XPO Logistics reports rising manufacturer demand amid freight market upcycle

XPO Logistics has reported a surge in demand from U.S. manufacturers for the first time in three years, driving a significant improvement in its second-quarter 2026 financial performance. The less-than-truckload (LTL) specialist posted a 52.8% increase in profit to $162 million, while North American LTL revenue jumped 15.2% to $1.43 billion. Overall revenue climbed 13.5% to $2.36 billion compared with the same period in 2025. The company’s adjusted operating ratio—a key measure of efficiency—improved to 79.9 from 82.9 a year earlier, signaling stronger freight conditions. Daily shipments rose 2.8% to 52,229, and revenue per shipment (excluding fuel surcharges) increased 2.4% to $335.27. CEO Mario Harik attributed the uptick to a resurgence in manufacturing activity, a trend not seen since 2023. The company’s customer survey indicates accelerating industrial demand through 2026 and 2027, with contract renewals in the mid- to high-single-digit range as shippers lock in rates amid tightening truckload capacity. XPO’s average weight per shipment fell 1.8% year over year to 1,311 pounds, though executives noted sequential improvements in Q2 and July, outperforming seasonal trends. The carrier has invested heavily in expanding its service center network, including 28 terminals acquired from Yellow’s bankruptcy auction for $870 million, enhancing its presence in key markets like Nashville, Atlanta, Texas, and the Midwest. With over 300 service centers, XPO ranks fifth among North America’s largest for-hire carriers and fourth in the LTL segment. Management emphasized that these investments, made during the freight market downturn, position XPO to capitalize on the current upcycle.