Al Root

Logistics company XPO delivered a solid end to 2025, while investors still wait for higher demand to materialize.

On Thursday, XPO announced earnings per share of 88 cents from sales of $2 billion. Wall Street was looking for earnings per share of 76 cents from sales of just under $2 billion. A year ago, XPO reported EPS of 89 cents from sales of $1.9 billion.

Earnings before interest, taxes, depreciation, and amortization, or Ebitda, was $312 million, up 11% year over year. Wall Street was looking for $295 million.

The quarter looks solid. Shares were down 1.4% at $177 in premarket trading, while S&P 500 and Dow Jones Industrial Average futures were up less than 0.1%.

Starting points might help explain the reaction. XPO stock has been strong. Coming into Thursday trading, XPO stock was up 32% this year. Shares rose 5.9% on Wednesday.

Investors have been betting on a recovery in freight markets. The Dow Transports Index is up almost 14% this year, while the S&P 500 is up less than 1%.

While XPO beat expectations, it still saw decreased shipments and tonnage in its North American less-than-truckload business. LTL shipping serves primarily industrial customers who need to ship things over shorter distances and don't need a full truck.

Eventually, investors would like to see higher demand as well as improved operating performance.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 05, 2026 07:24 ET (12:24 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.