XPO Reports Record Q2 Earnings with Strong Revenue and Margin Growth
XPO (NYSE: XPO) delivered strong performance in its second quarter of fiscal year 2026, reporting total revenue of $2.4 billion—a 13% increase compared to the prior year. The company's Less-Than-Truckload (LTL) segment saw a significant boost with $1.4 billion in revenue and an adjusted operating ratio of 79.9%, up by 300 basis points from last year, marking a record for that business line. Adjusted diluted earnings per share reached $1.64, reflecting a 56% increase over the same period in 2025. The company also reported adjusted EBITDA of $425 million and free cash flow of $207 million for the quarter. Management expects full-year free cash flow to more than double compared to 2025 levels, driven by improved productivity from AI-driven workforce planning and a strong pricing environment in LTL contract renewals. XPO also highlighted progress on debt reduction with over $200 million repaid year-to-date and continued stock buybacks. The company is optimistic about the second half of 2026, particularly for its European operations where adjusted EBITDA rose by 9%.
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