How did XPO's core North American LTL business perform in the first quarter of 2026?

North American LTL revenue grew 4.9% to $1.23 billion, and operating income rose to $189 million from $158 million. Adjusted operating income increased 20.0% to $198 million, and adjusted operating ratio improved 200 basis points to 83.9%. Yield excluding fuel increased 4.0%, and shipments per day increased 3.0%.

Why did European Transportation report an operating loss?

The segment reported an operating loss of $6 million, compared with income of $1 million in the prior-year quarter, even though revenue grew 11.0% to $868 million. The filing shows higher salaries, purchased transportation, fuel and operating expenses, and insurance and claims costs, along with restructuring costs of $6 million, though adjusted operating income was flat at $6 million.

How much cash did XPO generate and use in the quarter?

The company generated $183 million of operating cash flow and spent $104 million on net capital expenditures. It repurchased $30 million of common stock and repaid $30 million of term loans, ending the quarter with $237 million of cash and cash equivalents.

What did management say about the outlook?

CEO Mario Harik said the company expects robust incremental margins and industry-leading operating ratio improvement, with the greatest upside still ahead. He said XPO has a clear path to compounding earnings growth and accelerating free cash flow generation, with returns amplified as freight demand recovers.

What is the difference between GAAP and adjusted results in this release?

Adjusted measures exclude items such as amortization of acquisition-related intangible assets, transaction and integration costs, and restructuring costs. For example, GAAP diluted EPS was $0.85, while adjusted diluted EPS was $1.01. Adjusted net income was $121 million, compared with net income of $101 million.

XPO 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.

XPO, Inc. (NYSE: XPO) reported first quarter 2026 results in a press release dated April 30, 2026, furnished as Exhibit 99.1 to this Form 8-K under Item 2.02.

Total revenue rose to $2.10 billion^a from $1.95 billion, up 7.3%, and operating income increased to $174 million from $151 million. Net income was $101 million versus $69 million, and diluted EPS was $0.85 compared with $0.58. Adjusted diluted EPS, a non-GAAP measure, was $1.01 versus $0.73, and adjusted EBITDA was $319 million versus $278 million, up 14.7%.

The North American Less-Than-Truckload segment drove most of the improvement. Its revenue grew 4.9% to $1.23 billion^b, adjusted operating income rose 20.0% to $198 million, and adjusted operating ratio improved 200 basis points to 83.9%. Yield excluding fuel increased 4.0% and shipments per day rose 3.0%, while tonnage per day was essentially flat at 0.1% growth.

The European Transportation segment grew revenue 11.0% to $868 million^c but posted an operating loss of $6 million, compared with income of $1 million a year earlier, and its adjusted EBITDA was $33 million versus $32 million. Cash flow and balance sheet items were also reported. Operating cash flow was $183 million, net capital expenditures were $104 million, and the company repurchased $30 million of common stock and repaid $30 million of term loans.

Cash and cash equivalents ended the quarter at $237 million^d, down from $310 million at December 31, 2025. Management, led by Chairman and CEO Mario Harik, described the quarter as an acceleration in performance and said the company has a path to compounding earnings growth and accelerating free cash flow as freight demand recovers.

02—Key points

Key Highlights

Revenue increased 7.3% to $2.10 billion, compared with $1.95 billion in the first quarter of 2025.
Diluted EPS rose to $0.85 from $0.58, and adjusted diluted EPS rose to $1.01 from $0.73.
Adjusted EBITDA grew 14.7% to $319 million from $278 million.
North American LTL adjusted operating income increased 20.0% to $198 million, with adjusted operating ratio improving 200 basis points to 83.9%.
European Transportation swung to an operating loss of $6 million, while revenue grew 11.0% to $868 million.
Operating cash flow was $183 million, and the company ended the quarter with $237 million of cash and cash equivalents, down from $310 million at year-end 2025.
Management cited an LTL damage claims ratio below 0.2%, a record low for damages, and productivity gains from AI-enabled network operations.

03—Questions

Frequently Asked Questions

How did XPO's core North American LTL business perform in the first quarter of 2026?
North American LTL revenue grew 4.9% to $1.23 billion, and operating income rose to $189 million from $158 million. Adjusted operating income increased 20.0% to $198 million, and adjusted operating ratio improved 200 basis points to 83.9%. Yield excluding fuel increased 4.0%, and shipments per day increased 3.0%.
Why did European Transportation report an operating loss?
The segment reported an operating loss of $6 million, compared with income of $1 million in the prior-year quarter, even though revenue grew 11.0% to $868 million. The filing shows higher salaries, purchased transportation, fuel and operating expenses, and insurance and claims costs, along with restructuring costs of $6 million, though adjusted operating income was flat at $6 million.
How much cash did XPO generate and use in the quarter?
The company generated $183 million of operating cash flow and spent $104 million on net capital expenditures. It repurchased $30 million of common stock and repaid $30 million of term loans, ending the quarter with $237 million of cash and cash equivalents.
What did management say about the outlook?
CEO Mario Harik said the company expects robust incremental margins and industry-leading operating ratio improvement, with the greatest upside still ahead. He said XPO has a clear path to compounding earnings growth and accelerating free cash flow generation, with returns amplified as freight demand recovers.
What is the difference between GAAP and adjusted results in this release?
Adjusted measures exclude items such as amortization of acquisition-related intangible assets, transaction and integration costs, and restructuring costs. For example, GAAP diluted EPS was $0.85, while adjusted diluted EPS was $1.01. Adjusted net income was $121 million, compared with net income of $101 million.

04—Continue

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