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First look: RXO’s Q2 revenue declined, but gross margin improved

LTL volume climbed by about 40%, truckload fell slightly

John Kingston
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RXO has released its second quarter earnings. (Photo: Jim Allen/FreightWaves)

Here are some highlights of RXO’s second-quarter earnings report, released Wednesday:

  • RXO’s revenue in the second quarter dropped to $930 million from $963 million a year earlier, but its gross margin improved to 19%, up from 18.6% in the second quarter of 2023. It still had a GAAP loss of $7 million, though that included $11 million in one-off costs. Adjusted net income in the quarter was $4 million, compared to $10 million a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization was $28 million, down from $38 million a year earlier.
  • Brokerage volume at RXO (NYSE: RXO) was up 4% year over year from the second quarter of 2023. That included a 40% increase in LTL volume, white full truckload was down 2%.
  • The Managed Transportation segment picked up more than $200 million in freight under management during the quarter.
  • Last-mile stops were up 7%, which RXO said was the fastest growth rate in almost two years.
  • The earnings report does not include Coyote Logistics, the acquisition of which was announced in late June. RXO said at the time it expected the deal to be immediately accretive to earnings.
  • The company’s conference call is at 8 a.m. Wednesday.

More articles by John Kingston

John Kingston

John has an almost 40-year career covering commodities, most of the time at S&P Global Platts. He created the Dated Brent benchmark, now the world’s most important crude oil marker. He was Director of Oil, Director of News, the editor in chief of Platts Oilgram News and the “talking head” for Platts on numerous media outlets, including CNBC, Fox Business and Canada’s BNN. He covered metals before joining Platts and then spent a year running Platts’ metals business as well. He was awarded the International Association of Energy Economics Award for Excellence in Written Journalism in 2015. In 2010, he won two Corporate Achievement Awards from McGraw-Hill, an extremely rare accomplishment, one for steering coverage of the BP Deepwater Horizon disaster and the other for the launch of a public affairs television show, Platts Energy Week.