XPO Logistics, Inc. Q3 2025 Earnings Recap

XPO delivered robust Q3 2025 results with adjusted EBITDA of $342 million and adjusted diluted EPS of $1.07, highlighting strong operational execution and margin expansion despite a challenging market.

Key Takeaways

• Adjusted EBITDA increased by 6% year-over-year, while adjusted diluted EPS grew by 11%, exceeding market expectations.
• North American LTL adjusted operating income rose 10% to $217 million, accompanied by a 150 basis point improvement in the adjusted operating ratio to 82.7%.
• Yield growth excluding fuel achieved 5.9% year-over-year, driven by enhanced service quality and a richer mix of local and premium accounts.
• Productivity improvements through AI initiatives led to a significant reduction in maintenance costs per mile and a decrease in outsourced miles to 5.9%, the lowest in company history.
• The integration of advanced technology with a high-performing network positions XPO for continued margin outperformance and long-term shareholder value creation.