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Investing.com -- XPO (NYSE:XPO) reported first quarter 2025 earnings that beat analyst expectations, but revenue fell just short of estimates.
The transportation and logistics company posted adjusted earnings per share of $0.73, surpassing the analyst consensus of $0.68. However, revenue came in at $1.954 billion, missing the $1.98 billion estimate and declining 3.5% YoY from $2.02 billion in the same quarter last year.
XPO attributed the revenue decrease primarily to lower fuel surcharge revenue in its North American Less-Than-Truckload (LTL) segment. The LTL division saw shipments per day fall 5.8% and tonnage per day drop 7.5% YoY, though yield excluding fuel increased 6.9%.
"The results we delivered in Q1 make a strong statement about our ability to drive outperformance in our LTL business in any freight market," XPO CEO Mario Harik told Investing.com following the results. "To put that in context, our margin improvement over two years is the best in the industry, as is our track record for operating efficiency – a 370 basis point improvement in LTL adjusted operating ratio for the same period. Each part of our growth plan contributes to our trajectory, including investments in our network, numerous initiatives for margin enhancement and, importantly, world-class service. The progress we reported for the quarter is tied directly to the record service quality we delivered."
The company’s North American LTL segment reported an adjusted operating ratio of 85.9%, improving 30 basis points sequentially from the fourth quarter of 2024. XPO highlighted a 53% YoY reduction in purchased transportation expense due to tech-driven productivity gains and third-party linehaul insourcing.
For the quarter, XPO generated $142 million in cash flow from operations and ended with $212 million in cash and cash equivalents after $191 million in net capital expenditures.