XPO reported stronger second-quarter 2026 results led by North American less-than-truckload, while European Transportation revenue grew but swung to an operating loss due primarily to restructuring.
XPO reported stronger second-quarter 2026 results, with diluted earnings per share rising to $1.36 from $0.89 a year earlier and adjusted diluted EPS climbing to $1.70 from $1.05. Revenue increased 13.2% to $2.355 billion, while operating income rose 36.9% to $271 million, net income increased 52.8% to $162 million, and adjusted EBITDA grew 27.6% to $434 million, or 25.0% excluding real estate gains. The company said the quarter was led by its North American less-than-truckload, or LTL, business. That segment posted revenue of $1.428 billion, up 15.2%, operating income of $285 million, up 43.2%, adjusted operating income of $287 million, up 36.0%, and adjusted EBITDA of $390 million, up 30.0%. Adjusted operating ratio improved by 300 basis points to a record 79.9%. Yield excluding fuel rose 4.4%, shipments per day increased 2.8%, and tonnage per day increased 1.0%. European Transportation revenue rose 10.2% to $927 million, but the segment posted an operating loss of $6 million versus operating income of $11 million a year earlier, due primarily to restructuring. Adjusted operating income increased to $21 million from $15 million, and adjusted EBITDA rose to $48 million from $44 million. XPO generated $308 million of cash flow from operating activities in the quarter and ended June with $298 million of cash and cash equivalents after $101 million of net capital expenditures, $70 million of common stock repurchases and $70 million of term loan repayments.