The revenue shortfall was primarily driven by lower fuel surcharge revenue within XPO’s North American Less-Than-Truckload (LTL) segment. The LTL division experienced a decline in shipments per day by 5.8% and tonnage per day by 7.5% year-over-year. Despite the volume declines, yield excluding fuel increased by 6.9%, demonstrating the company’s ability to maintain pricing discipline amid challenging conditions.

CEO Mario Harik highlighted the company’s resilience and operational excellence, emphasizing that the results showcase XPO’s capacity to outperform regardless of market conditions. He pointed out that the company has achieved the best margin improvement in the industry over the past two years, with a 370 basis point reduction in the LTL adjusted operating ratio during that period. Harik credited investments in network improvements, cost-control initiatives, and a focus on delivering world-class service as key drivers behind the quarter’s strong performance.

The North American LTL segment reported an adjusted operating ratio of 85.9%, a 30 basis point sequential improvement from the fourth quarter of 2024, reflecting ongoing efficiency gains. Additionally, the company highlighted a 53% year-over-year reduction in purchased transportation expenses, driven by technology-driven productivity enhancements and the insourcing of third-party linehaul services.

Cash flow remained solid, with $142 million generated from operations during the quarter. The company ended with $212 million in cash and cash equivalents, after investing $191 million in capital expenditures, demonstrating its commitment to maintaining a strong liquidity position.

Overall, XPO’s results reinforce its strategic focus on operational efficiency, margin improvement, and service quality, positioning the company well for continued growth despite the shifting landscape of freight demand.