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XPO Reports Fourth Quarter and Full Year 2024 Results

1. XPO's Q4 2024 diluted EPS increased to $0.63 from $0.49 in 2023. 2. Total adjusted EBITDA rose by 14.8%, driven by improved cost structure. 3. LTL segment revenue slightly declined by 2.6%, impacting tonnage metrics. 4. Net income grew 31% year-over-year, indicating robust earnings growth. 5. Company continues to leverage technology for efficiency improvements.

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Why Bullish?

The strong earnings growth contrasts positively with the revenue slight dip. Comparatively, past earnings beats have led to positive stock reactions.

How important is it?

Earnings reports typically hold significant weight on stock prices; the strong EPS growth is impactful.

Why Short Term?

Positive earnings may drive shorter-term investor sentiment, but revenue concerns linger.

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XPOGXORXO
GREENWICH, Conn., Feb. 06, 2025 (GLOBE NEWSWIRE) -- XPO (NYSE: XPO) today announced its financial results for the fourth quarter 2024. The company reported diluted earnings from continuing operations per share of $0.63, compared with $0.49 for the same period in 2023, and adjusted diluted earnings from continuing operations per share of $0.89, compared with $0.77 for the same period in 2023. For the full year 2024, the company reported diluted earnings from continuing operations per share of $3.23, compared with $1.62 for 2023, and adjusted diluted earnings from continuing operations per share of $3.83, compared with $2.92 for 2023. Fourth Quarter and Full Year 2024 Results                                   Three Months Ended December 31, Years Ended December 31,  Revenue Operating Income (Loss)(1) Revenue Operating Income (Loss)(1)(in millions) 2024  2023 Change % 2024  2023  Change %  2024  2023 Change %  2024   2023  Change %North American LTL Segment $1,156  $1,187 -2.6% $179  $149  20.1% $4,899 $4,671 4.9% $735  $542  35.6%European Transportation Segment  765   753 1.6%  (11)  (2) 450.0%  3,173  3,073 3.3%  -   15  -100.0%Corporate  -   - 0.0%  (19)  (28) -32.1%  -  - 0.0%  (76)  (119) -36.1%Total $1,921  $1,940 -1.0% $148  $119  24.4% $8,072 $7,744 4.2% $660  $438  50.7%                                   Adjusted Operating Income(2) Adjusted EBITDA(1)(2) Adjusted Operating Income(2) Adjusted EBITDA(1)(2)(in millions) 2024  2023 Change % 2024  2023  Change %  2024  2023 Change %  2024   2023  Change %North American LTL Segment $159  $160 -0.6% $280  $233  20.2% $746 $589 26.7% $1,115  $864  29.1%European Transportation Segment  (2)  5 NM  27   36  -25.0%  39  48 -18.8%  158   163  -3.1%Corporate  NA   NA NA  (4)  (5) -20.0%  NA  NA NA  (7)  (31) -77.4%Total $NA  $NA NA $303  $264  14.8% $NA $NA NA $1,266  $996  27.1%                                   Net Income(1)(3) Diluted EPS(1)(4) Net Income(1)(3) Diluted EPS(1)(4)(in millions, except for per-share data) 2024  2023 Change % 2024  2023  Change %  2024  2023 Change %  2024   2023  Change %Total $76  $58 31.0% $0.63  $0.49  28.6% $387 $192 101.6% $3.23  $1.62  99.4%                                   Diluted Weighted-Average Common Shares Outstanding           Diluted Weighted-Average Common Shares Outstanding               Adjusted Diluted EPS(1)(2)(4)    Adjusted Diluted EPS(1)(2)(4)(in millions, except for per-share data) 2024  2023   2024  2023  Change %  2024  2023    2024   2023  Change %Total  120   120   $0.89  $0.77  15.6%  120  118   $3.83  $2.92  31.2%                                 NM - Not meaningful; Amounts may not add due to rounding; NA - Not applicable(1) Includes gains from sales of real estate of $26 million ($34 million pre-tax) or $0.21 per diluted share in the fourth quarter of 2024.(2) See the “Non-GAAP Financial Measures” section of the press release(3) Net income from continuing operations(4) Diluted earnings from continuing operations per share ("diluted EPS")                                  Mario Harik, chief executive officer of XPO, said, “We’re pleased to report a strong fourth quarter that caps a year of above-market earnings growth. Companywide, we delivered full-year increases of 27% in adjusted EBITDA and 31% in adjusted diluted EPS, compared with the prior year. “Our North American LTL business outperformed full-year expectations, with adjusted operating income growth of 27% and adjusted operating ratio improvement of 260 basis points — all while integrating 25 new service centers into our network. Importantly, we delivered record service levels, driving a 7.8% increase in yield, excluding fuel, and a 6.8% increase in revenue per shipment. In addition, we continued to leverage our proprietary technology to improve labor productivity, and we reduced outsourced linehaul miles to the best level in our history. These efficiencies further improved our cost structure and service quality.” Harik continued, “We’ve entered 2025 with strong momentum, following landmark network investments that strengthen our competitive position in a freight market recovery and for the long-term. The intense execution you see in our results will continue to deliver years of margin expansion.” Fourth Quarter Highlights For the fourth quarter 2024, the company generated revenue of $1.92 billion, compared with $1.94 billion for the same period in 2023. The year-over-year decrease in revenue was due primarily to lower fuel surcharge revenue in the North American LTL segment. Operating income was $148 million for the fourth quarter, compared with $119 million for the same period in 2023. Net income from continuing operations was $76 million for the fourth quarter, compared with $58 million for the same period in 2023. Diluted earnings from continuing operations per share was $0.63 for the fourth quarter, compared with $0.49 for the same period in 2023. Adjusted net income from continuing operations, a non-GAAP financial measure, was $107 million for the fourth quarter, compared with $93 million for the same period in 2023. Adjusted diluted EPS, a non-GAAP financial measure, was $0.89 for the fourth quarter, compared with $0.77 for the same period in 2023. Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), a non-GAAP financial measure, was $303 million for the fourth quarter, including a $34 million real estate gain from a planned service center sale tied to a relocation, compared with $264 million for the same period in 2023. The company generated $189 million of cash flow from operating activities in the fourth quarter and ended the quarter with $246 million of cash and cash equivalents on hand, after $108 million of net capital expenditures. Results by Business Segment North American Less-Than-Truckload (LTL): The segment generated revenue of $1.16 billion for the fourth quarter 2024, compared with $1.19 billion for the same period in 2023. On a year-over-year basis, shipments per day decreased 4.4%, tonnage per day decreased 5.7%, and yield, excluding fuel, increased 6.3%. Including fuel, yield increased 1.7%.Operating income was $179 million for the fourth quarter 2024, compared with $149 million for the same period in 2023. Adjusted operating income, a non-GAAP financial measure, was $159 million for the fourth quarter, compared with $160 million for the same period in 2023. Adjusted operating ratio, a non-GAAP financial measure, was 86.2%, reflecting a year-over-year improvement of 30 basis points.Adjusted EBITDA for the fourth quarter 2024 was $280 million, compared with $233 million for the same period in 2023. The 20% year-over-year increase in adjusted EBITDA was due primarily to a gain on sale of real estate, as well as higher yield, excluding fuel, and lower purchased transportation costs, partially offset by lower fuel surcharge revenue and a decrease in tonnage per day. European Transportation: The segment generated revenue of $765 million for the fourth quarter 2024, compared with $753 million for the same period in 2023, primarily driven by pricing growth. Operating income was a loss of $11 million for the fourth quarter 2024, compared with a loss of $2 million for the same period in 2023.Adjusted EBITDA was $27 million for the fourth quarter 2024, compared with $36 million for the same period in 2023. Corporate: The segment generated an operating loss of $19 million for the fourth quarter 2024, compared with a loss of $28 million for the same period in 2023. The fourth quarter 2023 loss included an $8 million litigation matter.Adjusted EBITDA was a loss of $4 million for the fourth quarter 2024, compared with a loss of $5 million for the same period in 2023. Conference Call The company will hold a conference call on Thursday, February 6, 2025, at 8:30 a.m. Eastern Time. Participants can call toll-free (from US/Canada) 1-877-269-7756; international callers dial +1-201-689-7817. A live webcast of the conference will be available on the investor relations area of the company’s website, xpo.com/investors. The conference will be archived until March 8, 2025. To access the replay by phone, call toll-free (from US/Canada) 1-877-660-6853; international callers dial +1-201-612-7415. Use participant passcode 13750889. About XPO XPO, Inc. (NYSE: XPO) is a leader in asset-based less-than-truckload (LTL) freight transportation in North America. The company’s customer-focused organization efficiently moves 18 billion pounds of freight per year, enabled by its proprietary technology. XPO serves approximately 55,000 customers with 614 locations and 38,000 employees in North America and Europe, and is headquartered in Greenwich, Conn., USA. Visit xpo.com for more information, and connect with XPO on LinkedIn, Facebook, X, Instagram and YouTube. Non-GAAP Financial Measures As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this press release. XPO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) on a consolidated basis and for corporate; adjusted EBITDA margin on a consolidated basis; adjusted EBITDA, excluding gains on real estate transactions on a consolidated basis and for our North American Less-Than-Truckload segment; adjusted net income from continuing operations; adjusted diluted earnings from continuing operations per share (“adjusted diluted EPS”); adjusted operating income for our North American Less-Than-Truckload and European Transportation segments; and adjusted operating ratio for our North American Less-Than-Truckload segment. We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, XPO and its business segments’ core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should only be used as supplemental measures of our operating performance. Adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA, excluding gains on real estate transactions, adjusted net income from continuing operations, adjusted diluted EPS, adjusted operating income and adjusted operating ratio include adjustments for transaction and integration costs, as well as restructuring costs and other adjustments as set forth in the attached tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition, divestiture or spin-off and may include transaction costs, consulting fees, stock-based compensation, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems. Restructuring costs primarily relate to severance costs associated with business optimization initiatives. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating XPO’s and each business segment’s ongoing performance. We believe that adjusted EBITDA and adjusted EBITDA margin and adjusted EBITDA, excluding gains on real estate transactions, improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization), tax impacts and other adjustments as set out in the attached tables that management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses. We believe that adjusted net income from continuing operations and adjusted diluted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains that management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets, transaction and integration costs, restructuring costs and other adjustments as set out in the attached tables. We believe that adjusted operating income and adjusted operating ratio improve the comparability of our operating results from period to period by removing the impact of certain transaction and integration costs and restructuring costs, as well as amortization expenses as set out in the attached tables. Forward-looking Statements This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. These forward-looking statements are based on certain assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include the risks discussed in our filings with the SEC, and the following: the effects of business, economic, political, legal, and regulatory impacts or conflicts upon our operations; supply chain disruptions and shortages, strains on production or extraction of raw materials, cost inflation and labor and equipment shortages; our ability to align our investments in capital assets, including equipment, service centers, and warehouses to our customers’ demands; our ability to implement our cost and revenue initiatives; the effectiveness of our action plan, and other management actions, to improve our North American LTL business; our ability to continue insourcing linehaul in ways that enhance our network efficiency and service; the anticipated impact of a freight market recovery on our business; our ability to benefit from a sale, spin-off or other divestiture of one or more business units or to successfully integrate and realize anticipated synergies, cost savings and profit opportunities from acquired companies; goodwill impairment; issues related to compliance with data protection laws, competition laws, and intellectual property laws; fluctuations in currency exchange rates, fuel prices and fuel surcharges; the expected benefits of the spin-offs of GXO Logistics, Inc. and RXO, Inc.; our ability to develop and implement suitable information technology systems; the impact of potential cyber-attacks and information technology or data security breaches or failures; our indebtedness; our ability to raise debt and equity capital; fluctuations in interest rates; seasonal fluctuations; our ability to maintain positive relationships with our network of third-party transportation providers; our ability to attract and retain management talent and key employees including qualified drivers; labor matters; litigation; and competition and pricing pressures.   All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements except to the extent required by law. Investor ContactBrian Scasserra+1 617-607-6429brian.scasserra@xpo.com Media ContactCole Horton+1 203-609-6004cole.horton@xpo.com XPO, Inc.Consolidated Statements of Income(Unaudited)(In millions, except per share data)                 Three Months Ended Years Ended December 31, December 31, 2024 2023 Change % 2024 2023 Change %                Revenue$1,921  $1,940  -1.0% $8,072  $7,744  4.2%Salaries, wages and employee benefits 837   805  4.0%  3,377   3,159  6.9%Purchased transportation 398   422  -5.7%  1,701   1,760  -3.4%Fuel, operating expenses and supplies 376   400  -6.0%  1,589   1,623  -2.1%Operating taxes and licenses 19   15  26.7%  80   60  33.3%Insurance and claims 29   38  -23.7%  134   167  -19.8%Gains on sales of property and equipment (35)  (1) NM   (40)  (5) NM Depreciation and amortization expense 124   114  8.8%  490   432  13.4%Litigation matter(1) -   8  -100.0%  -   8  -100.0%Transaction and integration costs 14   11  27.3%  53   58  -8.6%Restructuring costs 10   9  11.1%  27   44  -38.6%Operating income 148   119  24.4%  660   438  50.7%Other income (6)  (3) 100.0%  (37)  (15) 146.7%Debt extinguishment loss -   2  -100.0%  -   25  -100.0%Interest expense 53   42  26.2%  223   168  32.7%Income from continuing operations before income tax provision 102   78  30.8%  473   260  81.9%Income tax provision 26   20  30.0%  86   68  26.5%Income from continuing operations 76   58  31.0%  387   192  101.6%Loss from discontinued operations, net of taxes -   -  0.0%  -  -(3) -100.0%Net income$76  $58  31.0% $387  $189  104.8%                Net income (loss)               Continuing operations$76  $58    $387  $192   Discontinued operations -   -     -   (3)  Net income$76  $58    $387  $189                   Basic earnings (loss) per share(2)               Continuing operations$0.65  $0.50    $3.33  $1.66   Discontinued operations -   -     -   (0.02)  Basic earnings per share$0.65  $0.50    $3.33  $1.64   Diluted earnings (loss) per share(2)               Continuing operations$0.63  $0.49    $3.23  $1.62   Discontinued operations -   -     -   (0.02)  Diluted earnings per share$0.63  $0.49    $3.23  $1.60                   Weighted-average common shares outstanding               Basic weighted-average common shares outstanding 116   116     116   116   Diluted weighted-average common shares outstanding 120   120     120   118                   Amounts may not add due to rounding.NM - Not meaningful.(1) Relates to California Environmental Matters as described in Note 18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.(2) The sum of quarterly earnings (loss) per share may not equal year-to-date amounts due to differences in the weighted-average number of shares outstanding during the respective periods.                 XPO, Inc.Consolidated Balance Sheets(Unaudited)(In millions, except per share data)       December 31, December 31, 2024 2023ASSETS     Current assets     Cash and cash equivalents$246  $412 Accounts receivable, net of allowances of $50 and $45, respectively 977   973 Other current assets 283   208 Total current assets 1,505   1,593 Long-term assets     Property and equipment, net of $2,019 and $1,853 in accumulated depreciation, respectively3,402   3,075 Operating lease assets 727   708 Goodwill 1,461   1,498 Identifiable intangible assets, net of $499 and $452 in accumulated amortization, respectively361   422 Other long-term assets 254   196 Total long-term assets 6,206   5,899 Total assets$7,712  $7,492             LIABILITIES AND STOCKHOLDERS’ EQUITY     Current liabilities     Accounts payable$477  $532 Accrued expenses 708   775 Short-term borrowings and current maturities of long-term debt 62   69 Short-term operating lease liabilities 127   121 Other current liabilities 46   93 Total current liabilities 1,420   1,590 Long-term liabilities     Long-term debt 3,325   3,335 Deferred tax liability 393   337 Employee benefit obligations 85   91 Long-term operating lease liabilities 603   588 Other long-term liabilities 283   285 Total long-term liabilities 4,690   4,636       Stockholders’ equity     Common stock, $0.001 par value; 300 shares authorized; 117 and 116 shares issued and outstanding     as of December 31, 2024 and December 31, 2023, respectively -   - Additional paid-in capital 1,274   1,298 Retained earnings 572   185 Accumulated other comprehensive loss (246)  (217)Total equity 1,601   1,266 Total liabilities and equity$7,712  $7,492       Amounts may not add due to rounding.       XPO, Inc.Consolidated Statements of Cash Flows(Unaudited)(In millions)         Years Ended  December 31,  2024 2023Cash flows from operating activities of continuing operations     Net income$387  $189 Loss from discontinued operations, net of taxes -   (3)Income from continuing operations 387   192 Adjustments to reconcile income from continuing operations to net cash from operating activities      Depreciation and amortization 490   432  Stock compensation expense 87   78  Accretion of debt 11   11  Deferred tax expense 57   31  Gains on sales of property and equipment (40)  (5) Other 11   54 Changes in assets and liabilities      Accounts receivable (47)  (46) Other assets (106)  (9) Accounts payable (8)  (48) Accrued expenses and other liabilities (33)  4 Net cash provided by operating activities from continuing operations 808   694 Cash flows from investing activities of continuing operations      Payment for purchases of property and equipment (789)  (1,533) Proceeds from sale of property and equipment 75   29  Proceeds from settlement of cross currency swaps -   2  Proceeds from sale of investment 12   - Net cash used in investing activities from continuing operations (702)  (1,502)Cash flows from financing activities of continuing operations      Proceeds from issuance of debt -   2,962  Repurchase of debt -   (2,117) Repayment of debt and finance leases (82)  (71) Payment for debt issuance costs (4)  (27) Change in bank overdrafts (9)  34  Payment for tax withholdings for restricted shares (129)  (19) Other (1)  (1)Net cash used in financing activities from continuing operations (226)  761 Cash flows from discontinued operations      Operating activities of discontinued operations -   (12) Investing activities of discontinued operations -   3 Net cash used in discontinued operations -   (9)Effect of exchange rates on cash, cash equivalents and restricted cash -   5 Net decrease in cash, cash equivalents and restricted cash (120)  (51)Cash, cash equivalents and restricted cash, beginning of period 419   470 Cash, cash equivalents and restricted cash, end of period$298  $419        Amounts may not add due to rounding.        North American Less-Than-Truckload SegmentSummary Financial Table(Unaudited)(In millions)                 Three Months Ended December 31, Years Ended December 31, 2024 2023 Change % 2024 2023 Change %                Revenue (excluding fuel surcharge revenue)$985  $966  2.0% $4,115  $3,814  7.9%Fuel surcharge revenue 171   221  -22.6%  785   857  -8.4%Revenue 1,156   1,187  -2.6%  4,899   4,671  4.9%Salaries, wages and employee benefits 621   602  3.2%  2,515   2,346  7.2%Purchased transportation 44   83  -47.0%  248   366  -32.2%Fuel, operating expenses and supplies(1) 218   238  -8.4%  928   956  -2.9%Operating taxes and licenses 16   13  23.1%  65   48  35.4%Insurance and claims 18   21  -14.3%  80   102  -21.6%(Gains) losses on sales of property and equipment (34)  2  NM   (27)  8  NM Depreciation and amortization 89   77  15.6%  346   291  18.9%Transaction and integration costs -   -  0.0%  1   -  NM Restructuring costs 5   2  150.0%  7   12  -41.7%Operating income 179   149  20.1%  735   542  35.6%Operating ratio(2) 84.5%   87.4%     85.0%   88.4%   Other income -   1     -   1   Amortization expense 9   8     36   34   Transaction and integration costs -   -     1   -   Restructuring costs 5   2     7   12   Gains on real estate transactions (34)  -     (34)  -   Adjusted operating income(3)$159  $160  -0.6% $746  $589  26.7%Adjusted operating ratio (3) (4) 86.2%   86.5%     84.8%   87.4%   Depreciation expense 80   69     310   257   Pension income 6   4     25   17   Gains on real estate transactions 34   -     34   -   Other -   -     -   1   Adjusted EBITDA(5)$280  $233  20.2% $1,115  $864  29.1%Adjusted EBITDA margin(5) 24.2%   19.6%     22.8%   18.5%   Gains on real estate transactions 34   -     34   -   Adjusted EBITDA, excluding gains on real estate transactions(3)$246  $233  5.6% $1,081  $864  25.1%                Amounts may not add due to rounding.NM - Not meaningful.(1) Fuel, operating expenses and supplies includes fuel-related taxes.(2) Operating ratio is calculated as (1 - (Operating income divided by Revenue)) using the underlying unrounded amounts.(3) See the “Non-GAAP Financial Measures” section of the press release.(4) Adjusted operating ratio is calculated as (1 - (Adjusted operating income divided by Revenue)) using the underlying unrounded amounts; adjusted operating margin is the inverse of adjusted operating ratio.(5) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.                 North American Less-Than-TruckloadSummary Data Table(Unaudited)                 Three Months Ended December 31, Years Ended December 31, 2024 2023 Change % 2024 2023 Change %                Pounds per day (thousands) 65,433  69,357 -5.7%  69,606  70,196 -0.8%                Shipments per day 49,109  51,382 -4.4%  51,508  51,322 0.4%                Average weight per shipment (in pounds) 1,332  1,350 -1.3%  1,351  1,368 -1.2%                Revenue per shipment (including fuel surcharges)$382.32 $378.49 1.0% $376.37 $362.38 3.9%                Revenue per shipment (excluding fuel surcharges)$325.62 $307.83 5.8% $316.05 $295.82 6.8%                Gross revenue per hundredweight (including fuel surcharges)(1)$29.09 $28.60 1.7% $28.40 $27.07 4.9%                Gross revenue per hundredweight (excluding fuel surcharges)(1)$24.84 $23.37 6.3% $23.94 $22.21 7.8%                Average length of haul (in miles) 854.7  852.6    851.5  842.6                  Total average load factor(2) 22,128  22,564 -1.9%  22,642  22,789 -0.6%                Average age of tractor fleet (years) 4.1  5.0                          Number of working days 61.5  61.0    252.5  251.0                                  (1)Gross revenue per hundredweight excludes the adjustment required for financial statement purposes in accordance with the company's revenue recognition policy.(2)Total average load factor equals freight pound miles divided by total linehaul miles.Note: Table excludes the company's trailer manufacturing operations. Percentages presented are calculated using the underlying unrounded amounts.                 European Transportation SegmentSummary Financial Table(Unaudited)(In millions)                 Three Months Ended December 31, Years Ended December 31, 2024  2023  Change % 2024  2023  Change %                Revenue$765  $753  1.6% $3,173  $3,073  3.3%Salaries, wages and employee benefits 212   200  6.0%  846   795  6.4%Purchased transportation 354   339  4.4%  1,454   1,394  4.3%Fuel, operating expenses and supplies(1) 158   162  -2.5%  661   661  0.0%Operating taxes and licenses 4   2  100.0%  15   12  25.0%Insurance and claims 12   16  -25.0%  51   59  -13.6%Gains on sales of property and equipment (2)  (3) -33.3%  (14)  (13) 7.7%Depreciation and amortization 34   36  -5.6%  140   136  2.9%Transaction and integration costs -   -  0.0%  2   2  0.0%Restructuring costs 4   3  33.3%  17   12  41.7%Operating income (loss)$(11) $(2) 450.0% $-  $15  -100.0%Other expense -   (1)    (1)  (2)  Amortization expense 5   5     21   21   Transaction and integration costs -   -     2   2   Restructuring costs 4   3     17   12   Adjusted operating income (loss)(2)$(2) $5  NM $39  $48  -18.8%Depreciation expense 29   31     119   115   Pension expense -   -     (1)  -   Adjusted EBITDA(3)$27  $36  -25.0% $158  $163  -3.1%Adjusted EBITDA margin(3) 3.5%   4.7%     5.0%   5.3%                   Amounts may not add due to rounding.NM - Not meaningful.(1) Fuel, operating expenses and supplies includes fuel-related taxes.(2) See the “Non-GAAP Financial Measures” section of the press release.(3) Adjusted EBITDA is used by our chief operating decision maker to evaluate segment profit (loss) in accordance with ASC 280. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.                 CorporateSummary Financial Table(Unaudited)(In millions)                 Three Months Ended December 31, Years Ended December 31, 2024  2023  Change % 2024  2023  Change %                Revenue$-  $-  0.0% $-  $-  0.0%                Salaries, wages and employee benefits 3   3  0.0%  16   18  -11.1%Fuel, operating expenses and supplies -   -  0.0%  -   6  -100.0%Operating taxes and licenses -   -  0.0%  -   -  0.0%Insurance and claims -   1  -100.0%  3   6  -50.0%Depreciation and amortization 1   1  0.0%  4   5  -20.0%Litigation matter (1) -   8  -100.0%  -   8  -100.0%Transaction and integration costs 14   11  27.3%  50   56  -10.7%Restructuring costs 1   4  -75.0%  3   20  -85.0%Operating loss$(19) $(28) -32.1% $(76) $(119) -36.1%Other income (expense) (2) -   (1)    12   (1)  Depreciation and amortization 1   1     4   5   Litigation matter (1) -   8     -   8   Transaction and integration costs 14   11     50   56   Restructuring costs 1   4     3   20   Adjusted EBITDA (3)$(4) $(5) -20.0% $(7) $(31) -77.4%                Amounts may not add due to rounding.(1) Relates to California Environmental Matters as described in Note 18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.(2) Other income (expense) consists of foreign currency gain (loss) and other income (expense), which is primarily comprised of investment income in 2024.(3) See the “Non-GAAP Financial Measures” section of the press release.                 XPO, Inc.Reconciliation of Non-GAAP Measures(Unaudited)(In millions)                 Three Months Ended December 31, Years Ended December 31, 2024 2023 Change % 2024 2023 Change %                Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA               Net income from continuing operations$76  $58  31.0% $387  $192  101.6%Debt extinguishment loss -   2     -   25   Interest expense 53   42     223   168   Income tax provision 26   20     86   68   Depreciation and amortization expense 124   114     490   432   Litigation matter(1) -   8     -   8   Transaction and integration costs 14   11     53   58   Restructuring costs 10   9     27   44   Other -   -     -   1   Adjusted EBITDA(2)$303  $264  14.8% $1,266  $996  27.1%Revenue$1,921  $1,940  -1.0% $8,072  $7,744  4.2%Adjusted EBITDA margin(2) (3) 15.8%   13.6%     15.7%   12.9%   Gains on real estate transactions 34   -     34   -   Adjusted EBITDA, excluding gains on real estate transactions(2)$269  $264  1.9% $1,232  $996  23.7%                Amounts may not add due to rounding.(1) Relates to California Environmental Matters as described in Note 18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.(2) See the “Non-GAAP Financial Measures” section of the press release.(3) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Revenue using the underlying unrounded amounts.                 XPO, Inc.Reconciliation of Non-GAAP Measures (cont.)(Unaudited)(In millions, except per share data)               Three Months Ended Years Ended  December 31, December 31,  2024 2023 2024 2023             Reconciliation of Net Income from Continuing Operations and Diluted Earnings Per Share from Continuing Operations to Adjusted Net Income from Continuing Operations and Adjusted Earnings Per Share from Continuing Operations           Net income from continuing operations(1)$76  $58  $387  $192  Debt extinguishment loss -   2   -   25  Amortization of acquisition-related intangible assets 14   13   57   55  Litigation matter(2) -   8   -   8  Transaction and integration costs 14   11   53   58  Restructuring costs 10   9   27   44  Income tax associated with the adjustments above(3) (6)  (8)  (24)  (36) European legal entity reorganization(4) (1)  -   (41)  -              Adjusted net income from continuing operations(1)(5)$107  $93  $460  $346              Adjusted diluted earnings from continuing operations per share(1)(5)$0.89  $0.77  $3.83  $2.92              Weighted-average common shares outstanding            Diluted weighted-average common shares outstanding 120   120   120   118              Amounts may not add due to rounding.             (1) Includes gains from sales of real estate of $26 million ($34 million pre-tax) or $0.21 per diluted share in the fourth quarter of 2024.(2) Relates to California Environmental Matters as described in Note 18 to the Company's Annual Report on Form 10-K for the year ended December 31, 2024.             (3) This line item reflects the aggregate tax benefit of all non-tax related adjustments reflected in the table above. The detail by line item is as follows: Debt extinguishment loss$-  $-  $-  $5  Amortization of acquisition-related intangible assets 3   3   13   13  Litigation matter -   2   -   2  Transaction and integration costs 1   1   5   6  Restructuring costs 2   2   6   10   $6  $8  $24  $36              Amounts may not add due to rounding.The income tax rate applied to reconciling items is based on the GAAP annual effective tax rate, excluding discrete items, non-deductible compensation, and contribution- and margin-based taxes.             (4) Reflects a tax benefit recognized in the second quarter of 2024 and the subsequent adjustments recognized during the second half of 2024 related to a legal entity reorganization within our European Transportation business.(5) See the "Non-GAAP Financial Measures" section of the press release.             

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