RXO Reports Q1 Loss Despite Revenue Growth
RXO, the Charlotte-based asset-light logistics provider, posted a challenging first quarter, with an operating loss of $30 million—more than doubling the $12 million loss from the same period last year and increasing from the $24 million loss in the fourth quarter of 2024. Despite these losses, the company’s revenue surged to $1.43 billion, up from $913 million a year earlier. However, on a sequential basis, revenue declined from $1.67 billion when Coyote Logistics was still part of RXO in the previous quarter.
EBITDA, a key measure of operational profitability, increased year-over-year to $22 million—an improvement from zero in the first quarter of 2024, when Coyote was not yet acquired. Yet, EBITDA fell from $42 million in the fourth quarter of 2024. Net income was an 18-cent-per-share loss, worse than the 13-cent loss a year earlier and the 12-cent loss sequentially.
CEO Drew Wilkerson emphasized the significant strides made in integrating Coyote Logistics, noting that all systems are now fully unified on a single platform. He highlighted that the company has increased its estimated cost savings from $50 million in the last quarter to about $70 million, reflecting higher predicted synergies as integration progresses. Wilkerson pointed out that the move to a consolidated technology system has driven efficiencies, improved capacity, and positioned RXO for long-term growth.
Despite the current financial pressures, Wilkerson remains optimistic about the future, emphasizing the operational advantages of the integration and the company’s focus on cost management. As RXO continues to realize synergies and optimize its network, it aims to build on these foundations to better serve customers and enhance shareholder value.
