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A freight transportation company that moves less-than-truckload (LTL) shipments—where multiple customers' goods share one trailer—across North America and Europe, serving tens of thousands of shippers with day-definite delivery to nearly every U.S. zip code. It traces its roots to Express-1 Expedited Solutions, founded in 1989, which entrepreneur Brad Jacobs acquired in 2011 and rebuilt into today's XPO. The name comes from the "XPO" stock ticker the company already carried, kept as a short, memorable brand.
XPO Q2 2026 operating income rose 36.9% to $271M as North American LTL volume and yield grew
North American LTL returned to volume and yield growth together. rose 13.2% to $2,355M and rose 52.8% to $1.36 as grew 36.9% to $271M on LTL productivity gains, while European Transportation grew on currency and pricing. The quarter shows the freight business compounding efficiency, with the European divestiture still unresolved.
Key takeaways
North American LTL rose 30.0% to $390M, driven by a 4.4% ex-fuel yield increase, more shipments per day, and AI-driven productivity that lowered salaries, wages, and benefits to 39.4% of from 41.9%.
Consolidated rose 13.2% to $2,355M and rose 36.9% to $271M, with up 2.0 points to 11.5% .
European Transportation grew 10.2% to $927M on improved pricing and a 2.4-point currency , though its margin held flat at 5.2%.
Section summaries
Management's Discussion and Analysis
Q2 2026 revenue rose 13.2% to $2.4B, driven by LTL yield and tonnage gains; operating income grew 36.9% to $271M.
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Consolidated increased 13.2% to $2.4B in Q2 2026, with North American LTL up 15.2% and European Transportation up 10.2%.
North American LTL rose 30.0% to $390M, driven by higher (gross per hundredweight ex-fuel up 4.4%), increased shipments per day, and productivity improvements.
rose 52.8% to $162M and rose to $1.36; rose 254.9% to $181M from a year earlier as stayed within the $500M–$600M guide.
stood at $898M; the company repaid $200M of principal year-to-date, repurchased $100M in shares, and refinanced term loans.
The Board-authorized European Transportation divestiture remained unresolved with no timing or terms disclosed, and no new risk factors were added from the 2025 10-K.
What changed
The European Transportation divestiture flagged in every prior filing remains unresolved with no terms or timing in this 10-Q, leaving mix unchanged.
North American LTL daily shipment trend reversed: Q1 2026 had a 3.0% increase and Q2 added more shipments per day, after the 6.2% FY2025 tonnage drop and Q3 2025's 6.1% volume decline.
Q2 2026 of $162M rose against the $106M Q2 2025 figure, now that the prior-year $41M one-time tax benefit and Q1 2025's $11M legal gain have lapped.
Full-year 2026 guide of $500M–$600M continues from the 2025 10-K plan, with Q2 of $308M supporting it after $183M in Q1.
Salaries, wages, and benefits fell to 39.4% of from 41.9% a year earlier, extending the productivity trend first noted in Q1 2026's AI tool gains.
What to watch
Terms or timing of the Board-authorized European Transportation divestiture in the next filing.
North American LTL shipment-per-day trend in Q3 2026 after two quarters of increase against the FY2025 tonnage drop.
Q3 2026 against the $82M Q3 2025 figure, which carried a $35M environmental charge.
Full-year 2026 of $500M–$600M and against after $491M year-to-date.
European Transportation grew 10.2% to $927M, aided by improved pricing and a 2.4 percentage point foreign currency , though margin remained flat at 5.2%.
Salaries, wages, and benefits as a percentage of declined to 39.4% from 41.9%, reflecting AI-driven productivity gains and on higher volumes.
Fuel, operating expenses, and supplies rose to 20.2% of from 18.5%, driven by higher fuel costs, partially offsetting other cost efficiencies.
Liquidity remained strong at $898M; the company refinanced term loans, repaid $200M in principal year-to-date, and repurchased $100M in shares, with full-year guided to $500–600M.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risk related to changes in interest rates, foreign currency exchange rates and commodity prices. There have been no material changes to our quantitative and qualitative disclosures about market risk during the six months ended June 30, 2026, as compared…
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We are exposed to market risk related to changes in interest rates, foreign currency exchange rates and commodity prices. There have been no material changes to our quantitative and qualitative disclosures about market risk during the six months ended June 30, 2026, as compared with the quantitative and qualitative disclosures about market risk described in our 2025 Form 10-K.
For information related to our legal proceedings, refer to “Legal Proceedings” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Note 9—Commitments and Contingencies of Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q. 29 Ta…
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For information related to our legal proceedings, refer to “Legal Proceedings” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Note 9—Commitments and Contingencies of Item 1, “Financial Statements” of this Quarterly Report on Form 10-Q.
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There are no material changes to the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
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There are no material changes to the risk factors previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.