What was XPO's first-quarter 2024 financial performance?

The presentation reports Q1 2024 revenue of $2.02 billion, up 6% year over year, operating income of $138 million, net income of $67 million, and adjusted EBITDA of $288 million, up 37% year over year. Adjusted diluted EPS was $0.81, up 45%.

How did the North American LTL segment perform?

North American LTL revenue was $1.22 billion, with adjusted EBITDA of $255 million and an adjusted operating ratio of 85.7%, improving 390 bps year over year. LTL tonnage per day rose 2.6% year over year, shipments per day rose 4.7%, and LTL yield excluding fuel rose 9.8%.

What long-term targets did the company present for North American LTL?

For 2021 through 2027, the company targets a revenue CAGR of 6% to 8%, an adjusted EBITDA CAGR of 11% to 13%, and an adjusted operating ratio improvement of at least 600 bps. It also expects capex of 8% to 12% of revenue on average through 2027.

What full-year 2024 guidance did the company provide?

For full-year 2024, the company expects gross capex of $700 million to $800 million, interest expense of $240 million to $260 million, pension income of approximately $25 million, an adjusted effective tax rate of 23% to 25%, and a diluted share count of 121 million.

Is the information in this presentation considered filed with the SEC?

No. The company states that the information furnished under Item 7.01, including Exhibit 99.1, is not deemed filed for purposes of Section 18 of the Exchange Act and is not incorporated by reference into other filings unless specifically stated. The company also advises that the presentation should be read together with its SEC filings, including its Form 10-Q for the quarter ended March 31, 2024.

XPO 8-K: Regulation FD

01—Abstract

Summary

Summary of the 8-K filed May 3, 2024. Cited figures are marked; the original filing is the authoritative source.

XPO, Inc. furnished an investor overview presentation dated May 3, 2024 as Exhibit 99.1 to a Form 8-K under Item 7.01 (Regulation FD).

The company says the presentation is expected to be used in future investor presentations and should be read together with its SEC filings, including its Form 10-Q for the quarter ended March 31, 2024. The information is furnished, not filed, under Section 18 of the Exchange Act. The presentation reports first-quarter 2024 revenue of $2.02 billion^a, up 6% year over year, and adjusted EBITDA of $288 million, up 37%.

Net income was $67 million^b, or $0.56 diluted EPS, and adjusted diluted EPS was $0.81, up 45%. In North American LTL, revenue was $1.22 billion and adjusted operating ratio was 85.7%, improving 390 bps year over year. LTL yield excluding fuel rose 9.8%, and the damage claims ratio of 0.3% was described as a company record.

The presentation frames the "LTL 2.0" plan around four pillars (best-in-class service, yield growth, cost efficiency, and long-term network investment). It sets 2021–2027 targets for North American LTL of 6% to 8% revenue CAGR, 11% to 13% adjusted EBITDA CAGR, and an adjusted operating ratio improvement of at least 600 bps. For full-year 2024 the company expects gross capex of $700 million to $800 million^c, interest expense of $240 million to $260 million, and a diluted share count of 121 million.

02—Key points

Key Highlights

Q1 2024 revenue of $2.02 billion, up 6% year over year; adjusted EBITDA of $288 million, up 37%.
Adjusted diluted EPS of $0.81, up 45% year over year; GAAP diluted EPS from continuing operations of $0.56 with net income of $67 million.
North American LTL adjusted operating ratio of 85.7%, improving 390 bps year over year, following nearly 400 bps of improvement in the prior quarter per the filing's second-consecutive-quarter note.
LTL yield excluding fuel up 9.8% year over year, with LTL revenue per shipment excluding fuel up 7.9%, accelerating from Q4 2023.
LTL damage claims ratio of 0.3%, described in the presentation as a company record.
2021–2027 LTL targets: revenue CAGR of 6% to 8%, adjusted EBITDA CAGR of 11% to 13%, and adjusted operating ratio improvement of at least 600 bps.
2024 planning assumptions include gross capex of $700 million to $800 million, interest expense of $240 million to $260 million, and an adjusted effective tax rate of 23% to 25%.

03—Questions

Frequently Asked Questions

What was XPO's first-quarter 2024 financial performance?
The presentation reports Q1 2024 revenue of $2.02 billion, up 6% year over year, operating income of $138 million, net income of $67 million, and adjusted EBITDA of $288 million, up 37% year over year. Adjusted diluted EPS was $0.81, up 45%.
How did the North American LTL segment perform?
North American LTL revenue was $1.22 billion, with adjusted EBITDA of $255 million and an adjusted operating ratio of 85.7%, improving 390 bps year over year. LTL tonnage per day rose 2.6% year over year, shipments per day rose 4.7%, and LTL yield excluding fuel rose 9.8%.
What long-term targets did the company present for North American LTL?
For 2021 through 2027, the company targets a revenue CAGR of 6% to 8%, an adjusted EBITDA CAGR of 11% to 13%, and an adjusted operating ratio improvement of at least 600 bps. It also expects capex of 8% to 12% of revenue on average through 2027.
What full-year 2024 guidance did the company provide?
For full-year 2024, the company expects gross capex of $700 million to $800 million, interest expense of $240 million to $260 million, pension income of approximately $25 million, an adjusted effective tax rate of 23% to 25%, and a diluted share count of 121 million.
Is the information in this presentation considered filed with the SEC?
No. The company states that the information furnished under Item 7.01, including Exhibit 99.1, is not deemed filed for purposes of Section 18 of the Exchange Act and is not incorporated by reference into other filings unless specifically stated. The company also advises that the presentation should be read together with its SEC filings, including its Form 10-Q for the quarter ended March 31, 2024.

04—Continue

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