Less-than-truckload carrier XPO reported fourth-quarter adjusted earnings per share of 89 cents Thursday before the market opened. The result was 12 cents higher year over year and 26 cents better than the consensus estimate.

Consolidated revenue of $1.92 billion was down 1% y/y.

XPO’s (NYSE: XPO) LTL segment generated $1.16 billion in revenue, a 2.6% y/y decline. Tonnage declined 5.7% but was partially offset by a 1.7% increase in yield (6.3% higher excluding fuel surcharges). The unit reported an 86.2% adjusted operating ratio (inverse of operating margin), 30 basis points better y/y.

A full-year adjusted OR of 84.8% was 260 bps better y/y and ahead of management’s guidance of 150 to 250 bps of improvement. The result was accomplished even with the cost headwinds from opening 25 new terminals in the year.

“We’ve entered 2025 with strong momentum, following landmark network investments that strengthen our competitive position in a freight market recovery and for the long-term,” said XPO CEO Mario Harik in a news release. “The intense execution you see in our results will continue to deliver years of margin expansion.”

XPO’s European transportation segment reported a 1.6% y/y increase in revenue to $765 million. It recorded an adjusted earnings before interest, taxes, depreciation and amortization margin of 3.5%, which was 120 bps worse y/y.

The consolidated adjusted EPS number excluded transaction and restructuring costs as well as a $34 million gain from the sale of real estate. These items are considered nonrecurring.

XPO will host a call to discuss results with analysts on Thursday at 8:30 a.m. EST.

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