September 2021 Presentation Script & Slides

The following script should be read in conjunction with the accompanying slide presentation, which [can be found here and] contains, among other information, source data for certain information set forth in the script.

Thank you for joining us.

Over the past 10 years, we’ve built XPO into one of the largest providers of supply chain services in the world. The August 2, 2021 spin-off of our logistics segment simplified our business and positioned us for significant growth as a pure-play freight transportation provider.

Our 40,000 employees currently serve more than 50,000 customers across 744 locations. Our two core lines of business — less-than-truckload (LTL) and truck brokerage — generate the vast majority of our revenue and more than 90% of our operating income. We believe that each of these businesses has strong competitive advantages tailored to the opportunities in their respective addressable markets. Our core LTL and truck brokerage businesses are capitalizing on a combination of macro trends, secular industry tailwinds and company-specific initiatives that can accelerate both top-line growth and margin expansion.

– Exposure to fast-growing verticals: We have outsized exposure in verticals such as ecommerce that are growing much faster than the overall market, and to the rapidly recovering industrial sector — and we have steadily built up the massive capacity needed to serve this increased demand. Our capacity is critically important to shippers and to their end-markets.

– Industry leader in technology: Our first-mover advantage as an industry innovator is rooted in over $3 billion spent on technology since 2011. We have XPO-specific initiatives that are optimizing our operations to increase efficiency and margin, positioning the company to thrive across market cycles. Most of these initiatives are managed within our digital ecosystem, where our brokerage platform also resides.

– Scale benefits: Our scale in both LTL and brokerage is important to customers and gives us the ability to drive significant operating leverage, benefit from purchasing power and continue to innovate.

– Disciplined capital allocation and commitment to investment grade: Our EBITDA growth and strong free cash flow support our continued deleveraging toward our target leverage of 1.0x to 2.0x by the first half of 2023. This is a key step in our process to achieve an investment-grade credit rating.

– Enviable record of superior shareholder value creation: In the last decade, XPO was the 7th best-performing stock on the Fortune 500, according to Bloomberg market data. 

– Strong culture: Our secret sauce has always been the world-class people we attract to XPO — not just our senior executives, but also the thousands of other professionals who contribute to our exceptional performance while representing our values…

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