XPO reports decline in May LTL freight metrics

GREENWICH, Conn. - XPO Logistics, a major player in North American freight transportation, has released preliminary operating metrics for its less-than-truckload (LTL) segment for May 2025, indicating a decrease in tonnage per day by 5.7% compared to May 2024. This downturn is attributed to a 5.0% drop in daily shipments and a 0.7% reduction in weight per shipment. According to InvestingPro data, the company maintains a healthy gross profit margin of 17.5% despite challenging market conditions.

The company, which moves 17 billion pounds of freight annually through its customer-centric organization and proprietary technology, serves around 55,000 customers across North America and Europe. XPO operates with a strong presence of 606 locations and employs 38,000 people. The company generated $8 billion in revenue over the last twelve months, with an EBITDA of $1.2 billion, demonstrating its significant market presence. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 11 analysts recently revising their earnings expectations downward.

Despite the reported decline in LTL segment performance for May, the actual results may differ from these preliminary figures. XPO has cautioned that these figures should not be viewed as indicative of future performance and that actual results could materially differ. The stock has experienced significant volatility, with a 26% decline over the past six months, though it maintains a strong return profile over the past decade according to InvestingPro analysis.

XPO’s forward-looking statements reflect assumptions based on historical trends, current conditions, and expected future developments. However, they are subject to various risks and uncertainties, including economic and regulatory changes, supply chain disruptions, and market recovery impacts. The company’s management continues to implement cost and revenue initiatives aimed at growth and expansion. With a current P/E ratio of 34.5 and analyst price targets ranging from $85 to $152, investors seeking deeper insights can access comprehensive valuation metrics and expert analysis through InvestingPro’s detailed research reports.

Investors and stakeholders are advised that the information provided is based on a press release statement and should be considered within the context of the factors that may influence XPO’s operational and financial performance.

XPO’s stock is traded on the New York Stock Exchange under the ticker NYSE: XPO. The company is headquartered in Greenwich, Connecticut, and maintains a strong commitment to innovation and efficiency in the freight transportation industry.

In other recent news, XPO Logistics reported its first-quarter 2025 earnings, revealing an adjusted diluted earnings per share (EPS) of $0.73, surpassing analyst expectations of $0.68. The company’s revenue, however, fell short at $1.95 billion against a forecast of $1.98 billion. Despite the revenue miss, the company’s stock saw a rise, reflecting investor optimism. Stifel, BMO Capital Markets, and BofA Securities have all adjusted their price targets for XPO, with Stifel and BofA maintaining a Buy rating while BMO Capital upheld an Outperform rating. Each firm cited XPO’s strategic initiatives and operational improvements as key factors in their assessments. XPO’s ongoing efforts to enhance its less-than-truckload (LTL) operations, including improvements in yield and productivity, have been highlighted by analysts. The company’s management remains committed to driving long-term earnings growth through strategic investments and operational efficiencies. Notably, XPO has also reported a reduction in its reliance on outsourced linehaul miles, which is part of its broader strategy to enhance cost-effectiveness.

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