XPO tops Q3 profit estimates as LTL margins improve
XPO said third-quarter 2026 adjusted diluted EPS of $1.70 topped the $1.59 consensus estimate compiled by Finnhub, while revenue of $2.37 billion was in line with the $2.39 billion estimate.
Key takeaways
- XPO, Inc. (XPO) said on Oct. 29 that third-quarter 2026 revenue rose 12% to $2.37 billion. Adjusted diluted earnings per share were $1.70, above the $1.59 consensus estimate compiled by Finnhub, while revenue was in line with the $2.39 billion estimate. Adjusted EBITDA was $433 million. North American LTL adjusted operating ratio improved to 80.1%.
XPO, Inc. (XPO) said in investor slides released on Oct. 29 that revenue for the third quarter of 2026 rose 12% from a year earlier to $2.37 billion. Adjusted diluted earnings per share were $1.70, above the $1.59 consensus estimate compiled by Finnhub.
The company furnished the slides in a Form 8-K filed Oct. 29 under Item 7.01. The filing says the presentation is expected to be used in future investor presentations and should be read together with the company's SEC filings, including its Form 10-Q for the quarter ended Sept. 30.
Here's how the company did:
- Revenue: $2.37 billion, up 12% from a year earlier, in line with the $2.39 billion consensus estimate compiled by Finnhub
- Adjusted diluted EPS: $1.70 vs. $1.07 a year earlier, above the $1.59 consensus estimate compiled by Finnhub
- Adjusted EBITDA: $433 million vs. $342 million a year earlier
- Net income: $181 million vs. $82 million a year earlier
- Diluted EPS: $1.53
Segment results
North American less-than-truckload revenue was $1.47 billion, and segment adjusted EBITDA was $389 million, against $308 million a year earlier.
The segment's adjusted operating ratio was 80.1%, compared with 82.7% a year earlier. LTL tonnage per day rose 5% from a year earlier, according to the slides.
European Transportation revenue was $900 million, and its adjusted EBITDA was $48 million, up 26% from a year earlier.
Full-year 2026 expectations
For the full year 2026, the company expects gross capital expenditures of $500 million to $600 million, interest expense of $205 million to $215 million, pension income of about $14 million, an adjusted effective tax rate of 23% to 24%, and about 118 million diluted shares.
For North American LTL over 2021 to 2027, the slides set targets of revenue growth at a compound annual rate of 6% to 8%, adjusted EBITDA growth at a compound annual rate of 11% to 13%, and an adjusted operating ratio improvement of at least 600 basis points.
The slides do not give a full-year revenue or EPS forecast.
Cash and claims
Cash flow from operating activities was $415 million in the quarter. Nine-month adjusted diluted EPS was $4.41, against $2.85 a year earlier.
The slides say LTL damage claims were below 0.2% of LTL revenue in the quarter.