XPO Logistics reports “record” Q2 results
XPO Logistics has reported that its revenues for the second quarter (Q2) were up 16% on last year at $4.36bn, driven by an increase in e-commerce.
The adjusted EBITDA for the quarter was up to $436.7m, compared to $370.8m in last year’s Q2.
Commented in the results, Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said: “Our strong second quarter performance was highlighted by record results for revenue, net income, adjusted EBITDA, cash flow from operations and free cash flow. We grew profitability faster than revenue, with a 178% increase in net income and an 18% increase in adjusted EBITDA on organic revenue growth of 11%.
“In logistics, we implemented a record 37 customer start-ups in three months – and once again, the big driver was e-commerce. In transportation, we increased freight brokerage net revenue by 46% with a lower headcount. North American last mile and European transport were also standouts. In our North American less-than-truckload business, we achieved the best adjusted operating ratio in 30 years at 84.3%.”
Jacobs continued, “Our expanded sales force signed $2.1bn of new business this year through June. We have innovations underway in every corner of the company. They include the ramp-up of our XPO Direct distribution network, the build-out of our digital freight marketplace, the expansion of our last mile footprint, and the deployment of dynamic analytics for workforce planning. These are secular growth drivers that create sustainable value for our customers and shareholders.”
Meanwhile, XPO has also announced that John Hardig will step down as chief financial officer on 15 August and Sarah Glickman, senior vice president, corporate finance, will assume the role of acting chief financial officer while the company conducts an executive search for its next permanent CFO.