XPO tops Q3 profit estimates, revenue in line with forecasts

XPO, Inc. (XPO) said on Oct. 29 that third-quarter adjusted diluted earnings per share rose to $1.70 from $1.07 a year earlier, topping the consensus estimate, while revenue was in line with expectations.

The Greenwich, Conn., company reported diluted earnings of $1.53 per share for the quarter ended Sept. 30, compared with $0.68 a year earlier. Its adjusted figure excludes amortization of acquisition-related intangible assets, transaction and integration costs and restructuring costs.

Here's how the company did:

• Adjusted diluted EPS: $1.70 vs. $1.07 a year earlier, against the $1.59 consensus estimate, according to Finnhub

• Revenue: $2.37 billion vs. $2.11 billion a year earlier, against the $2.39 billion estimate, according to Finnhub

• Net income: $181 million vs. $82 million a year earlier

• Adjusted EBITDA: $433 million vs. $342 million a year earlier

Revenue rose 12.4% from a year earlier. Operating income reached $288 million, compared with $164 million in the same quarter of 2025.

Chairman and CEO Mario Harik said, “We delivered another quarter of outstanding performance, accelerating growth in adjusted EBITDA to 27% and adjusted diluted EPS to 59% year-over-year.”

Harik said the company is converting more business into higher earnings through revenue growth and margin expansion.

For the first nine months, adjusted diluted EPS was $4.41, compared with $2.85 a year earlier. Net income for the nine months was $444 million, up from $257 million.

Segment results

North American less-than-truckload revenue rose to $1.47 billion from $1.26 billion a year earlier. Yield excluding fuel increased 3.6%, shipments per day rose 5.8% and tonnage per day rose 5.0%.

The segment's adjusted operating income was $293 million, up 35.0% from $217 million. Its adjusted operating ratio was 80.1%, a 260 basis point improvement.

The European Transportation segment's revenue was $900 million, compared with $857 million a year earlier. Its operating income was $12 million, against a loss of $2 million in the same quarter of 2025.

European adjusted EBITDA was $48 million, up from $38 million. The company said the increase reflects higher revenue and cost efficiencies, partially offset by higher fuel costs.

The corporate segment posted an operating loss of $8 million, compared with $42 million a year earlier. The 2025 figure included a $35 million charge tied to environmental and product liability claims involving a former subsidiary of Con-way.

Costs and cash

The company generated $415 million of cash flow from operating activities in the quarter. It ended the quarter with $260 million of cash and cash equivalents.

Net capital expenditures were $123 million in the quarter, and the company repaid $100 million of term loan debt.

Capital returns

XPO repurchased $150 million of common stock in the quarter. Harik said the company is accelerating its free cash flow and capital return to shareholders.

The release did not include new financial guidance for future periods.