RXO INC

RXO

Equity

ISIN null / Valor 122428821

New York Stock Exchange, Inc (2025-10-20)

USD 18.15+5.28%

RXO INC
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About company

RXO INC is a prominent player in the transportation and logistics industry, specializing in brokered transportation services. The company has built a robust brokerage business, offering a range of services including truck brokerage, expedite, and managed transportation. RXO was established as an independent entity in 2022, following its evolution from a predecessor company where key executives like Louis Amo and Drew Wilkerson played significant roles in its growth and operational leadership. With a focus on delivering value to both investors and customers, RXO leverages its extensive industry expertise and executive leadership to maintain a competitive edge in the market. The company is known for its ability to adapt and expand its service offerings, ensuring sustained growth and operational excellence.

Summarized from source with an LLMView SourceSector: Consumer Services

Revenue Growth

RXO’s revenue increased to $1.04 billion in Q3 2024, up from $976 million in Q3 2023, demonstrating the company's expanding operations and market reach.

Gross Margin

The company reported a companywide gross margin of 17.3%, slightly down from 17.7% in the third quarter of 2023. The Brokerage segment achieved a gross margin of 13.7%.

Net Loss and Adjusted EBITDA

RXO reported a GAAP net loss of $243 million for Q3 2024, compared to a net loss of $1 million in the same quarter last year. Adjusted net income improved to $7 million, up from $6 million in Q3 2023. Adjusted EBITDA rose to $33 million with a margin of 3.2%, compared to $26 million and 2.7% in the previous year.

Coyote Acquisition

The acquisition of Coyote Logistics was completed on September 16, 2024, reducing the combined company's leverage ratio by over 40% and raising the annualized cost synergy estimate to at least $40 million.

Balance Sheet Strength

RXO strengthened its balance sheet in Q3 2024, achieving a combined leverage ratio decrease from 3.0 times to 1.6 times LTM adjusted EBITDA through equity financings related to the Coyote acquisition.

Brokerage Performance

Legacy Brokerage volume declined by 5% year-over-year in Q3 2024, with less-than-truckload volume increasing by 13% offset by a 9% decline in full truckload volume. Legacy brokerage gross margin remained stable at 13.8%.

Complementary Services Growth

Managed Transportation secured over $300 million in new freight under management, contributing to a sales pipeline exceeding $1.3 billion. Additionally, Last Mile stops grew by 11% year-over-year, accelerating from the second quarter's growth rate.

Fourth-Quarter Outlook

RXO projects its adjusted EBITDA for Q4 2024 to be between $40 million and $45 million, with Brokerage gross margins expected to range from 12% to 14%.

Summarized from source with an LLMView Source

Key figures

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Performance

61.8%1Y

50.0%3Y

50.0%5Y

Volatility