XPO Logistics has announced its financial results for Q1 2021, with a revenue increase to $4.77bn for Q1, compared with $3.86bn in 2020. Net income attributable to common shareholders was $115m for Q1, compared with $21m in 2020. Operating income was $202m in Q1, compared with $81m in 2020.
Adjusted net income attributable to common shareholders, a non-GAAP financial measure, was $164m for Q1, compared with $71m in 2020.
Adjusted EBITDA increased to $443m in Q1, compared with $333m in 2020.
Brad Jacobs, chairman and chief executive officer of XPO Logistics, said, “In the first quarter, we reported the highest revenue of any quarter in our history, appreciably outpacing a macro that’s recovering faster than expected. Our net income and adjusted EBITDA were both first quarter records, and we grew adjusted EPS by 112% year-over-year. Our truck brokerage business is continuing to outperform the market, powered by the growth of our XPO Connect digital platform. We increased our first quarter brokerage revenue by 83% year-over-year, and grew net revenue by 132%. […] In logistics, our record first quarter revenue of $1.82bn was propelled by the ‘big three’ logistics tailwinds: e-commerce, outsourcing and warehouse automation. We’ve won a tremendous amount of logistics business in the first four months of this year, including a $1.8bn contract with a longstanding customer that extends and expands our relationship through 2032. This is the largest contract in our company’s history.”
First Quarter 2021 Results by Segment
Transportation: The company’s transportation segment generated revenue of $2.99bn in Q1 2021, compared with $2.46bn in 2020. Operating income for the transportation segment was $209m, compared with $120m in 2020. Adjusted EBITDA for the segment was $343m in Q1, compared with $253m in 2020. The increases in operating income and adjusted EBITDA were related primarily to higher profitability in truck brokerage and in less-than-truckload (LTL). In North American LTL, the Q1 operating ratio was 84.9% and the adjusted operating ratio was 82.6%. In North American truck brokerage, revenue increased by 83% y-o-y to $589m in Q1, compared with $321m in 2020. Net revenue increased 132% y-o-y to $110m, compared with $47m in 2020.
Logistics: The company’s logistics segment generated revenue of $1.82bn in Q1, compared with $1.44bn in 2020. The y-o-y increase in segment revenue was primarily due to 13% organic revenue growth, the acquisition of contract logistics operations in the UK and Ireland, and a benefit from foreign currency conversion. Logistics segment operating income was $68m in Q1, compared with $38m in 2020. Adjusted EBITDA was $155m for Q1, compared with $121m in 2020. The increases in operating income and adjusted EBITDA were primarily related to higher revenue from contracts won in prior periods.
The company is on track with its plan to spin off its logistics segment in the second half of 2021. To date, as previously announced, the company has:
Unveiled the spin-off’s corporate name as GXO Logistics, Inc., its brand as GXO and its tagline as Logistics at full potential;
Named eight executives to GXO leadership positions; all will transition to GXO from XPO once the spin-off is complete: Malcolm Wilson, chief executive officer; Baris Oran, chief financial officer; Mark Manduca, chief investment officer; Richard Cawston, president – Europe; Ashfaque Chowdhury, president – Americas and Asia Pacific; Bill Fraine, chief commercial officer; Sandeep Sakharkar, chief information officer; and Maryclaire Hammond, chief human resources officer; and
Filed a confidential initial Form 10 registration statement for the spin-off with the U.S. Securities and Exchange Commission in March.
Completion of the spin-off is subject to various conditions, and there can be no assurance that the transaction will occur or, if it does occur, of its terms or timing.
