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XPOLogistics XPO Logistics Announces First Quarter 2021 Results May 3 , 2021 Reports highest revenue of any quarter in XPO's history Generates record first quarter net income and adjusted EBITDA Significantly raises full year 2021 adjusted EBITDA guidance range to $ 1.825 billion to $ 1.875 billion GREENWICH , Conn . , May 03 , 2021 ( GLOBE NEWSWIRE ) -- XPO Logistics , Inc. ( NYSE : XPO ) today announced its financial results for the first quarter 2021. Revenue increased to $ 4.77 billion for the first quarter , compared with $ 3.86 billion for the same period in 2020. Net income attributable to common shareholders was $ 115 million for the first quarter , compared with $ 21 million for the same period in 2020. Operating income was $ 202 million for the first quarter , compared with $ 81 million for the same period in 2020. Diluted earnings per share was $ 1.02 for the first quarter , compared with $ 0.20 for the same period in 2020 . Adjusted net income attributable to common shareholders , a non - GAAP financial measure , was $ 164 million for the first quarter , compared with $ 71 million for the same period in 2020. Adjusted diluted earnings per share , a non - GAAP financial measure , was $ 1.46 for the first quarter , compared with $ 0.69 for the same period in 2020 . Adjusted earnings before interest , taxes , depreciation and amortization ( " adjusted EBITDA " ) , a non - GAAP financial measure , increased to $ 443 million for the first quarter , compared with $ 333 million for the same period in 2020 . For the first quarter 2021 , the company generated $ 173 million of cash flow from operations and $ 69 million of free cash flow , a non - GAAP financial measure . Reconciliations of non - GAAP financial measures used in this release are provided in the attached financial tables . Raises 2021 Financial Targets The company issued new full year guidance as follows : • Adjusted EBITDA of $ 1.825 billion to $ 1.875 billion , compared with the prior guidance of $ 1.725 billion to $ 1.8 billion . The new range for adjusted EBITDA reflects a year - over - year increase in adjusted EBITDA of 31 % to 35 % from 2020 , comprised of : • 28 % to 32 % growth in adjusted EBITDA in the logistics segment ; and • 30 % to 34 % growth in adjusted EBITDA in the transportation segment . • Depreciation and amortization of $ 625 million to $ 645 million , excluding $ 145 million of acquisition - related amortization expense ; • Interest expense of $ 270 million to $ 280 million ; • Effective tax rate of 24 % to 26 % ; and • Adjusted diluted EPS of $ 5.90 to $ 6.50 , up from the prior range of $ 5.10 to $ 5.85 . With respect to 2021 cash flows , the company issued the following targets : • Gross capital expenditures of $ 650 million to $ 700 million , up from the prior range of $ 625 million to $ 675 million ; • Net capital expenditures of $ 500 million to $ 550 million , up from the prior range of $ 475 million to $ 525 million ; and • Free cash flow of $ 650 million to $ 725 million , up from the prior range of $ 600 million to $ 700 million . The company's 2021 guidance excludes impacts associated with the planned spin - off of the logistics segment ; and assumes 113 million diluted shares outstanding . CEO Comments Brad Jacobs , chairman and chief executive officer of XPO Logistics , said , “ In the first quarter , we reported the highest revenue of any quarter in our history , appreciably outpacing a macro that's recovering faster than expected . Our net income and adjusted EBITDA were both first quarter records , and we grew adjusted EPS by 112 % year - over - year . " Our truck brokerage business is continuing to outperform the market , powered by the growth of our XPO Connect digital platform . We increased our first quarter brokerage revenue by 83 % year - over - year , and grew net revenue by 132 % . " In North American less - than - truckload , we improved our first quarter adjusted operating ratio , excluding real estate sales , by 220 basis points year - over - year to 84.3 % . Our LTL business has strong momentum : our technology is expanding margin , and the recovery in the industrial economy is stimulating demand for our services . " In logistics , our record first quarter revenue of $ 1.82 billion was propelled by the ' big three ' logistics tailwinds : e - commerce , outsourcing and warehouse automation . We've won a tremendous amount of logistics business in the first four months of this year , including a $ 1.8 billion contract with a longstanding customer that extends and expands our relationship through 2032. This is the largest contract in our company's history . " Jacobs continued , " We now expect to grow our 2021 adjusted EBITDA by 31 % to 35 % year - over - year to a range of $ 1.825 billion to $ 1.875 billion , with strong contributions from both of our business segments . " First Quarter 2021 Results by Segment • Transportation : The company's transportation segment generated revenue of $ 2.99 billion for the first quarter 2021 , compared with $ 2.46 billion for the same period in 2020 . Operating income for the transportation segment was $ 209 million for the first quarter , compared with $ 120 million for the same period in 2020. Adjusted EBITDA for the segment was $ 343 million for the first quarter , compared with $ 253 million for the same period in 2020. The increases in operating income and adjusted EBITDA were related primarily to higher profitability in truck brokerage and in less - than - truckload ( LTL ) . In North American LTL , the first quarter operating ratio was 84.9 % and the adjusted operating ratio was 82.6 % . Excluding gains from sales of real estate , LTL adjusted operating ratio improved 220 basis points year - over - year to 84.3 % . In North American truck brokerage , revenue increased by 83 % year - over - year to $ 589 million for the first quarter , compared with $ 321 million for the same period in 2020. Net revenue increased 132 % year - over - year to $ 110 million for the quarter , compared with $ 47 million for the same period in 2020 . • Logistics : The company's logistics segment generated revenue of $ 1.82 billion for the first quarter 2021 , compared with $ 1.44 billion for the same period in 2020. The year - over - year increase in segment revenue was primarily due to 13 % organic revenue growth , the acquisition of contract logistics operations in the UK and Ireland , and a benefit from foreign currency conversion . Logistics segment operating income was $ 68 million for the first quarter , compared with $ 38 million for the same period in 2020. Adjusted EBITDA was $ 155 million for the first quarter , compared with $ 121 million for the same period in 2020. The increases in operating income and adjusted EBITDA were primarily related to higher revenue from contracts won in prior periods . • Corporate : Corporate expense was $ 75 million for the first quarter 2021 , compared with an expense of $ 77 million for the same period in 2020. Corporate adjusted EBITDA was an expense of $ 55 million for the first quarter , compared with an expense of $ 41 million for the same period in 2020 . Liquidity As of March 31 , 2021 , the company had access to approximately $ 1.7 billion of total liquidity , including $ 629 million of cash and cash equivalents and approximately $ 1.1 billion of available borrowing capacity . Progress on the GXO Spin - Off The company is on track with its plan to spin off its logistics segment in the second half of 2021. To date , as previously announced , the company has : • Unveiled the spin - off's corporate name as GXO Logistics , Inc. , its brand as GXO and its tagline as Logistics at full potential ; • Named eight executives to GXO leadership positions ; all will transition to GXO from XPO once the spin - off is complete : Malcolm Wilson , chief executive officer ; Baris Oran , chief financial officer ; Mark Manduca , chief investment officer ; Richard Cawston , president - Europe ; Ashfaque Chowdhury , president - Americas and Asia Pacific ; Bill Fraine , chief