XPO Q2 Earnings Surge: Adjusted EPS Up 62%, LTL Margins Hit Record

summarizeSummary

XPO reported Q2 2026 adjusted diluted EPS of $1.70, up 62% year-over-year, on revenue of $2.36 billion. North American LTL margins hit a record, and strong cash flow funded buybacks and debt reduction.

check_boxKey Events · Earnings and Guidance · XPO

• Adjusted EPS Surges 62%

  Driven by strong LTL performance and operating leverage, adjusted diluted EPS reached $1.70, up from $1.05 in Q2 2025.

• Record LTL Operating Ratio

  The North American LTL adjusted operating ratio improved 300 bps to a company record of 79.9%, supported by 4.4% yield growth (ex-fuel) and a 1% tonnage increase.

• Strong Cash Flow Funds Buybacks

  Operating cash flow of $308 million in Q2 enabled $70 million in stock repurchases and $70 million in term loan repayments, ending with $298 million cash.

• European Restructuring Drags

  European Transportation revenue grew 10% to $927 million, but $21 million in restructuring costs led to a $6 million operating loss.

auto_awesomeAnalysis · XPO · Energy & Transportation

A standout quarter for XPO was fueled by a 62% year-over-year leap in adjusted diluted EPS to $1.70, propelled by a 36% increase in North American LTL adjusted operating income. The LTL segment's adjusted operating ratio improved 300 basis points to a record 79.9%, reflecting strong yield growth, higher tonnage, and productivity gains. Operating cash flow reached $308 million, which the company deployed to repurchase $70 million in stock and pay down $70 million in debt. European Transportation revenue grew 10%, but restructuring costs pushed the segment to an operating loss. Overall, the results demonstrate accelerating momentum in the core LTL business, with management citing AI-driven efficiency and service quality improvements.