Xpo, Inc. · NYSE:XPO
Xpo — Q2 2026 Earnings Presentation
25 slides from Xpo's earnings presentation, July 2026
Slide 1: Investor Overview Q2 2026
Investor Overview Q2 2026 July 2026
Slide 2: Forward-looking statements
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 cape
Slide 3: Second quarter 2026 highlights
Second quarter 2026 highlights XPO revenue up 13% YoY XPO adjusted EBITDA up 25% YoY1 XPO adjusted diluted EPS up 56% YoY1 LTL adjusted operating income up 36% YoY LTL adjusted operating ratio of 79.9%, a new company record, improved YoY by 300 bps LTL adjusted EBITDA up 27% YoY1 LTL tonnage per day
Slide 4: Second quarter 2026 performance
Second quarter 2026 performance REVENUE $2.36 billion BY SEGMENT OPERATING INCOME $271 million NORTH AMERICAN LTL NET INCOME $162 million REVENUE $1.43 billion DILUTED EARNINGS PER SHARE $1.36 ADJUSTED EBITDA $390 million ADJUSTED NET INCOME $201 million ADJUSTED OPERATING RATIO 79.9% ADJUSTED DILUT
Slide 5: Our LTL strategy is driving significant margin and earnings expansion
Our LTL strategy is driving significant margin and earnings expansion 1 Provide best-in- 2 Invest in network 3 Accelerate yield 4 Drive cost class service for the long-term growth efficiencies Targets for LTL Growth, Profitability and Efficiency, 2021-2027 Revenue CAGR of 6% to 8% Adjusted EBITDA CA
Slide 6: Strong position in North American LTL
Strong position in North American LTL 6
Slide 7: A leading carrier in a compelling industry
A leading carrier in a compelling industry 5% CAGR: North American LTL industry revenue • $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
Slide 8: A major player in the supply-chain ecosystem
A major player in the supply-chain ecosystem $4.8 billion 9% 4th largest 12.4% 2025 revenue 2025 industry share LTL carrier by 2025 revenue of 2025 revenue allocated to gross capex 38,000 626 million 12 million 16 billion customers served 2025 linehaul miles run 2025 shipments 2025 pounds of freight
Slide 9: Expansive network of service centers
Expansive network of service centers covering 99% of US zip codes • 299 service centers • Cross-border and offshore capabilities • Strategic investments in high-demand markets Note: Service center data as of June 30, 2026. 9
Slide 10: Strategic mix of blue-chip and local customers
Strategic mix of blue-chip and local customers Long-standing relationships – average tenure of top 10 customers is 19 years Note: Company data for North American LTL segment only as of June 30, 2026; selected customers shown. 10
Slide 11: LTL growth plan and levers
LTL growth plan and levers 11
Slide 12: Executing on four key levers
Executing on four key levers • Continually strengthening our value proposition through a world-class service culture Provide best-in-class • Incentivizing employees to deliver consistently outstanding service quality for customers service • Scaling technology for operational excellence in linehaul,
Slide 13: Delivering meaningful service improvements
Delivering meaningful service improvements Damage claims as a % of LTL revenue1 LTL growth plan 1.1% 1.0% 0.9% 0.5% 0.3% 0.2% 0.2% 0.2% 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 Service initiatives have driven nearly 90% improvement in damages2 since Q4’21 1 Based on claims payment data. 2 Based
Slide 14: Investing in capacity that supports growth and high returns
Investing in capacity that supports growth and high returns $1,000 LTL growth plan 16.0% 14.6% 14.0% 12.4% 12.4% $800 $715 12.0% Gross capex as a % of revenue $601 Gross capex ($ millions) 9.1% $581 10.0% $600 8.0% $424 $400 5.2% 6.0% 4.8% 3.8% 4.1% $197 $197 4.0% $200 $145 $145 2.0% $- 0.0% 2018 20
Slide 15: Earning price by delivering value through service excellence
Earning price by delivering value through service excellence Gross revenue per hundredweight (excluding fuel surcharges) LTL growth plan $26.09 $25.71 $25.39 $23.94 $22.21 $21.18 $19.80 $18.63 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 Yield, excluding fuel, improved 4.4% year-over-year in Q2’26
Slide 16: Insourcing linehaul miles supports higher incremental margins in an upcycle
Insourcing linehaul miles supports higher incremental margins in an upcycle Linehaul miles outsourced to third-party carriers, as a % of total linehaul miles 25.2% 23.8% LTL growth plan 23.6% 20.9% 14.7% 6.7% 6.1% 5.6% 2020 2021 2022 2023 2024 2025 Q1 2026 Q2 2026 Reduced exposure to third-party car
Slide 17: 11% to 13% adjusted EBITDA CAGR in North American LTL 2021-2027
11% to 13% adjusted EBITDA CAGR in North American LTL 2021-2027 Expected components and contributions Combination of volume gains + pricing over inflation 6% to 7% Operating costs optimized through technology 3% to 4% Linehaul insourced from third parties 2% 11% to 13% 17
Slide 18: Appendix
Appendix 18
Slide 19: European Transportation segment
European Transportation segment Unique pan-European transportation platform holds leading positions in key geographies • 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 m
Slide 20: 2026 planning assumptions
2026 planning assumptions 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 app
Slide 21: Financial reconciliations
Financial reconciliations The following table reconciles XPO’s net income for the periods ended June 30, 2026 and 2025 to adjusted EBITDA for the same periods. Reconciliation of net income to adjusted EBITDA In millions Three Months Ended June 30, Six Months Ended June 30, (Unaudited) 2026 2025 Chan
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) The following table reconciles XPO’s net income for the periods ended June 30, 2026 and 2025 to adjusted net income for the same periods. Reconciliation of adjusted net income and adjusted diluted earnings per share Three Months Ended Six Months Ended In millions, e
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 June 30, 2026 and 2025 to adjusted operating income, adjusted operating ratio and adjusted EBITDA. Reconciliation of No
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 June 30, 2026 and 2023 to adjusted operating income and adjusted operating ratio. Reconciliation of North American LTL
Slide 25: Non-GAAP financial measures
Non-GAAP financial measures As required 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 financial tables attached t