XPO Logistics Q2 2021 Earnings Report
Key Takeaways
XPO Logistics announced strong Q2 2021 results, with revenue increasing to $5.04 billion and net income attributable to common shareholders reaching $156 million. The company also raised its adjusted EBITDA guidance for both XPO and GXO.
Revenue increased to $5.04 billion, the highest in company history.
Net income attributable to common shareholders was $156 million, compared to a net loss of $132 million in the same period last year.
Operating income was $246 million, a significant improvement from the $141 million operating loss in the prior year.
Adjusted EBITDA increased to $507 million, up from $172 million in the same period last year.
XPO Logistics
XPO Logistics
XPO Logistics Revenue by Segment
Forward Guidance
XPO increased its pre-spin combined adjusted EBITDA target for full year 2021 to a range of $1.875 billion to $1.915 billion, reflecting higher expectations for both segments following its second quarter performance. Additionally, we raised GXO’s 2022 target for adjusted EBITDA to a range of $705 million to $740 million, with year-over-year organic revenue growth of 8% to 12% next year.
Positive Outlook
- Increased pre-spin combined adjusted EBITDA target for full year 2021 to a range of $1.875 billion to $1.915 billion.
- Raised GXO’s 2022 target for adjusted EBITDA to a range of $705 million to $740 million.
- GXO's year-over-year organic revenue growth of 8% to 12% next year.
- XPO full year pro forma 2021 financial targets for adjusted EBITDA
- XPO plans to deleverage to achieve an investment-grade credit rating
Challenges Ahead
- Economic conditions generally
- COVID-19 pandemic
- Fluctuations in currency exchange rates
- Fuel price and fuel surcharge changes
- Natural disasters, terrorist attacks or similar incidents