RXO Faces Revenue Decline, Net Loss in Q2
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RXO experienced a slight decline in revenue to $930 million during the second quarter of 2024, the company reported Aug. 7.
The Charlotte, N.C.-based asset-light transportation provider posted a net loss of $7 million, or 6 cents a diluted share, for the three months ending June 30. That compared with a gain of $3 million, or 3 cents, during the same time the previous year. Total revenue decreased 3.4% to $930 million from $963 million.
RXO ranks No. 20 on the Transport Topics Top 100 list of the largest logistics companies in North America.
“In the second quarter, RXO continued to execute well, including achieving 4% brokerage volume growth despite the prolonged soft freight market,” CEO Drew Wilkerson said. “We focused on effectively managing our cost of purchased transportation and achieved brokerage gross margin of 14.7%.”
Wilkerson
RXO highlighted in the earnings report that brokerage volume increased 4% since the same time last year. It also noted that less-than-truckload volume grew 40% and full truckload volume declined by 2%. The company, too, expects its acquisition of Coyote Logistics to close in the first half of the fourth quarter.
“Our playbook, which keeps us focused on growing profitably, strategically investing in our business and controlling costs, will position us for rapid earnings growth when the market inflects,” Wilkerson said. “We’re on track to close the acquisition of Coyote in the first half of the fourth quarter, and we’re excited about delivering above-market results at greater scale.”
Truck Brokerage segment revenue decreased 2.5% to $543 million from $557 million during the 2023 period. The report noted that volume increased 4% from the previous year. That included a 40% increase in less-than-truckload volumes that were partially offset by a 2% decline in full truckload volume.
“Our complementary services were also a significant contributor to our performance,” Wilkerson said. “Last- mile stops grew at the fastest rate in nearly two years, and our Managed Transportation business was awarded more than $200 million in freight under management and continued to grow year-over-year synergy loads it provides to our brokerage business.”
Complementary Services revenue decreased 3.7% to $421 million from $437 million last year. The report noted that gross margin for the segment was 23% for the quarter, up 170 basis points year over year. The segment includes Last-Mile and Managed Transportation services operations. Managed Transportation has more than $1.6 billion of new freight under management in its sales pipeline.
- Last-mile revenue increased 1.5% to $265 million from $261 million.
- Managed Transportation revenue decreased 11.4% to $156 million from $176 million.
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