Growth for logistics giant XPO doesn’t appear to be slowing.
GREENWICH, Conn. – XPO Logistics reported another record quarter for Q2, with revenue for the quarter up to $3.23 billion, compared with $3.19 billion for the same period in 2021. Adjusted earnings before interest, taxes, depreciation and amortization increased to $405 million, compared with $330 million in 2021.
The company also reported record EBITDA, beating its target for the ninth consecutive quarter.
Brad Jacobs
“In the second quarter, all of our reported metrics were ahead of guidance and consensus,” said CEO Brad Jacobs. “We reported the highest adjusted EBITDA of any quarter in our history and raised our 2022 full year guidance. Our North American less-than-truckload network and our tech-enabled brokered transportation platform have tremendous momentum heading into the spin-off, when we expect to separate these businesses into independent companies.
Growth was most visible in the company’s LTL and North American transport divisions.
Mario Harik
“In LTL, Mario Harik led his team to record second quarter revenue, as well as an operating ratio of 82.5% and an adjusted operating ratio of 80.4%. It was our best quarterly adjusted operating ratio to date, excluding real estate, with a year-over-year improvement of 70 basis points, on track for more than 100 basis points of improvement this year,” Jacobs continued. “Yield, excluding fuel, accelerated year-over-year by 11%. We maintained the highest level of network fluidity since 2020, and won a record amount of new business in the quarter. We also doubled our trailer manufacturing output year-over-year.
“In our North American transportation division, led by Drew Wilkerson, our truck brokerage business again sharply outperformed the industry. We delivered our seventh consecutive quarter of double-digit volume growth in truck brokerage, up year-over-year by 16%. Our XPO Connect digital platform is the force behind this growth, with a 74% year-over-year increase in weekly average carrier users, and 80% of orders created or covered digitally, up from 74% in the first quarter.”
XPO also announced that Jacobs will step down as CEO in the fourth quarter as the company completes the spin-off of its brokerage platform. Succeeding him as CEO will be current LTL President Mario Harik.