01—Abstract
Summary
Summary of the 10-K filed February 5, 2026. Cited figures are marked; the original filing is the authoritative source.
XPO, Inc. reported full-year 2025 revenue of $8.16 billiona, up 1.1% from $8.07 billion in 2024, with operating income of $656 million versus $660 million and net income of $316 million, down from $387 million.
Management describes the freight environment as recessionary, but says that the company's North American LTL segment, its largest, is positioned for a rebound. North American LTL revenue fell 1.4% to $4.8 billionb, with tonnage down 6.2% per day, offset by a 6.0% increase in yield (gross revenue per hundredweight excluding fuel surcharges). Segment adjusted EBITDA rose to $1.14 billion from $1.12 billion, and the company notes that it lowered third-party purchased transportation costs by over 50% versus 2024 through linehaul insourcing.
European Transportation revenue rose 4.8% to $3.3 billionc, with foreign currency contributing about 3.6 percentage points, while segment adjusted EBITDA declined to $147 million from $158 million. The Board's previously announced authorization to divest the European business remains in effect, though the filing states there can be no assurance a transaction will occur. Cash from continuing operations rose to $986 million from $808 million, and capital expenditures were $657 million.
The company repurchased $125 milliond of stock in 2025 and had $625 million remaining under its $750 million authorization. Total liquidity was approximately $910 million at year-end, and the company states it believes existing liquidity is sufficient for the next 12 months. The filing also records a $35 million charge related to a legacy Pre-Con-way environmental matter, which the company says is unrelated to its North American LTL operations.
Effective tax rate rose to 27.8% from 18.1%, largely because 2024 included a one-time $41 million benefit from a European legal entity reorganization. KPMG issued an unqualified opinion on both the financial statements and internal control over financial reporting, with self-insured claims identified as the critical audit matter.
02—Key points
Key Highlights
- Revenue of $8,157 million in 2025, up 1.1% from $8,072 million in 2024; the filing states foreign currency added about 1.4 percentage points, so revenue was essentially flat on a constant-currency basis.
- Net income declined to $316 million from $387 million, and diluted EPS from continuing operations was $2.64 versus $3.23 in 2024.
- North American LTL gross revenue per hundredweight, excluding fuel surcharges, rose 6.0% to $25.39, while pounds per day fell 6.2%.
- Net cash from operating activities from continuing operations increased to $986 million from $808 million, and purchases of property and equipment totaled $657 million.
- The company has $3.2 billion of total outstanding debt principal excluding finance leases, with no significant maturities until 2028; liquidity was approximately $910 million at year-end.
- Board authorization to divest the European Transportation business remains in effect, but the filing states there can be no assurance a transaction will occur.
- Effective tax rate rose to 27.8% from 18.1%, reflecting the absence of a 2024 one-time $41 million tax benefit from a European legal entity reorganization.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 5, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $8.16B$8.07B | +1.1% |
| Operating Income | $656.00M$660.00M | −0.6% |
| Net Income | $316.00M$387.00M | −18.3% |
| EPS (Basic) | $2.69$3.33 | −19.2% |
| EPS (Diluted) | $2.64$3.23 | −18.3% |
| Shares Outstanding (Basic) | 118.00M116.00M | +1.7% |
| Shares Outstanding (Diluted) | 119.00M120.00M | −0.8% |
05—Questions
Frequently Asked Questions
How did XPO's profitability change in 2025?
Operating income was $656 million, compared with $660 million in 2024, and net income fell to $316 million from $387 million. The filing attributes the decline in pre-tax income mainly to lower other income and operating income, and the tax provision rose to $121 million from $86 million.
What drove performance in the North American LTL segment?
Segment revenue fell 1.4% to $4.8 billion as tonnage declined, but yield rose 6.0%, which management attributes primarily to service improvements. Segment adjusted EBITDA increased to $1.14 billion from $1.12 billion, aided by higher yield, lower purchased transportation and productivity gains.
How is the European Transportation business performing, and what is its status?
Segment revenue rose 4.8% to $3.3 billion, with foreign currency adding about 3.6 percentage points, but adjusted EBITDA fell to $147 million from $158 million. The Board's authorization to divest the business remains in effect, though the filing states there is no assurance a sale will occur or on what terms or timing.
How much capital did the company return to shareholders and how much debt does it carry?
XPO repurchased $125 million of common stock in 2025 and had $625 million remaining under its $750 million authorization. It repaid $115 million of Term Loan B-2 principal and carried $3.2 billion of total debt principal excluding finance leases, with the company stating it has no significant maturities until 2028.
What is the $35 million charge related to a pre-Con-way environmental matter?
The charge relates to environmental and product liability claims involving truck and part manufacturing plants of a former Con-way subsidiary sold in 1981. The filing states the matter is solely related to that legacy business and is unrelated to the operations of the North American LTL segment; it stems from the Allianz insurance contribution litigation.
06—Continue