XPO's Third-Quarter Operating Income Growth Accelerates

The Tip Desk · October 30, 2026 · 2 min read

Operating income rose 75.6% to $288 million as North American LTL revenue reached $1.47 billion and the segment's adjusted operating ratio improved 260 basis points.

XPO (XPO), an asset-based less-than-truckload carrier, reported operating income of $288 million for the three months ended September 30, 2026, up 75.6% from $164 million a year earlier. That year-over-year increase was faster than the 36.9% rise recorded in the second quarter and the 15.2% rise in the first quarter.

Revenue was $2.37 billion, up 12.4% from $2.11 billion. Diluted earnings were $1.53 a share, compared with $0.68 a year earlier. Adjusted diluted earnings were $1.70 a share, compared with $1.07. Adjusted EBITDA was $433 million, up 26.6% from $342 million.

North American Less-Than-Truckload, the company’s core freight business, generated $1.47 billion of revenue, up 17.4% from $1.26 billion. Segment operating income was $284 million, and adjusted operating income was $293 million. The adjusted operating ratio was 80.1%, a 260-basis-point year-over-year improvement. Adjusted EBITDA for the segment was $389 million.

Yield excluding fuel rose 3.6% year-over-year, shipments per day rose 5.8%, and tonnage per day rose 5.0%. Revenue excluding fuel surcharge was $1.15 billion, and fuel surcharge revenue was $323 million. Revenue per shipment excluding fuel surcharges was $339.12, and gross revenue per hundredweight excluding fuel surcharges was $26.70. Chairman and chief executive officer Mario Harik said the quarter showed sequential improvements in yield and revenue per shipment excluding fuel, alongside volume growth from profitable share gains, and that the company is expanding the use of AI across the network.

European Transportation revenue was $900 million, up 5.0% from $857 million. The segment posted operating income of $12 million, compared with a $2 million loss a year earlier. Adjusted EBITDA was $48 million. Harik said the increase in European adjusted EBITDA reflected higher revenue and cost efficiencies, partially offset by higher fuel costs.

Corporate recorded an operating loss of $8 million, compared with a $42 million loss a year earlier. Adjusted EBITDA was a $4 million loss, matching the year-ago period.

The company generated $415 million of cash flow from operating activities in the third quarter and ended the period with $260 million of cash and cash equivalents, after $123 million of net capital expenditures, $150 million of common stock repurchases and $100 million of term loan repayments. Harik said the company is accelerating free cash flow and capital return, and that further upside exists as freight demand recovers.