RXO Sees 70% Q4 Revenue Growth, Boosted by Coyote Deal
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RXO saw its revenue jump more than 70% to $1.67 billion during the fourth quarter of 2024, the company reported Feb. 5.
But the Charlotte, N.C.-based asset-light transportation provider posted a net loss of $20 million, or negative 12 cents a diluted share, for the three months ending Dec. 31. That compared with net income of $2 million, 2 cents, during the same time the previous year. Total revenue increased 70.5% to $1.67 billion from $978 million.
“In the fourth quarter, RXO grew combined brokerage volume by 10% sequentially, the result of our focus on providing the best service, solutions, innovation and relationships in the industry,” RXO CEO Drew Wilkerson said. “Momentum continued within our complementary services. In Managed Transportation, our sales pipeline is now nearly $2 billion in freight under management, and in Last Mile, we grew stops by 15% year over year.”
RXO, which acquired third-party logistics provider Coyote Logistics on Sept. 16, is ahead of schedule on integration, Wilkerson said. The company expects the acquisition to enhance its market position by diversifying and expanding its customer base.
“While the freight market remains soft, our playbook of strategically investing in our business while controlling costs, along with our increased scale, positions us well for the future,” Wilkerson said.
RXO noted in the earnings report that the net loss included $34 million in transaction, integration, restructuring and other costs. Because of that, the adjusted net income in the quarter was $10 million, compared with $7 million during the prior-year period.
For the full year, RXO reported a net loss of $285 million, negative $2.14, on revenue of $4.55 billion, compared with net income of $4 million, 3 cents, on revenue of $3.93 billion in 2023.
Truck brokerage revenue jumped 108% to $1.27 billion from $610 million during the year-ago period. The report noted that brokerage volumes declined by 6% year over year. But this also included the impact of the Coyote Logistics acquisition in both periods. Less-than-truckload volume increased by 1% but was offset by an 8% decline in full truckload volume.
Complementary services revenue increased 4.9% to $431 million from $411 million the prior year.
RXO ranks No. 20 on the Transport Topics Top 100 list of the largest logistics companies in North America.
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