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

Revenue growth of 3.7% year-over-year to $2.05 billion, beating the consensus of $2.020 billion.

The revenue growth was aided by higher yield in the North American LTL segment and volume increase in the European Transportation segment.

Operating income was $176 million, compared to $154 million a year ago.

Adjusted EBITDA increased 19.8% to $333 million in the quarter, and the margin expanded to 16.2% from 14.0% last year in the same quarter.

North American Less-Than-Truckload revenue was $1.25 billion (+1.9% Y/Y). The adjusted operating ratio was 84.2%, up 200 bps year over year. 

The segment saw a 3.2% increase in shipments per day, a 3.9%  decline in daily tonnage, and a 6.7% increase in yield, excluding fuel.

European Transportation generated revenue of $803 million (+6.8% Y/Y), and the adjusted EBITDA margin was 5.4%, down 40 bps Y/Y, in the quarter. 

Adjusted EPS was $1.02, up 15.9% from the prior year, beating the consensus of $0.91.

The company generated $264 million of cash flow from operating activities in the quarter and ended the quarter with $378 million of cash and cash equivalents on hand.

Mario Harik, chief executive officer of XPO, said,  “And we’re tracking three years ahead of plan with linehaul insourcing, which enhances our network efficiency and quality of service.”

“We’re delivering on the strong results we promised for 2024, while positioning the business to accelerate earnings growth when the freight market recovers. The world-class service we provide creates value for our customers and will continue to be a key driver of our margin expansion.”

Investors can gain exposure to the stock via ProShares Trust ProShares Supply Chain Logistics ETF and SPDR S&P Transportation ETF ( XTN ) .

Price Action: XPO shares are up 6.44% at $127.99 premarket at the last check Wednesday.

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