Earnings quality appears supported by non-cash charges, as evidenced by an OCF/NI ratio that frequently exceeds 2.0x, though free cash flow remains volatile due to heavy capital expenditures.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 1.03B | 986M | 804M | 682M | 832M | 721M | 885M | 791M | 1.1B | 798.6M | 625.4M | 90.8M | -21.3M | -66.3M | -24.3M | 6.61M | 1.76M | -99K | 7.05M | 4.04M | 3.64M | 1.34M | -3.03M | -91.31K | 374.12K | -1.2M |
| Operating CF Margin % | - | 12.09% | 9.96% | 8.81% | 10.78% | 10.01% | 14.35% | 7.41% | 6.38% | 5.19% | 4.28% | 1.19% | -0.9% | -9.44% | -8.72% | 3.73% | 1.11% | -0.1% | 6.44% | 8.47% | 8.62% | 3.38% | -7.14% | -0.62% | 3.74% | -14.17% |
| Operating CF Growth % | 111.14% | 22.64% | 17.89% | -18.03% | 15.4% | -18.53% | 11.88% | -28.22% | 37.99% | 27.69% | 588.77% | 526.29% | 67.87% | -172.85% | -467.57% | 276.27% | 1874.75% | -101.4% | 74.33% | 11.16% | 170.41% | 144.33% | -3222.93% | -124.41% | 131.17% | - |
| Net Income | 348M | 316M | 387M | 192M | 184M | 96M | -110M | 440M | 444M | 360.2M | 84.5M | -191.6M | -63.6M | -48.53M | -20.34M | 759K | 4.89M | 1.71M | 3.16M | 2.17M | 3.9M | -5.82M | -3.24M | 203.16K | 374.12K | -431.42K |
| Depreciation & Amortization | 530M | 521M | 490M | 432M | 392M | 385M | 378M | 739M | 716M | 658.4M | 643.4M | 364.9M | 98.3M | 20.8M | 2.71M | 1.24M | 1.29M | 1.19M | 1.11M | -843K | 1.05M | 1.44M | 1.25M | 179.17K | 101.76K | 53.34K |
| Stock-Based Compensation | 44M | 77M | 0 | 78M | 77M | 31M | 37M | 67M | 49M | 79.2M | 54.5M | 27.9M | 7.5M | 4.75M | 4.4M | 1.18M | 157K | 172K | 198K | 178M | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 104M | 99M | 57M | 31M | 80M | 7M | -64M | 46M | 45M | -157.7M | -20.9M | -134M | -30M | -22.67M | -8.26M | -327K | 900K | 713M | -3.15M | -178.01M | 0 | 0 | 0 | -97.6K | 0 | 0 |
| Other Non-Cash Items | -33M | 18M | 64M | 48M | 98M | 232M | 552M | -54M | -2M | 116.4M | 54.4M | 16.8M | 18.5M | 32.55M | 10.65M | 558K | -905K | -712.81M | 3.09M | 2.28M | 446K | 4.41M | 407K | 38.2K | -135.75K | -1.3M |
| Working Capital Changes | 33M | -45M | -194M | -99M | 1M | -30M | 92M | -447M | -150M | -257.9M | -190.5M | 6.8M | -52M | -53.19M | -13.46M | 3.2M | -4.57M | -3.35M | 2.64M | 451K | -1.77M | 1.31M | -1.46M | -308.68K | 33.99K | 474.24K |
| Change in Receivables | -86M | -47M | -47M | -46M | -100M | -171M | 0 | -67M | -13M | -320.1M | -153.7M | 7.8M | -143.9M | -36.98M | -13.76M | 1.63M | -6.62M | -5.46M | -231K | -497K | -1.02M | 3.12M | -502K | -245.85K | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 39M | 14.72M | 11.41M | 1.76M | -522K | 1.85M | 552K | -561K | -426K | -551K | 0 | 0 | 0 | 0 |
| Change in Payables | 1M | -22M | -8M | -48M | 62M | 98M | -2M | -120M | 35M | 140.1M | 1.7M | -51.3M | 53.9M | -8.28M | -2.58M | -191K | 1.99M | 191K | 250K | -142K | 110K | -1.16M | -78K | 433.1K | 0 | 0 |
| Cash from Investing | -532M | -616M | -702M | -1.5B | 245M | -277M | -357M | -161M | -400M | -424.7M | 142M | -4.09B | -858.3M | -470.25M | -64.67M | -1.19M | -809K | -3.47M | -11.78M | -2.29M | -2.52M | -1.31M | -8.86M | -4.31M | 79.58K | -602.33K |
| Capital Expenditures | -569M | -657M | -789M | -1.53B | -521M | -269M | -249M | -601M | -551M | -503.8M | -483.4M | -249M | -44.6M | -11.59M | -6.98M | -754K | -811K | -186K | -1.11M | -574K | -966K | -658K | -1.09M | -857.57K | -42.34K | -375.14K |
| CapEx % of Revenue | 6.86% | 8.05% | 9.77% | 19.8% | 6.75% | 3.74% | 4.04% | 5.63% | 3.19% | 3.28% | 3.31% | 3.27% | 1.89% | 1.65% | 2.51% | 0.43% | 0.51% | 0.19% | 1.01% | 1.2% | 2.29% | 1.65% | 2.56% | 5.84% | 0.42% | 4.43% |
| Acquisitions | 29M | 0 | 75M | 0 | 0 | 0 | 0 | 252M | 143M | 79.1M | 547.7M | -3.89B | -814M | -458.79M | -57.69M | -450K | 0 | -3.35M | -10.7M | -1.96M | 0 | -1.6M | -7.75M | -1.5M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 8M | 41M | 12M | 32M | 737M | -8M | -108M | 188M | 175M | 79.1M | 77.7M | 60.3M | 300K | 125K | -57.2M | 13K | 2K | 62K | 28K | 101K | -1.55M | 946K | -1.11M | -1.88M | 89.41K | -296.68K |
| Cash from Financing | -456M | -339M | -222M | 761M | -862M | -2.23B | 1.14B | -759M | -620M | -366M | -680.8M | 3.64B | 1.5B | 305.79M | 267.23M | 68.03M | -882K | 2.96M | 5.04M | -1.03M | -1.43M | -499K | 10.72M | 6.43M | 1.42M | 1.84M |
| Debt Issued (Net) | -185M | -165M | -91M | 808M | -1.15B | -3.07B | 1.33B | 1.18B | -370M | -623.4M | -675.1M | 2.92B | 425M | 73.3M | 138.5M | 0 | -1.45M | 2.96M | 4.87M | -1.32M | -1.43M | -232K | 177K | 0 | 0 | 1.2M |
| Equity Issued (Net) | -125M | -125M | -129M | -19M | -27M | 384M | -136M | -1.36B | -536M | -17M | -11M | 1.26B | 1.1B | 239.5M | 137.21M | 71.63M | 0 | 0 | 0 | 290K | 0 | -267K | 11.57M | 0 | 0 | 100 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -8M | -8M | -3M | -5.4M | -2.8M | -2.9M | -2.97M | -3M | -375K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -155M | -125M | -129M | -19M | -27M | 0 | -114M | -1.35B | -536M | 0 | -11M | 0 | 0 | 0 | 0 | 704K | 0 | 0 | 0 | 0 | 0 | -267K | 0 | 0 | 0 | 0 |
| Other Financing | -146M | -49M | -2M | -28M | 314M | 455M | -62M | -570M | 294M | 281.4M | 10.7M | -536.2M | -17.3M | -4.04M | -5.48M | -3.23M | 564K | 0 | 168K | 0 | 0 | 0 | -1.03M | 6.43M | 1.42M | 639.36K |
| Net Change in Cash | 25M | 64M | -166M | -51M | 197M | -1.79B | 1.68B | -127M | 65M | 23.5M | 83.6M | -354.3M | 622.6M | -230.77M | 178.29M | 73.45M | 66K | -612K | 307K | 721K | -307K | -468K | -1.18M | 2.03M | -35.73K | 37.78K |
| Free Cash Flow | 457M | 329M | 15M | -851M | 311M | 452M | 636M | 190M | 551M | 294.8M | 142M | -158.2M | -65.9M | -77.89M | -31.28M | 5.86M | 946K | -285K | 5.94M | 3.47M | 2.67M | 687K | -4.12M | -948.88K | 331.78K | -1.58M |
| FCF Margin % | 5.51% | 4.03% | 0.19% | -10.99% | 4.03% | 6.28% | 10.31% | 1.78% | 3.19% | 1.92% | 0.97% | -2.08% | -2.8% | -11.09% | -11.23% | 3.31% | 0.6% | -0.28% | 5.43% | 7.27% | 6.33% | 1.72% | -9.7% | -6.46% | 3.32% | -18.6% |
| FCF Growth % | 293.97% | 2093.33% | 101.76% | -373.63% | -31.19% | -28.93% | 234.74% | -65.52% | 86.91% | 107.61% | 189.76% | -140.06% | 15.39% | -148.99% | -634.08% | 519.13% | 431.93% | -104.8% | 71.2% | 29.88% | 288.79% | 116.67% | -334.3% | -386% | 121.06% | - |
| FCF per Share | 3.84 | 2.76 | 0.13 | -7.21 | 2.68 | 3.96 | 6.24 | 1.79 | 4.08 | 2.31 | 1.16 | -1.70 | -1.23 | -3.42 | -1.99 | 0.71 | 0.11 | -0.04 | 0.75 | 0.51 | 0.40 | 0.10 | -0.69 | -0.36 | 0.17 | -0.97 |
| FCF Conversion (FCF/Net Income) | 1.31x | 3.12x | 2.08x | 3.61x | 1.25x | 2.15x | 8.05x | 1.89x | 2.61x | 2.35x | 9.06x | -0.48x | 0.33x | 1.37x | 1.20x | 8.71x | 0.36x | -0.06x | 2.23x | 1.86x | 0.93x | -0.23x | 0.94x | -0.24x | 1.00x | 1.83x |
| Interest Paid | 0 | 0 | 223M | 185M | 145M | 253M | 314M | 281M | 233M | 274.2M | 363.1M | 168.2M | 19M | 12.4M | 0 | 110K | 124K | 105K | 318K | 79K | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 90M | 34M | 87M | 78M | 37M | 82M | 70M | 78.5M | 40.7M | 14.5M | 2.3M | 200K | 200K | 233K | 3.52M | 396K | 267K | 49K | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical industrial demand sensitivity
Based on reported financial statements, XPO consistently generates operating cash flow significantly higher than net income, with an OCF/NI ratio frequently exceeding 2.0x, which suggests that non-cash depreciation charges are a dominant factor in the company's reported earnings profile rather than pure cash-based profitability.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are heavily influenced by the high depreciation of its asset-heavy LTL infrastructure. Investors should monitor whether this cash-generative capacity can be sustained as the company shifts from aggressive capital investment to operational optimization.
As reported in recent quarterly filings, XPO's free cash flow trajectory remains highly erratic, swinging from a negative $789 million in 2023Q4 to a positive $215 million in 2025Q3, reflecting the lumpy nature of capital expenditures required to maintain and expand its terminal network.
This volatility suggests that the company's ability to generate consistent free cash flow is currently constrained by the timing of fleet renewals and terminal acquisitions. The lack of a stable FCF margin trend warrants caution until the company demonstrates a more predictable relationship between capital intensity and operational output.
According to historical data, XPO's capital expenditure as a percentage of revenue has fluctuated significantly, peaking at 53.6% in 2023Q4, which highlights the substantial reinvestment required to modernize its fleet and integrate new service centers into the existing North American LTL network.
The high capital intensity suggests that the company is in a structural catch-up phase to improve service quality and density. Analysts should investigate whether these elevated spending levels are temporary growth initiatives or if they represent a permanent requirement to remain competitive against more efficient industry incumbents.
Based on recent SEC filings, XPO has prioritized share repurchases over dividends, with quarterly buybacks reaching as high as $108 million in 2024Q4, signaling management's confidence in the company's valuation despite the ongoing operational transition and the cyclical nature of the freight industry.
The focus on share repurchases suggests that management views the current stock price as undervalued relative to the long-term potential of the LTL 2.0 strategy. However, investors should monitor if this capital return policy is sustainable given the ongoing need for significant reinvestment in terminal infrastructure.
Quick answers to the most common questions about buying XPO stock.
XPO Logistics, Inc. (XPO) generated $986.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
XPO Logistics, Inc. (XPO) generated $329.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
XPO Logistics, Inc. (XPO) spent $657.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, XPO Logistics, Inc. (XPO) spent $125.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.