01—Abstract
Summary
Summary of the 10-Q filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
XPO, Inc. reported second-quarter 2026 revenue of $2,355 milliona, up 13.2% from $2,080 million in the second quarter of 2025, and net income of $162 million versus $106 million a year earlier.
Diluted earnings per share were $1.36b, compared with $0.89. For the six months ended June 30, 2026, revenue was $4,451 million (up 10.3%) and net income was $263 million, with diluted EPS of $2.22. Operating income for the quarter was $271 million, and consolidated adjusted EBITDA is presented in the segment note as $434 million for the quarter and $753 million for the first six months.
North American LTL revenue rose 15.2% in the quarter to $1,428 millionc, with adjusted EBITDA of $390 million, while European Transportation revenue rose 10.2% to $927 million, with adjusted EBITDA of $48 million. Liquidity and capital structure changed during the period. In May 2026, XPO entered a $500 million senior secured Term Loan A maturing in May 2029 and a $385 million Term Loan B-4 maturing in February 2031, using the proceeds to repay $885 million of existing term loan B borrowings.
Cash and cash equivalents were $298 milliond at June 30, 2026, and total liquidity was approximately $898 million. Total debt was $3,292 million principal, and the company repurchased $100 million of common stock in the first half of 2026, leaving $525 million remaining under its authorization. The filing notes that the previously announced authorization to divest the European business remains in effect, with no assurance a transaction will occur.
A legacy Con-way insurance contribution case (Allianz) reached a final judgment in May 2026, and Allianz and multiple defendants have filed notices of appeal. The company had recognized a charge of approximately $35 million in the third quarter of 2025 in anticipation of this judgment, which the filing says is in alignment with the final amount.
02—Key points
Key Highlights
- Q2 2026 revenue rose 13.2% to $2,355 million; net income increased to $162 million from $106 million, and diluted EPS was $1.36 versus $0.89.
- North American LTL revenue increased 15.2% to $1,428 million in Q2 2026, with adjusted EBITDA of $390 million versus $300 million, and fuel surcharge revenue of $314 million versus $183 million.
- European Transportation revenue increased 10.2% to $927 million in Q2 2026, with adjusted EBITDA of $48 million versus $44 million; the filing notes the Board's divestiture authorization for the European business remains in effect.
- Operating cash flow for the first six months of 2026 was $491 million, up from $389 million, while capital expenditures were $238 million versus $395 million, and the company expects 2026 gross capital expenditures of $500 million to $600 million.
- In May 2026, XPO refinanced its term loans with a new $500 million Term Loan A and a $385 million Term Loan B-4, repaying $885 million of existing term loan B debt; the company used cash on hand to prepay $100 million more in July 2026.
- Share repurchases totaled $100 million in the first half of 2026 (497 thousand shares at an average price of $201.13), leaving $525 million under the $750 million authorization.
- The Allianz insurance contribution litigation reached a final judgment in May 2026, with notices of appeal filed in June 2026; the company had accrued a $35 million charge in Q3 2025 that aligns with the judgment.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.35B$2.08B | +13.2% |
| Operating Income | $271.00M$198.00M | +36.9% |
| Net Income | $162.00M$106.00M | +52.8% |
| EPS (Basic) | $1.38$0.90 | +53.3% |
| EPS (Diluted) | $1.36$0.89 | +52.8% |
| Shares Outstanding (Basic) | 117.00M118.00M | −0.8% |
| Shares Outstanding (Diluted) | 118.00M119.00M | −0.8% |
05—Questions
Frequently Asked Questions
How did XPO's revenue and profitability change in the second quarter of 2026?
Revenue increased 13.2% to $2,355 million from $2,080 million. Operating income rose to $271 million from $198 million, and net income increased to $162 million from $106 million. Diluted EPS was $1.36 compared with $0.89. The filing attributes the revenue increase to higher revenue in both North American LTL and European Transportation, including higher fuel surcharge revenue, and notes foreign currency movement added about 1.0 percentage point.
What drove the results in the North American LTL segment?
Segment revenue rose 15.2% to $1,428 million in the second quarter, and adjusted EBITDA increased to $390 million from $300 million. The filing cites higher yield (gross revenue per hundredweight excluding fuel surcharges of $26.09 versus $24.99), higher shipments per day (52,229 versus 50,782), and fuel surcharge revenue of $314 million versus $183 million. Average weight per shipment declined to 1,311 pounds from 1,335 pounds.
What changed in XPO's debt and liquidity position?
In May 2026, XPO entered a $500 million Term Loan A maturing in 2029 and a $385 million Term Loan B-4 maturing in 2031, using proceeds to repay $885 million under its existing term loan B. Total debt principal was $3,292 million at June 30, 2026. Cash and cash equivalents were $298 million, and total liquidity was approximately $898 million, including about $600 million available under the Revolving Credit Facility. The company said it believes liquidity is sufficient for at least the next 12 months.
What is the status of the Allianz insurance litigation?
The case concerns a legacy Con-way truck manufacturing business and is described as unrelated to current LTL operations. A final judgment was entered following a May 2026 hearing, and Notice of Appeal was submitted in June 2026 by Allianz and multiple defendants. No appellate schedule has been established. The company had recognized a charge of approximately $35 million in the third quarter of 2025, which the filing says aligns with the final judgment.
What capital allocation actions did XPO take during the first half of 2026?
XPO repurchased 341 thousand shares for $70 million in the second quarter and 497 thousand shares for $100 million in the first six months, funded by cash on hand. Remaining authorization under the $750 million program was $525 million at June 30, 2026. Capital expenditures were $238 million in the first half, and the company anticipates 2026 gross capital expenditures of $500 million to $600 million.
06—Continue