SEC Form 10-Q filed by XPO Inc.

10/30/25 8:27:01 AM ET

$XPO

Transportation Services

Consumer Discretionary

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xpo-20250930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

___________________________________________

Form 10-Q

___________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from____________to____________

Commission File Number: 001-32172

_______________________________________________________

XPO, Inc.

(Exact name of registrant as specified in its charter)

_______________________________________________________


Delaware		03-0450326
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Five American Lane
Greenwich,	CT	06831
(Address of principal executive offices)		(Zip Code)

(855) 976-6951

(Registrant’s telephone number, including area code)

______________________________________________________________________________________________________________

N/A

______________________________________________________________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.001 per share

XPO

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 24, 2025, there were 117,384,263 shares of the registrant’s common stock, par value $0.001 per share, outstanding.

XPO, Inc.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended September 30, 2025

Table of Contents


			Page No.
Part I—Financial Information
Item 1. Financial Statements (Unaudited):
Condensed Consolidated Balance Sheets			1
Condensed Consolidated Statements of Income			2
Condensed Consolidated Statements of Comprehensive Income			3
Condensed Consolidated Statements of Cash Flows			4
Condensed Consolidated Statements of Changes in Equity			5
Notes to Condensed Consolidated Financial Statements			7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			20
Item 3. Quantitative and Qualitative Disclosures About Market Risk			28
Item 4. Controls and Procedures			29
Part II—Other Information
Item 1. Legal Proceedings			29
Item 1A. Risk Factors			29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			29
Item 3. Defaults Upon Senior Securities			29
Item 4. Mine Safety Disclosures			30
Item 5. Other Information			30
Item 6. Exhibits			30
Signatures			31


	September 30,		December 31,
(In millions, except per share data)	2025		2024
ASSETS
Current assets
Cash and cash equivalents	$	335	$	246
Accounts receivable, net of allowances of $42 and $50, respectively	1,103		977
Other current assets	262		283

Total current assets	1,699		1,505
Long-term assets
Property and equipment, net of $2,287 and $2,019 in accumulated depreciation, respectively	3,642		3,402
Operating lease assets	762		727
Goodwill	1,546		1,461
Identifiable intangible assets, net of $565 and $499 in accumulated amortization, respectively	325		361
Other long-term assets	214		254

Total long-term assets	6,489		6,206
Total assets	$	8,189	$	7,712
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	465	$	477
Accrued expenses	816		708
Short-term borrowings and current maturities of long-term debt	125		62
Short-term operating lease liabilities	152		127
Other current liabilities	110		46

Total current liabilities	1,667		1,420
Long-term liabilities
Long-term debt	3,222		3,325
Deferred tax liability	449		393
Employee benefit obligations	84		85
Long-term operating lease liabilities	611		603
Other long-term liabilities	338		283

Total long-term liabilities	4,704		4,690
Stockholders’ equity

Common stock, $0.001 par value; 300 shares authorized; 117 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively	—		—
Additional paid-in capital	1,196		1,274
Retained earnings	829		572
Accumulated other comprehensive loss	(208)		(246)


Total equity	1,817		1,601
Total liabilities and equity	$	8,189	$	7,712


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share data)	2025		2024		2025		2024
Revenue	$	2,111	$	2,053	$	6,146	$	6,150
Salaries, wages and employee benefits	876		852		2,579		2,541
Purchased transportation	424		430		1,250		1,303
Fuel, operating expenses and supplies	406		399		1,183		1,213
Operating taxes and licenses	21		21		61		61
Insurance and claims	43		33		118		105
(Gains) losses on sales of property and equipment	1		—		(2)		(5)
Depreciation and amortization expense	134		126		388		365
Pre-Con-way acquisition environmental matter	35		—		35		—
Legal matter	—		—		(13)		—
Transaction and integration costs	1		13		7		39
Restructuring costs	6		3		26		17
Operating income	164		176		513		511
Other income	(2)		(15)		(4)		(31)
Debt extinguishment loss	—		—		5		—
Interest expense	54		56		166		170
Income before income tax provision	112		135		346		372
Income tax provision	30		40		89		60





Net income	$	82	$	95	$	257	$	312






Earnings per share data


Basic earnings per share	$	0.69	$	0.81	$	2.18	$	2.68


Diluted earnings per share	$	0.68	$	0.79	$	2.15	$	2.60

Weighted-average common shares outstanding
Basic weighted-average common shares outstanding	118		116		118		116
Diluted weighted-average common shares outstanding	120		120		120		120


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions)	2025		2024		2025		2024
Net income	$	82	$	95	$	257	$	312

Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss), net of tax effect of $(1), $8, $19 and $1	$	(9)	$	30	$	39	$	20
Unrealized gain (loss) on financial assets/liabilities designated as hedging instruments, net of tax effect of $0, $1, $0 and $0	—		—		(1)		1

Other comprehensive income (loss)	(9)		29		38		21


Comprehensive income	$	73	$	124	$	294	$	333


	Common Stock
(Shares in thousands, dollars in millions)		Shares	Amount		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Loss		Total Equity
Balance as of June 30, 2025		117,745	$	—	$	1,233	$	747	$	(199)	$	1,781
Net income		—	—		—		82		—		82
Other comprehensive loss		—	—		—		—		(9)		(9)

Exercise and vesting of stock compensation awards		26	—		—		—		—		—
Tax withholdings related to vesting of stock compensation awards		—	—		(2)		—		—		(2)
Retirement of common stock		(388)	—		(50)		—		—		(50)


Stock compensation expense		—	—		16		—		—		16

Balance as of September 30, 2025		117,384	$	—	$	1,196	$	829	$	(208)	$	1,817


(In millions)	Carrying Value		Fair Value		Level 1
September 30, 2025	$	304	$	304	$	304
December 31, 2024	205		205		205


	Three Months Ended September 30, 2025
(In millions)	North American LTL		European Transportation		Corporate (1)		Total
Revenue	$	1,255	$	857	$	—	$	2,111
Salaries, wages and employee benefits	648		224		4		876
Purchased transportation	30		394		—		424
Fuel, operating expenses and supplies	225		180		—		406
Operating taxes and licenses	17		4		—		21
Insurance and claims	27		16		—		43
(Gains) losses on sales of property and equipment	2		(1)		—		1
Pension (income) expense	(2)		—		—		(1)

Adjusted EBITDA	$	308	$	38	$	(4)	$	342


	Three Months Ended September 30, 2024
(In millions)	North American LTL		European Transportation		Corporate (1)		Total
Revenue	$	1,251	$	803	$	—	$	2,053
Salaries, wages and employee benefits	642		206		4		852
Purchased transportation	58		372		—		430
Fuel, operating expenses and supplies	231		168		—		399
Operating taxes and licenses	17		4		—		21
Insurance and claims	21		12		—		33
(Gains) losses on sales of property and equipment	3		(4)		—		—
Pension (income) expense	(6)		—		—		(6)
Other (income) expense	—		1		(9)		(9)
Adjusted EBITDA	$	284	$	44	$	5	$	333


	Nine Months Ended September 30, 2025
(In millions)	North American LTL		European Transportation		Corporate (1)		Total
Revenue	$	3,667	$	2,479	$	—	$	6,146
Salaries, wages and employee benefits	1,907		660		12		2,579
Purchased transportation	99		1,151		—		1,250
Fuel, operating expenses and supplies	679		505		—		1,183
Operating taxes and licenses	50		11		—		61
Insurance and claims	77		42		—		118
(Gains) losses on sales of property and equipment	4		(6)		—		(2)
Pension (income) expense	(5)		—		—		(4)
Other (income) expense	—		1		(1)		—
Adjusted EBITDA	$	857	$	115	$	(12)	$	960


	Nine Months Ended September 30, 2024
(In millions)	North American LTL		European Transportation		Corporate (1)		Total
Revenue	$	3,743	$	2,407	$	—	$	6,150
Salaries, wages and employee benefits	1,894		634		13		2,541
Purchased transportation	204		1,100		—		1,303
Fuel, operating expenses and supplies	710		503		—		1,213
Operating taxes and licenses	49		12		—		61
Insurance and claims	63		39		3		105
(Gains) losses on sales of property and equipment	7		(12)		—		(5)
Pension (income) expense	(19)		—		—		(19)
Other (income) expense	—		1		(13)		(12)
Adjusted EBITDA	$	836	$	131	$	(3)	$	964


			Nine Months Ended September 30, 2025
(In millions)	Reserve Balance as of December 31, 2024		Charges Incurred		Payments		Reserve Balance as of September 30, 2025
Severance
North American LTL	$	3	$	4	$	(4)	$	2
European Transportation	1		13		(8)		6
Corporate	1		5		(3)		4









Total	$	5	$	22	$	(16)	$	11


	September 30, 2025				December 31, 2024
(In millions)	Principal Balance		Carrying Value		Principal Balance		Carrying Value

Term loan facility	$	1,050	$	1,043	$	1,100	$	1,089

6.25% senior secured notes due 2028	830		825		830		823
7.125% senior notes due 2031	450		446		450		445
7.125% senior notes due 2032	585		577		585		576
6.70% senior debentures due 2034	300		229		300		225

Finance leases, asset financing and other	228		228		228		228
Total debt	3,443		3,346		3,493		3,387
Short-term borrowings and current maturities of long-term debt	125		125		62		62
Long-term debt	$	3,318	$	3,222	$	3,431	$	3,325


	Three Months Ended September 30,						Nine Months Ended September 30,
	2025		2024		Change %		2025		2024		Change %
Pounds per day (thousands)	65,236		69,470		(6.1)	%	66,158		70,950		(6.8)	%

Shipments per day	50,094		51,921		(3.5)	%	49,763		52,281		(4.8)	%

Average weight per shipment (in pounds)	1,302		1,338		(2.7)	%	1,329		1,357		(2.0)	%





Gross revenue per hundredweight, excluding fuel surcharges	$	25.77	$	24.34	5.9	%	$	25.16	$	23.67	6.3	%


(In millions, except share and per share data)	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2)
July 1, 2025 - July 31, 2025	61,888	$	120.25	61,888	$	733
August 1, 2025 - August 31, 2025	481	119.10		481	733
September 1, 2025 - September 30, 2025	325,628	130.51		325,628	690
Total	387,997	$	128.86	387,997	$	690


	September 30, 2025
			Derivative Assets			Derivative Liabilities
(In millions)	Notional Amount		Balance Sheet Caption	Fair Value		Balance Sheet Caption	Fair Value
Derivatives designated as hedges
Cross-currency swap agreements	$	284	Other current assets	$	—	Other current liabilities	$	(32)
Cross-currency swap agreements	369		Other long-term assets	—		Other long-term liabilities	(45)

Interest rate swaps	550		Other long-term assets	—		Other long-term liabilities	(1)


Total				$	—		$	(78)


	Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives				Amount of Gain Reclassified from AOCI into Net Income				Amount of Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
	Three Months Ended September 30,
(In millions)	2025		2024		2025		2024		2025		2024
Derivatives designated as cash flow hedges

Interest rate swaps	—		(1)		1		—		—		—
Derivatives designated as net investment hedges
Cross-currency swap agreements	5		(23)		—		—		3		2
Total	$	4	$	(24)	$	1	$	—	$	3	$	2


	Amount of Loss Recognized in Other Comprehensive Income (Loss) on Derivatives				Amount of Gain Reclassified from AOCI into Net Income				Amount of Gain Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing)
	Nine Months Ended September 30,
(In millions)	2025		2024		2025		2024		2025		2024
Derivatives designated as cash flow hedges

Interest rate swaps	$	(1)	$	1	$	1	$	1	$	—	$	—
Derivatives designated as net investment hedges
Cross-currency swap agreements	(79)		(5)		—		—		8		7
Total	$	(80)	$	(4)	$	1	$	1	$	8	$	7


	Three Months Ended September 30,				Percent of Revenue				Change		Nine Months Ended September 30,				Percent of Revenue				Change
(Dollars in millions)	2025		2024		2025		2024		2025 vs. 2024		2025		2024		2025		2024		2025 vs. 2024
Revenue	$	2,111	$	2,053	100.0	%	100.0	%	2.8	%	$	6,146	$	6,150	100.0	%	100.0	%	(0.1)	%
Salaries, wages and employee benefits	876		852		41.5	%	41.5	%	2.8	%	2,579		2,541		42.0	%	41.3	%	1.5	%
Purchased transportation	424		430		20.1	%	20.9	%	(1.4)	%	1,250		1,303		20.3	%	21.2	%	(4.1)	%
Fuel, operating expenses and supplies	406		399		19.2	%	19.4	%	1.8	%	1,183		1,213		19.2	%	19.7	%	(2.5)	%
Operating taxes and licenses	21		21		1.0	%	1.0	%	—	%	61		61		1.0	%	1.0	%	—	%
Insurance and claims	43		33		2.0	%	1.6	%	30.3	%	118		105		1.9	%	1.7	%	12.4	%
(Gains) losses on sales of property and equipment	1		—		—	%	—	%	NM		(2)		(5)		—	%	(0.1)	%	(60.0)	%
Depreciation and amortization expense	134		126		6.3	%	6.1	%	6.3	%	388		365		6.3	%	5.9	%	6.3	%
Pre-Con-way acquisition environmental matter	35		—		1.7	%	—	%	NM		35		—		0.6	%	—	%	NM
Legal matter	—		—		—	%	—	%	—	%	(13)		—		(0.2)	%	—	%	NM
Transaction and integration costs	1		13		—	%	0.6	%	(92.3)	%	7		39		0.1	%	0.6	%	(82.1)	%
Restructuring costs	6		3		0.3	%	0.1	%	100.0	%	26		17		0.4	%	0.3	%	52.9	%
Operating income	164		176		7.8	%	8.6	%	(6.8)	%	513		511		8.3	%	8.3	%	0.4	%
Other income	(2)		(15)		(0.1)	%	(0.7)	%	(86.7)	%	(4)		(31)		(0.1)	%	(0.5)	%	(87.1)	%
Debt extinguishment loss	—		—		—	%	—	%	—	%	5		—		0.1	%	—	%	NM
Interest expense	54		56		2.6	%	2.7	%	(3.6)	%	166		170		2.7	%	2.8	%	(2.4)	%
Income before income tax provision	112		135		5.3	%	6.6	%	(17.0)	%	346		372		5.6	%	6.0	%	(7.0)	%
Income tax provision	30		40		1.4	%	1.9	%	(25.0)	%	89		60		1.4	%	1.0	%	48.3	%


Net income	$	82	$	95	3.9	%	4.6	%	(13.7)	%	$	257	$	312	4.2	%	5.1	%	(17.6)	%


Exhibit Number						Description

31.1*						Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025.

31.2*						Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025.

32.1**						Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025.

32.2**						Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, with respect to the registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2025.

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			XPO, INC.

By:			/s/ Mario Harik
			Mario Harik
			Chief Executive Officer
			(Principal Executive Officer)

By:			/s/ Kyle Wismans
			Kyle Wismans
			Chief Financial Officer
			(Principal Financial Officer)

Date	Price Target	Rating	Analyst
10/31/2025	$131.00 → $141.00	Buy	TD Cowen
8/1/2025	$140.00	Neutral → Buy	Citigroup
7/9/2025	$140.00	Buy → Neutral	Citigroup
6/27/2025	$136.00 → $133.00	Buy	TD Cowen
3/13/2025	$130.00	Buy	Truist
3/7/2025	$156.00	Buy	Deutsche Bank
3/6/2025	$140.00	Hold → Buy	Vertical Research
2/24/2025	$147.00	Hold → Buy	Stifel

SEC Form 10-Q filed by XPO Inc.

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Recent Analyst Ratings for $XPO

$XPO Analyst Ratings

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XPO, Inc. upgraded by Citigroup with a new price target

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$XPO Press Releases

XPO Reports Third Quarter 2025 Results

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XPO Schedules Third Quarter 2025 Earnings Conference Call for Thursday, October 30, 2025

$XPO Insider Trading

Director Landry Allison sold $438,870 worth of shares (3,250 units at $135.04), decreasing direct ownership by 36% to 5,875 units (SEC Form 4)

Chief Operating Officer Bates David J. converted options into 30,100 shares and covered exercise/tax liability with 13,154 shares, increasing direct ownership by 70% to 41,106 units (SEC Form 4)

Chief Accounting Officer Brown Christopher Michael converted options into 2,110 shares and covered exercise/tax liability with 979 shares, increasing direct ownership by 4% to 30,014 units (SEC Form 4)

$XPO Insider Purchases

Chief Operating Officer Bates David J. bought $199,580 worth of shares (1,880 units at $106.16), increasing direct ownership by 10% to 21,106 units (SEC Form 4)

Frye J Wes bought $119,565 worth of shares (1,500 units at $79.71) (SEC Form 4)

$XPO SEC Filings

SEC Form SCHEDULE 13G filed by XPO Inc.