XPO Logistics has released the following results in advance of its third-quarter 2022 earnings announcement and conference call.
For the third quarter 2022, the company expects to report:
For its North American less-than-truckload (LTL) segment, the company expects third-quarter 2022 results to include:
The company has reiterated its expectation that at least $1bn of full year 2022 adjusted EBITDA will be generated by North American LTL, including up to $50m of gains on sales of real estate in the fourth quarter.
The company now expects to achieve a year-over-year improvement of 50 to 100 basis points in its North American LTL adjusted operating ratio for full year 2022, excluding gains on sales of real estate; this compares with its prior target of at least 100 basis points of improvement.
For its North American truck brokerage business, which is reported within the Brokerage and Other Services segment, the company expects third quarter 2022 results to include:
Long-Term Targets for North American LTL and RXO Spin-Off
In conjunction with upcoming investor meetings, and in anticipation of XPO’s planned spin-off of its North American brokered transportation platform on November 1, 2022, the company issued the following long-term financial targets.
For its North American LTL business, encompassing the period from 2021 (the most recent reported fiscal year) through 2027, assuming gross capital expenditures of 8% to 12% of revenue, on average, over the next several years:
For the RXO spin-off of the North American brokered transportation platform, including its core truck brokerage business:
As previously announced, XPO will hold its third quarter conference call and webcast on Monday, October 31, at 8:30 a.m. Eastern Time.