Logistics firm RXO Q3 revenue misses analyst expectations on weak full-truckload market

RXO

06/11/2025 11:42

Overview

RXO Q3 revenue of $1.42 bln missed analyst expectations

Adjusted EPS for Q3 was $0.01, missing analyst estimates

Brokerage volume grew 1% yr/yr, driven by 43% LTL volume growth

Outlook

RXO expects Q4 adjusted EBITDA between $20 mln and $30 mln

Company anticipates brokerage volume to decline by low-single-digit percentage in Q4

RXO forecasts Q4 brokerage gross margin between 12% and 13%

Result Drivers

LTL VOLUME GROWTH - Less-than-truckload volume increased by 43% year-over-year, driving brokerage volume growth

MARKET TIGHTNESS - Full-truckload market tightened due to capacity exits, impacting buy rates and brokerage gross margin

COST INITIATIVES - New cost initiatives expected to yield more than $30 mln of incremental savings

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.42 bln
$1.45 bln (15 Analysts)
Q3 Adjusted EPS
Miss
$0.01
$0.05 (18 Analysts)
Q3 EPS
-$0.08
Q3 Adjusted Net Income
$2 mln
Q3 Adjusted EBITDA
$32 mln
Q3 Adjusted EBITDA Margin
2.30%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 15 "hold" and 3 "sell" or "strong sell"

The average consensus recommendation for the ground freight & logistics peer group is "buy."

Wall Street's median 12-month price target for RXO Inc is $17.00, about 3.6% below its November 5 closing price of $17.62

The stock recently traded at 55 times the next 12-month earnings vs. a P/E of 49 three months ago

Press Release: ID:nBw7dYXqGa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)