stockrowWhat it does
XPO is a freight transportation company founded in 1987 and headquartered in Greenwich. Mario Harik is its chairman and chief executive officer. The company moves goods for businesses across North America and Europe, serving customers ranging from small enterprises to large corporations.
Its largest business is North American less-than-truckload, or LTL, transportation. LTL carriers move shipments that do not require an entire truck, using a network of service centers, trucks and trailers to collect, sort and deliver freight. XPO provides scheduled domestic service and cross-border transportation to Mexico, Canada and the Caribbean. Its network served approximately 37,000 shippers and reached approximately 99% of U.S. zip codes in 2025.
In Europe, XPO offers a broader range of transportation services. These include dedicated truckload transportation, LTL, brokerage that arranges full-truckload moves, warehousing, managed transportation, last-mile delivery, freight forwarding and multimodal services. Customers use these services to move goods through their supply chains.
XPO also operates a trailer manufacturing facility and commercial truck driver schools. Proprietary software supports pricing, routing, pickup and delivery, and work at service centers. As of December 31, 2025, the company had approximately 37,000 employees and 592 locations in 17 countries. Its board has authorized a divestiture of the European business, although a sale and its terms and timing are not assured.
How it makes money
XPO earns revenue by transporting customers’ freight and arranging or managing transportation services. Its North American LTL network uses service centers, drivers and equipment to move shipments to their destinations. In Europe, it earns revenue from a mix of owned or dedicated transportation, brokerage and related services, including warehousing and freight forwarding.
Consolidated revenue was $8.2 billion in 2025 and $2.4 billion in the third quarter of 2026.
North American LTL generated $4.8 billion in 2025. European Transportation generated $3.3 billion. The LTL segment also includes XPO’s trailer manufacturing operation. Segment revenue reflects different service mixes: the North American business focuses on LTL, while the European business offers services ranging from individual freight moves to dedicated transportation and managed services.
XPO measures LTL yield as gross revenue per hundredweight, excluding fuel surcharges. Shipment weight and length of haul can affect that measure, as can pricing. Fuel surcharges are another part of revenue; contracts can include fuel surcharge clauses and general rate increases. In 2025, lower LTL tonnage was almost entirely offset by higher yield, excluding fuel surcharge revenue.
Customer relationships can generate repeat shipments, and contract renewals affect pricing. XPO also pursues local accounts and premium services, which can add services for customers with particular delivery needs. Its European services include dedicated truckload and managed transportation, alongside brokerage and other freight services.
XPO uses its own technology to plan routes and trailer loads, price services and manage labor. It has also shifted linehaul—the movement of freight between service centers—from third-party carriers to its own network. In the third quarter of 2026, XPO reported that 5.6% of miles were outsourced.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North American LTL | $4.8 billion | 59.2% | −1.37% |
| European Transportation | $3.3 billion | 40.8% | 4.76% |
Customers and how it sells
XPO serves approximately 55,000 customers, from small businesses to Fortune 500 companies. They operate in industries including manufacturing, retail and e-commerce, food and beverage, and consumer goods. North American LTL served approximately 37,000 shippers in 2025, with domestic coverage and cross-border services to Mexico, Canada and the Caribbean.
Customer revenue is spread across a broad base. In 2025, the company’s top five customers together represented approximately 8% of global revenue, and its largest customer accounted for less than 3%. Within North American LTL, the top five represented less than 11% of segment revenue, with the largest contributing approximately 4%.
The United States generated $4.7 billion of revenue in 2025, France $1.3 billion and the United Kingdom $1.1 billion. XPO also operates elsewhere in Europe. It offers dedicated and brokered truckload services, pallet-network LTL and other transportation services in the region.
Local customers are a focus for the North American sales organization. In the third quarter of 2026, XPO increased the number of new customers onboarded through its local channel by 30% versus the prior year. The company is also growing premium services and pursuing customers with particular shipment requirements.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $4.7 billion | 57.9% | −1.38% |
| France | $1.3 billion | 16.0% | 2.19% |
| United Kingdom | $1.1 billion | 14.0% | 11.6% |
| Europe (excluding France and United Kingdom) | $877.0 million | 10.8% | 0.46% |
| North America (excluding United States) | $106.0 million | 1.30% | −0.93% |
Suppliers and costs
XPO’s operating costs include employee compensation, purchased transportation, fuel, equipment maintenance, facilities, insurance and technology. In 2025, salaries, wages and employee benefits were $3.42 billion, while purchased transportation cost $1.66 billion. Fuel, operating expenses and supplies were $1.57 billion. Insurance and claims were $167 million.
The company uses third-party carriers, including where using its own drivers and equipment would result in too many empty miles. It has brought more linehaul work in-house, reducing its reliance on outside carriers while increasing employee-related costs. In 2025, XPO lowered its cost of third-party purchased transportation by over 50% compared with 2024 in its North American LTL operations.
XPO manufactures trailers and trains commercial drivers internally. It also buys tractors and trailers and invests in facilities. In 2025, approximately 60% of capital expenditures went toward acquiring more than 3,600 trailers and 1,200 tractors. Proprietary planning tools help managers allocate labor, route trucks and use trailer space.
- Revenue$8.2B
- Research and development−$3.2B
- Selling, general and administrative−$3.4B
- Other operating costs−$843.0M
- Operating income$657.0M
Competitive position
XPO competes with local, regional and national LTL carriers in North America, including Old Dominion Freight Line and Saia. European competitors vary by service: LTL transportation has a different competitive landscape from dedicated or brokered truckload and multimodal transportation. Customers can choose among providers based on price, service quality and reliability, geographic coverage, expertise and technology.
XPO estimated its U.S. LTL market share at approximately 9% in 2025. In the third quarter of 2026, it estimated its overall LTL market share at about 10%. In Europe, XPO identifies leading positions in French and Iberian LTL and truckload brokerage, as well as a large LTL network in the U.K.
Our reading: The breadth and density of XPO’s North American network are meaningful competitive assets because they let the company serve shippers across much of the country, but customers still have alternative carriers. Its more than 30% excess door capacity gives it room to take additional freight without requiring every shipment to be accommodated through a new facility.
Our reading: Proprietary routing, pricing and labor tools support a further advantage when they improve service or reduce costs, but their value depends on continued execution. XPO’s trailer manufacturing and driver schools also support its access to equipment and labor when sourcing is difficult.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Old Dominion Freight Line | North American less-than-truckload transportation | High |
| Saia | North American less-than-truckload transportation | High |
Growth opportunities
XPO’s North American growth plan centers on service, network capacity, pricing and cost efficiency. The company estimates that it has more than 30% excess door capacity to support additional volume. It opened new locations in Phoenix and Kansas City in the third quarter of 2026 and has modernized its fleet.
The company is pursuing more local customers and premium services. It increased the number of new local-channel customers onboarded by 30% in the third quarter of 2026 versus the prior year. XPO also sees an opportunity to increase pricing over time through service improvements and a shift toward local accounts and premium services.
Technology is another part of the plan. In the third quarter of 2026, XPO’s AI-based pickup-and-delivery route tools were used on nearly 2/3 of routes. Its planning model reduced freight rehandles by mid single digits, and AI feedback to dockworkers contributed to a 20% reduction in damages versus the prior-year quarter.
XPO intends over the long term to become a North American LTL carrier and considers a sale of its European business a strategic priority. It is also investing in European sales and improving the business’s pricing and cost efficiency while it remains part of the company. XPO expects its free cash flow to increase and plans to use excess cash for debt repayment and share repurchases.
- $7.2BFY2021
- $7.7BFY2022
- $7.7BFY2023
- $8.1BFY2024
- $8.2BFY2025
Structural risks
- Freight demand: Recessions or downturns in customers’ businesses can reduce freight volumes and opportunities for growth. Financially distressed customers may also be unable to pay XPO.
- Execution: The company’s plan to improve North American LTL network efficiency and growth may not be effective or timely, and may not improve operating results or cash flow as planned.
- Technology and third parties: XPO depends on information systems and third parties. Failure to develop, maintain, protect or integrate its systems could seriously harm the business.
- Costs and competition: XPO operates in competitive markets, while wages, fuel, insurance and other expenses can rise. Regulations can require changes to operating practices and increase the cost of providing transportation.
- Financing and claims: Indebtedness can adversely affect XPO’s financial condition, and future financing may not be available on acceptable terms. Lawsuits and claims arising from matters including accidents, employment, cargo damage and environmental liability can lead to significant expenditures.
- European divestiture: The board has authorized a sale, but there is no assurance that one will occur or of its terms or timing.
Bottom line
Our reading
Our reading: XPO is a freight network whose economics depend on filling trucks and service centers, pricing shipments appropriately and controlling labor and transportation costs. Its geographic reach, capacity and operating software support its competitive position, but freight demand, execution and competition remain material exposures. A European sale would change the company’s business mix, though its timing and terms are uncertain.