XPO (XPO) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 7.3% year-over-year to $2.1 billion, with net income up 46.4% to $101 million and adjusted diluted EPS up 38% to $1.01.

• Adjusted EBITDA rose 15% to $319 million, with margin improving to 15.2% from 14.2% year-over-year.

• North American LTL segment saw adjusted operating income rise 20% to $198 million and an adjusted operating ratio of 83.9%, improving 200 basis points year-over-year.

• Productivity gains were driven by AI-enabled technology, operational discipline, and investments in capacity and fleet.

• Cash flow from operations was $183 million, with $237 million in cash and equivalents after $104 million in net capex, $30 million in share repurchases, and $30 million in term loan repayments.

Financial highlights

• Total revenue was $2.1 billion, up 7.3% year-over-year; LTL segment revenue grew 4.9% to $1.23 billion.

• Adjusted net income reached $121 million, up from $87 million year-over-year.

• Operating income increased 15.2% to $174 million; adjusted EBITDA margin improved to 15.2%.

• Salaries, wages, and employee benefits rose 5.8% to $880 million; fuel and operating expenses increased 7.6% to $423 million.

• Ended quarter with $237 million cash, $837 million total liquidity, and net leverage ratio of 2.3x trailing twelve months adjusted EBITDA.

Outlook and guidance

• Full-year 2026 gross capital expenditures expected between $500 million and $600 million, funded by cash on hand, operations, and available liquidity.

• Adjusted effective tax rate anticipated at 23% to 24%.

• Management expects continued robust incremental margins, industry-leading operating ratio improvement, and compounding earnings growth.

• North American LTL targets: 6–8% revenue CAGR, 11–13% adjusted EBITDA CAGR, and at least 600 bps adjusted operating ratio improvement from 2021–2027.

• Company believes existing liquidity and capital sources are sufficient to support operations over the next 12 months.