XPO Reports $2.11 Billion Revenue in Q3 2025, Net Income Declines to $82 Million

XPO, Inc. reported a consolidated revenue of $2.11 billion for the third quarter of 2025, reflecting a 2.8% increase from $2.05 billion in the same period of 2024. However, revenue for the first nine months of 2025 remained flat at $6.15 billion compared to $6.15 billion in the prior year. The company attributed the quarterly revenue growth to favorable foreign currency movements, which contributed approximately 2.8 percentage points to the third-quarter results. Despite this, the North American Less-Than-Truckload (LTL) segment experienced a decline in revenue due to lower fuel surcharge revenue and reduced shipments per day.

In terms of profitability, XPO's net income for the third quarter of 2025 was $82 million, down from $95 million in the same quarter of 2024. For the first nine months, net income decreased to $257 million from $312 million year-over-year. The decline in net income was influenced by increased operating costs, including salaries and wages, which rose to $876 million in the third quarter, representing 41.5% of revenue, consistent with the previous year. Additionally, the company incurred a $35 million charge related to environmental matters from a legacy acquisition, further impacting profitability.

Strategically, XPO completed the acquisition of 28 service centers from Yellow Corporation in December 2023, enhancing its operational capacity in key markets. The company continues to focus on expanding its North American LTL network, which now serves approximately 37,000 shippers and covers nearly all U.S. zip codes. As of September 30, 2025, XPO employed around 38,000 individuals and served approximately 55,000 customers across 605 locations in 17 countries.

Operationally, XPO's North American LTL segment reported a slight revenue increase of 0.3% to $1.26 billion for the third quarter, while the European Transportation segment saw a 6.7% revenue increase to $857 million. However, adjusted EBITDA for the North American LTL segment improved to $308 million, up from $284 million, driven by higher yield and productivity improvements. Conversely, the European Transportation segment's adjusted EBITDA decreased to $38 million from $44 million, primarily due to rising labor costs and purchased transportation expenses.

Looking ahead, XPO anticipates continued challenges in the North American LTL segment, particularly with fluctuating fuel prices and shipment volumes. The company remains committed to leveraging its technology and operational efficiencies to enhance profitability. With a cash balance of $335 million and approximately $600 million available under its revolving credit facility, XPO is well-positioned to support its growth initiatives and manage its capital expenditures, projected to be between $600 million and $700 million for the full year 2025.