XPO Logistics increased its net income by US$28 million in the second quarter of the year, compared to 2021 Q2, reaching US$141 million.
At the same time, the American freight transportation company reported slight growth in its revenue climbing to US$3.23 billion from US$3.19 billion in the same period last year.
Additionally, XPO’s adjusted earnings before interest, taxes, depreciation, and amortisation (adjusted EBITDA) increased to US$405 million for the second quarter, compared to US$330 million in 2021 Q2.
“In the second quarter, all of our reported metrics were ahead of guidance and consensus. It was our company’s ninth straight quarterly beat on adjusted EBITDA. Our North American less-than-truckload network and our tech-enabled brokered transportation platform have tremendous momentum heading into the spin-off, when we expect to separate these businesses into independent companies,” commented Brad Jacobs, chairman and chief executive officer of XPO Logistics.
After the announcement of the second quarter results, the company raised full-year targets for adjusted EBITDA, adjusted diluted EPS and free cash flow and updated underlying metrics.
Adjusted EBITDA is expected in the range of US$1.40 – 1.43 billion, from the previous target of US$1.35 – US$1.39 billion. Furthermore, with respect to 2022 cash flows, the target for gross capital expenditures remains unchanged at US$500 – US$550 million, the target for net capital expenditures remains also stable at US$425 – US$475 million, and the target for free cash flow increased to the range of US$425 – US$475 million.
“We reported the highest adjusted EBITDA of any quarter in our history and raised our 2022 full year guidance. Following the planned fourth quarter spin-off, we’ll become two strong, standalone companies with long runways for earnings growth,” noted Jacobs.
Meanwhile, XPO Logistics announced that Mario Harik will succeed Brad Jacobs as chief executive officer of XPO and join the board of directors following XPO’s planned spin-off of its tech-enabled brokerage platform in the fourth quarter. Jacobs will remain with XPO as executive chairman and will become non-executive chairman of the spin-off.
XPO further announced on 4 August that Harik has been named president, less-than-truckload (LTL) with immediate effect, after serving as acting LTL president since October 2021.
The company plans to become a pure-play LTL transportation provider in North America by completing the brokerage spin-off and the divestiture of its European business.
