XPO surprised with flat January tonnage, breaking an 18-month trend of declines. Modest demand from manufacturing customers and growth initiatives drove the uptick. Industrial activity turned positive in January, with the Purchasing Managers’ Index at 52.6. XPO’s adjusted earnings in Q4 were 18% higher y/y, with revenue at $2.01 billion. LTL unit revenue increased 1% y/y.

XPO’s tonnage per day declined 4.5% y/y in Q4, but revenue per hundredweight increased by 6%. The company saw an 84.4% adjusted operating ratio, 180 bps better y/y. XPO anticipates further margin improvement through cost reductions and AI-led efficiency initiatives. The carrier expects 100-150 bps of y/y margin improvement in 2026.

XPO is aiming for low-70s operating ratios over time. The European transportation segment reported an 11% y/y revenue increase. XPO shares were up 4.3% on Thursday, outperforming the S&P 500. The stock is up over 25% this week, driven by positive PMI data and LTL earnings reports.

Read more at Yahoo Finance: XPO’s January tonnage bucks negative trend