01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
XPO, Inc. reported third-quarter 2025 revenue of $2.11 billiona, up 2.8% from $2.05 billion a year earlier, with flat revenue after foreign currency effects.
Net income was $82 millionb, compared with $95 million, and diluted earnings per share were $0.68, versus $0.79. The decline reflects a $35 million charge tied to a pre-Con-way acquisition environmental matter, which the filing says was recognized after a revised estimate of the company's share of liability. For the first nine months of 2025, revenue was flat at $6.15 billion and net income was $257 million, compared with $312 million, with diluted EPS of $2.15 versus $2.60.
By segment, North American LTL revenue rose 0.3% to $1.26 billionc in the quarter and adjusted EBITDA increased to $308 million from $284 million, driven by higher yield, productivity and lower purchased transportation. The filing reports that North American LTL pounds per day fell 6.1% and shipments per day fell 3.5% in the quarter. European Transportation revenue rose 6.7% to $857 million, largely from currency effects, while adjusted EBITDA declined to $38 million from $44 million.
Operating cash flow for the nine months was $760 milliond, versus $619 million, and capital expenditures were $551 million, which the company expects to total $600 million to $700 million for full-year 2025. Capital returns and liquidity remained a focus. The company repurchased $50 million of stock in the third quarter, leaving $690 million of remaining authorization, and held approximately $935 million of total liquidity at September 30, 2025.
Total debt was $3.44 billion principal amount, and the company said it had completed a $65 million term loan prepayment notice to be paid in October 2025. Management states that existing liquidity is sufficient for the next 12 months.
02—Key points
Key Highlights
- Q3 2025 revenue of $2.11 billion, up 2.8% year over year; nine-month revenue flat at $6.15 billion
- Q3 net income fell to $82 million from $95 million; diluted EPS of $0.68 versus $0.79
- $35 million charge in Q3 for a pre-Con-way acquisition environmental matter, after a revised liability estimate
- North American LTL adjusted EBITDA rose to $308 million from $284 million, while pounds per day fell 6.1%
- European Transportation adjusted EBITDA declined to $38 million from $44 million despite revenue up 6.7%
- Nine-month operating cash flow of $760 million versus $619 million; capex of $551 million
- Total liquidity of approximately $935 million at September 30, 2025, with $690 million remaining under the share repurchase authorization
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.11B$2.05B | +2.8% |
| Operating Income | $164.00M$176.00M | −6.8% |
| Net Income | $82.00M$95.00M | −13.7% |
| EPS (Basic) | $0.69$0.81 | −14.8% |
| EPS (Diluted) | $0.68$0.79 | −13.9% |
| Shares Outstanding (Basic) | 118.00M116.00M | +1.7% |
| Shares Outstanding (Diluted) | 120.00M120.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did net income decline in the third quarter of 2025?
Net income was $82 million, compared with $95 million in the third quarter of 2024. The filing attributes a $35 million charge to a pre-Con-way acquisition environmental matter, which relates to a legacy Con-way truck manufacturing business and is unrelated to current LTL operations. Operating income fell to $164 million from $176 million.
How did the North American LTL segment perform?
Segment revenue rose 0.3% to $1.26 billion in the third quarter, and adjusted EBITDA increased to $308 million from $284 million. The filing cites higher yield, productivity improvements and lower purchased transportation, partially offset by lower volume, wage inflation and higher vehicular insurance costs. Pounds per day declined 6.1% and shipments per day declined 3.5%.
What is the company's liquidity and capital allocation position?
XPO reported approximately $935 million of total liquidity at September 30, 2025, including about $600 million available under its Revolving Credit Facility. The company repurchased $50 million of common stock in the third quarter and had $690 million remaining under its March 2025 authorization. It also repaid $50 million of term loan principal in July and gave notice to repay $65 million in October 2025.
What are the company's capital expenditure expectations for 2025?
The filing states that the company anticipates full-year 2025 gross capital expenditures between $600 million and $700 million, funded by cash on hand, cash from operations and available liquidity. Nine-month capital expenditures were $551 million, compared with $623 million in the same period of 2024.
What is the status of the European Transportation divestiture and tax refund?
The filing states that the Board's previously announced authorization to divest the European business remains in effect, with no assurance that a divestiture will occur or of its terms or timing. Separately, the company received a cash tax refund of approximately $49 million in the third quarter of 2025 related to a European legal entity reorganization and expects an additional $3 million in the fourth quarter of 2025 or early 2026.
06—Continue