Announcing its second-quarter financial results, XPO Logistics reported increased revenue, net income, adjusted EBITDA, and cash flow.
XPO Logistics' revenue increased 16% year over year to $4.36 billion while net income attributable to common shareholders was 137.5 million for the quarter. This was much higher than the net income attributable to common shareholders in the same period of 2017 at 47.6 million.
Earnings per diluted share was $1.03 for the quarter, up from 38 cents in Q2 2017.
Among other results reported, XPO said that adjusted earnings before interest, taxes, depreciation, and amortization increased to $436.7 million for the second quarter, excluding integration and rebranding costs of $7.8 million. This compared with $370.8 million of adjusted EBITDA for the same period in 2017.
The company generated $267.4 million of cash flow from operations and 192.9 million of free cash flow. The company stated that its full year 2018 target for adjusted EBITDA is at least 1.6 billion and its target for cumulative free cash flow is approximately $1 billion.
“Our strong second quarter performance was highlighted by record results for revenue, net income, adjusted EBITDA, cash flow from operations, and free cash flow,” said Bradley Jacobs, chairman and CEO of XPO Logistics. “In logistics, we implemented a record 37 customer startups in three months — and once again, the big driver was e-commerce.
“North American last mile and European transport were also standouts. In our North American less-than-truckload business, we achieved the best adjusted operating ratio in 30 years at 84.3%,” said Jacobs.
Jacobs said that the company was able to sign $2.1 billion of new business this year through June and it expects to have more new innovations underway, such as the ramp-up of the XPO Direct distribution network, the build-out of its digital freight marketplace, the expansion of its last mile footprint, and the deployment of dynamic analytics for workforce planning.
“These are secular growth drivers that create sustainable value for our customers and shareholders,” said Jacobs.
By segment, XPO’s transportation business generated the most revenue at 2.89 billion for the quarter, representing a 14.5% increase compared to Q2 2017. Growth was led by increases in freight brokerage and last mile in North America as well as dedicated truckload transportation in the UK and France.
The company’s Logistics segment generated $1.51 billion in revenue, increasing 19.1% from the same period last year. Revenue growth was driven by growing global demand for e-commerce logistics.