Strong growth at XPO

US and European logistics company XPO Logistics revenue grew by 16% in Q2 to $4.36bn while adjusted EBITDA was up from $370.8m to $436.7m.

XPO’s logistics division had revenues of $1.5bn which was 19% up on the same period in 2017. This growth was driven by demand for e-commerce logistics around the world and the consumer packaged goods as well as Technology sectors in North America and the fashion sector in Europe. It’s operating income 20.6% to $67.3 million.

Meanwhile the transport division sole revenue increase by 14.5% to $2.9bn. Operating income grew to $205 million.

Chairman and chief executive Bradley Jacobs said: “Our strong second quarter performance was highlighted by record results for revenue, net income, adjusted EBITDA, cash flow from operations and free cash flow. We grew profitability faster than revenue, with a 178 per cent increase in net income and an 18 per cent increase in adjusted EBITDA on organic revenue growth of 11 per cent.

“In logistics, we implemented a record 37 customer start-ups in three months — and once again, the big driver was e-commerce. In transport, we increased freight brokerage net revenue by 46 per cent with a lower headcount. 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 per cent.

“Our expanded sales force signed $2.1 billion of new business this year through June. We have innovations underway in every corner of the company. They include the ramp-up of our XPO Direct distribution network, the build-out of our digital freight marketplace, the expansion of our 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.”