XPO reported higher revenue and sharply improved earnings in the third quarter, with its North American less-than-truckload (LTL) business providing the largest contribution. The company’s adjusted earnings per share rose to $1.70 from $1.07 a year earlier, while reported earnings per share more than doubled; a one-time charge in the prior-year quarter makes that reported comparison look stronger.
Key details
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Revenue increased 12.4% to $2.37 billion. Total operating income rose 75.6% to $288 million, and net income climbed 120.7% to $181 million.
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Adjusted earnings also advanced. Adjusted EBITDA grew 26.6% to $433 million. Adjusted diluted EPS increased 58.9% to $1.70. The diluted weighted-average share count fell to 118 million from 120 million.
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North American LTL led the results. Segment revenue rose 17.4% to $1.47 billion. Operating income increased 36.5% to $284 million, while adjusted operating income grew 35% to $293 million and adjusted EBITDA rose 26.3% to $389 million. XPO said the segment’s adjusted operating ratio improved by 260 basis points.
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European Transportation also improved. Revenue increased 5% to $900 million. Operating income was $12 million, compared with a $2 million loss in the year-earlier quarter. Adjusted operating income rose to $22 million from $9 million, and adjusted EBITDA increased 26.3% to $48 million.
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Lower corporate operating costs helped the reported comparison. The corporate operating loss was $8 million, compared with $42 million a year earlier.
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A prior-year charge affects the year-over-year comparison. Third-quarter 2025 included a $35 million charge, or $27 million after tax and $0.23 per share, for environmental and product-liability claims involving a former Con-way subsidiary. The subsidiary was sold before XPO acquired Con-way in 2015. This charge partly explains why reported net income and EPS grew faster than their adjusted measures.
Plain-English implications
North American LTL was the main engine of the quarter: it accounted for most of XPO’s adjusted EBITDA and posted faster growth in adjusted earnings than in revenue. The improvement in Europe was positive but smaller in scale. Adjusted figures show substantial earnings growth even after setting aside the effect of the prior-year charge.