GREENWICH, Conn. — XPO has reported diluted earnings from continuing operations per share of $0.79, compared with $0.72 for the same period in 2023, and adjusted diluted earnings from continuing operations per share of $1.02, compared with $0.88 for the same period in 2023.
“We reported strong year-over-year earnings growth in the third quarter, as we continued to improve the business in a soft freight environment,” said Mario Harik, chief executive officer of XPO Companywide. “We increased adjusted EBITDA by 20% and adjusted diluted EPS by 16%.
According to Harik, in North American LTL, the company grew adjusted operating income by 17% and achieved an adjusted operating ratio of 84.2% — 200 basis points better than the prior year, at the high end of its target range. XPO drove yield, ex-fuel, higher by 6.7% and increased revenue per shipment by 6.6%, underpinned by pricing gains. In addition, the company generated stronger operating leverage on its top-line growth by managing variable costs more effectively with its proprietary technology. XPO is tracking three years ahead of plan with linehaul insourcing, which enhances its network efficiency and quality of service.
“We’re delivering on the strong results we promised for 2024, while positioning the business to accelerate earnings growth when the freight market recovers,” Harik said. “The world-class service we provide creates value for our customers and will continue to be a key driver of our margin expansion.”
Third Quarter Highlights
According to a company media release, for the third quarter 2024, the company generated revenue of $2.05 billion, compared with $1.98 billion for the same period in 2023. The year-over-year increase in revenue was due primarily to higher yield in the North American LTL segment and volume growth in the European Transportation segment.
Operating income was $176 million for the third quarter, compared with $154 million for the same period in 2023. Net income from continuing operations was $95 million for the third quarter, compared with $86 million for the same period in 2023. Diluted earnings from continuing operations per share was $0.79 for the third quarter, compared with $0.72 for the same period in 2023.
Adjusted net income from continuing operations, a non-GAAP financial measure, was $122 million for the third quarter, compared with $105 million for the same period in 2023. Adjusted diluted EPS, a non-GAAP financial measure, was $1.02 for the third quarter, compared with $0.88 for the same period in 2023.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $333 million for the third quarter, compared with $278 million for the same period in 2023.
The company generated $264 million of cash flow from operating activities in the third quarter and ended the quarter with $378 million of cash and cash equivalents on hand, after $123 million of net capital expenditures.
- North American Less-Than-Truckload (LTL): The segment generated revenue of $1.25 billion for the third quarter 2024, compared with $1.23 billion for the same period in 2023. On a year-over-year basis, shipments per day decreased 3.2%, tonnage per day decreased 3.9%, and yield, excluding fuel, increased 6.7%. Including fuel, yield increased 3.7%. Operating income was $188 million for the third quarter 2024, compared with $161 million for the same period in 2023. Adjusted operating income, a non-GAAP financial measure, was $198 million for the third quarter, compared with $170 million for the same period in 2023. Adjusted operating ratio, a non-GAAP financial measure, was 84.2%, reflecting a year-over-year improvement of 200 basis points. Adjusted EBITDA for the third quarter 2024 was $284 million, compared with $241 million for the same period in 2023. The 18% increase in adjusted EBITDA was due primarily to higher yield, excluding fuel, and lower purchased transportation costs year-over-year, partially offset by lower fuel surcharge revenue.
- European Transportation: The segment generated revenue of $803 million for the third quarter 2024, compared with $752 million for the same period in 2023, primarily driven by volume growth. Operating income was $6 million for the third quarter, compared with $8 million for the same period in 2023. Adjusted EBITDA was $44 million for both the third quarter 2024 and the same period in 2023.
- Corporate: The segment generated an operating loss of $18 million for the third quarter 2024, compared with a loss of $15 million for the same period in 2023. Adjusted EBITDA, a non-GAAP financial measure, was $5 million for the third quarter 2024, compared with a loss of $7 million for the same period in 2023, including a benefit of $9 million from a gain on a past investment in a private company that was sold in the quarter.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
