RXO Q3 2024 Earnings Report
Key Takeaways
RXO reported revenue of $1.04 billion, a gross margin of 17.3%, and a GAAP net loss of $243 million, which included $248 million in transaction, integration, restructuring and other costs. Adjusted net income was $7 million, and adjusted EBITDA was $33 million. The company's leverage ratio decreased by more than 40% following the Coyote acquisition.
Coyote acquisition completed September 16; integration is progressing smoothly with annualized cost synergy estimate raised to at least $40 million.
The combined company leverage ratio decreased by more than 40%.
Company-wide gross margin was 17.3%, Brokerage gross margin was 13.7%.
Managed Transportation was awarded more than $300 million in new freight under management and Last Mile stop growth continued to accelerate and grew 11% year-over-year.
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RXO Revenue by Segment
Forward Guidance
RXO expects fourth-quarter 2024 adjusted EBITDA to be between $40 million and $45 million. The company expects fourth-quarter 2024 Brokerage gross margin to be between 12% and 14%.
Revenue & Expenses
Visualization of income flow from segment revenue to net income