Slide 1: Fourth Quarter 2024 Results
Fourth Quarter 2024 Results February 5, 2025
Slide 2: Non-GAAP financial measures and forward-looking statements
2 Non-GAAP financial measures and forward-looking statements Non-GAAP financial measures We provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this prese
Slide 3: Q4 2024 highlights
3 Q4 2024 highlights 1 Coyote integration remains ahead of schedule; raising cost synergy estimate 2 Double-digit sequential volume growth in Brokerage 3 Managed Transportation sales pipeline continues to grow 4 Last Mile year-over-year stop growth accelerated 5 Brokerage market tightened throughout
Slide 4: As reported fourth-quarter financial results
4 $176M $258M Q4 23 Q4 24 As reported fourth-quarter financial results RXO delivered Q4 2024 adjusted EBITDA in-line with guidance Adjusted EBITDA and margin %2Gross margin $ and % 1 Q4 2023 revenue, gross margin and adjusted EBITDA represent legacy RXO only. 2 See the “Non-GAAP financial measures”
Slide 5: Diversified portfolio with momentum in complementary services
5 Diversified portfolio with momentum in complementary services Q4 revenue by service offering 75% 17% 8% Truck Brokerage Last Mile Managed Transportation Excludes impact of eliminations. Numbers may not add up to 100% due to rounding. Brokerage (combined) 1 • Volume: Up 10% q/q, down 6% y/y – LTL:
Slide 6: Coyote integration update
6 Coyote integration update People / Operations • Continuing to retain key talent • Expanded service offerings and larger scale resulting in significant cross-selling opportunities – Managed outsourced transportation – Cross-border services – Last Mile • Leveraging combined capacity to better serve
Slide 7: Adjusted EPS bridge
7 Adjusted EPS bridge Earnings per share Q4-24 Q4-23 GAAP diluted EPS $(0.12) $0.02 Amortization of intangible assets 0.10 0.03 Transaction, integration and restructuring costs 0.20 0.03 Tax associated with adjustments above1 and discrete tax item (0.12) (0.02) Adjusted diluted EPS2 $0.06 $0.06 RXO
Slide 8: Trailing three month adjusted free cash flow walk
8 Trailing three month adjusted free cash flow walk Note: In millions. 1 Adjusted EBITDA and adjusted FCF are non-GAAP financial measures. 2 Adjusted EBITDA excludes certain NEO spin-related stock-based compensation. Trailing 3-month RXO adjusted free cash flow represented a 14% conversion Three mon
Slide 9: Capital structure snapshot
9 Capital structure snapshot Capital structure Q4 2024 Notes due 2027 $ 355 Finance leases, asset financing, ST debt & other 33 Total debt, principal balance & other $ 388 Less: cash 35 Net debt1 $ 353 Committed liquidity Q4 2024 Cash $ 35 Revolver 600 Total capacity $ 635 Note: In millions. 1 See t
Slide 10: Brokerage truckload revenue per load and gross margin trends
10 -16% -9% -4% 23% 48% 47% 45% 21% 6% 12% 1% -13% -21% -26% -21% -18% -14% -10% -4% -1% 0% Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 TL Rev / Ld (% △ y/y) Brokerage GM % Brokerage truckload revenue per load and gross margin trends Revenue per load trends continue to improve • Q
Slide 11: Monthly gross margin trends and market update
11 Monthly gross margin trends and market update Market conditions tightened as Q4 progressed and remained tight to start Q1 Market conditions tightened significantly • Load-to-truck ratio and industry-wide tender rejections moved higher • Capacity-driven market tightening with continued carrier exi
Slide 12: Full truckload volume and gross profit per load trends
12 Full truckload volume and gross profit per load trends1 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition. With the acquisition of Coyote, full truckload volume increased by >125%
Slide 13: LTL volume and gross profit per load trends
13 LTL volume and gross profit per load trends1 LTL brokerage volume is growing with stable gross profit per load 1 All periods prior to Q4 2024 exclude the impact of the Coyote Logistics acquisition.
Slide 14: Outlook and modeling assumptions
14 Outlook and modeling assumptions • Adjusted EBITDA1 : $20M-$30M • Brokerage y/y volume (combined) 2: Down mid-to-high single-digit % • Brokerage gross margin: 12%-14% Q1 2025 outlook FY 2025 modeling assumptions • Brokerage y/y volume growth (combined) 2 • Capital expenditures: $75M-$85M – Includ
Slide 15: Key investment highlights
15 Key investment highlights 1 Large addressable market with secular tailwinds 2 Track record of above-market growth and high profitability 3 Proprietary technology drives productivity, volume and margin expansion 4 Long-term relationships with blue-chip customers 5 Market-leading platform with comp
Slide 16: Appendix
Appendix RXO
Slide 17: Financial reconciliations
17 Financial reconciliations 1 See the “Non-GAAP financial measures” section. 2 Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue. Reconciliation of net income (loss) to adjusted EBITDA and adjusted EBITDA margin (Dollars in millions) 2024 2023 2024 2023 Net income (loss) (2
Slide 18: Financial reconciliations (cont.)
18 Financial reconciliations (cont.) 1 The tax impact of non-GAAP adjustments represents the tax expense calculated using the applicable statutory tax rate that would have been incurred had these adjustments been excluded from net income (loss). Our estimated tax rate on non-GAAP adjustments may dif
Slide 19: Financial reconciliations (cont.)
19 1 See the “Non-GAAP financial measures” section. 2 Includes the cash component of these line items. 3 See Reconciliation of net income (loss) to adjusted EBITDA. 4 Free cash flow conversion from adjusted EBITDA is calculated as free cash flow divided by adjusted EBITDA. 5 Adjusted free cash flow
Slide 20: Financial reconciliations (cont.)
20 Financial reconciliations (cont.) 1 Complementary services include Last Mile and Managed Transportation services. Calculation of gross margin and gross margin as a percentage of revenue (Dollars in millions) 2024 2023 2024 2023 Revenue Truck brokerage 1,267$ 610$ 3,029$ 2,358$ Complementary servi
Slide 21: Financial reconciliations (cont.)
21 Financial reconciliations (cont.) 1 See the “Non-GAAP financial measures” section. 2 See reconciliation of net income (loss) to adjusted EBITDA. 3 Represents stock compensation expense and other non-recurring items included in sales, general and administrative expense. December 31, (Dollars in mi
Slide 22: RXO
RXO