Q2 2024 RXO Inc Earnings Call Transcript
Key Points
- RXO Inc (RXO) delivered adjusted EBITDA of $28 million, meeting the high end of their guidance range.
- Brokerage volume grew by 4%, with a significant 40% increase in less-than-truckload (LTL) volume.
- The company has a strong sales pipeline in managed transportation, with over $1.6 billion in potential new business.
- Last mile stops grew by 7% year-over-year, the fastest rate in nearly two years.
- RXO Inc (RXO) expects sequential and year-over-year adjusted EBITDA growth in the third quarter.
- Full truckload volume was down 2% year-over-year, reflecting a tough comparison to the previous year.
- The overall freight market remains soft, with mixed demand indicators and continued capacity exits.
- Adjusted EBITDA margin was 3%, down 90 basis points year-over-year.
- Adjusted free cash flow was negative $9 million for the second quarter.
- Brokerage gross margin declined by 70 basis points year-over-year, despite being at the high end of guidance.
Welcome to the Q2 2024 RXO Earnings Conference Call. My name is Sharon, and I will be your operator for today's call. Please note that this conference is being recorded.
During this call, the company will make certain forward-looking statements within the meaning of Federal Securities laws, which, by their nature, involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those in the forward-looking statements. A discussion of factors that could cause actual results to differ materially is contained in the company's SEC filing as well as in its earnings release. You should refer to the copy of the company's earnings release in the Investors Relations section on the company's website for additional important information regarding forward-looking statements and disclosures and reconciliations of non-GAAP financial measures that the company uses for discussing its results.
I will now turn the call over to Drew Wilkerson, Mr. Wilkerson, you may begin.
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