XPO Inc

Record profitability + major margin milestone (good): - Q2 company revenue +$2.4B (+13% YoY); adjusted EBITDA $434M; adjusted diluted EPS $1.70 (reported diluted EPS $1.36). - Ex-real-estate gains: adjusted EBITDA $425M (+25% YoY); adjusted diluted EPS $1.64 (+56% YoY). - North American LTL operating ratio (OR): 79.9%, record and 300 bps better YoY, outperforming normal seasonality (seasonality would have pushed OR above ~82% in Q3).

LTL operational engine + service quality proving durable (good/surprising): - Service/damage performance: damage claims ratio <0.2% for the second quarter in a row (best level in history per management). - Volume mix: shipments/day +2.8% YoY, tonnage/day +1% YoY, weight/shipment -1.8% YoY in Q2. - July momentum: volumes accelerated—>6% YoY tonnage and shipments/day, with weight/shipment roughly flat YoY, all above normal seasonality.

Guidance/upside: margin improvement outlook raised (forecast/good): - Full-year OR improvement expectation raised: now expects at least +200 bps full-year OR margin improvement (previously +100 to +150 bps). - Q3 expectation: OR expected below 81% (management frames this as “significantly outperforming normal seasonality”). - Volume outlook: tonnage now expected up a few points vs earlier flattish expectations, driven by stronger demand and market share gains. - Pricing: management expects yield and revenue per shipment (ex-fuel) to keep improving sequentially in Q3 and Q4, with revenue per shipment growth accelerating more than previously expected.