XPO - XPO Inc. (XPO) Q1 2024 Earnings Call Transcript
2024-05-04 09:11:09 ET
XPO, Inc. (XPO)
Q1 2024 Earnings Conference Call
May 3, 2024, 8:30 am ET
Company Participants
Mario Harik - CEO
Kyle Wismans - CFO
Ali Faghri - CSO
Conference Call Participants
Ravi Shanker - Morgan Stanley
Ken Hoexter - Bank of America
Daniel Imbro - Stephens
Fadi Chamoun - BMO Capital Markets
Jon Chappell - Evercore ISI
Stephanie Moore - Jefferies
Tom Wadewitz - UBS
Brian Ossenbeck - J.P. Morgan
Jason Seidl - TD Cowen
Jordan Alliger - Goldman Sachs
Brandon Oglenski - Barclays
Scott Schneeberger - Oppenheimer
Kevin Gainey - Thompson Davis & Company
Presentation
Mario Harik
Good morning, everyone. Thanks for joining our call. I'm here in Greenwich with Kyle Wismans, our Chief Financial Officer; and Ali Faghri, our Chief Strategy Officer.
This morning we reported financial results that were well above expectations for revenue and earnings, in a soft market for freight transportation. It was a strong first quarter for us company-wide, reflecting the momentum we carried into 2024.
We grew revenue year-over-year by 6% to $2 billion, and we improved our adjusted EBITDA by 37% to $288 million. Adjusted diluted EPS was 45% higher year-over-year at $0.81. As you saw in our results, our LTL 2.0 plan is firing on all cylinders. I want to frame my comments this morning around the four pillars of our plan and the tremendous progress we're making.
I'll start with the pillar that is most important to our growth and profitability is to provide world class service to our customers. Our first quarter damage claims ratio continued to be among the best in the industry, at a company record of 0.3%. This was an improvement from 0.7% last year and from 1.2% when we launched LTL 2.0 just over two years ago. The underlying driver of this improvement has been a reduction of more than 70% in damage frequency.
Another key service metric is on-time performance, which has now improved on a year-over-year basis for eight consecutive quarters. In short, we’re delivering meaningful service improvements, while moving more volume through our network, with a multi-year plan that balances operational excellence and investments in the network. This includes the freight airbag systems we introduced in the second half of last year. That equipment is now installed in 75% of our service centers and we expect to complete the rollout by mid-year. The sites that have the airbag are seeing an improvement in damage frequency of greater than 20%.
We’ve also recently updated our trailer loading procedures, which will continue to enhance our service quality over time. And as we in-source more miles from third-party carriers, we expect this to further reduce damages and improve on-time performance. We’ve made it clear to our customers and employees that service quality is our North Star, and we're well on our way to becoming the best-in-class LTL service provider....
XPO, Inc. (XPO) Q1 2024 Earnings Call Transcript