XPO (XPO) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 12:33 PM CDT 52 min read

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Date

Thursday, April 30, 2026 astatine 8:30 a.m. ET

Call participants

• Chairman and Chief Executive Officer — Mario Harik

• Chief Financial Officer — Kyle Wismans

• Chief Strategy Officer — Ali-Ahmad Faghri

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Full Conference Call Transcript

Mario Harik: Good morning, everyone, and convey you for joining us. I'm present with Kyle Wismans, our Chief Financial Officer; and Ali Faghri, our Chief Strategy Officer. This morning, we reported grounds archetypal 4th net with beardown momentum crossed the business. Company-wide, we delivered adjusted EBITDA of $319 million, up 15% year-over-year, and our adjusted diluted EPS was $1.01, up 38%. In North American LTL, we accrued adjusted operating income by 20%, and we delivered an adjusted operating ratio of 83.9%, that's an betterment of 200 ground points year-over-year, which is besides good up of mean seasonality. These results people a wide acceleration of outperformance driven by the disciplined execution of our strategy.

It starts with lawsuit work wherever we proceed to marque important progress. In the archetypal quarter, we reduced our harm claims ratio beneath 0.2% with damages astatine a grounds low. This is the work metric that matters astir LTL customers. We've developed caller AI-driven exertion that addresses damages by improving however we load our trailers. These tools measure load prime successful existent clip and helps america support our customers' freight. We're besides moving 1 of the fastest networks successful the manufacture with the largest fig of modular 1-day and 2-day. Our premix of speed, sum and harmless handling combined with reliable on-time show is delivering a superior acquisition for our customers.

And this is translating into amended commercialized outcomes, including stronger pricing and ongoing marketplace stock gains. We've besides built our web to enactment maturation by investing up of request crossed our workforce, fleet and work centers. These are the 3 main components of capableness to determination freight for our customers. On the existent property side, we've added density successful maturation markets, and we proceed to run with much than 30% excess store capacity. This allows america to tally our web ratio contiguous and respond rapidly arsenic volumes recover. Another country wherever we put to summation a competitory borderline is successful our rolling banal of tractors and trailers.

We person 1 of the youngest fleets successful the manufacture with an mean tractor property of 3.9 years. This gives america an vantage with reliability, information and little attraction costs. Trailers are conscionable arsenic captious to capableness due to the fact that they alteration much businesslike freight flows crossed our network. We've manufactured much than 20,000 trailers since the commencement of the commercialized down cycle. And from a labour standpoint, we person a proprietary workforce readying exemplary that uses exertion to flexed labour hours arsenic request changes. This allows america to amended productivity portion maintaining precocious work levels. Taken together, our investments successful capableness are creating beardown operating leverage that volition heighten our bottommost enactment arsenic the rhythm turns.