Transport company RXO's Q2 revenue misses estimates, adjusted EPS beats

RXO

07/08/2025 10:10

Overview

RXO Q2 revenue of $1.42 bln missed analyst expectations, per LSEG data

Adjusted EPS of $0.04 beat analyst estimates, per LSEG data

Less-than-truckload volume grew 45%, driving brokerage growth

Outlook

Company expects Q3 adjusted EBITDA between $33 mln and $43 mln

RXO anticipates flat brokerage volume growth year-over-year in Q3

Company sees Q3 brokerage gross margin between 13.5% and 15.0%

Result Drivers

LESS-THAN-TRUCKLOAD VOLUME - 45% year-over-year growth in less-than-truckload volume drove brokerage growth

UNIFIED OPERATIONS - Early benefits from unified carrier coverage operations contributed to brokerage gross margin of 14.4%

LAST MILE GROWTH - Last Mile segment achieved 17% year-over-year stop growth, marking fourth consecutive quarter of double-digit growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$1.42 bln
$1.44 bln (16 Analysts)
Q2 Adjusted EPS
Beat
$0.04
$0.02 (20 Analysts)
Q2 EPS
-$0.05
Q2 Adjusted Net Income
$7 mln
Q2 Adjusted EBITDA
$38 mln
Q2 Adjusted EBITDA Margin
2.7%


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 $17.50, about 11.8% above its August 6 closing price of $15.44

The stock recently traded at 49 times the next 12-month earnings vs. a P/E of 42 three months ago

Press Release: ID:nBw4lstXSa

(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.)