Latest news with #MarioHarik
Yahoo
07-08-2025
- Business
- Yahoo
XPO saves on outsourcing costs, prepares for market upside
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive Brief: XPO reduced its purchased transportation costs for its North American less-than-truckload segment in Q2 to $32 million, down about 53% compared to a year ago, per an earnings release. Investments in rolling stock in recent years have allowed XPO to cut outsourcing costs in the short term and position the carrier for success once the market improves, Chief Strategy Officer Ali Faghri told Trucking Dive. 'When demand recovers in the LTL industry, you're going to see truckload rates go up significantly, 20-, 30-, 40-percent,' he said. 'And that's really where we're going to see a bigger benefit, because we've essentially insulated our cost structure from this cost category.' Dive Insight: XPO can operate linehaul miles more efficiently than third-party contractors, the company notes, and so it's finding wins among a market slowdown. Outsourced linehaul miles were 6.8% of total miles in Q2 for the carrier, a significant shift from a rate of 15.9% a year ago, per company earnings reports. 'That's more than 900 basis points lower than last year and the best level in our history, with more opportunity ahead,' CEO Mario Harik said on a July 31 earnings call. New AI-powered linehaul models are 'driving additional savings, reducing normalized linehaul miles by 3%, empty miles by over 10% and freight diversions by more than 80%,' he added. The company aims to hire a director of AI, and Harik said the company plans to launch more AI integrations this year. XPO is also currently piloting how AI can improve pickup and delivery operations that lower costs, the CEO said. AI initiatives with other transportation players have led to efficiencies, such as ArcBest optimizing city routes to reduce miles and fuel costs and C.H. Robinson Worldwide offering price quotes, eliminating significant manual processing and speeding up output for customers. Recommended Reading XPO leans on AI to minimize miles, handling for LTL freight
Yahoo
31-07-2025
- Business
- Yahoo
XPO Cuts Costs, Expands Margins Despite Freight Slowdown
XPO, Inc. (NYSE:XPO) reported second-quarter 2025 financial results on Thursday. Adjusted diluted earnings per share (EPS) of $1.05 exceeded the analyst consensus of $1.00. Revenue reached $2.08 billion for the quarter, surpassing estimates of $2.06 billion and remaining flat year over year. XPO's operating income for the second quarter of 2025 rose slightly to $198 million from $197 million in the same period last year. On an adjusted basis, adjusted net income was $125 million for the quarter, compared to $135 million in the second quarter of 2024. Adjusted EBITDA for the second quarter was $340 million, a slight dip from $343 million in the prior year. Also Read: XPO's North American Less-Than-Truckload (LTL) segment demonstrated strong operational performance. LTL revenue was $1.24 billion, a 2.5% decrease from the second quarter of 2024, attributed to a 5.1% decline in shipments per day and a 6.7% drop in daily tonnage. LTL segment achieved an adjusted operating ratio of 82.9%, a 30-basis-point improvement year-over-year, which CEO Mario Harik called 'industry-best.' Yield, excluding fuel, increased by 6.1%, and revenue per shipment grew by 5.6%. The company also significantly reduced purchased transportation expenses by 53% through insourcing linehaul miles. Adjusted EBITDA for the North American LTL segment increased 1.0% to $300 million. View more earnings on XPO The European Transportation segment reported revenue of $841 million, up 4.1% year-over-year. However, adjusted EBITDA for this segment declined to $44 million from $49 million in the prior year. Net income for the quarter was $106 million, down from $150 million a year ago. This decline in diluted EPS to $0.89 from $1.25 in the prior-year period was largely due to XPO lapping a one-time tax benefit related to its European business a year ago. XPO generated $247 million in operating cash flow and ended the quarter with $225 million in cash and cash equivalents. 'In our North American LTL business, we achieved an adjusted operating ratio of 82.9%, reflecting an industry-best year-over-year improvement of 30 basis points. While our tonnage declined in the soft freight environment, our world-class service culture drove above-market pricing growth and share gains with local customers,' Harik said in a statement. 'On the cost side, we reduced purchased transportation expense by 53% as we insourced linehaul miles to a record level. And we generated another gain in labor productivity, supported by our proprietary technology.' Harik continued, 'We're executing at a high level and consistently outperforming the industry, with a strategy that positions us to deliver long-term margin expansion and earnings growth,' he added. Price Action: XPO shares are trading lower by 8.88% to $120.54 at last check Thursday. Read Next:Image by Miguel Perfectti via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? XPO (XPO): Free Stock Analysis Report This article XPO Cuts Costs, Expands Margins Despite Freight Slowdown originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
31-07-2025
- Business
- Yahoo
First look: XPO Q2 earnings
Less-than-truckload carrier XPO again reported earnings results ahead of analysts' expectations on Thursday ahead of the market open. XPO (NYSE: XPO) reported adjusted earnings per share of $1.05, which was 6 cents better than the consensus estimate but 7 cents lower year over year. (The adjusted EPS number excluded transaction and restructuring costs.) Consolidated revenue was flat y/y at $2.08 billion, but outpaced the consensus estimate of $2.05 billion. 'We're executing at a high level and consistently outperforming the industry, with a strategy that positions us to deliver long-term margin expansion and earnings growth,' CEO Mario Harik said in a news release. XPO's LTL unit reported a 2.5% y/y decline in revenue to $1.24 billion. A 6.7% decline in tonnage per day (shipments down 5.1% and weight per shipment down 1.7%) was partially offset by a 4.2% increase in revenue per hundredweight, or yield. (Yield was 6.1% higher y/y excluding fuel surcharges.) Revenue per shipment and yield increased on a sequential basis, which was in line with management's guidance. The segment reported an 82.9% adjusted operating ratio (inverse of operating margin), which was 30 basis points better y/y and 300 bps better than the first quarter. The result was at the top end of management's guidance. Purchased transportation expenses (as a percentage of revenue) were down 280 bps y/y as the carrier continues to insource linehaul shipments. XPO continues to see y/y margin improvement as the rest of the public carriers report material declines (340 bps on average). XPO's European transportation segment reported a 4% y/y increase in revenue to $841 million with an adjusted earnings before interest, taxes, depreciation and amortization margin of 5.2%, 80 bps lower y/y. Shares of XPO were up 0.5% in premarket trading on Thursday. XPO will host a call to discuss second-quarter results on Thursday at 8:30 a.m. EDT. More FreightWaves articles by Todd Maiden: ArcBest's efficiency initiatives helping offset soft demand Old Dominion not changing course as downturn lingers Landstar reports trucking revenue growth for first time in nearly 3 years The post First look: XPO Q2 earnings appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-06-2025
- Business
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Q1 Rundown: XPO (NYSE:XPO) Vs Other Ground Transportation Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let's take a look at how XPO (NYSE:XPO) and the rest of the ground transportation stocks fared in Q1. The growth of e-commerce and global trade continues to drive demand for shipping services, especially last-mile delivery, presenting opportunities for ground transportation companies. The industry continues to invest in data, analytics, and autonomous fleets to optimize efficiency and find the most cost-effective routes. Despite the essential services this industry provides, ground transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies' offerings while fuel costs can influence profit margins. The 16 ground transportation stocks we track reported a slower Q1. As a group, revenues missed analysts' consensus estimates by 2.2%. In light of this news, share prices of the companies have held steady as they are up 4.1% on average since the latest earnings results. Owning a mobile game simulating freight operations for the Tour de France, XPO (NYSE:XPO) is a transportation company specializing in expedited shipping services. XPO reported revenues of $1.95 billion, down 3.2% year on year. This print fell short of analysts' expectations by 0.9%, but it was still a strong quarter for the company with a solid beat of analysts' adjusted operating income estimates and an impressive beat of analysts' EPS estimates. Mario Harik, chief executive officer of XPO, said, 'We carried our momentum into 2025 and delivered first quarter financial results that outperformed the industry. Companywide, we reported adjusted EBITDA of $278 million and adjusted diluted EPS of $0.73, while operating more efficiently. The stock is up 15.8% since reporting and currently trades at $112.89. Is now the time to buy XPO? Access our full analysis of the earnings results here, it's free. Employing thousands of drivers across the country to make deliveries, Schneider (NYSE:SNDR) makes full truckload and intermodal deliveries regionally and across borders. Schneider reported revenues of $1.40 billion, up 6.3% year on year, in line with analysts' expectations. The business had a very strong quarter with an impressive beat of analysts' adjusted operating income estimates. The market seems happy with the results as the stock is up 13.6% since reporting. It currently trades at $24.41. Is now the time to buy Schneider? Access our full analysis of the earnings results here, it's free. Conducting business in over a 100 countries, Werner (NASDAQ:WERN) offers full-truckload, less-than-truckload, and intermodal delivery services. Werner reported revenues of $712.1 million, down 7.4% year on year, falling short of analysts' expectations by 3.4%. It was a disappointing quarter as it posted a miss of analysts' Logistics revenue estimates. As expected, the stock is down 4.9% since the results and currently trades at $26.30. Read our full analysis of Werner's results here. With access to millions of trucks, RXO (NYSE:RXO) offers full-truckload, less-than-truckload, and last-mile deliveries. RXO reported revenues of $1.43 billion, up 57% year on year. This result came in 3.5% below analysts' expectations. It was a slower quarter as it also recorded a significant miss of analysts' EPS and EBITDA estimates. RXO scored the fastest revenue growth among its peers. The stock is up 10.7% since reporting and currently trades at $15.20. Read our full, actionable report on RXO here, it's free. Covering 1.6 billion loaded miles in 2023 alone, Knight-Swift Transportation (NYSE:KNX) offers less-than-truckload and full truckload delivery services. Knight-Swift Transportation reported revenues of $1.82 billion, flat year on year. This number topped analysts' expectations by 1.6%. Zooming out, it was a satisfactory quarter as it also produced an impressive beat of analysts' EPS estimates but EPS guidance for next quarter missing analysts' expectations. The stock is up 11.2% since reporting and currently trades at $44.04. Read our full, actionable report on Knight-Swift Transportation here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
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XPO sees minimal shipper conversion from LTL to TL
This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. XPO reported it is not seeing 'a lot of direct conversion' from LTL to truckload, CEO Mario Harik said in an April 30 earnings call. Still, with truckload rates being lower 'there might be more combinations into truckload happening,' Harik said. But he noted that when truckload rates rise, the freight might come back to LTL. In the soft freight market, the logistics company's shipments per day were down 5.8% during Q1 compared with a year ago, but it generated volume growth in the mid to high single digits in its local channel, which executives named as a key focus for XPO. A softer economic environment and lower freight demand has led some freight to shift from LTL to truckload as shippers capitalize on historically low rates, but XPO executives said they're seeing less of the direct conversion trend, according to the company's earnings call. XPO is, however, seeing consolidation of shipments into truckload, which the carrier said has always happened. 'Companies have used [Transportation Management Systems] for decades now. And what TMSs do is that they look at if you don't have a service requirement and you can combine things into a truckload, you will combine it,' Harik said. LTL makes up a big portion of XPO's business, with North American LTL contributing $1.17 billion of its overall $1.95 billion in revenue in Q1. The carrier said it is the fourth largest LTL carrier by 2024 revenue metrics of $4.9 billion, according to an earnings presentation. Shippers turning away from LTL could hurt its business. But when asked about share loss to other modes, such as TL, Harik said he doesn't 'see any structural changes in how LTL freight is being moved across the country.' There has, however, been a decline in freight volumes and industrial demand over the past two to three years. "This is an opportunity potentially for the industry to see that volume come back when things turn the corner from an industrial production perspective," Harik told analysts. On the other hand, carriers such as ArcBest reported freight migrating over to truckload due to the excess capacity in the truckload space, according to the company's April 30 earnings call. 'From what we saw in 2024, we think that freight is going to eventually flow back to the LTL space when the market flips. But we've been encouraged by ultimately what our customers are looking for, and that's efficiency in supply chain,' ArcBest President Seth Runser said. Recommended Reading XPO operating income surges 24% in Q4 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
