XPO Logistics
Xpo Ltl Truck Fron Overpass City Back Road Dsc04248 Copy 63e65ba125497

XPO earns big in Q4 LTL segment, reports final FY 2022 numbers

Feb. 10, 2023
The logistics company reported its less-than-truckload segment grew by almost $40 million year-over-year. The company did operate at a net loss in the fourth quarter due to expenses for developing its new brokerage arm, RXO.

XPO Logistics CEO Mario Harik said his team outpaced the industry during the fourth quarter by putting up less-than-truckload tonnage and shipment growth that helped the company grow adjusted net income to $113 million from $74 million in the same period of 2021.

XPO reported fourth-quarter revenue of $1.83 billion compared to $1.77 billion in the prior-year period, according to a press release. The company posted a net loss of $94 million during the period primarily because of $141 million in charges and other costs related to the spinoff of its brokerage business, which now trades as RXO. Its adjusted EBITDA margin rose to 14.3% from 10.8% a year earlier.

The company’s North American LTL segment generated revenue of $1.09 billion for the fourth quarter 2022, compared with $1.01 billion for the same period in 2021, and its operating income climbed 26% to $172 million. For the year, it topped $1 billion.

See also: XPO spinoff RXO begins public trading

“Yield came in at the low end of our outlook, reflecting a strategic change in channel mix that we believe will be a tailwind for both volume and yield as freight demand improves. In January, our tonnage was up year-over-year and trended better than typical seasonality,” Harik said in a statement. “We’re excited by the strong trajectory we’ve created, and the tangible ways we're strengthening our positioning. In LTL, our employee satisfaction was up sharply to the highest rating in more than a decade. In Europe, the business is continuing to perform above expectations. We’re confident that we’ll achieve our long-term LTL outlook and deliver superior shareholder value."

Full year 2022 financial results

For the full year 2022, the company reported total revenue of $7.7 billion, compared with $7.2 billion for 2021. Net income from continuing operations attributable to common shareholders was $184 million for 2022, compared with $96 million for 2021. Operating income was $377 million for 2022, compared with $312 million for 2021. Diluted earnings from continuing operations per share was $1.59 for 2022, compared with $0.83 for 2021.

Adjusted EBITDA for 2022 was $997 million, compared with $812 million for 2021. Adjusted net income from continuing operations attributable to common shareholders for the full year 2022 was $408 million, compared with $222 million for 2021. Adjusted EPS was $3.53 for 2022, compared with $1.94 for 2021.

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