American logistics company XPO (NYSE: XPO) published financial results for the fourth quarter of 2025, ending the year with revenue growth and improved key operating metrics. Quarterly revenue reached $2.01 billion, compared to $1.92 billion in the previous year. Diluted earnings per share were $0.50, compared to $0.63 in the fourth quarter of 2024, and adjusted diluted earnings were $0.88, compared to $0.89. Operating profit decreased to $143 million (year-earlier – $148 million), net profit – to $59 million ($76 million a year ago), which is due, among other things, to a decrease in real estate revenue by $21 million and an increase in restructuring expenses by $23 million. At the same time, adjusted EBITDA increased to $312 million, compared to $303 million in the previous year. XPO generated $226 million in operating cash flow during the quarter and ended the year with $310 million in cash on the balance sheet.
The North American LTL segment remains the key driver of the results. Its revenue in Q4 was $1.17 billion, compared to $1.16 billion a year earlier. Profitability (excluding fuel) increased by 5.2%, despite a 1.6% decrease in daily shipments and a 4.5% decrease in tonnage. Segment operating profit increased to $184 million, and adjusted operating profit to $181 million, compared to $159 million a year earlier. The adjusted operating ratio improved by 180 basis points to 84.4%. Adjusted EBITDA reached $285 million. Revenue in the European division increased to $846 million from $765 million a year earlier, with an operating loss of $13 million. Adjusted EBITDA for the European business increased to $32 million.
XPO Chairman and CEO Mario Harik noted that the company ended the year with solid profitability growth and continues to expand margins thanks to its focus on service and the implementation of proprietary technology solutions, including AI to improve network efficiency and labor productivity. He added that XPO expects to further accelerate free cash flow in the coming years and strengthen its market position amid a potential recovery in the freight sector. XPO serves approximately 55,000 customers through 592 locations in North America and Europe and transports approximately 16 billion pounds of cargo annually.