Xpo, Inc. · NYSE:XPO
Xpo — Q4 2025 Earnings Presentation
25 slides from Xpo's earnings presentation, Feb 5, 2026
Slide 1: Investor Overview Q4 2025
Investor Overview Q4 2025 February 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: Fourth quarter 2025 highlights
Fourth quarter 2025 highlights XPO adjusted EBITDA up 11% YoY1 XPO adjusted diluted EPS up 18% YoY1 LTL adjusted operating income up 14% YoY LTL adjusted operating ratio of 84.4%, improved by 180 bps YoY LTL adjusted EBITDA up 11% YoY1 LTL linehaul miles outsourced to third-party carriers reduced by
Slide 4: Fourth quarter 2025 performance
Fourth quarter 2025 performance REVENUE $2.01 billion BY SEGMENT OPERATING INCOME $143 million NORTH AMERICAN LTL NET INCOME $59 million REVENUE $1.17 billion DILUTED EARNINGS PER SHARE $0.50 ADJUSTED EBITDA $285 million ADJUSTED NET INCOME $105 million ADJUSTED OPERATING RATIO 84.4% ADJUSTED DILUTE
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 • $53 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 for over a decade,
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 2024 industry share LTL carrier by 2024 revenue of 2025 revenue allocated to gross capex 37,000 626 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 • 300 service centers1 • Cross-border and offshore capabilities • Strategic investments in high-demand markets 1 As of December 31, 2025. 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 December 31, 2025; 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 outstanding service quality for customers service • Implementing tools for operational excellence in linehaul, dock, and pic
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% 2020 2021 2022 2023 2024 2025 Service initiatives have driven more than 85% improvement in damages2 since Q4’21 1 Based on claims payment data. 2 Based on damage frequency da
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 $715 12.0% Gross capex as a % of revenue Gross capex ($ millions) $601 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 $25.39 $23.94 $22.21 $21.18 $19.80 $18.63 2020 2021 2022 2023 2024 2025 Yield, excluding fuel, improved 6.0% year-over-year in FY’25 Note: Gross revenue per hundre
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% LTL growth plan 23.6% 23.8% 20.9% 14.7% 6.7% 2020 2021 2022 2023 2024 2025 Reduced outsourced miles by 800 bps year-over-year in FY’25 1
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 24% to 25% • Diluted share count of app
Slide 21: Financial reconciliations
Financial reconciliations The following table reconciles XPO’s net income for the periods ended December 31, 2025 and 2024 to adjusted EBITDA and adjusted EBITDA excluding gains on real estate transactions for the same periods. Reconciliation of net income to adjusted EBITDA and adjusted EBITDA excl
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) The following table reconciles XPO’s net income for the periods ended December 31, 2025 and 2024 to adjusted net income for the same periods. Reconciliation of adjusted net income and adjusted diluted earnings per share Three Months Ended In millions, except per sha
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 December 31, 2025 and 2024 to adjusted operating income, adjusted operating ratio and adjusted EBITDA. Reconciliation o
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 December 31, 2025 and 2022 to adjusted operating income and adjusted operating ratio. Reconciliation of North American
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