XPO Reports Revenue and Earnings Gains for Q4

Carrier’s Results Exceed Expectations Despite Soft Freight Environment
XPO camo truck
XPO posted earnings of $58 million for the three months ending Dec. 31. That compared with a loss of $94 million in the fourth quarter of 2022. (XPO Inc.)

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XPO Inc. reported a year-over-year increase in revenue and earnings despite an overall softer freight environment during the fourth quarter of 2023, the company announced Feb. 7.

The Greenwich, Conn.-based less-than-truckload carrier posted net income of $58 million, or 49 cents a diluted share, for the three months ending Dec. 31. That compared with a loss of $94 million, or 81 cents a share, during the 2022 period. Revenue increased 6% to $1.94 billion from $1.83 billion.

The net loss in Q4 2022 was attributed to one-time costs associated with the spinoff of RXO.

XPO ranks No. 5 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.

“I’m pleased to report that we capped a strong year with a quarter that exceeded expectations, and we’ve carried that momentum into 2024,” CEO Mario Harik said during a call with investors after the report was released. “I want to thank our team for delivering these great results in a soft freight environment.”


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The LTL 2.0 strategy is focused on network investments that target expected customer demand. The strategy has been a key component in the company bolstering its operating performance to better withstand the softer market.

“Looking at our North American LTL segment, we reported our strongest progress since we launched our LTL 2.0 plan in 2021,” Harik said. “We grew our adjusted operating income year-over-year by 51% and improved our adjusted operating ratio by 380 basis points. We delivered the best damage claims ratio in our history at 0.3%, as well as a record level of employee satisfaction, and we significantly accelerated our year-over-year yield growth.”

XPO’s network investment plans were given a significant lift in the quarter when the carrier was approved to acquire 28 service centers as part of the Yellow Corp. bankruptcy. The company views these facilities as being in key locations, and they are expected to become operational within the next 12 to 18 months.

“We continue to deploy capital efficiently as we reinvest back into the business,” Harik said. “All of these are proof points that our plan has strong traction, and the 28 service centers we recently acquired from the Yellow network will build on this momentum.

“This acquisition is a once-in-a-generation opportunity to integrate prime locations into our network to support yield growth and margin expansion. When the market recovers and industry capacity tightens, we’ll be in a stronger position to serve our customers and drive profitable growth for years to come.”


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Net income also included discontinued operations in its year-ago comparison from the spinoff of its tech-enabled brokered transportation platform into RXO. Net income from continuing operations was $58 million for the quarter, compared with a net loss of $36 million for the same period in 2022.

“We have momentum across the board,” XPO Chief Strategy Officer Ali Faghri told Transport Topics. “Our service, which is a key pillar of our strategy, was at a record level in the fourth quarter. We had a 0.3% damage claims ratio. That’s the key service metric that our customers track. That’s a company record, and it’s improved about 70% since we started LTL 2.0 about two years ago. We’re driving accelerating yield growth.”

XPO noted in the report that the year-over-year increase in revenue was primarily because of higher yields and an increase in tonnage per day in the North American LTL segment. This was partially offset by lower fuel surcharge revenue. The yield increased 10.3% year-over-year when excluding fuel.

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“That translated to very strong year-over-year margin improvements, so we have a lot of momentum on the yield and pricing side,” Faghri said. “We also continue to invest in our network as well as tractors and trailers.”

For the full year, XPO reported net income of $189 million, or $1.60 a share, on revenue of $7.74 billion, compared with net income of $666 million, or $5.76, on revenue of $7.72 billion in 2022.

North American LTL revenue in Q4 increased 8.6% to $1.19 billion from $1.09 billion during the year-earlier period. The report noted that shipments per day increased 5.7% and tonnage per day increased 2% from the 2022 period. Operating income declined 2% to $149 million from $152 million.

European transportation revenue increased 2% to $753 million from $738 million during the prior-year quarter. The segment also saw an operating loss of $2 million during the quarter, compared with a loss of $60 million for the same period in 2022.