second quarter 2026
Filed Jul 30, 2026XPO reported second-quarter revenue growth of 13.2%, operating-income growth of 36.9% and adjusted diluted EPS growth of 61.9%.
Revenue, operating income, net income and adjusted diluted EPS increased year-over-year, led by North American LTL margin expansion, while European Transportation reported an operating loss due primarily to restructuring.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $2,355 million | – | 13.2% |
| Operating incomeGAAP | $271 million | – | 36.9% |
| Net incomeGAAP | $162 million | – | 52.8% |
| Diluted EPSGAAP | $1.36 | – | 52.8% |
| Diluted weighted-average common shares outstandingGAAP | 118 million | – | – |
| Adjusted net incomenon-GAAP | $201 million | – | – |
| Adjusted diluted EPSnon-GAAP | $1.70 | – | 61.9% |
| Adjusted EBITDAnon-GAAP | $434 million | – | 27.6% |
| North American Less-Than-Truckload operating incomeGAAP | $285 million | – | 43.2% |
| North American Less-Than-Truckload adjusted operating incomenon-GAAP | $287 million | – | 36.0% |
| North American Less-Than-Truckload adjusted operating rationon-GAAP | 79.9% | – | 300 basis points |
| North American Less-Than-Truckload adjusted EBITDAnon-GAAP | $390 million | – | 30.0% |
| European Transportation operating income (loss)GAAP | ($6 million) | – | NM |
| European Transportation adjusted operating incomenon-GAAP | $21 million | – | 40.0% |
| European Transportation adjusted EBITDAnon-GAAP | $48 million | – | 9.1% |
| Corporate operating lossGAAP | ($9 million) | – | -18.2% |
| Corporate adjusted EBITDA lossnon-GAAP | ($4 million) | – | 0.0% |
| North American Less-Than-Truckload yield, excluding fuelother | 4.4% | – | 4.4% |
| North American Less-Than-Truckload shipments per dayother | 2.8% | – | 2.8% |
| North American Less-Than-Truckload tonnage per dayother | 1.0% | – | 1.0% |
| Gains from sales of real estateGAAP | $7 million ($9 million pre-tax) | – | – |
| Gains from sales of real estate per diluted shareGAAP | $0.06 per diluted share | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North American Less-Than-TruckloadThe increase in adjusted EBITDA reflects yield growth, higher tonnage per day, productivity improvements and higher fuel surcharge revenue, partially offset by higher fuel costs and wage inflation. | $1,428 million | – | 15.2% |
| European TransportationOperating income was a loss of $6 million due primarily to restructuring. | $927 million | – | 10.2% |
| CorporateCorporate generated an operating loss of $9 million. | - | – | 0.0% |
Capital returns
- $70 million of common stock repurchases
What drove it
- North American LTL yield, excluding fuel, increased 4.4% year-over-year.
- North American LTL shipments per day increased 2.8% year-over-year, while tonnage per day increased 1.0%.
- North American LTL adjusted operating ratio was 79.9%, reflecting a year-over-year improvement of 300 basis points.
- The company cited labor-productivity improvement from implementing new AI capabilities across the network.
- The company reported a company-best damage claims ratio below 0.2%.
- European Transportation operating income was affected primarily by restructuring.
Concerns
- European Transportation recorded an operating loss of $6 million, compared with income of $11 million in the same period in 2025, due primarily to restructuring.
- Higher fuel costs and wage inflation partially offset North American LTL adjusted EBITDA growth.
- The second-quarter result included gains from sales of real estate of $7 million ($9 million pre-tax), or $0.06 per diluted share.
What to watch
- North American LTL yield, shipments per day and tonnage per day.
- North American LTL adjusted operating ratio and labor-productivity progress.
- European Transportation profitability following restructuring.
- Cash flow generation, net capital expenditures, common stock repurchases and term loan repayments.
Balance sheet and cash flow
- $308 million of cash flow from operating activities in the second quarter
- $298 million of cash and cash equivalents on hand at quarter-end
- $101 million of net capital expenditures
- $70 million of term loan repayments
Analysis
XPO reported a strong second quarter, with total revenue of $2,355 million, up 13.2% from $2,080 million. Operating income increased 36.9% to $271 million, net income increased 52.8% to $162 million and diluted EPS increased 52.8% to $1.36. Adjusted diluted EPS increased 61.9% to $1.70, while adjusted EBITDA increased 27.6% to $434 million.
North American Less-Than-Truckload was the principal source of growth. Segment revenue increased 15.2% to $1,428 million, while operating income increased 43.2% to $285 million and adjusted operating income increased 36.0% to $287 million. The adjusted operating ratio was a record 79.9%, a year-over-year improvement of 300 basis points. Yield excluding fuel increased 4.4%, shipments per day increased 2.8% and tonnage per day increased 1.0% year-over-year.
North American LTL adjusted EBITDA increased 30.0% to $390 million. The company attributed this increase to yield growth, higher tonnage per day, productivity improvements and higher fuel surcharge revenue, partly offset by higher fuel costs and wage inflation. Management also highlighted implementation of new AI capabilities across the network and a damage claims ratio below 0.2%.
European Transportation revenue increased 10.2% to $927 million, but the segment reported an operating loss of $6 million compared with operating income of $11 million in the same period in 2025, due primarily to restructuring. Adjusted EBITDA nevertheless increased 9.1% to $48 million. Corporate operating loss improved to $9 million from $11 million, and corporate adjusted EBITDA loss was unchanged at $4 million.
Cash generation and capital allocation were meaningful features of the quarter. XPO generated $308 million of cash flow from operating activities and ended the quarter with $298 million of cash and cash equivalents after $101 million of net capital expenditures, $70 million of common stock repurchases and $70 million of term loan repayments. The reported result also included gains from sales of real estate of $7 million ($9 million pre-tax), or $0.06 per diluted share. The release provided no forward financial guidance.
Management, verbatim
We accelerated our performance significantly in the second quarter, delivering 56% year-over-year growth in adjusted diluted EPS and 25% growth in adjusted EBITDA, excluding real estate gains.
Mario Harik, chairman and chief executive officer of XPO
In North American LTL, we increased adjusted operating income by 36% year-over-year and expanded our adjusted operating ratio by 300 basis points to a record 79.9%, strongly outperforming seasonality.
Mario Harik, chairman and chief executive officer of XPO
A consistently superior customer experience remains our foundation for value creation as we continue to grow the business and expand our margins.
Mario Harik, chairman and chief executive officer of XPO
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-release outlook and comparison of actual results with prior guidance
- GAAP gross margin
- Non-GAAP adjusted EBITDA margin value
- Debt balance at quarter-end
- Dividend declaration or payment
- Free cash flow
- Prior-quarter comparisons for reported revenue, earnings, segment results, operating ratio, cash flow and balance-sheet metrics
- Prior-year adjusted operating ratio value
- Prior-year and prior-quarter comparisons for adjusted net income
- Actual values for adjusted EBITDA and adjusted diluted EPS excluding gains on real estate transactions
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.