Highlights

  • Second quarter 2026 revenue was $2,355 million, compared with $2,080 million, and net income was $162 million.
  • Diluted earnings per share were $1.36 for the second quarter of 2026, compared with $0.89 a year earlier.
  • In May 2026, XPO entered a $500 million Term Loan A Facility and a $385 million Term B-4 tranche.
  • Management said it expects full-year margin improvement of at least 200 basis points, compared with 100 to 150 basis points.

XPO, Inc. (NYSE:XPO) shares were trading at USD 181.72 on October 28, 2026, down 3.30%, with a relative volume at time of 3.81. The freight transportation company refinanced its term loan facilities in May and filed its 10-Q for the quarter ended June 30, 2026 on July 30, when management also gave its updated outlook on the earnings call.

XPO is incorporated in Delaware and lists its principal executive offices in Greenwich, Connecticut. The company provides freight transportation services in North America and Europe, using proprietary technology. It has two reportable segments, North American Less-Than-Truckload (LTL) and European Transportation. As of June 30, 2026, it had approximately 38,000 employees serving approximately 55,000 customers through 586 owned and leased locations in 17 countries.

Second Quarter 2026 Results

Revenue for the second quarter of 2026 was $2,355 million, compared with $2,080 million for the same quarter in 2025. Operating income was $271 million, compared with $198 million. The income tax provision was $56 million, compared with $37 million. Net income was $162 million, compared with $106 million.

Restructuring costs were $22 million, compared with $8 million, and the company said they primarily related to restructuring actions in its European Transportation segment. Debt extinguishment loss was $5 million, related to refinancings of its term loan facility. Interest expense was $51 million, compared with $56 million.

North American LTL revenue was $1,428 million, compared with $1,240 million, and adjusted EBITDA, a non-GAAP measure, was $390 million, compared with $300 million. European Transportation revenue was $927 million, compared with $841 million, and adjusted EBITDA was $48 million, compared with $44 million.

Balance Sheet, Cash Flow and Capital

Cash and cash equivalents were $298 million as of June 30, 2026, compared with $310 million as of December 31, 2025. The company had approximately $600 million available under its Revolving Credit Facility, and total liquidity was approximately $898 million.

Net cash provided by operating activities for the six months was $491 million, compared with $389 million. The company purchased property and equipment of $238 million and expects full-year gross capital expenditures between $500 million and $600 million in 2026.

In May 2026, XPO entered a Senior Secured Term Loan A Credit Agreement with a $500 million facility maturing May 29, 2029. It also amended its term loan B agreement to add a $385 million Term B-4 tranche maturing February 1, 2031. Proceeds were used to repay $885 million of principal under the existing term loan B. In July 2026, XPO used cash on hand to repay $100 million of principal under the 2026 Term Loan B Facility.

In the second quarter, the company repurchased 341 thousand shares for $70 million. The remaining share repurchase authorization was $525 million as of June 30, 2026.

European Business and Outlook

The 10-Q states that the Board's authorization to divest the European business remains in effect, and that there can be no assurance the divestiture will occur, or of its terms or timing.

On its July 30, 2026 earnings call, management said it expects the third quarter LTL operating ratio to be below 81%. It said it now expects full-year margin improvement of at least 200 basis points, compared with its initial outlook of 100 to 150 basis points. Management said July tonnage growth was above 6% and that it expects full-year tonnage to be up a few points.

Management also said it expects full-year free cash flow to more than double 2025 levels. On the call, management reported an LTL operating ratio of 79.9% for the second quarter.