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XPO 8-K Report, Regulation FD Disclosure (Aug 1, 2024)

Reports
Regulation FD·Exhibits & Filings
Filing Date
Filed August 1, 2024
Period End
August 1, 2024
Security
XPO
In the record · 2016–202610-K1110-Q338-K243

XPO filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 243 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’18Feb ’18
  2. Leadership change8-K · May ’20May ’20
  3. Deal closed8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.

XPO, Inc. furnished an investor presentation dated August 1, 2024 under Item 7.01 (Regulation FD) as Exhibit 99.1, for use in future investor meetings.

The company states the presentation should be read together with its filings with the SEC, including its Form 10-Q for the quarter ended June 30, 2024. The information is furnished rather than filed for purposes of Section 18 of the Exchange Act. For the second quarter of 2024, the presentation reports revenue of $2.08 billiona, up 9% year over year, operating income of $197 million, net income of $150 million, and diluted EPS of $1.25.

Adjusted EBITDA was $343 millionb, up 41% year over year, and adjusted diluted EPS was $1.12, up 58%. Adjusted net income of $135 million reflects a $41 million tax benefit from a European legal entity reorganization, which the company excludes from adjusted results. North American LTL revenue was $1.27 billion with adjusted EBITDA of $297 million and an adjusted operating ratio of 83.2%, improved by 440 bps year over year.

European Transportation revenue was $808 millionc with adjusted EBITDA of $49 million. The presentation centers on the company's "LTL 2.0" plan, built on four pillars: best-in-class service, accelerating yield growth, driving cost efficiencies, and investing in the network for the long term.

It sets 2021 to 2027 targets for North American LTL of revenue CAGR of 6% to 8%, adjusted EBITDA CAGR of 11% to 13%, 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 milliond, 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.

02—Key points

Key Highlights

  1. Q2 2024 revenue of $2.08 billion, up 9% year over year; operating income of $197 million and net income of $150 million.
  2. Adjusted EBITDA of $343 million, up 41% year over year; adjusted diluted EPS of $1.12, up 58%.
  3. North American LTL adjusted operating ratio of 83.2%, improved by 440 bps year over year, with LTL adjusted operating income of $214 million, up 51%.
  4. LTL yield, excluding fuel, up 9.0% year over year; LTL damage claims ratio of 0.2%, described as a company record.
  5. Adjusted net income excludes a $41 million tax benefit from a European legal entity reorganization.
  6. Long-term LTL targets for 2021 to 2027: revenue CAGR of 6% to 8%, adjusted EBITDA CAGR of 11% to 13%, and adjusted operating ratio improvement of at least 600 bps.
  7. 2024 planning assumptions include gross capex of $700 million to $800 million and an adjusted effective tax rate of 23% to 25%.

03—Questions

Frequently Asked Questions

  1. What is the purpose of this 8-K filing?

    The company furnished an investor presentation dated August 1, 2024 under Item 7.01 (Regulation FD) as Exhibit 99.1. The presentation is expected to be used in connection with certain future investor presentations. The information is furnished and not deemed filed under Section 18 of the Exchange Act.

  2. How did XPO perform in the second quarter of 2024?

    Revenue was $2.08 billion, up 9% year over year, with operating income of $197 million and net income of $150 million. Diluted EPS was $1.25 and adjusted diluted EPS was $1.12, up 58% year over year. Adjusted EBITDA was $343 million, up 41%.

  3. What drove margin improvement in North American LTL?

    The North American LTL adjusted operating ratio was 83.2%, improved by 440 bps year over year. The presentation cites LTL yield, excluding fuel, up 9.0% year over year, and a damage claims ratio of 0.2%, a company record. It also notes a third consecutive quarter of adjusted operating ratio improvement of about 400 bps year over year.

  4. What are the company's long-term LTL targets?

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

  5. What is the 2024 outlook?

    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.

04—Continue

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