XPO, Inc. Reports $1.95 Billion Revenue in Q1 2025, Net Income Increases to $69 Million

XPO, Inc. reported a consolidated revenue of $1.95 billion for the first quarter of 2025, reflecting a decrease of 3.2% compared to $2.02 billion in the same period of 2024. The decline in revenue was attributed to lower performance in both the North American Less-Than-Truckload (LTL) and European Transportation segments, with foreign currency fluctuations contributing approximately 1.4 percentage points to the revenue decrease. Despite the revenue drop, net income increased to $69 million, up from $67 million year-over-year, resulting in basic earnings per share of $0.59, compared to $0.58 in the prior year.

In terms of operational metrics, the North American LTL segment generated $1.17 billion in revenue, down 4.0% from $1.22 billion in the previous year. This segment accounted for a significant portion of the company's overall revenue, with approximately 9% market share in the U.S. LTL market, which is estimated to be worth $53 billion. The European Transportation segment also saw a revenue decline of 1.9%, totaling $782 million, impacted by foreign currency movements. The company reported a total employee count of approximately 38,000, serving around 55,000 customers across 606 locations in 17 countries.

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 network and improving efficiency, with plans to divest its European business still in effect. The first quarter also saw a restructuring cost increase to $12 million, up from $8 million in the previous year, primarily related to actions in the European segment.

Financially, XPO's total assets increased to $7.88 billion as of March 31, 2025, compared to $7.71 billion at the end of 2024. The company reported total liabilities of $6.24 billion, resulting in stockholders' equity of $1.64 billion. Cash and cash equivalents decreased to $212 million from $246 million at the end of the previous year. The company generated $142 million in cash from operating activities during the quarter, slightly down from $145 million in the same period last year, while cash used in investing activities decreased significantly to $191 million from $299 million.

Looking ahead, XPO remains focused on leveraging its technology and operational capabilities to drive growth and profitability. The company is investing in proprietary technology and artificial intelligence to enhance its service offerings and operational efficiency. Despite the challenges faced in the first quarter, XPO's management expressed confidence in the company's ability to navigate market conditions and achieve its strategic objectives moving forward.