XPO Inc

Q3 performance: strong growth + margin expansion (all key metrics beating / accelerating) - Revenue +12% YoY to $2.4B - Adjusted EBITDA +27% to $433M - Adjusted diluted EPS +59% to $1.70 (GAAP diluted EPS $1.53) - North America LTL: Revenue +17% and adjusted operating income +$293M (+35%) → *highest adjusted operating income in company history* - LTL damage claims ratio <0.2% (service quality differentiator)

Guidance / outlook: expects continued margin strength in Q4 and strong full-year + 2026 cash flow - Management expects Q4 LTL operating ratio below 82% (they note normal seasonality would push OR up ~250 bps from Q3, which would be ~83%; they expect significant outperformance) - Company stance: full-year LTL/OR improvement now expected ~250 bps or better (previously guided north of 200 bps) - 4Q volume/yield expectation: expects yields and revenue per shipment ex-fuel to accelerate sequentially in Q4 and accelerate YoY as well - Free cash flow: expects to more than double 2026 free cash flow vs 2025, with ~$800M+ in 2026; also expects “billions” of free cash flow in coming years (driven by higher earnings + lower CapEx needs)

Drivers of the results: service + capacity + pricing discipline + AI-driven cost efficiency - Strategy centers on world-class service → supports profitable mix, premium/local share gains, and pricing power - Network capacity expansion: opened 2 new locations (Phoenix, Kansas City); operating with >30% excess door capacity - Insourcing purchased transportation: reduced outsourced miles to ~5.6% of miles (from ~25% at start of plan); company expects no need to increase outsourced miles, and benefits in an upcycle - AI adoption materially improving operations: - Rehandles reduced mid-single digits to the lowest level in over a decade - AI route optimization used on ~2/3 of routes - Dock/automation feedback reduced damages by ~20% YoY - Workforce planning: handled ~6% shipment growth with only low single-digit headcount increase