About XPO

XPO, Inc., together with its subsidiaries (XPO), provides freight transportation services. The company uses its proprietary technology to move goods through its customers’ supply chains in North America and Europe. As of December 31, 2023, the company had 596 locations in 17 countries serving approximately 52,000 customers. Segments The company operates through two segments, North American Less-Than-Truckload (LTL) and European Transportation. North American LTL This segment provides approximately 31,000 shippers in North America with critical geographic density and day-definite domestic and cross-border services to approximately 99% of the U.S. zip codes, as well as Mexico, Canada and the Caribbean. The company’s capacity and reach give it the ability to manage large freight volumes efficiently and balance its network. For the full year 2023, the company’s customer-focused organization of truck drivers, service center teams and sales professionals worked together to move approximately 18 billion pounds of freight through its network to its destinations. In 2023, the company continued to advance a host of initiatives that are specific to XPO and largely independent of the macroeconomic environment. The company produced over 6,400 trailers at its in-house trailer manufacturing facility. LTL in North America is a bedrock industry providing a critical service to the economy, with favorable pricing dynamics and an established competitive landscape. European Transportation This segment has a unique pan-European transportation platform with leading positions in key geographies: The company is the #1 full truckload broker and the #1 pallet network (LTL) provider in France; the #1 full truckload broker and the #1 LTL provider in Iberia (Spain and Portugal); and a top-tier dedicated truckload provider in the U.K., where it also has the largest single-owner LTL network. The company serves an extensive base of customers within the consumer, trade and industrial markets, including many sector leaders that have long-tenured relationships with it. The company’s range of freight services in Europe encompasses dedicated truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and, increasingly, multimodal solutions, such as road-rail and road-short sea combinations that it tailors to customer needs. The company’s operators use its proprietary technology to manage these services within its digital ecosystem in Europe. Strategic Developments On December 20, 2023, the company acquired 28 LTL service centers in the U.S. previously operated by Yellow Corporation. Under the transaction, the company purchased 26 of the service centers and assumed existing leases for the other two locations. This is a strategic acquisition of assets that aligns with its commitment to invest in expanding its LTL network capacity. Strategy XPO’s strategy is to help customers move goods efficiently through their supply chains by using its transportation capacity, organizational strengths and proprietary technology. The key elements of the company’s strategy are to provide best-in-class service; invest in network capacity for the long-term; and accelerate yield growth. Customers and Markets The company provides services to approximately 52,000 customers ranging in size from small, entrepreneurial businesses to Fortune 500 companies. The company’s customers span every major industry, giving it a presence in verticals that are bedrocks of the economy, such as industrial and manufacturing, retail and e-commerce, food and beverage, and consumer goods. The company’s revenue is derived primarily from the United States and Europe — in 2023, it generated approximately 59% of its revenue in the U.S., 17% in France, 12% in the U.K. and 11% in the rest of Europe. Globally, the combined revenue from the company’s top five customers in 2023 accounted for approximately 7% of revenue, with the company’s largest customer accounting for less than 2% of revenue. In North American LTL, the combined revenue from the company’s top five customers accounted for approximately 8% of segment revenue in 2023, with its largest customer accounting for less than 3% of revenue. Proprietary Technology and Intellectual Property XPO Smart is the company’s proprietary suite of intelligent tools and analytics that self-adjusts site by site to drive productivity across its LTL service center operations. The company’s software incorporates dynamic data science, predictive analytics and machine learning to aid its managers in workflow decision-making. XPO Connect is the company’s fully automated, cloud-based digital platform for transportation procurement used by its European operations — it encompasses its Freight Optimizer system, shipper interface, pricing engine, carrier interface and its Drive XPO mobile app for carriers. The XPO trademark, service mark, and trade name are essential to the company’s business and critical to its success. XPO, XPO Smart, XPO Connect, and Your Freight First, among others, are trademarks and service marks for which registrations, or applications for registration, are on file, as applicable with the United States Patent and Trademark Office. Competition The company’s competitors in North America include local, regional and national LTL carriers that offer the same services it provides, such as Old Dominion Freight Line and Saia. Regulations In the U.S., the company’s subsidiaries that operate as motor carriers and freight transportation brokers are licensed by the Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation (DOT). The company’s motor carrier subsidiaries and the third-party motor carriers it contracts with in the U.S. must comply with the safety and fitness regulations of the DOT, including those related to, without limitation, controlled substances and alcohol, hours-of-service compliance, vehicle maintenance, hazardous materials compliance, driver fitness, unsafe driving, and minimum insurance requirements, as well as the Compliance Safety Accountability (CSA) program, which uses a Safety Measurement System (SMS) to rank motor carriers on seven categories of safety-related data, known as Behavioral Analysis and Safety Improvement Categories (BASICs). Other federal and state agencies, such as the U.S. Environmental Protection Agency (EPA), the U.S. Food and Drug Administration (FDA), the U.S. Department of Homeland Security (DHS) and the California Air Resources Board (CARB), also regulate the company’s equipment, operations, and cargo. The company is subject to a variety of other U.S. and foreign laws and regulations, including, but not limited to, the Foreign Corrupt Practices Act and other anti-bribery and anti-corruption statutes, and trade compliance laws. History XPO, Inc., formerly known as XPO Logistics, Inc., was incorporated in Delaware in 2000.