First look: mixed performance at RXO with some strong points

With most financial measures at RXO not improving or outright declining between the second quarters of 2025 and 2026, respectively, the company’s earnings announcement focused on several other measurements, mostly volume-related, where a strengthening freight market has been a tailwind for the 3PL.

While comparisons to the second quarter of 2026 were not overly positive for the company, some of the numbers sequentially from the first quarter had improved significantly. The bottom line profitability measures at RXO were mixed.

The company’s net income per share on a GAAP basis was a 5 cents loss, equal to the second quarter of 2026 but up sequentially from a 21 cts/share loss in the first quarter. RXO said the second quarter GAAP figures were impacted by “transaction, integration, restructuring and other costs, and amortization of intangibles.” window. googletag = window.

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collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); Adjusted EBITDA inched up to $40 million from $38 million a year ago, but was significantly better than $6 million in the first quarter. The adjusted EBITDA margin declined to 2. 3%, down from 2. 7% a year ago.

But it was still stronger than the 0. 4% recorded in the first quarter. Boasting of certain measures There were other volume data points where the specific numbers were not disclosed by RXO but which the company touted in its earnings release.

For example, the company said it had achieved a “historic” sequential increase in profit per load, “the best in four years, primarily driven by a 900 basis point sequential increase in truckload spot mix.” RXO also said it had truckload volume growth of 2 percent year-on-year.

Other key data points on operations: spot mix in truckload was 42%, compared to 33% in the first quarter, which helped push the gross profit per load number up that RXO had touted. The spot mix number was up 1,500 basis points year-over-year. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.

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push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); Third quarter mostly going to be flat The few projections RXO gave in its earnings release suggested the third quarter might not be that much better than the second in terms of profitability.

After a quarter with an adjusted EBITDA of $40 million, RXO is projecting adjusted EBITDA of $35 to $45 million in the third quarter. It also said truckload gross profit per load would increase sequentially again, and that volume growth would increase low to mid single digit percentage year-over-year. RXO’s earnings call with analysts is scheduled for 8 a.

m. Thursday. While the fallout from the Supreme Court decision in Montgomery vs. Caribe Transport II was not mentioned in the earnings release, CEO Drew Wilkerson did make an indirect reference to the consensus that brokers will face new scrutiny in their processes for selecting carriers to move freight.

“We achieved these results with strong carrier vetting and cargo security practices,” Wilkerson said, citing awards from CargoNet and FreightWaves. RXO’s stock climbed from a 52-week low of $10. 43 in November to $29. 90 on July 21. But concerns over the post-Montgomery legal landscape, especially fueled by the recent nuclear verdict in Texas against C. H.

Robinson, sent it down to close Wednesday at $21. However, early numbers from pre-market trading suggested a sharp upturn coming on Thursday, up more than 9% at 5 a. m. EDT. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.

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push(function() {googletag. display('div-gpt-ad-1709668086344-0'); }); More articles by John Kingston The post First look: mixed performance at RXO with some strong points appeared first on FreightWaves.