About the company
In recent years, XPO, a global logistics and transportation company, has been strategically restructuring its operations to focus on its core strength as an asset-based less-than-truckload (LTL) carrier. This move comes after the successful spinoff of its contract logistics division, GXO, in 2021 and freight brokerage operations, RXO, in 2022. With the completion of the RXO spinoff, XPO's LTL shipping division now constitutes a significant portion of its total revenue, estimated to be around 60% on a pro forma basis. The remaining 40% is made up of XPO's European truckload and LTL operations. This shift in revenue composition highlights the company's commitment to strengthening its position as a leading provider of LTL transportation services. Notably, the contribution of XPO's LTL segment to its overall profitability surpasses the 60% revenue mark. This indicates that the LTL division has been generating higher margins and returns compared to other business segments. Recognizing this, XPO is likely to further enhance and capitalize on the potential of its LTL operations. Looking ahead, XPO has set its sights on divesting its European trucking division in the coming year. This decision demonstrates the company's strategic intent to streamline its business and focus on its core competencies. While European truckload and LTL operations currently contribute to XPO's revenue mix, the company believes that divestment will allow it to allocate resources more efficiently to its asset-based LTL business. By narrowing its focus to become a pure-play asset-based LTL carrier, XPO aims to leverage its extensive network, operational expertise, and customer relationships in the LTL market. This focused approach will enable the company to better meet the evolving needs of its customers and drive growth in a segment where it already excels. While the divestment of its European trucking division may result in a temporary reduction in revenue, XPO expects to make up for it with increased efficiencies and profitability in the LTL space. The company intends to seize opportunities in a growing market and bolster its competitive advantage as a specialized LTL carrier. In conclusion, XPO's ongoing restructuring efforts, including the spinoff of its contract logistics and freight brokerage divisions, highlight its strategic transition towards becoming a pure-play asset-based LTL carrier. With LTL shipping making up a significant portion of its revenue and a higher proportion of its profitability, XPO is well-positioned to deliver value and exceptional service to its customers. As it moves forward with its divestment plans for its European trucking division, XPO aims to further refine its focus, optimize operations, and capitalize on the promising prospects in the LTL market.
Website: https://www.xpo.com
Data updated: June 2, 2026
