Slide 1: Investor Overview Q2 2025
Investor Overview Q2 2025 July 2025
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 2025 expectations of gross cape
Slide 3: Second quarter 2025 highlights
Second quarter 2025 highlights XPO operating income of $198 million, up 1% YoY LTL adjusted operating ratio of 82.9%, improved by 30 bps YoY LTL adjusted EBITDA of $300 million, up 1% YoY LTL purchased transportation expense reduced by 53% YoY LTL linehaul miles outsourced to third-party carriers re
Slide 4: Second quarter 2025 performance
Second quarter 2025 performance REVENUE $2.08 billion BY SEGMENT OPERATING INCOME $198 million NORTH AMERICAN LTL NET INCOME $106 million REVENUE $1.24 billion DILUTED EARNINGS PER SHARE $0.89 ADJUSTED EBITDA $300 million ADJUSTED NET INCOME $125 million ADJUSTED OPERATING RATIO 82.9% 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 • $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 $4.9 billion 9% 4th largest 14.6% 2024 revenue 2024 industry share LTL carrier by 2024 revenue of 2024 revenue allocated to gross capex 37,000 661 million 13 million 18 billion customers served 2024 linehaul miles run 2024 shipments 2024 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 June 30, 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 17 years Note: Company data for North American LTL segment only as of June 30, 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 • Investing in new tools for field operations and enhancing training progr
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% 0.3% 0.2% 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 More than 80% improvement in damages2 since Q4’21, driven by service initiatives 1 Based on claims payment data 2 Based on damag
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% $800 $715 12.0% Gross capex as a % of revenue Gross capex ($ 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% 1 2018 2019 2020 2
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 $24.99 $24.73 $23.94 $22.21 $21.18 $19.80 $18.63 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Yield, excluding fuel, improved 6.1% year-over-year in Q2’25 Note: Gross
Slide 16: Insourcing linehaul miles is a key cost and service opportunity
Insourcing linehaul miles is a key cost and service opportunity 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% 8.8% 6.8% 2020 2021 2022 2023 2024 Q1 2025 Q2 2025 Reduced miles outsourced to third-party carriers by 910 b
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 t
Slide 20: 2025 planning assumptions
2025 planning assumptions For the full year 2025, the company expects: • Total company gross capex of $600 million to $700 million • Interest expense of $220 million to $230 million • Pension income of approximately $6 million • Adjusted effective tax rate of 24% to 25% • Diluted share count of 120
Slide 21: Financial reconciliations
Financial reconciliations The following table reconciles XPO’s net income for the periods ended June 30, 2025 and 2024 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) 2025 2024 Chan
Slide 22: Financial reconciliations (cont.)
Financial reconciliations (cont.) The following table reconciles XPO’s net income for the periods ended June 30, 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 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, 2025 and 2024 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, 2025 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 measure under GAAP, which are set forth in the financial tables attached to