Brokerage volume declined 8% year over year. Less-than-truckload volume increased by 5% but was offset by a 12% decline in full truckload volume. Still, the report showed that full truckload volume did rise every month throughout the quarter, while an improvement in the truckload spot volume mix drove the largest sequential gain in gross profit per load in more than three years.

“We continue to secure major customer wins,” Wilkerson said. “In brokerage, we’re converting our significantly larger sales pipeline. In managed transportation, we were awarded more than $100 million in freight under management in the first quarter, and our late-stage sales pipeline increased by more than $200 million. We also saw traction with our new middle-mile solutions.”

RXO also accelerated its deployment of agentic artificial intelligence. Wilkerson noted that this has driven improvements in volume, margins, productivity and service. He said this approach has helped RXO tailor their solutions for customers.

“We believe a supply-driven recovery is taking shape,” Wilkerson said. “Capacity continues to exit the market, a trend that began to accelerate late last year due to regulatory changes and enforcement. We have even more conviction that these capacity reductions are structural in nature.”

RXO 2026 Q1 Press Release

Wilkerson is optimistic the trend has set the freight market up for a multiyear recovery when demand improves. He noted how regulations and enforcement are positively affecting industry safety as well, and the role they play in helping combat theft and fraud.

But Wilkerson also said RXO’s customers are still working through soft demand and macroeconomic uncertainty beyond the supply-side optimism.

“We have yet to see a sustained increase in the demand for goods,” Wilkerson said. “Shippers are becoming increasingly selective about who they work with and are choosing proven-scale brokers like RXO.”

Chairman and CEO Drew Wilkerson talked earnings, AI and freight market dynamics with @carlquintanilla and @SaraEisen on @moneymoverscnbc earlier today. Check it out! https://t.co/Kkz3jlUB9T — RXO (@rxoinc) May 7, 2026

Wilkerson described the company’s recently launched bid-season strategy as successful so far. This has involved working with customers to optimize service, volume and price. He noted that contract renewal rates have been up in the mid- to high-single digits on average. He saw new rates start to phase in late during the quarter, and he expects that to continue through Q2.

“We’re servicing our customers’ freight throughout all phases of the market cycle, and that’s translating to real business momentum,” Wilkerson said. “Last quarter, we highlighted that the pipeline was up more than 50% year over year. I’m happy to report that we held our win rate at about 40%.”

Complementary services segment revenue decreased 6.5% to $388 million from $415 million. The report noted that last-mile stops declined 8% year over year, primarily due to soft demand for big and bulky goods, as well as severe weather.

“In complementary services, managed transportation continues to win,” Wilkerson said. “These wins are significant because they result in an increase [of] synergy loads for RXO’s other lines of business.”

RXO ranks No. 11 on the Transport Topics Top 100 list of the largest logistics companies in North America.