RXO, Inc. ( (RXO) ) has released its Q4 earnings. Here is a breakdown of the information RXO, Inc. presented to its investors.
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RXO, Inc. is a leading provider of asset-light transportation solutions, offering tech-enabled truck brokerage services along with complementary solutions like managed transportation and last mile delivery across North America.
RXO, Inc. recently released its fourth-quarter financial results for 2024, highlighting significant developments in its business operations, including the successful integration of Coyote Logistics and an increase in brokerage volume.
The company reported a revenue increase to $1.7 billion in the fourth quarter, up from $1.0 billion in the same period last year. Despite this, RXO experienced a GAAP net loss of $20 million, largely due to integration and restructuring costs, although adjusted net income improved to $10 million. Key operational highlights included a 10% sequential growth in brokerage volume, a 15% year-over-year increase in Last Mile stops, and a robust sales pipeline in Managed Transportation.
Gross margin for the quarter stood at 15.5%, down from 18.0% the previous year. The company has raised its estimate for annualized cost synergies from the Coyote acquisition to at least $50 million, demonstrating positive progress in its strategic initiatives.
Looking forward, RXO’s management remains optimistic, anticipating adjusted EBITDA between $20 million and $30 million for the first quarter of 2025, while continuing to focus on strategic investments and cost control to navigate the soft freight market.
