WS News
05 Feb 2025, 17:39
RXO has announced its financial results for the fourth quarter of 2024, highlighting progress in the integration of Coyote Logistics and growth across key business segments.
The company reported revenue of $1.7 billion, up from $1.0 billion in the same quarter of 2023. Despite a GAAP net loss of $20 million, which included $34 million in transaction, integration, and restructuring costs, adjusted net income rose to $10 million from $7 million a year ago. Adjusted EBITDA increased to $42 million, compared to $31 million in the fourth quarter of 2023.
CEO Drew Wilkerson emphasized that the integration of Coyote Logistics remains ahead of schedule, with projected cost synergies now raised to at least $50 million. He highlighted RXO’s sequential brokerage volume growth of 10%, the nearly $2 billion in new freight under management within Managed Transportation, and a 15% year-over-year increase in Last Mile stops.
In the Brokerage segment, volume declined by 6% year-over-year, with less-than-truckload volume rising by 1% but full truckload volume falling by 8%. However, sequential growth remained strong at 10%. Brokerage gross margin stood at 13.2%.
The company expects first-quarter 2025 adjusted EBITDA to be between $20 million and $30 million, with Brokerage gross margin projected between 12% and 14%.
The company reported revenue of $1.7 billion, up from $1.0 billion in the same quarter of 2023. Despite a GAAP net loss of $20 million, which included $34 million in transaction, integration, and restructuring costs, adjusted net income rose to $10 million from $7 million a year ago. Adjusted EBITDA increased to $42 million, compared to $31 million in the fourth quarter of 2023.
CEO Drew Wilkerson emphasized that the integration of Coyote Logistics remains ahead of schedule, with projected cost synergies now raised to at least $50 million. He highlighted RXO’s sequential brokerage volume growth of 10%, the nearly $2 billion in new freight under management within Managed Transportation, and a 15% year-over-year increase in Last Mile stops.
In the Brokerage segment, volume declined by 6% year-over-year, with less-than-truckload volume rising by 1% but full truckload volume falling by 8%. However, sequential growth remained strong at 10%. Brokerage gross margin stood at 13.2%.
The company expects first-quarter 2025 adjusted EBITDA to be between $20 million and $30 million, with Brokerage gross margin projected between 12% and 14%.