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Dec 31, 2022

XPO Logistics Q4 2022 Earnings Report

Reported solid revenue growth and strong year-over-year increases in adjusted EBITDA, adjusted EPS and free cash flow.

Key Takeaways

XPO Logistics announced its Q4 2022 financial results, reporting revenue of $1.83 billion. The company's North American LTL business achieved a 26% increase in operating income and a 20% increase in adjusted EBITDA. The company reported a net loss from continuing operations attributable to common shareholders of $36 million, or a diluted loss from continuing operations per share of $0.31.

Revenue was $1.83 billion, compared to $1.77 billion for the same period in 2021.

Net loss from continuing operations was $36 million, or a diluted loss per share of $0.31.

Adjusted EPS increased to $0.98, compared to $0.64 for the same period in 2021.

Free cash flow was $107 million for the quarter.

Total Revenue
$1.83B
Previous year: $3.36B
-45.5%
EPS
$0.98
Previous year: $1.34
-26.9%
Gross Profit
$300M
Previous year: $509M
-41.1%
Cash and Equivalents
$460M
Previous year: $260M
+76.9%
Free Cash Flow
$107M
Previous year: $57M
+87.7%
Total Assets
$6.27B
Previous year: $8.72B
-28.1%

XPO Logistics

XPO Logistics

XPO Logistics Revenue by Segment

Forward Guidance

XPO is confident that they will achieve their long-term LTL outlook and deliver superior shareholder value.

Positive Outlook

  • Growth plan for LTL is to invest in capacity ahead of demand and earn market share by providing best-in-class service.
  • Grew tonnage and shipment count year-over-year at a time when the industry saw these metrics decline.
  • Strategic change in channel mix will be a tailwind for both volume and yield as freight demand improves.
  • Tonnage was up year-over-year and trended better than typical seasonality in January.
  • Employee satisfaction was up sharply to the highest rating in more than a decade.

Challenges Ahead

  • Net loss from continuing operations attributable to common shareholders of $36 million for the fourth quarter 2022
  • Net loss includes a $64 million non-cash goodwill impairment charge related to European Transportation
  • $42 million of transaction and integration costs
  • $35 million of restructuring charges
  • Yield came in at the low end of our outlook

Revenue & Expenses

Visualization of income flow from segment revenue to net income