XPO Logistics recently posted results for their first profitable quarter in the past four years.
Over the years, XPO has been steadily acquiring new customers along with dozens of acquisitions of companies from all corners of the logistics market. This includes multi-billion dollar acquisitions of transportation providers in both the U.S. and Europe. This has resulted in XPO posting a record $42.6 million profit for the second quarter. This caps off a wonderful year for the company being named the fastest-growing Fortune 500 company.
“We’re at an inflection point in the evolution of our business…”
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said, “In the second quarter, we generated $355 million of adjusted EBITDA, $261 million of cash flow from operations, and $170 million of free cash flow – all records for our company. We’re at an inflection point in the evolution of our business, accelerating our EBITDA and cash generation while continuing to invest in technology, our sales force and other levers of future growth.”
“Our strong performance in the quarter was led by our North American operations for last mile and less-than-truckload, and by our European supply chain operations. While market conditions were sluggish overall, e-commerce was a major tailwind – driving margin expansion in last mile, and resulting in major contract wins in contract logistics on both sides of the Atlantic. In LTL, we increased operating income by 66% from last year’s second quarter, pre-acquisition.”