XPO Inc. authorizes $750M stock buyback plan

Published 27/03/2025, 11:50
XPO Inc. authorizes $750M stock buyback plan

GREENWICH, CT – XPO Inc. (NYSE:XPO), a leading provider of transportation services, has announced the authorization of a new stock repurchase program. The Board of Directors has approved the buyback of up to $750 million of its common stock, representing approximately 5.8% of the company’s current $13 billion market capitalization. This new Repurchase Plan is set to replace the previous plan from February 2019, which had $503 million remaining as of Tuesday. According to InvestingPro data, XPO’s stock has seen a 15.5% decline year-to-date, potentially making this buyback timing strategic.

The buyback will be conducted at the discretion of management, employing various methods such as open market purchases, privately negotiated transactions, or through a 10b5-1 trading plan, all in accordance with Rule 10b-18 under the Securities Exchange Act of 1934.

The exact timing and amount of the repurchases will depend on numerous factors, including stock price, market conditions, and other investment opportunities. The company underlined that there is no obligation to repurchase any specific number of shares and that the program may be suspended or discontinued at any time. The Repurchase Plan is effective immediately as of March 26, 2025.

XPO Inc. emphasizes that this current report contains forward-looking statements, including expectations about the repurchase plan’s potential effects. These statements are based on current assumptions and analyses and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.

This strategic move by the company is part of its broader financial management efforts and reflects its commitment to maximizing shareholder value. The information provided is based on a press release statement filed with the Securities and Exchange Commission.

In other recent news, XPO Logistics reported its fourth-quarter earnings for 2024, surpassing expectations with an adjusted earnings per share (EPS) of $0.89, significantly higher than the forecasted $0.6556. Despite slightly missing revenue expectations with $1.9 billion against a forecast of $1.93 billion, the company demonstrated robust performance, with full-year revenue reaching $8.1 billion, marking a 4% increase. The company’s adjusted EBITDA grew by 27% to $1.3 billion, reflecting strong operational efficiency. Benchmark analysts have increased their price target for XPO Logistics to $160, highlighting expectations for long-term earnings growth driven by higher pricing and operational improvements. Meanwhile, Stifel analysts upgraded XPO Logistics’ stock rating to Buy, setting a new price target of $147, citing the company’s effective strategy and execution in integrating acquisitions. Citi analyst Ariel Rosa adjusted the price target for XPO Logistics shares to $148 from $170, maintaining a Buy rating, despite noting a year-over-year decrease in daily tonnage. The company is implementing various self-help initiatives to maintain profitability, including improving service and expanding premium offerings. These recent developments reflect XPO Logistics’ strategic focus and potential for future growth in the logistics sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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