XPO's LTL revenue jumps 17.4% in Q3 as adjusted operating ratio improves to 80.1%
Shipments per day rose 5.8% and yield excluding fuel climbed 3.6%. Adjusted EPS rose 58.9% to $1.70.
XPO grew revenue in its North American less-than-truckload business 17.4% in the third quarter, to $1.473 billion, the Greenwich, Connecticut, carrier reported on Oct. 29.
The LTL segment's adjusted operating ratio improved 260 basis points to 80.1%.
Freight and pricing
- Shipments per day: 52,988, up 5.8%
- Tonnage per day: up 5.0%
- Yield excluding fuel: up 3.6%
- Revenue per shipment including fuel: $434.37, up 11.1%
- Fuel surcharge revenue: $323 million, up 66.5% from $194 million
LTL operating income rose to $284 million from $208 million. Adjusted EBITDA for the segment was $389 million, up from $308 million.
The average age of XPO's tractor fleet was 4.1 years, versus 3.6 years a year earlier.
Company results
| | Q3 2026 | Q3 2025 | |---|---|---| | Revenue | $2.373B | $2.111B | | Operating income | $288M | $164M | | Net income | $181M | $82M | | Diluted EPS | $1.53 | $0.68 | | Adjusted EPS | $1.70 | $1.07 | | Adjusted EBITDA | $433M | $342M |
The European transportation business posted revenue of $900 million, up from $857 million. It swung to operating income of $12 million from a $2 million loss.
Cash
XPO generated $415 million in operating cash flow in the quarter. It spent $123 million in net capital expenditures, bought back $150 million in stock and repaid $100 million of its term loan. It ended the quarter with $260 million in cash.
What the CEO said
"We delivered another quarter of outstanding performance, accelerating growth in adjusted EBITDA to 27% and adjusted diluted EPS to 59% year-over-year," said CEO Mario Harik. He also pointed to a damage claims ratio below 0.2%.
XPO has 575 locations and about 38,000 employees.