XPO Sets $23 Billion Revenue Target, Reports 2Q Loss

Fast-growing XPO Logistics Inc., which grew to a $9 billion annual revenue business from $175 million less than four years ago, has set a $23 billion annual revenue target by the end of 2019, CEO Bradley Jacobs told Transport Topics on Aug. 5.

Jacobs spoke with TT on the same day that XPO announced a second-quarter loss, excluding one-time costs such as acquisition expense, that widened slightly to $13.6 million, or 16 cents, from $11.6 million, or 22 cents.

Jacobs said XPO is in "active dialogue with a number of acquisition possibilities” in Europe and North America.

He told TT the company will continue to rely on a blend of acquisitions and organic growth to reach that $23 billion mark. At that level, XPO would vault from No. 14 to No. 3 on the Transport Topics Top 100 list of the largest for-hire carriers in the U.S. and Canada. It would also top the Transport Topics Top 50 list of the largest logistics companies in North America, where it presently is No. 12.

“We believe the same thing now as we did in 2011,” he said. “The transportation logistics industry is the last big industry that isn’t consolidated. We have come a long way over the last four years, but we still have a tiny piece of the transportation and logistics pie. When we are a $23 billion company, we will still have a small share.”

Revenue more than doubled to $1.22 billion. Earnings before interest, taxes, depreciation and amortization rose to $79.7 million from $14.1 million, also including one-time costs. More than $34 million of EBITDA was generated by two acquisitions, Norbert Dentressangle and Bridge Terminal Transport, which were owned by XPO for part of the quarter.