01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
XPO, Inc. reported third-quarter 2026 revenue of $2,373 milliona, up 12.4% from $2,111 million a year earlier, and net income of $181 million, up from $82 million.
For the first nine months of 2026, revenue was $6,823 millionb (up 11.0%) and net income was $444 million (versus $257 million). Operating income for the quarter rose to $288 million from $164 million, and diluted EPS was $1.53 compared with $0.68 in the prior-year quarter. North American LTL drove much of the improvement, with segment revenue of $1,473 million (up 17.4%) and adjusted EBITDA of $389 million versus $308 million.
European Transportation revenue was $900 millionc, with adjusted EBITDA of $48 million versus $38 million. Balance sheet and cash flow activity centered on debt refinancing and shareholder returns. In May 2026 the company entered a $500 million Term Loan A and a $385 million Term B-4 tranche, which were used to repay $885 million of Prior Term Loan B debt.
Total debt was $3,124 milliond carrying value at September 30, 2026, versus $3,313 million at year-end 2025. Nine-month operating cash flow was $906 million, and the company repurchased $250 million of stock. As of September 30, 2026, total liquidity was approximately $860 million, and the remaining buyback authorization was $375 million.
Management stated it expects full-year 2026 gross capital expenditures of $500 million to $600 million. The filing also discloses an ongoing insurance contribution litigation tied to a legacy Con-way truck manufacturing business, now under appeal following a final judgment, and states the Board's authorization to divest the European business remains in effect. The company also disclosed new executive compensation agreements with Chairman and CEO Mario Harik, including a base salary of $1,150,000 and a 2027 long-term incentive grant date value of $12,000,000.
02—Key points
Key Highlights
- Q3 2026 revenue rose 12.4% to $2,373 million; net income increased to $181 million from $82 million, and diluted EPS was $1.53 versus $0.68.
- North American LTL revenue grew 17.4% to $1,473 million in Q3 2026, with adjusted EBITDA of $389 million versus $308 million; fuel surcharge revenue was $323 million versus $194 million.
- European Transportation revenue increased 5.0% to $900 million in Q3 2026, with adjusted EBITDA of $48 million versus $38 million.
- Total debt carrying value fell to $3,124 million at September 30, 2026 from $3,313 million at December 31, 2025, after refinancing $885 million of Prior Term Loan B debt with new Term Loan A and Term B-4 facilities.
- Nine-month operating cash flow was $906 million versus $760 million, while capital expenditures were $369 million versus $551 million.
- The company repurchased $150 million of stock in Q3 2026 and $250 million year to date, leaving $375 million of authorization; total liquidity was approximately $860 million.
- Insurance contribution litigation (Allianz) received a final judgment, which is subject to appeal by Allianz and multiple defendants; the company recorded a charge of approximately $35 million in Q3 2025.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.37B$2.11B | +12.4% |
| Operating Income | $288.00M$164.00M | +75.6% |
| Net Income | $181.00M$82.00M | +120.7% |
| EPS (Basic) | $1.55$0.69 | +124.6% |
| EPS (Diluted) | $1.53$0.68 | +125.0% |
| Shares Outstanding (Basic) | 117.00M118.00M | −0.8% |
| Shares Outstanding (Diluted) | 118.00M120.00M | −1.7% |
05—Questions
Frequently Asked Questions
What drove the increase in XPO's third-quarter 2026 profitability?
Operating income rose to $288 million from $164 million, driven mainly by North American LTL, where revenue increased 17.4% and adjusted EBITDA rose to $389 million from $308 million. The filing attributes the increase to higher yield, tonnage and fuel surcharge revenue, partially offset by wage inflation and higher fuel costs. The prior-year quarter also included a $35 million environmental charge that did not recur.
How did the company change its debt structure in 2026?
In May 2026, XPO entered a $500 million senior secured Term Loan A maturing May 29, 2029 and a $385 million Term B-4 tranche maturing February 1, 2031. Together they repaid $885 million of Prior Term Loan B debt. The company later used cash on hand to repay $100 million in July and $75 million in October 2026 under the 2026 Term Loan B facility, and $275 million of term loan principal in total year to date as of October 29, 2026.
What is the status of the European Transportation business?
The filing states that the Board's previously announced authorization to divest the European business remains in effect, but that there can be no assurance the divestiture will occur or of its terms or timing. Segment revenue was $900 million in Q3 2026, and nine-month segment revenue was $2,694 million.
What capital allocation actions did XPO take in 2026?
XPO repurchased 765 thousand shares for $150 million in Q3 2026 and 1.3 million shares for $250 million in the first nine months, funded from cash on hand. Remaining authorization was $375 million as of September 30, 2026. Management expects full-year 2026 gross capital expenditures of $500 million to $600 million.
What legal matter could affect XPO's future results?
The Allianz insurance contribution litigation, which relates to a legacy Con-way truck manufacturing business and is unrelated to current LTL operations, reached a final judgment entered after a May 2026 hearing. Allianz and multiple defendants have filed notices of appeal, which have been consolidated, and no appellate schedule has been set. The company said its accrual aligns with the final judgment.
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