XPO Logistics, Inc. (XPO) Bundle
A Brief History of XPO Logistics
Company Overview
XPO Logistics, Inc. is a leading provider of supply chain solutions and transportation services. As of 2024, the company operates across various segments, including North American Less-Than-Truckload (LTL) and European Transportation, focusing on logistics and freight brokerage.
Financial Performance
In 2024, XPO reported consolidated revenue of $2.1 billion for the third quarter, representing a 3.7% increase from $1.98 billion in the same quarter of 2023. For the first nine months of 2024, revenue reached $6.15 billion, up from $5.8 billion in 2023, marking a 6% year-over-year growth.
| Period | Revenue (in millions) | Adjusted EBITDA (in millions) | Net Income (in millions) |
|---|---|---|---|
| Q3 2024 | $2,053 | $333 | $95 |
| Q3 2023 | $1,980 | $278 | $84 |
| 9M 2024 | $6,150 | $964 | $312 |
| 9M 2023 | $5,804 | $732 | $131 |
Segment Performance
The North American LTL segment generated $1.25 billion in revenue for Q3 2024, a 1.9% increase from $1.23 billion in Q3 2023. Adjusted EBITDA for this segment was $284 million, reflecting a margin of 22.7% of revenue.
The European Transportation segment also showed growth, with revenue increasing to $803 million in Q3 2024, a 6.8% increase from $752 million in Q3 2023. Adjusted EBITDA remained stable at $44 million, accounting for 5.4% of revenue.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Q3 2024 Adjusted EBITDA (in millions) | Q3 2023 Adjusted EBITDA (in millions) |
|---|---|---|---|---|
| North American LTL | $1,251 | $1,228 | $284 | $241 |
| European Transportation | $803 | $752 | $44 | $44 |
Cost and Expense Management
For Q3 2024, total salaries, wages, and employee benefits amounted to $852 million, representing 41.5% of revenue, compared to $809 million or 40.9% of revenue in Q3 2023. The company has experienced a year-over-year increase in operating expenses, particularly in purchased transportation, which totaled $430 million in Q3 2024, down from $437 million in Q3 2023.
| Expense Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Percentage of Revenue |
|---|---|---|---|
| Salaries, Wages, and Employee Benefits | $852 | $809 | 41.5% |
| Purchased Transportation | $430 | $437 | 20.9% |
| Fuel, Operating Expenses, and Supplies | $399 | $406 | 19.4% |
Debt and Liquidity
As of September 30, 2024, XPO reported a cash and cash equivalents balance of $378 million, down from $412 million at the end of 2023. The company has $556 million available under its ABL Facility and a total liquidity of approximately $934 million, which is deemed sufficient to support operational needs over the next 12 months.
Market Position and Future Outlook
XPO Logistics continues to enhance its market position through strategic acquisitions and operational efficiencies. The company's focus on improving service quality and pricing strategies has resulted in increased yield, as evidenced by the growth in gross revenue per hundredweight, which rose to $24.34 in Q3 2024, compared to $22.81 in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Gross Revenue per Hundredweight (excluding fuel surcharges) | $24.34 | $22.81 |
| Pounds per Day (thousands) | 69,470 | 72,257 |
| Shipments per Day | 51,921 | 53,637 |
A Who Owns XPO Logistics, Inc. (XPO)
Shareholder Composition
As of 2024, XPO Logistics, Inc. (XPO) has a diverse ownership structure, including institutional investors, individual shareholders, and company executives.
| Owner Type | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 85% | 98.5 million |
| Individual Shareholders | 10% | 11.6 million |
| Executives and Directors | 5% | 5.8 million |
Major Institutional Shareholders
The largest institutional shareholders of XPO include:
| Institution | Percentage Owned | Number of Shares |
|---|---|---|
| The Vanguard Group | 10.5% | 12.3 million |
| BlackRock, Inc. | 9.8% | 11.4 million |
| State Street Corporation | 6.7% | 7.8 million |
| Invesco Ltd. | 5.2% | 6.1 million |
| Fidelity Investments | 4.9% | 5.7 million |
Executive Ownership
Key executives and their ownership stakes are as follows:
| Name | Position | Shares Owned | Percentage Ownership |
|---|---|---|---|
| Bradley Jacobs | Chairman & CEO | 3.1 million | 2.7% |
| Mario Harik | Chief Operating Officer | 1.2 million | 1.0% |
| Gina McCarthy | Chief Financial Officer | 0.9 million | 0.8% |
Recent Stock Performance
XPO's stock performance has shown significant growth over the past year:
| Date | Stock Price ($) | Market Capitalization ($ Billion) |
|---|---|---|
| December 31, 2023 | 62.45 | 7.25 |
| March 31, 2024 | 68.30 | 7.95 |
| June 30, 2024 | 72.10 | 8.25 |
| September 30, 2024 | 74.55 | 8.50 |
Ownership Changes and Trends
Over the past year, there have been notable trends in ownership:
- Increased institutional ownership, reflecting confidence from major investment firms.
- Reduction in individual ownership percentages as institutional investors acquire larger stakes.
- Executive ownership remains stable, indicating alignment with shareholder interests.
Conclusion on Ownership Dynamics
The ownership landscape of XPO Logistics, Inc. demonstrates a healthy mix of institutional and individual investors, with significant holdings by key executives, reflecting a stable and growing company.
XPO Logistics, Inc. (XPO) Mission Statement
Mission Statement Overview
The mission of XPO Logistics, Inc. is to provide best-in-class supply chain solutions through innovative technology and a commitment to operational excellence. The company aims to create value for its customers by enhancing their logistics operations and enabling them to focus on their core business.
Core Values
- Customer Commitment: Delivering tailored logistics solutions that meet the unique needs of each customer.
- Innovation: Utilizing cutting-edge technology to improve service efficiency and effectiveness.
- Integrity: Maintaining the highest ethical standards in all operations and interactions.
- Collaboration: Fostering teamwork and partnerships to achieve shared goals.
- Excellence: Striving for continuous improvement in processes, services, and performance.
Financial Performance Indicators
XPO's financial performance is a reflection of its mission to drive growth and profitability through efficient logistics solutions. Below is a comprehensive table summarizing key financial metrics for the third quarter and the first nine months of 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Revenue | $2,053 million | $1,980 million | 3.7% | $6,150 million | $5,804 million | 6.0% |
| Adjusted EBITDA | $333 million | $278 million | 19.8% | $964 million | $732 million | 31.7% |
| Net Income | $95 million | $84 million | 13.1% | $312 million | $131 million | 138.2% |
| Basic Earnings per Share | $0.81 | $0.73 | 10.9% | $2.68 | $1.14 | 134.2% |
| Cash and Cash Equivalents | $378 million | $412 million | -8.3% | $378 million | $412 million | -8.3% |
Operational Highlights
XPO continues to enhance its operational capabilities through strategic investments and acquisitions. In December 2023, XPO acquired 28 less-than-truckload (LTL) service centers previously operated by Yellow Corporation, expanding its network capacity significantly. This acquisition is part of XPO's strategy to invest in its logistics capabilities and drive growth in its LTL segment.
Technological Innovation
XPO leverages advanced technology to optimize its logistics operations. The firm has built a scalable cloud ecosystem that deploys its software across operations, enhancing efficiency and service quality. For the trailing twelve months ending September 30, 2024, XPO moved approximately 18 billion pounds of freight over 820 million miles, demonstrating its extensive operational reach and capability.
Market Position
XPO is recognized as a leading provider of freight transportation services, holding approximately 9% of the U.S. LTL market, which is valued at approximately $52 billion as of December 31, 2023. The company serves around 35,000 shippers across North America, providing critical logistics services to a wide range of industries.
Conclusion on Mission Statement Impact
XPO's mission statement underscores its commitment to delivering superior logistics services through innovation and operational excellence. The company's strategic initiatives and financial performance reflect its dedication to creating value for its customers and stakeholders.
How XPO Logistics, Inc. (XPO) Works
Company Overview
XPO Logistics, Inc. operates as a global provider of supply chain solutions, focusing on transportation and logistics services. As of 2024, XPO's business is segmented into two primary divisions: North American Less-Than-Truckload (LTL) and European Transportation.
Financial Performance
For the third quarter of 2024, XPO reported consolidated revenue of $2.1 billion, reflecting a 3.7% increase compared to the same quarter in 2023. For the first nine months of 2024, revenue reached $6.2 billion, an increase of 6.0%.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Consolidated Revenue | $2.1 billion | $1.98 billion | $6.2 billion | $5.8 billion |
| Salaries, Wages and Employee Benefits | $852 million | $809 million | $2.5 billion | $2.4 billion |
| Purchased Transportation | $430 million | $437 million | $1.3 billion | $1.34 billion |
| Fuel, Operating Expenses and Supplies | $399 million | $406 million | $1.21 billion | $1.22 billion |
| Operating Income | $176 million | $154 million | $511 million | $319 million |
| Net Income | $95 million | $84 million | $312 million | $131 million |
Operational Segments
XPO's operations are divided into two key segments:
- North American LTL: This segment generated revenue of $1.3 billion in Q3 2024, up 1.9% from Q3 2023. For the first nine months, revenue was $3.7 billion, a 7.4% increase year-over-year.
- European Transportation: Revenue for this segment was $803 million in Q3 2024, representing a 6.8% increase compared to Q3 2023. For the first nine months, the segment earned $2.4 billion, a 3.8% increase.
| Segment | Q3 Revenue | 9M Revenue |
|---|---|---|
| North American LTL | $1.3 billion | $3.7 billion |
| European Transportation | $803 million | $2.4 billion |
Key Performance Indicators
Key metrics for XPO's performance in the North American LTL segment include:
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Pounds per Day (thousands) | 69,470 | 72,257 | 70,950 | 70,465 |
| Shipments per Day | 51,921 | 53,637 | 52,281 | 51,303 |
| Average Weight per Shipment (pounds) | 1,338 | 1,347 | 1,357 | 1,374 |
| Gross Revenue per Hundredweight (excluding fuel surcharges) | $24.34 | $22.81 | $23.67 | $21.84 |
Expenses Overview
Expenses for XPO include various categories, with salaries, wages, and employee benefits representing a significant portion:
- Salaries, wages, and employee benefits constituted 41.5% of revenue in Q3 2024.
- Purchased transportation represented 20.9% of revenue in Q3 2024.
- Fuel, operating expenses, and supplies accounted for 19.4% of revenue in Q3 2024.
Liquidity and Capital Resources
As of September 30, 2024, XPO reported:
- Cash and cash equivalents of $378 million.
- Total liquidity of approximately $934 million.
- Available borrowing under the ABL Facility of $556 million.
Debt and Interest Obligations
XPO's interest expense for Q3 2024 was $56 million, up from $41 million in Q3 2023. The total interest expense for the first nine months of 2024 was $170 million, compared to $126 million in the same period in 2023.
Future Outlook
XPO anticipates full-year gross capital expenditures between $700 million and $800 million for 2024, aimed at supporting long-term growth and integrating newly acquired service centers from the Yellow Asset Acquisition.
How XPO Logistics, Inc. (XPO) Makes Money
Revenue Generation
XPO Logistics generates revenue primarily through its two reportable segments: North American Less-Than-Truckload (LTL) and European Transportation. For the third quarter of 2024, XPO reported consolidated revenue of $2.1 billion, a 3.7% increase compared to the same period in 2023. For the first nine months of 2024, revenue reached $6.2 billion, marking a 6.0% increase year-over-year.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| North American LTL | $1,251 | $1,228 | $3,743 | $3,484 |
| European Transportation | $803 | $752 | $2,407 | $2,320 |
| Total | $2,053 | $1,980 | $6,150 | $5,804 |
Cost Structure
The cost structure of XPO Logistics is critical to its profitability. In Q3 2024, the company incurred the following costs:
| Cost Type | Q3 2024 Amount (in millions) | Q3 2023 Amount (in millions) |
|---|---|---|
| Salaries, wages, and employee benefits | $852 | $809 |
| Purchased transportation | $430 | $437 |
| Fuel, operating expenses, and supplies | $399 | $406 |
| Operating taxes and licenses | $21 | $15 |
| Insurance and claims | $33 | $39 |
Profitability Metrics
XPO's profitability is reflected in its Adjusted EBITDA. For Q3 2024, Adjusted EBITDA was $284 million, or 22.7% of revenue, compared to $241 million, or 19.6% of revenue in Q3 2023. For the first nine months of 2024, Adjusted EBITDA was $836 million, or 22.3% of revenue, compared to $631 million, or 18.1% of revenue in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Adjusted EBITDA (in millions) | $284 | $241 | $836 | $631 | Adjusted EBITDA Margin | 22.7% | 19.6% | 22.3% | 18.1% |
Market Position and Strategy
XPO holds approximately 9% of the U.S. LTL market, which is valued at $52 billion as of December 31, 2023. The company provides services to around 35,000 shippers across North America, ensuring coverage to nearly 99% of U.S. zip codes. The company has focused on enhancing its service quality and pricing strategies to capture profitable market share.
Technology and Innovation
XPO has invested significantly in technology to optimize its logistics and transportation services. The company utilizes a cloud-based ecosystem to manage operations, which includes intelligent route-building and real-time visualization tools. For the trailing 12 months ended September 30, 2024, XPO moved approximately 18 billion pounds of freight over 820 million miles.
Financial Position
As of September 30, 2024, XPO reported cash and cash equivalents of $378 million and total liquidity of $934 million. The weighted average interest rate on its term loans was approximately 7.20%.
| Financial Metric | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $378 |
| Total Liquidity | $934 |
| Weighted Average Interest Rate on Term Loans | 7.20% |
Debt Management
XPO's effective management of debt includes a Term Loan Credit Agreement with a principal balance of $2.0 billion, set to mature in February 2025. The company also issued new term loans totaling $700 million in 2023 to finance its acquisition strategies.
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Article updated on 8 Nov 2024
Resources:
- XPO Logistics, Inc. (XPO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of XPO Logistics, Inc. (XPO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View XPO Logistics, Inc. (XPO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.