XPO, Inc. ( XPO ) shares are trading higher after it reported first-quarter FY24 results.

Revenue growth of 5.8% Y/Y to $2.02 billion, beating the consensus of $2.01 billion.

The increase in revenue was aided by higher yield and tonnage per day in the North American LTL segment.

Operating income was $138 million, compared to $58 million a year ago. Adjusted EPS was $0.81, up 44.6% Y/Y, beating the consensus of $0.67.

Adjusted EBITDA increased 37.1% Y/Y to $288 million in the quarter, and the margin expanded to 14.2% from 11.0% last year in the same quarter.

North American Less-Than-Truckload revenue was $1.22 billion (+9.0% Y/Y). The adjusted operating ratio was 85.7%, up 390 bps YoY. The segment’s shipments per day increased 4.7% Y/Y, tonnage per day increased 2.6% Y/Y, and yield, excluding fuel, rose 9.8% Y/Y.

European Transportation generated revenue of $797 million (+1.3% Y/Y), and the Adjusted EBITDA margin was 4.8%, up 10 bps Y/Y, in the quarter. 

The company generated $145 million of cash flow from operating activities in the quarter and ended the quarter with $229 million of cash and cash equivalents on hand. 

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Mario Harik, chief executive officer of XPO, said, “We also delivered one of the best damage claims ratios in the industry at 0.3%, continuing our record performance. We’re determined to become the leading LTL service provider by giving our customers the best possible service experience every time we move their freight.”

“While we’ve made significant progress in executing our LTL 2.0 plan, we’re still in the early stages of unlocking our full potential.”

Price Action: XPO shares are trading up 11% at $120.87 at the last check Friday.