Overview
Transportation solutions provider's Q4 revenue misses analyst expectations
Adjusted loss per share for Q4 wider than analyst expectations
Company finalized $450 mln asset-based lending facility for financial flexibility
Outlook
RXO expects Q1 2026 adjusted EBITDA between $5 mln and $12 mln
Company anticipates Q1 2026 Brokerage volume to decline by 5% to 10% year-over-year
RXO forecasts Q1 2026 Brokerage gross margin between 11% and 13%
Result Drivers
TIGHTENING MARKET - Full-truckload market tightened, impacting buy rates and squeezing Brokerage gross margin, per CEO Drew Wilkerson
PIPELINE GROWTH - Brokerage late-stage pipeline for new business grew by more than 50% year-over-year
FREIGHT MANAGEMENT - Managed Transportation awarded more than $200 mln of freight under management in Q4
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Miss | $1.47 bln | $1.49 bln (17 Analysts) |
Q4 Adjusted EPS | Miss | -$0.07 | -$0.04 (19 Analysts) |
Q4 EPS | -$0.27 | ||
Q4 Adjusted Net Income | -$11 mln | ||
Q4 Adjusted EBITDA | $17 mln | ||
Q4 Adjusted EBITDA Margin | 1.20% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 15 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy."
Wall Street's median 12-month price target for RXO Inc is $15.00, about 9.5% below its February 5 closing price of $16.58
The stock recently traded at 147 times the next 12-month earnings vs. a P/E of 54 three months ago
Press Release: ID:nBw2BsYQza
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)