XPO’s Q2 earnings beat expectations behind strong LTL performance
Thu, July 30, 2026 at 3:19 PM GMT+3 2 min read
XPO blew past analysts' expectations for the second quarter. A better freight mix and numerous AI-fueled efficiency initiatives produced record operating results in its less-than-truckload unit.
XPO (NYSE: XPO) reported second-quarter adjusted earnings per share of $1.70, which was 23 cents ahead of the consensus estimate and 65 cents higher year over year. The adjusted EPS number excluded transaction and restructuring costs among other items.
Consolidated revenue of $2.36 billion was 13% higher y/y and $85 million better than expectations.
Less-than-truckload revenue increased 15% y/y to $1.43 billion. Revenue was 5% higher excluding fuel surcharges. (Diesel prices were roughly 50% higher y/y in the quarter.)
Tonnage increased 1% y/y with yield up 14% (4% higher excluding fuel surcharges). A 3% increase in daily shipments and a 2% decline in weight per shipment formed the tonnage increase. Daily tonnage was up 4.5% from the first quarter.
A 1% increase in length of haul along with the lighter shipment weights were tailwinds to the yield calculation (revenue per hundredweight) in the quarter.
XPO has been taking market share among local accounts (SMBs), which typically have lighter shipments but produce better margins. Both yield and revenue per shipment (excluding fuel) improved y/y and sequentially, which was in line with management's guidance.
The LTL unit recorded a 79.9% adjusted operating ratio (inverse of operating margin), which was 300 basis points better y/y and 400 bps better than the first quarter. The result was 100 bps better than management's guidance.
Revenue per shipment outpaced adjusted cost per shipment by nearly 400 bps in the quarter. Salaries, wages and benefits expenses (as a percentage of revenue) declined 360 bps y/y.
XPO's European transportation segment reported a 10% y/y increase in revenue to $927 million. Adjusted EBITDA of $48 million was 9% higher y/y.
Shares of XPO were up 2.8% in pre-market trading on Thursday. The stock is up 44% year-to-date.
XPO will host a call at 8:30 a.m. EDT on Thursday to discuss second-quarter results.
Why it matters? XPO is one of a few publicly traded LTL carriers. Its quarterly results provide insight into a subsegment of trucking where few public datasets exist.
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