On October 30, 2023, XPO Inc (XPO, Financial) announced its financial results for the third quarter of 2023. Despite a challenging industry environment for freight transportation, the company reported solid performance with a revenue of $1.98 billion, a 1.7% increase from the same period in 2022. The company's net income from continuing operations was $86 million, compared to $92 million in Q3 2022.
Financial Highlights
The company's North American Less-Than-Truckload Segment reported revenue of $1,228 million and an operating income of $161 million. The European Transportation Segment reported revenue of $752 million and an operating income of $8 million. The company's total operating income for Q3 2023 was $154 million, a 10.8% increase from Q3 2022.
Adjusted EBITDA for Q3 2023 was $278 million, a 6.1% increase from the same period in 2022. The company also reported adjusted diluted earnings from continuing operations per share of $0.88.
CEO Commentary
Mario Harik, chief executive officer of XPO, said, “Our third quarter results exceeded expectations, with solid growth in revenue and profitability, and strong forward momentum. We delivered year-over-year revenue growth of 2%, and adjusted EBITDA growth of 6%, with 50 basis points of adjusted EBITDA margin expansion.
Financial Position
The company generated $236 million of cash flow from operating activities in the third quarter and ended the quarter with $355 million of cash and cash equivalents on hand, after $133 million of net capital expenditures.
Outlook
Despite the challenges in the industry, XPO Inc (XPO, Financial) continues to make significant progress in improving its business operations and realizing its full potential. The company expects to further accelerate yield growth in the fourth quarter.
Explore the complete 8-K earnings release (here) from XPO Inc for further details.
