# XPO, Inc. (XPO)

Informational only - not investment advice.

CIK: 0001166003
SIC: 4700 Transportation Services
SIC breadcrumb: [Transportation, Communications, Electric, Gas, And Sanitary Services](/division/E/) > [SIC Major Group 47](/major-group/47/) > [SIC 4700 Transportation Services](/industry/4700/)
Latest 10-K filed: 2026-02-05
SEC page: https://www.sec.gov/edgar/browse/?CIK=1166003
Filing source: https://www.sec.gov/Archives/edgar/data/1166003/000116600326000016/xpo-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-05 · accession 0001166003-26-000016 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001166003.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 8,157,000,000 USD | 2025 | verified |
| Net income | 316,000,000 USD | 2025 | verified |
| Assets | 8,194,000,000 USD | 2025 | verified |
| Free cash flow | 329,000,000 USD | 2025 | computed |
| Net margin | 3.87% | 2025 | computed |
| Operating margin | 8.04% | 2025 | computed |
| Revenue YoY | +1.05% | 2025 | computed |
| ROE | 16.98% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | XPO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 3.9% | 4.1% | 38 | 9 |
| Operating margin | 8.0% | 7.0% | 57 | 8 |
| Revenue growth | 1.1% | 12.2% | 0 | 9 |
| FCF margin | 4.0% | 6.2% | 43 | 8 |
| ROE | 17.0% | 9.5% | 71 | 8 |
| ROA | 3.9% | 2.1% | 67 | 10 |
| Liabilities / equity | 3.40 | 3.26 | 57 | 8 |
| Current ratio | 1.05 | 1.12 | 38 | 9 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 4700 Transportation Services, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 8157000000 | USD | 2025 | 2026-02-05 |
| Net income | 316000000 | USD | 2025 | 2026-02-05 |
| Assets | 8194000000 | USD | 2025 | 2026-02-05 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001166003.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 14,619,000,000 | 15,381,000,000 | 17,279,000,000 | 10,681,000,000 | 6,168,000,000 | 7,202,000,000 | 7,718,000,000 | 7,744,000,000 | 8,072,000,000 | 8,157,000,000 |
| Net income | 69,000,000 | 340,000,000 | 422,000,000 | 419,000,000 | 110,000,000 | 336,000,000 | 666,000,000 | 189,000,000 | 387,000,000 | 316,000,000 |
| Operating income | 464,000,000 | 582,000,000 | 704,000,000 | 561,000,000 | 97,000,000 | 312,000,000 | 377,000,000 | 438,000,000 | 660,000,000 | 656,000,000 |
| Diluted EPS | 0.53 | 2.45 | 2.88 | 3.57 | 0.87 | 2.93 | 5.76 | 1.60 | 3.23 | 2.64 |
| Operating cash flow |  |  |  |  | 296,000,000 | 490,000,000 | 824,000,000 | 694,000,000 | 808,000,000 | 986,000,000 |
| Capital expenditures | 483,000,000 | 504,000,000 | 551,000,000 | 379,000,000 | 249,000,000 | 269,000,000 | 521,000,000 | 1,533,000,000 | 789,000,000 | 657,000,000 |
| Share buybacks | 0.00 | 0.00 | 536,000,000 | 1,347,000,000 | 114,000,000 |  |  | 0.00 | 0.00 | 125,000,000 |
| Assets | 11,698,400,000 | 12,602,000,000 | 12,270,000,000 | 14,128,000,000 | 16,177,000,000 | 8,717,000,000 | 6,269,000,000 | 7,492,000,000 | 7,712,000,000 | 8,194,000,000 |
| Stockholders' equity | 2,700,000,000 | 3,604,000,000 | 3,575,000,000 | 2,743,000,000 | 2,849,000,000 | 1,138,000,000 | 1,012,000,000 | 1,266,000,000 | 1,601,000,000 | 1,861,000,000 |
| Cash and cash equivalents | 373,400,000 | 397,000,000 | 502,000,000 | 377,000,000 | 1,731,000,000 | 228,000,000 | 460,000,000 | 412,000,000 | 246,000,000 | 310,000,000 |
| Free cash flow |  |  |  |  | 47,000,000 | 221,000,000 | 303,000,000 | -839,000,000 | 19,000,000 | 329,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 0.47% | 2.21% | 2.44% | 3.92% | 1.78% | 4.67% | 8.63% | 2.44% | 4.79% | 3.87% |
| Operating margin | 3.17% | 3.78% | 4.07% | 5.25% | 1.57% | 4.33% | 4.88% | 5.66% | 8.18% | 8.04% |
| Return on equity | 2.56% | 9.43% | 11.80% | 15.28% | 3.86% | 29.53% | 65.81% | 14.93% | 24.17% | 16.98% |
| Return on assets | 0.59% | 2.70% | 3.44% | 2.97% | 0.68% | 3.85% | 10.62% | 2.52% | 5.02% | 3.86% |
| Liabilities / equity | 3.33 | 2.50 | 2.43 | 4.15 | 4.68 | 6.66 | 5.19 | 4.92 | 3.82 | 3.40 |
| Current ratio | 1.13 | 1.20 | 1.11 | 1.03 | 1.04 | 1.05 | 1.08 | 1.00 | 1.06 | 1.05 |

## As-reported value updates

14 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/XPO/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001166003.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.13 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 0.13 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 0.28 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 1,980,000,000 | 84,000,000 | 0.71 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 1,940,000,000 | 58,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 2,018,000,000 | 67,000,000 | 0.56 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 2,079,000,000 | 150,000,000 | 1.25 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 2,053,000,000 | 95,000,000 | 0.79 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 1,922,000,000 | 75,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 1,954,000,000 | 69,000,000 | 0.58 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 2,080,000,000 | 106,000,000 | 0.89 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 2,111,000,000 | 82,000,000 | 0.68 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 2,011,000,000 | 59,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 2,096,000,000 | 101,000,000 | 0.85 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 2,355,000,000 | 162,000,000 | 1.36 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from XPO's latest 10-K: [/company/XPO/business/](/company/XPO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from XPO's latest 10-K: [/company/XPO/risk-factors/](/company/XPO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1166003/000116600326000074/xpo-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q and other written reports and oral statements we make from time to time contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 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. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual future results, levels of activity, performance or achievements to be materially different from our expected 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 those discussed below and the risks discussed in the Company’s other filings with the Securities and Exchange Commission (the “SEC”). All forward-looking statements set forth in this Quarterly Report on Form 10-Q are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected consequence to or effects on the Company or its business or operations. The following discussion should be read in conjunction with the Company’s unaudited Condensed Consolidated Financial Statements and related notes thereto included elsewhere in this Quarterly Report on Form 10-Q, and with the audited consolidated financial statements and related notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”). Forward-looking statements set forth in this Quarterly Report on Form 10-Q speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

Executive Summary

XPO, Inc., together with its subsidiaries (“XPO,” “we” or the “Company”), is a leading provider of freight transportation services, with company-specific avenues for value creation. We use our proprietary technology to move goods efficiently through our customers’ supply chains in North America and Europe. As of June 30, 2026, we had approximately 38,000 employees serving approximately 55,000 customers through 586 owned and leased locations in 17 countries.

Our company has two reportable segments: North American Less-Than-Truckload (“LTL”), the largest component of our business, and European Transportation. Our North American LTL segment includes the results of our trailer manufacturing operation.

Within the tables presented, certain amounts may not add due to the use of rounded numbers. Unless otherwise indicated, percentages presented are calculated from the underlying numbers in millions.

North American LTL Segment

LTL in North America is a bedrock industry providing a critical service to the economy, with secular growth drivers, a favorable pricing environment and an established competitive landscape. XPO operates one of the largest LTL networks in North America, with approximately 9% share of the U.S. market, estimated to be $52 billion in 2025.

20

Table of Contents

Our network serves approximately 38,000 shippers with critical geographic density and day-definite domestic services to approximately 99% of U.S. ZIP codes, as well as cross-border services to Mexico, Canada and the Caribbean. We operate the business to high service standards for on-time delivery and damage-free transport, while balancing our network to leverage our fixed costs. In 2025, we developed new linehaul models that use artificial intelligence (AI) to improve the efficiency of our freight flows, piloted routing innovations for pickup-and-delivery operations and continued to improve productivity with real-time labor analytics at the service center level. Our proprietary developments in intelligent automation and AI-enabled decision-making are directly enhancing profitability.

Our LTL business historically has generated a high return on invested capital and robust free cash flow, funding our ongoing investments in people, capacity and technology. For example, since implementing our growth plan in the fourth quarter of 2021, we have added more than 2,000 net new doors to our network, expanding our presence in high-growth markets while improving our operating ratio.

We have created a strategic growth opportunity by building more than 30% excess door capacity into our network. Additionally, we invest in advancing a host of XPO-specific initiatives that are largely independent of the macroeconomic environment. Our trailer manufacturing facility and commercial truck driver schools are self-reliant competitive advantages for our company, particularly when industry conditions make it difficult to source equipment or drivers.

This positions us to capture profitable market share gains and drive higher incremental margins as market conditions improve. LTL industry capacity is currently constrained below pre-pandemic levels in North America, and we believe that our combination of capacity and technology puts us in a unique position to respond quickly to rebounds in demand as the freight recession eases.

We expect our proprietary, AI-driven capabilities to become increasingly essential to how we operate, compete and create value in all these areas. For more information, see “Technology” below.

European Transportation Segment

XPO has a unique pan-European transportation platform with leading positions in key geographies and deep expertise in consumer, trade and industrial markets. We are the #1 full truckload broker and the #1 pallet network (LTL) provider in France; the #1 full truckload broker and the #1 LTL provider in Iberia (Spain and Portugal); and, in the U.K., we are a market leader in warehousing, a top-tier dedicated truckload provider and have the largest single-owner LTL network. Our extensive customer base includes many sector leaders that have long-tenured relationships with us.

Our full range of freight services in Europe encompasses dedicated truckload, LTL, full truckload brokerage, warehousing, managed transportation, last mile delivery, freight forwarding and, increasingly, multimodal solutions designed for specific customer needs. We use our proprietary technology to manage these services efficiently within our digital ecosystem in Europe.

The previously announced authorization by our Board of Directors to divest the European business remains in effect. There can be no assurance that the divestiture will occur, or of the terms or timing of a transaction.

Technology

One of the ways in which we deliver superior service to our customers is by empowering our employees with technology. Our industry is evolving, and customers want to de-risk their supply chains by forming relationships with reliable service providers that have invested in innovation.

We have built a highly scalable ecosystem on the cloud that deploys our software consistently across our operating footprint. In our North American LTL business, the caliber of our technology is mission-critical to our success; it optimizes pricing, linehaul, pickup-and-delivery and dock operations — the main components of the service we provide. We have been investing in proprietary AI technology and are implementing these initiatives across a number of high-impact applications where intelligent automation and better decision making are directly enhancing profitability. We see AI playing a major role in how we operate, price our services, compete, and create value over the long term.

21

Table of Contents

An LTL network of our scale has hundreds of thousands of activities underway at any given time, all managed on our technology. For the trailing 12 months ended June 30, 2026, we moved approximately 16 billion pounds of freight 784 million miles, including moving linehaul freight an average of 2.5 million miles a day.

With intelligent route-building, we can reduce empty miles in our linehaul network and improve load factor. Our proprietary optimization models analyze massive amounts of data including volume, capacity, and dimensions and generate instructions to maximize trailer utilization, reduce cost, and enhance service. We use our real-time visualization tools to drive efficiencies with pickups and deliveries and a robust pricing platform for contractual account management.

Consolidated Summary Financial Table

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1166003/000116600326000016/xpo-20251231.htm
Complete FY 2025 MD&A: /company/XPO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-02-05
Report date: 2025-12-31

ITEM 7.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

XPO is a leading provider of freight transportation services, with company-specific avenues for value creation. We use our proprietary technology to move goods efficiently through supply chains for approximately 55,000 customers in North America and Europe.

Our company has two reportable segments: North American Less-Than-Truckload (“LTL”), the largest component of our business; and European Transportation. Our North American LTL segment includes the results of our trailer manufacturing operation.

Within the tables presented, certain amounts may not add due to the use of rounded numbers. Unless otherwise indicated, percentages presented are calculated from the underlying numbers in millions.

Refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, for a discussion of our financial condition and results of operations for full year 2024, compared with full year 2023.

Impacts of Notable External Conditions

As a leading provider of freight transportation services, our business can be impacted to varying degrees by factors beyond our control. The overall freight environment continues to be recessionary, due to a mix of macroeconomic pressures on supply and demand. Importantly, we see significant growth potential ahead in our major markets, and we intend to continue expanding our business by investing in capacity for the long-term, gaining profitable market share and aligning price with the value we provide.

Examples of factors that may affect our results include elevated interest rates; economic inflation, which may have a negative effect on certain of our operating costs, such as salaries, wages and employee benefits, fuel and insurance; uncertainty regarding the impacts of tariffs imposed, revoked or reciprocated between the U.S. and its trading partners, including impacts on import costs, export competitiveness and end-market demand for our customers’ products; and the ongoing reluctance of some shippers to route goods through areas unsettled by conflict.

We mitigate inflationary pressure with mechanisms in our customer contracts, including fuel surcharge clauses and general rate increases; and we believe that U.S. demand for LTL services may increase when interest rates decrease or tariff uncertainties subside, as both dynamics historically correlate to a rebound in industrial activity.

We cannot predict how future macroeconomic conditions, supply chain constraints or conflicts may adversely affect our results of operations.

[[GREPCENT_TABLE]]
[["","","31"]]
[[/GREPCENT_TABLE]]

Consolidated Summary Financial Results

[[GREPCENT_TABLE]]
[["","","Years Ended December 31,","","Percent of Revenue"],["(Dollars in millions)","","2025","","2024","","","","2025","","2024"],["Revenue","","$","8,157","","","$","8,072"],["Salaries, wages and employee benefits","","3,424","","","3,377","","","","","42.0","%","","41.8","%"],["Purchased transportation","","1,662","","","1,701","","","","","20.4","%","","21.1","%"],["Fuel, operating expenses and supplies","","1,571","","","1,589","","","","","19.3","%","","19.7","%"],["Operating taxes and licenses","","83","","","80","","","","","1.0","%","","1.0","%"],["Insurance and claims","","167","","","134","","","","","2.0","%","","1.7","%"],["Gains on sales of property and equipment","","(17)","","","(40)","","","","","(0.2)","%","","(0.5)","%"],["Depreciation and amortization expense","","521","","","490","","","","","6.4","%","","6.1","%"],["Pre-Con-way acquisition environmental matter","","35","","","\u2014","","","","","0.4","%","","\u2014","%"],["Legal matters","","(13)","","","\u2014","","","","","(0.2)","%","","\u2014","%"],["Transaction and integration costs","","8","","","53","","","","","0.1","%","","0.7","%"],["Restructuring costs","","59","","","27","","","","","0.7","%","","0.3","%"],["Operating income","","656","","","660","","","","","8.0","%","","8.2","%"],["Other income","","(6)","","","(37)","","","","","(0.1)","%","","(0.5)","%"],["Debt extinguishment loss","","6","","","\u2014","","","","","0.1","%","","\u2014","%"],["Interest expense","","219","","","223","","","","","2.7","%","","2.8","%"],["Income before income tax provision","","437","","","473","","","","","5.4","%","","5.9","%"],["Income tax provision","","121","","","86","","","","","1.5","%","","1.1","%"],["Net income","","$","316","","","$","387","","","","","3.9","%","","4.8","%"]]
[[/GREPCENT_TABLE]]

Year Ended December 31, 2025 Compared with Year Ended December 31, 2024

Our consolidated revenue for 2025 increased by 1.1% to $8.2 billion, compared with 2024. Foreign currency movement increased revenue by approximately 1.4 percentage points in 2025. After taking into effect the impact of foreign currency movements, revenue was essentially flat compared with 2024.

Salaries, wages and employee benefits includes compensation-related costs for our employees, including salaries, wages, incentive compensation, healthcare-related costs and payroll taxes, and covers drivers and dockworkers, operations and facility workers and employees in support roles and other positions. Salaries, wages and employee benefits in 2025 was $3.42 billion, or 42.0% of revenue, compared with $3.38 billion, or 41.8% of revenue, in 2024. The year-over-year increase as a percentage of revenue primarily reflects higher costs due to the insourcing of a greater proportion of linehaul from third-party transportation providers in our North American LTL segment and wage inflation.

Purchased transportation includes costs of procuring third-party freight transportation. Purchased transportation in 2025 was $1.66 billion, or 20.4% of revenue, compared with $1.70 billion, or 21.1% of revenue, in 2024. The year-over-year decrease as a percentage of revenue primarily reflects the insourcing of a greater proportion of linehaul from third-party transportation providers in our North American LTL segment, partially offset by higher purchased transportation in our European Transportation segment.

Fuel, operating expenses and supplies includes the cost of fuel purchased for use in our vehicles as well as related taxes, maintenance and lease costs for our equipment, including tractors and trailers, costs related to operating our owned and leased facilities, bad debt expense, third-party professional fees, information technology expenses and supplies expense. Fuel, operating expenses and supplies was $1.57 billion in 2025, or 19.3% of revenue, compared with $1.59 billion, or 19.7% of revenue, in 2024. The year-over-year decrease as a percentage of revenue primarily reflects lower fuel costs.

[[GREPCENT_TABLE]]
[["","","32"]]
[[/GREPCENT_TABLE]]

Operating taxes and licenses includes tax expenses related to our vehicles and our owned and leased facilities as well as license expenses to operate our vehicles. Operating taxes and licenses in 2025 was $83 million, compared with $80 million in 2024.

Insurance and claims includes costs related to vehicular and cargo claims for both purchased insurance and self-insurance programs. Insurance and claims in 2025 was $167 million, compared with $134 million in 2024. The year-over-year increase primarily reflects higher vehicular insurance costs in our North American LTL segment.

Gains on sales of property and equipment in 2025 was $17 million, compared with $40 million in 2024. The year-over-year decrease primarily reflects lower gains on real estate transactions in our North American LTL segment in 2025 compared with 2024.

Depreciation and amortization expense in 2025 was $521 million, compared with $490 million in 2024. The year-over-year increase reflects the impact of capital investments in property, tractors and trailers in our North American LTL segment.

Pre-Con-way acquisition environmental matter for 2025 was a charge of $35 million, with no comparable charges in 2024. This matter relates to environmental and product liability claims involving truck and part manufacturing plants of a former subsidiary of Con-way, which they sold in 1981 long before XPO's acquisition of Con-way in 2015. The matter is solely related to a legacy Con-way truck manufacturing business and is unrelated to the operations of our North American LTL segment.

Legal matters was a gain of $13 million in 2025, with no comparable gain in 2024. The gain recognized in 2025 reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to our acquisition of Norbert Dentressangle SA in 2015.

Transaction and integration costs in 2025 were $8 million, compared with $53 million in 2024. The year-over-year decrease primarily relates to no further stock-based compensation costs in the current year for certain employees related to strategic initiatives.

Restructuring costs in 2025 were $59 million, compared with $27 million in 2024. We engage in restructuring actions as part of our ongoing efforts to best use our resources and infrastructure. In 2025, restructuring costs primarily reflect share-based compensation in Corporate, and severance and related charges incurred in connection with headcount reduction initiatives in our European Transportation segment. In 2024, restructuring costs primarily related to headcount reduction initiatives in our European Transportation segment. For more information, see Note 5—Restructuring Charges to our Consolidated Financial Statements.

Other income primarily consists of pension income for both 2025 and 2024, while 2024 also includes investment income. Other income for 2025 was $6 million, compared with $37 million in 2024. The year-over-year decrease reflects a $19 million decline in pension income and a $13 million decline in investment income related to the sale of a past investment in a private company in 2024.

Debt extinguishment loss was $6 million in 2025, which related to the refinancing of our term loan facility in the first quarter of 2025. There was no debt extinguishment loss in 2024.

Interest expense for 2025 decreased 1.8% to $219 million, from $223 million in 2024. The decrease is primarily due to a reduction in our debt coupled with lower interest rates on our variable rate debt, partially offset by lower interest income. We anticipate interest expense to be between $205 million and $215 million in 2026.

Our consolidated income before income tax provision in 2025 was $437 million, compared with $473 million in 2024. The decrease was primarily driven by lower other income and operating income. With respect to our U.S. operations, income before income tax provision was $456 million in 2025, compared with income of $486 million in 2024. The decrease was primarily due to lower revenue, higher insurance and claims, lower gains on real estate transactions, higher depreciation and amortization, higher costs related to legal matters, higher restructuring costs, and lower other income, partially offset by lower purchased transportation and lower transaction and integration costs. With respect to our non-U.S. operations, loss before income tax provision was $19 million in 2025, compared

[[GREPCENT_TABLE]]
[["","","33"]]
[[/GREPCENT_TABLE]]

with a loss of $13 million in 2024. The increase in the loss is primarily due to higher purchased transportation, salaries, wages and employee benefits, and restructuring costs, partially offset by higher revenue and a gain on legal matters in 2025.

Our effective income tax rates were 27.8% and 18.1% in 2025 and 2024, respectively. The increase in our effective income tax rate for 2025 compared to 2024 was primarily driven by a one-time tax benefit of $41 million associated with the legal entity reorganization in our European Transportation business that occurred in the second quarter of 2024,

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/XPO/mda/fy2025/
All MD&A years: /company/XPO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/XPO/mda/fy2024/): filed 2025-02-07; accession 0001166003-25-000017 (https://www.sec.gov/Archives/edgar/data/1166003/000116600325000017/xpo-20241231.htm)
- [FY 2023 MD&A](/company/XPO/mda/fy2023/): filed 2024-02-08; accession 0001166003-24-000022 (https://www.sec.gov/Archives/edgar/data/1166003/000116600324000022/xpo-20231231.htm)
- [FY 2022 MD&A](/company/XPO/mda/fy2022/): filed 2023-02-13; accession 0001166003-23-000017 (https://www.sec.gov/Archives/edgar/data/1166003/000116600323000017/xpo-20221231.htm)
- [FY 2021 MD&A](/company/XPO/mda/fy2021/): filed 2022-02-16; accession 0001166003-22-000024 (https://www.sec.gov/Archives/edgar/data/1166003/000116600322000024/xpo-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 4700 Transportation Services) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance

Macro-to-micro threads including this sector: [Money & trade](/thread/money-trade/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/XPO.md · JSON record: /company/XPO.json · verified financials: /company/XPO/financials.json / /company/XPO/financials.csv · machine TOC for the whole site: /llms.txt