Xpo, Inc. · NYSE:XPO
Xpo — Q3 2026 Earnings Presentation
25 slides from Xpo's earnings presentation, Oct 29, 2026
Slide 1: Investor Overview Q3 2026
Investor Overview Q3 2026 October 2026
Slide 2: Forward-looking statements
2 Forward-looking statements This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our full year 2026 expectations of gross ca
Slide 3: Third quarter 2026 highlights
Third quarter 2026 highlights XPO revenue up 12% YoY XPO adjusted EBITDA up 27% YoY XPO adjusted diluted EPS up 59% YoY LTL adjusted operating income up 35% YoY LTL adjusted operating ratio of 80.1%, improved YoY by 260 bps LTL adjusted EBITDA up 26% YoY LTL tonnage per day up 5% YoY, outperforming
Slide 4: Third quarter 2026 performance
4 Third quarter 2026 performance REVENUE $2.37 billion OPERATING INCOME $288 million NET INCOME $181 million DILUTED EARNINGS PER SHARE $1.53 ADJUSTED NET INCOME $200 million ADJUSTED DILUTED EPS $1.70 ADJUSTED EBITDA $433 million CASH FLOW FROM OPERATING ACTIVITIES $415 million NORTH AMERICAN LTL R
Slide 5: Our LTL strategy is driving significant margin and earnings expansion
Our LTL strategy is driving significant margin and earnings expansion 5 Provide best-in-class service 2 3 4 Invest in network for the long-term Accelerate yield growth Drive cost efficiencies Targets for LTL Growth, Profitability and Efficiency, 2021-2027 1 Revenue CAGR of 6% to 8% Adjusted EBITDA C
Slide 6: Strong position in North American LTL
6 Strong position in North American LTL
Slide 7: A leading carrier in a compelling industry
A leading carrier in a compelling industry • $52 billion bedrock industry for the US economy, with over 75% share held by top 10 LTL players • Diverse demand across verticals, with secular growth drivers • Attractive pricing environment, with positive YoY industry pricing growth for over a decade •
Slide 8: A major player in the supply-chain ecosystem
A major player in the supply-chain ecosystem Note: Company data for North American LTL segment only as of September 30, 2026, unless otherwise noted as 2025 (full year). 4th largest LTL carrier by 2025 revenue 12.4% of 2025 revenue allocated to gross capex 12 million 2025 shipments 38,000 customerss
Slide 9: Expansive network of service centers covering 99% of US zip codes
9 • 300 service centers • Cross - border and offshore capabilities • Strategic investments in high - demand markets Note: Service center data as of September 30, 2026. Expansive network of service centers covering 99% of US zip codes
Slide 10: Strategic mix of blue-chip and local customers
Strategic mix of blue-chip and local customers 10 Note: Company data for North American LTL segment only as of September 30, 2026; selected customers shown. Long-standing relationships – average tenure of top 10 customers is 20 years
Slide 11: LTL growth plan and levers
LTL growth plan and levers 11
Slide 12: Executing on four key levers
Provide best-in-class service Accelerate yield growth Drive cost efficiencies • Delivering above-market pricing gains aligned with service excellence • Expanding accessorial revenue from premium service offerings • Growing share of higher-yielding local channel with scaled-up local salesforce • Depl
Slide 13: Service initiatives have driven nearly 90% improvement in damages
1 Based on claims payment data. 2 Based on damage frequency data. 13 Service initiatives have driven nearly 90% improvement in damages2 since Q4’21 Delivering meaningful service improvements Damage claims as a % of LTL revenue1 LTL growth plan 1.1% 1.0% 0.9% 0.5% 0.2% 0.3% 0.2% 0.2% 0.2% 2020 2021 2
Slide 14: Investing in capacity that supports growth and high returns
Investing in capacity that supports growth and high returns 14 Tractor age in years as of December 31 5.3 5.1 5.4 5.9 5.9 Note: Gross capex and revenue for North American LTL segment only. 1 Excludes the company’s December 2023 acquisition of 28 service centers. 5.0 1 Strategically increased excess
Slide 15: Earning price by delivering value through service excellence
Earning price by delivering value through service excellence 15 Note: Gross revenue per hundredweight excludes the adjustment required for financial statement purposes in accordance with the company's revenue recognition policy. Yield, excluding fuel, improved 3.6% year-over-year in Q3’26 Gross reve
Slide 16: Insourcing linehaul miles supports higher incremental margins in an upcycle
Insourcing linehaul miles supports higher incremental margins in an upcycle 16 Decreased third-party carrier miles by nearly 20 points, reducing exposure to rising truckload rates Linehaul miles outsourced to third-party carriers, as a % of total linehaul miles 25.2% LTL growth plan 23.6% 23.8% 20.9
Slide 17: 11% to 13% adjusted EBITDA CAGR in North American LTL
17 11% to 13% adjusted EBITDA CAGR in North American LTL 2021-2027 Combination of volume gains + pricing over inflation 6% to 7% 3% to 4% 2% Operating costs optimized through technology Linehaul insourced from third parties Expected components and contributions 11% to 13%
Slide 18: Appendix
Appendix 18
Slide 19: European Transportation segment
European Transportation segment • In France: the #1 full truckload (FTL) broker and the #1 pallet network (LTL) provider • In Iberia (Spain and Portugal): the #1 FTL broker and the #1 LTL provider • In the UK: a market leader in warehousing, a top-tier dedicated truckload provider, and the largest s
Slide 20: 2026 planning assumptions
20 For the full year 2026, the company expects: • Total company gross capex of $500 million to $600 million • Interest expense of $205 million to $215 million • Pension income of approximately $14 million • Adjusted effective tax rate of 23% to 24% • Diluted share count of approximately 118 million
Slide 21: Financial reconciliations
Financial reconciliations The following table reconciles XPO’s net income for the periods ended September 30, 2026 and 2025 to adjusted EBITDA for the same periods. 21 Reconciliation of net income to adjusted EBITDA Amounts may not add due to rounding. 1 Relates to environmental and product liabilit
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) The following table reconciles XPO’s net income for the periods ended September 30, 2026 and 2025 to adjusted net income for the same periods. 22 Amounts may not add due to rounding. 1 Includes gains from sales of real estate of $8 million ($10 million pre-tax), or
Slide 23: Financial reconciliations (cont.)
Financial reconciliations (cont.) The following table reconciles XPO’s operating income attributable to its North American less-than-truckload ("LTL") segment for the periods ended September 30, 2026 and 2025 to adjusted operating income, adjusted operating ratio and adjusted EBITDA. 23 Reconciliati
Slide 24: Financial reconciliations (cont.)
Financial reconciliations (cont.) The following table reconciles XPO’s operating income attributable to its North American less-than-truckload ("LTL") segment for the periods ended September 30, 2026 and 2023 to adjusted operating income and adjusted operating ratio. 24 Reconciliation of North Ameri
Slide 25: Non-GAAP financial measures
Non-GAAP financial measures Asrequired by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this document to the most directly comparable measures under GAAP, which are set forth in the financialtables attachedto t