XPO : Third Quarter 2024 Investor Presentation

Published: 2024-10-30 07:30:44 ET XPO

Investor Overview

Q3 2024

October 2024

Third quarter 2024 highlights

$2.05 billion of revenue, up 4% YoY

$176 million of operating income, up 14% YoY

$333 million of adjusted EBITDA, up 20% YoY

$1.02 of adjusted diluted EPS1, up 16% YoY

LTL adjusted operating income of $198 million, up 17% YoY

LTL adjusted operating ratio of 84.2%, improved by 200 bps YoY

LTL yield, excluding fuel, up 6.7% YoY

LTL revenue per shipment, excluding fuel, up 6.6% YoY

LTL damage claims ratio of 0.2%

Fourth consecutive quarter of significant YoY improvement in LTL adjusted OR

1 Diluted earnings from continuing operations per share

Refer to "Financial Reconciliations" and "Non-GAAP Financial Measures" sections in Appendix for related information

3

Third quarter 2024 performance

REVENUE

$2.05 billion

OPERATING INCOME

$176 million

NET INCOME

$95 million

DILUTED EARNINGS PER SHARE

$0.79

ADJUSTED NET INCOME

$122 million

ADJUSTED DILUTED EPS

$1.02

ADJUSTED EBITDA

$333 million

CASH FLOW FROM OPERATING ACTIVITIES

$264 million

BY SEGMENT

NORTH AMERICAN LTL

REVENUE

$1.25 billion

ADJUSTED EBITDA

$284 million

ADJUSTED OPERATING RATIO

84.2%

EUROPEAN TRANSPORTATION

REVENUE

$803 million

ADJUSTED EBITDA

$44 million

Refer to "Financial Reconciliations" and "Non-GAAP Financial Measures" sections in Appendix for related information

Note: Net income, diluted earnings per share, adjusted net income, adjusted diluted EPS, and adjusted EBITDA include a $9 million gain ($7 million after-tax or $0.06 per share) on a past investment in a private company that was sold in the quarter

4

Our LTL strategy is driving significant margin and earnings expansion

1

2

3

4

Provide best-in-

Invest in network

Accelerate yield

Drive cost

class service

for the long-term

growth

efficiencies

Targets for LTL Growth, Profitability and

Efficiency, 2021-2027

Revenue CAGR of 6% to 8%

Adjusted EBITDA CAGR of 11% to 13%

Adjusted operating ratio improvement of at least 600 bps

Refer to "Non-GAAP Financial Measures" section in Appendix for related information

5

Strong position in North American LTL

6

A leading carrier in a compelling industry

5% CAGR: North American LTL industry revenue

Sources: Third-party research; company filings

Note: Revenue CAGR for periods 2010-2023; industry size and market share data for 2023 1 US service centers, includes ARCB, FDX, ODFL, SAIA, XPO and YELL

7

A major player in the supply-chain ecosystem

$4.7 billion

9%

3rd largest

12.4%

2023 revenue

2023 industry share

LTL carrier by 2023 revenue

of 2023 revenue allocated

to gross capex

35,000

650 million

13 million

18 billion

customers served

linehaul miles run

shipments per year

pounds of freight

per year

per year

23,000

13,000

34,000

304

employees

drivers

trailers

service centers1

1 Operational service centers as of September 30, 2024

Note: Company data for North American LTL segment only as of September 30, 2024, unless otherwise noted as 2023 (full year)

8

Expansive network covering 99% of US

zip codes

Service Centers

Acquired Service Centers1

9

Strategic mix of blue-chip and local customers

Long-standing relationships - average tenure of top 10 customers is 16 years

Note: Company data for North American LTL segment only as of September 30, 2024; selected customers

10

LTL growth plan and levers

11

Disclaimer

XPO Logistics Inc. published this content on October 30, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 30, 2024 at 11:29:18.169.