XPO is like FedEx or UPS, but for larger business freight that ships on pallets instead of small packages.

Think of XPO as a major trucking company, similar to J.B. Hunt (JBHT), but specializing in shipping partial truckloads of goods for many different businesses.

• Less-Than-Truckload (LTL) Shipping: This service involves consolidating multiple smaller freight shipments from different customers onto a single truck for cost-effective and efficient delivery across North America.
• Truckload Services: XPO provides solutions for full truckload shipments, connecting businesses with dedicated trailer capacity for larger freight volumes that fill an entire truck.
• Cross-border Transportation: They offer integrated freight services that facilitate the seamless movement of goods across international borders, primarily between the United States, Canada, and Mexico.

XPO (symbol: XPO) primarily sells its freight transportation services to other businesses (B2B).

Due to the nature of its Less-Than-Truckload (LTL) freight business, XPO serves a highly diversified customer base across a wide range of industries. XPO does not typically disclose specific "major customers" by name, as no single customer is reported to account for 10% or more of its consolidated revenue, which is the threshold for disclosing a "major customer" in its SEC filings. Therefore, XPO does not rely on a few dominant customer companies.

Instead, XPO's customer base is comprised of thousands of companies from various sectors that require reliable freight transportation. While specific named major customers are not disclosed, the types of businesses that commonly utilize XPO's services include:

• Manufacturing and Industrial Companies: Businesses involved in producing goods, requiring transportation for raw materials, components, and finished products.
• Retail and E-commerce Businesses: Companies needing efficient supply chain solutions to move inventory to distribution centers, physical stores, and to facilitate e-commerce fulfillment.
• Consumer Goods Companies: Manufacturers and distributors of everyday products that require extensive logistics networks for widespread distribution.

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Mario Harik, Chief Executive Officer

Mr. Harik leads XPO's strategy, including growth investments in customer service and employee satisfaction, and oversees the expansion of network capacity and proprietary technology. He joined XPO in November 2011 as Chief Information Officer, later serving as Chief Customer Officer and President of North American LTL, before being appointed Chief Executive Officer on November 1, 2022. Prior to XPO, Mr. Harik was Chief Information Officer and Senior Vice President of Research and Development with Oakleaf Waste Management, Chief Technology Officer with Tallan, Inc., and co-founder and Chief Architect of web and voice applications with G3 Analyst.

Kyle Wismans, Chief Financial Officer

Mr. Wismans has led XPO's finance organization since 2023. He joined XPO in 2019 as Senior Vice President, Financial Planning and Analysis and later served as Senior Vice President, Revenue Management and Finance. Prior to XPO, he held numerous senior financial positions over a 17-year career with global public companies, including executive roles at General Electric Company and Baker Hughes, where he was head of global financial planning and analysis for two divisions and Chief Financial Officer for a global GE business. He also held senior roles on GE's global audit staff.

Dave Bates, Chief Operating Officer

Mr. Bates is responsible for all day-to-day operations in XPO's Less-Than-Truckload (LTL) business in North America, encompassing service quality, customer experience, network optimization, workforce productivity, and sales. He joined XPO in 2023, following 27 years with Old Dominion Freight Line, Inc., where his roles included 12 years as Senior Vice President, Operations.

Carolyn Roach, Chief Human Resources Officer

As Chief Human Resources Officer, Ms. Roach is a key member of the XPO leadership team.

Jay Silberkleit, Chief Information Officer

Mr. Silberkleit leads XPO's technology organization. He joined XPO as Vice President, Enterprise Architecture in 2012, shortly after the company's founding, and was crucial in developing XPO's technology ecosystem, including its digital brokerage platform. In 2021, he was promoted to Senior Vice President, Technology, overseeing the company's optimization initiatives in less-than-truckload. His career spans 18 years as an enterprise systems leader with Fortune 500 companies, and he was previously a Principal Software Engineer at Waste Management, Inc.

The key risks to XPO's business include:

1. Soft Freight Environment and Economic Downturns: A significant and immediate threat to XPO is the persistently soft freight environment, an external risk beyond the company's control. Analysts project a potential volume decline of up to 7% for XPO in 2025, which would put pressure on revenue generation. Economic recessions and fluctuations in freight volumes, both in North America and Europe, could materially impact the business, as XPO's financial health is closely tied to freight market dynamics.
2. Intense Competition and Pricing Pressure: The North American Less-Than-Truckload (LTL) sector where XPO operates is highly competitive, featuring major players such as Old Dominion Freight Line, FedEx Freight, and Saia. The increasing commoditization of freight transportation, driven by e-commerce growth, could further weaken pricing power across the industry. Should volume declines persist, XPO might face increased pressure to compete more aggressively on price, potentially compromising its yield improvements. Additionally, the rise of automation, AI adoption, and new digital competitors poses a threat to XPO's market share, efficiency, and ability to maintain pricing power.
3. High Debt Levels and Financial Leverage: XPO carries a substantial amount of financial leverage, which is a key risk, particularly in an environment of higher interest rates. The company's debt-to-equity ratio of approximately 2.34 indicates a higher reliance on debt financing. XPO anticipates significant interest expenses, projected to be between $220 million and $230 million in the 2025 fiscal year. As of September 30, 2025, XPO's total debt load was approximately $3.347 billion, which is noted as a high level of debt.

The continued and extensive investment by large enterprise shippers, particularly e-commerce giants like Amazon, in building out their own comprehensive proprietary logistics networks. These networks increasingly encompass middle-mile and LTL-like services, leading to a potential reduction in demand for third-party LTL carriers like XPO as these shippers internalize more of their freight movements.

XPO's primary product and service is Less-Than-Truckload (LTL) freight transportation, predominantly in North America.

Addressable Market Sizes:

• North American Less-Than-Truckload (LTL) Market: The North American LTL market generated a revenue of approximately USD 84.63 billion in 2024 and is projected to reach approximately USD 120.55 billion by 2030, growing at a CAGR of 6.1% from 2025 to 2030. North America held over 37.0% of the global less-than-truckload market revenue share in 2023. Another source indicates North America accounts for 42% of the global LTL market share in 2024.
• United States Less-Than-Truckload (LTL) Market: The United States LTL market size is estimated at USD 114 billion in 2025 and is expected to reach USD 139.6 billion by 2030, with a CAGR of 4.13% during the forecast period (2025-2030). Another report estimated the U.S. LTL market to be USD 114 billion in 2024. The U.S. LTL market is expected to exceed USD 110 billion by 2030.

For other services such as truckload, freight brokerage, last-mile delivery, managed transportation, and freight forwarding, specific addressable market sizes are null. XPO spun off its brokerage and other services (managed transportation, global forwarding and last-mile logistics) to RXO, Inc. in November 2022, and its contract logistics business into GXO Logistics.

XPO (NYSE: XPO) is strategically positioned for future revenue growth over the next 2-3 years, driven by several key initiatives and market dynamics:

1. North American LTL Network Expansion and Capacity Investments: XPO is making significant investments to expand its Less-Than-Truckload (LTL) network across North America. This includes opening new service centers, relocating existing facilities to larger sites to increase capacity, and continuously upgrading its fleet by purchasing new tractors and trailers. These initiatives are designed to improve network density, enhance service transit times, accommodate anticipated volume growth, and boost overall customer service. The company acquired 26 LTL service centers and assumed leases for two additional locations from Yellow Corporation, further expanding its growth capacity in key markets.
2. Strategic Pricing and Yield Management in LTL: XPO has demonstrated strong pricing power and effective yield management within its LTL segment. Despite a soft freight market, the company has reported continued yield growth and anticipates further margin improvements. This disciplined approach to pricing is a significant factor in driving revenue growth.
3. Technological Innovation and AI-Driven Efficiency: XPO is leveraging technology and AI to enhance its operational efficiency and service offerings. Investments in digital solutions, automation, and data analytics, including AI-driven tools, are leading to significant productivity improvements, reduced outsourced miles, and improved cost efficiency. These technological advancements are crucial for adapting to changing market demands and improving customer satisfaction and retention.
4. Expansion into New Service Offerings and Strategic Partnerships: The company is actively exploring opportunities in adjacent service offerings and potential strategic partnerships to diversify its revenue streams and provide more comprehensive supply chain solutions. XPO also aims to increase its small and medium business (SMB) customer mix to 30%, which is expected to contribute to future growth.

Share Repurchases

• XPO had a share repurchase authorization of $1.5 billion, with $503 million remaining as of December 31, 2024.
• The company did not repurchase shares in 2021, 2022, 2023, or 2024.
• In March 2025, XPO authorized a new $750 million share repurchase plan, replacing the previous authorization.
• XPO repurchased $50 million in common stock during Q3 2025.

Share Issuance

• In 2021, XPO exchanged remaining 1,015 preferred shares for 0.1 million shares of common stock.
• In 2021, 9.8 million warrants were exchanged for 9.2 million shares of common stock to simplify the equity capital structure.
• The company's 2016 incentive plan was amended in May 2022 to increase the number of authorized shares for stock-based compensation awards by 2.3 million.

Outbound Investments

• XPO completed the spin-off of GXO Logistics, Inc. in August 2021.
• XPO completed the sale of its North American intermodal operation in March 2022.
• XPO completed the spin-off of RXO, Inc. in November 2022.
• In December 2023, XPO acquired 28 LTL service centers and assumed leases for two additional locations from Yellow Corporation as part of the Yellow Asset Acquisition.

Capital Expenditures

• XPO's gross capital expenditures were 14.6% of revenue in 2024.
• For 2025, XPO anticipates gross capital expenditures to be between $600 million and $700 million.
• Capital expenditures are primarily focused on expanding network capacity, enhancing the network, improving service quality, and driving operational efficiencies, including investments in tractors, trailers, and service centers.