RXO Posts Strong Q2: Revenue Jumps to $1.8B, Guides Q3 EBITDA Up to $45M
RXO has more than doubled off its 52-week low of $10.425.
Summary
RXO delivered a solid Q2, with revenue surging to $1.8B from $1.4B a year ago, driven by market share gains and improved profitability. Adjusted EBITDA rose to $40M, and adjusted EPS hit $0.06, beating the prior year's $7M and $0.04 respectively and exceeding estimates. Brokerage outperformed, with truckload volume up 2% and a 900-basis-point sequential jump in spot mix to 42%, fueling the best gross profit per load growth in four years. Complementary Services added $100M in new freight under management and a 3% increase in Last Mile stops. The Q3 outlook calls for adjusted EBITDA of $35M-$45M and continued volume and gross profit per load growth, signaling management's confidence in an early-cycle recovery. This follows a tough Q1 that saw a widened net loss and EBITDA drop, making the turnaround more notable.
At the time of this announcement, RXO was trading at $23.10 on NYSE in the Trade & Services sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $10.43 to $29.90. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.