XPO, Inc.XPO
XPO, Inc. Segments Disclosure
Segment Reporting and Geographic Information
We are organized into two reportable segments: North American LTL, the largest component of our business, and European Transportation.
In our North American LTL segment, we provide shippers with geographic density and day-definite domestic and cross-border services to the U.S., as well as Mexico, Canada and the Caribbean. Our North American LTL segment also includes the results of our trailer manufacturing operation.
In our European Transportation segment, we serve an extensive base of customers within the consumer, trade and industrial markets. We offer dedicated truckload, LTL, full truckload brokerage, warehousing, managed transportation, last mile, freight forwarding, and multimodal solutions.
Corporate includes corporate headquarters costs for executive officers and certain legal and financial functions, and other costs and credits not attributed to our reportable segments.
Our chief operating decision maker (“CODM”) is our chief executive officer. Our CODM regularly reviews financial information at the operating segment level to allocate resources to the segments and to assess their performance. We include items directly attributable to a segment, and those that can be allocated on a reasonable basis, including corporate costs, in segment results reported to the CODM. We do not provide asset information by segment to the CODM.
Our CODM evaluates segment profit (loss) based on adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), which we define as income from continuing operations before debt extinguishment loss, interest expense, income tax provision, depreciation and amortization expense, legal matters, transaction and integration costs, restructuring costs and other adjustments.
Our CODM uses adjusted EBITDA to allocate resources, including property and equipment and financial or capital resources, to the segments and to assess their performance by monitoring budget-to-actual and year-over-year variances.
The following tables present revenue and significant segment expenses that are included within adjusted EBITDA:
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||
| (in millions) | North American LTL | European Transportation | Corporate (1) | Total | ||||||||||||||||||||||
| Revenue | $ | 4,832 | $ | 3,324 | $ | — | $ | 8,157 | ||||||||||||||||||
| Salaries, wages and employee benefits | 2,520 | 888 | 15 | 3,424 | ||||||||||||||||||||||
| Purchased transportation | 123 | 1,539 | — | 1,662 | ||||||||||||||||||||||
| Fuel, operating expenses and supplies | 885 | 686 | 1 | 1,571 | ||||||||||||||||||||||
| Operating taxes and licenses | 67 | 17 | — | 83 | ||||||||||||||||||||||
| Insurance and claims | 111 | 55 | 1 | 167 | ||||||||||||||||||||||
| Gains on sales of property and equipment | (9) | (8) | — | (17) | ||||||||||||||||||||||
| Pension (income) expense | (6) | 1 | — | (6) | ||||||||||||||||||||||
| Other (income) expense | — | 1 | (1) | — | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,142 | $ | 147 | $ | (16) | $ | 1,272 | ||||||||||||||||||
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||
| (in millions) | North American LTL | European Transportation | Corporate (1) | Total | ||||||||||||||||||||||
| Revenue | $ | 4,899 | $ | 3,173 | $ | — | $ | 8,072 | ||||||||||||||||||
| Salaries, wages and employee benefits | 2,515 | 846 | 16 | 3,377 | ||||||||||||||||||||||
| Purchased transportation | 248 | 1,454 | — | 1,701 | ||||||||||||||||||||||
| Fuel, operating expenses and supplies | 928 | 661 | — | 1,589 | ||||||||||||||||||||||
| Operating taxes and licenses | 65 | 15 | — | 80 | ||||||||||||||||||||||
| Insurance and claims | 80 | 51 | 3 | 134 | ||||||||||||||||||||||
| Gains on sales of property and equipment | (27) | (14) | — | (40) | ||||||||||||||||||||||
| Pension (income) expense | (25) | 1 | — | (25) | ||||||||||||||||||||||
| Other (income) expense | — | 1 | (12) | (12) | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,115 | $ | 158 | $ | (7) | $ | 1,266 | ||||||||||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||||||||
| (in millions) | North American LTL | European Transportation | Corporate (1) | Total | ||||||||||||||||||||||
| Revenue | $ | 4,671 | $ | 3,073 | $ | — | $ | 7,744 | ||||||||||||||||||
| Salaries, wages and employee benefits | 2,346 | 795 | 18 | 3,159 | ||||||||||||||||||||||
| Purchased transportation | 366 | 1,394 | — | 1,760 | ||||||||||||||||||||||
| Fuel, operating expenses and supplies | 956 | 661 | 6 | 1,623 | ||||||||||||||||||||||
| Operating taxes and licenses | 48 | 12 | — | 60 | ||||||||||||||||||||||
| Insurance and claims | 102 | 59 | 6 | 167 | ||||||||||||||||||||||
| (Gains) losses on sales of property and equipment | 8 | (13) | — | (5) | ||||||||||||||||||||||
| Pension (income) expense | (17) | — | — | (17) | ||||||||||||||||||||||
| Other (income) expense | (2) | 2 | 1 | 1 | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 864 | $ | 163 | $ | (31) | $ | 996 | ||||||||||||||||||
(1) Primarily represents unallocated corporate costs, as well as investment income of approximately $13 million within Other (income) expense in 2024.
The following table presents adjusted EBITDA by segment and provides a reconciliation to consolidated income from continuing operations:
| Years Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Adjusted EBITDA | ||||||||||||||||||||
| North American LTL | $ | 1,142 | $ | 1,115 | $ | 864 | ||||||||||||||
| European Transportation | 147 | 158 | 163 | |||||||||||||||||
| Corporate | (16) | (7) | (31) | |||||||||||||||||
| Total Adjusted EBITDA | 1,272 | 1,266 | 996 | |||||||||||||||||
| Less: | ||||||||||||||||||||
| Debt extinguishment loss | 6 | — | 25 | |||||||||||||||||
| Interest expense | 219 | 223 | 168 | |||||||||||||||||
| Income tax provision | 121 | 86 | 68 | |||||||||||||||||
| Depreciation and amortization expense | 521 | 490 | 432 | |||||||||||||||||
Pre-Con-way acquisition environmental matter (1) | 35 | — | — | |||||||||||||||||
Legal matters (2) | (13) | — | 8 | |||||||||||||||||
| Transaction and integration costs | 8 | 53 | 58 | |||||||||||||||||
| Restructuring costs | 59 | 27 | 44 | |||||||||||||||||
| Other | — | — | 1 | |||||||||||||||||
| Income from continuing operations | $ | 316 | $ | 387 | $ | 192 | ||||||||||||||
(1) Relates to environmental and product liability claims involving a former subsidiary of Con-way, which was sold prior to XPO's acquisition of Con-way in 2015.
(2) In 2025, reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to our acquisition of Norbert Dentressangle SA in 2015. For 2023, see Note 17— Commitments and Contingencies for further information on the California Environmental Matters.
The following table presents depreciation and amortization expense by segment:
| Years Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Depreciation and amortization expense | ||||||||||||||||||||
| North American LTL | $ | 381 | $ | 346 | $ | 291 | ||||||||||||||
| European Transportation | 136 | 140 | 136 | |||||||||||||||||
| Corporate | 4 | 4 | 5 | |||||||||||||||||
| Total | $ | 521 | $ | 490 | $ | 432 | ||||||||||||||
As of December 31, 2025 and 2024, we held long-lived tangible assets outside of the U.S., including right of use assets, of $844 million and $715 million, respectively.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 5, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 8, 2024 | |
| 2022 | Feb 13, 2023 | |
| 2021 | Feb 16, 2022 | |
| 2020 | Feb 12, 2021 | |
| 2019 | Feb 10, 2020 | |
| 2018 | Feb 14, 2019 | |
| 2017 | Feb 12, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.