Shares of RXO Inc. (NYSE: RXO) are soaring 5.51% in pre-market trading on Thursday following the company's release of its second-quarter 2025 financial results. The logistics and transportation company reported better-than-expected adjusted earnings and showed strong growth in its less-than-truckload (LTL) segment, despite challenging market conditions.

RXO reported adjusted earnings per share of $0.04 for Q2, surpassing analysts' expectations of $0.02 and marking a 33.33% increase from the same period last year. While revenue came in at $1.4 billion, slightly below the estimated $1.44 billion, it still represented a substantial 52.58% year-over-year increase. The company's adjusted EBITDA rose to $38 million, up from $28 million in Q2 2024, with an adjusted EBITDA margin of 2.7%.

A key highlight of RXO's performance was the impressive 45% year-over-year growth in its less-than-truckload (LTL) volume, which helped offset a 12% decline in full truckload volume. This growth in the LTL segment demonstrates RXO's ability to adapt to changing market dynamics and capitalize on emerging opportunities. Additionally, the company provided a positive outlook for the third quarter, expecting adjusted EBITDA to be between $33 million and $43 million. This forward-looking guidance, coupled with the company's strong cash performance and sequential increase in cash balance, appears to be fueling investor optimism and driving the stock's pre-market surge.