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XPO (UX2A) Q3 2026 Earnings Report

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DE:UX2A Q3 2026 EPS Results

Actual EPS
EUR 1.52
Consensus EPS
EUR 1.41
Beat/Miss
Beat by +EUR 0.11
One Year Ago EPS
EUR 0.96

DE:UX2A Q3 2026 Revenue Results

Actual Revenue
EUR 2.12B
Expected Revenue
EUR 2.13B
Beat/Miss
Missed by -EUR 7.29M
YoY Revenue Growth
+12.32%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/29/2026
Time
Before Open
Conference Call
Thursday, October 29, 2026
DE:UX2A Upcoming Earnings

XPO's next earnings date is estimated for February 10, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

DE:UX2A Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 29, 2026|% Change Since:6.12%|
Earnings Call Sentiment|Positive

The call was strongly positive, with substantial revenue, EBITDA, EPS, margin, volume, service, free cash flow, and balance-sheet improvements. Management also provided an upbeat fourth-quarter and 2027 outlook, supported by pricing, profitable market-share gains, insourcing, network capacity, and AI-driven productivity. The main challenges were higher labor and fuel costs, third-quarter mix-related yield headwinds, a loss-making corporate segment, and service rankings that remain below the company's stated number-one goal.

Company Guidance

Management expects fourth-quarter LTL adjusted operating ratio to be below an 82%, compared with normal seasonality of 250 basis points from Q3 to Q4 and an OR closer to an 83%; full-year OR improvement is expected to be 250 basis points or better, with 2027 expected to be another strong year for OR improvement and earnings growth. Yield and revenue per shipment, excluding fuel, are expected to improve sequentially and accelerate on a year-over-year basis in Q4, European EBITDA growth is expected to be nearly by 40% on a year-over-year basis, free cash flow is expected to be at least double in 2026, probably near $800 million for the year, and to reach billions in the coming years, while cost per shipment is expected to be up in the low single digit range over the long term and productivity is expected to improve by 1-2 points per year.

  • Successful Insourcing StrategyOutsourced miles declined from about 25% when the plan began to 5.6% in the latest quarter, which management described as among the lowest levels in company history. Purchased transportation cost increased by just $10 million despite higher volume and rising truckload rates.
  • European Transportation GrowthEuropean transportation revenue increased 5% year over year, marking the eleventh consecutive quarter of constant-currency growth. Adjusted EBITDA increased 26% year over year, or 27% on a constant-currency basis, with positive contributions from each line of business. Management expects fourth-quarter EBITDA growth to accelerate to nearly 40% year over year.
  • Free Cash Flow and Balance-Sheet ImprovementThe company generated $291 million of third-quarter free cash flow, ended the quarter with $260 million of cash, and had approximately $860 million of total liquidity. Net leverage improved to 1.9 times trailing-twelve-month EBITDA from 2.1 times in the second quarter.
  • Capital Returns and Debt ReductionXPO repurchased $150 million of common stock in the quarter and had repurchased $250 million year to date. It made $100 million of debt repayments during the quarter and an additional $75 million repayment in October, bringing year-to-date debt paydown to $275 million.
  • Accelerating Free Cash Flow ExpectationsManagement expects to at least double free cash flow in 2026 to probably near $800 million, compared with 2025, and expects to generate billions of free cash flow in the coming years. Excess cash is expected to be used for share repurchases and debt repayment.
  • Long-Term Strategic RunwayManagement reiterated its long-term expectation to achieve an annual LTM operating ratio in the low seventies or better. It also cited a double-digit, low- to mid-teens opportunity to improve pricing through service improvements, core pricing, and mix, while identifying substantial opportunities to gain share as the freight market recovers.
  • European Business Strategic OptionalityManagement reiterated that becoming a pure-play North American LTL carrier remains a long-term goal and that selling the European business is a strategic priority. The company said it is being patient to maximize the return from the business while continuing to improve its earnings, pricing, cost efficiency, sales force, and vertical-market presence.
  • Strong Company-Wide Revenue and Earnings GrowthThird-quarter revenue increased 12% year over year to $2.4 billion, adjusted EBITDA grew 27% to $433 million, adjusted diluted EPS increased 59% to $1.70, and operating income increased 76% to $288 million.
  • Record North American LTL ProfitabilityNorth American LTL revenue grew 17%, while adjusted operating income increased 35% to $293 million, the highest level in the company's history. The adjusted operating ratio improved by 260 basis points year over year to 80.1%, outperforming normal third-quarter seasonality by more than 200 basis points.
  • LTL Volume and Shipment MomentumLTL shipments per day increased 5.8% year over year, tonnage per day increased 5%, and volume growth remained consistent throughout the quarter. Preliminary October shipments per day were expected to increase in the mid-7% range and tonnage per day in the mid-6% range year over year.
  • Improving Pricing TrendsLTL yields excluding fuel increased 3.6% year over year and improved sequentially, while revenue per shipment excluding fuel also improved sequentially and accelerated year over year. In October, yield growth excluding fuel was tracking up 5% and revenue per shipment growth was up 4%. The company expects both metrics to improve sequentially and accelerate year over year in the fourth quarter.
  • Strong Fourth-Quarter and Full-Year Margin OutlookThe company expects fourth-quarter LTL adjusted operating ratio to be below 82%, compared with normal seasonality that would put it closer to 83%. Full-year operating ratio improvement is now expected to be 250 basis points or better, and management expects another strong year of operating-ratio improvement and earnings growth in 2027.
  • Service Quality and Damage ReductionThe damage claims ratio remained below 0.2% in the quarter. AI-based dock feedback contributed to a 20% reduction in damages versus last year, and management said improvements were being seen across every customer-facing KPI, including on-time performance.
  • Network Capacity ExpansionXPO opened two new locations in Phoenix and Kansas City, has more than 30% excess door capacity, expanded and modernized its fleet, and said its network can handle significantly more volume. Over the last four years, the company said it added 15% more doors, expanded its trailer fleet by more than 30%, and expanded its tractor fleet by more than 20%.
  • Local and Premium-Service Customer GrowthThe company increased the number of new customers onboarded in its local channel by 30% versus last year. Growth is focused on small and medium-sized customers, premium services, health care, grocery consolidation, and other higher-margin or service-sensitive segments.
  • AI-Driven Operating EfficiencyAI-based planning reduced rehandles by mid single digits to the lowest level in over a decade. Route-optimization tools were deployed on nearly two-thirds of pickup-and-delivery routes, drivers were making more stops per hour while reducing miles per shipment, and workforce-planning technology helped service centers handle nearly 6% shipment-count growth with only a low single digit increase in headcount.
  • Continued AI Deployment and Productivity OpportunityThe company expects to fully roll out its pickup-and-delivery route-optimization technology by early next year. Management described the AI initiatives as being in the early innings and said the long-term goal is to improve productivity by 1-2 points per year, with the broader target described as a point and a half to 3 years of productivity improvement per year.

DE:UX2A Earnings History

DE:UX2A earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 10, 20272026 (Q4)1.26-0.79――
Oct 29, 20262026 (Q3)1.411.520.9658.88% (+0.56)
Jul 30, 20262026 (Q2)1.321.520.9461.90% (+0.58)
Apr 30, 20262026 (Q1)0.790.900.6538.36% (+0.25)
Feb 05, 20262025 (Q4)0.680.790.8-1.12% (-0.01)
Oct 30, 20252025 (Q3)0.910.960.914.90% (+0.04)
Jul 31, 20252025 (Q2)0.890.941-6.25% (-0.06)
Apr 30, 20252025 (Q1)0.590.650.73-9.88% (-0.07)
Feb 06, 20252024 (Q4)0.560.800.6915.58% (+0.11)
Oct 30, 20242024 (Q3)0.810.910.7915.91% (+0.13)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed