v3.25.4
Segment Reporting and Geographic Information
 12 Months Ended
Dec. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information Segment Reporting and Geographic Information
We are organized into two reportable segments: North American LTL, the largest component of our business, and European Transportation.
In our North American LTL segment, we provide shippers with geographic density and day-definite domestic and cross-border services to the U.S., as well as Mexico, Canada and the Caribbean. Our North American LTL segment also includes the results of our trailer manufacturing operation.
In our European Transportation segment, we serve an extensive base of customers within the consumer, trade and industrial markets. We offer dedicated truckload, LTL, full truckload brokerage, warehousing, managed transportation, last mile, freight forwarding, and multimodal solutions.
Corporate includes corporate headquarters costs for executive officers and certain legal and financial functions, and other costs and credits not attributed to our reportable segments.
Our chief operating decision maker (“CODM”) is our chief executive officer. Our CODM regularly reviews financial information at the operating segment level to allocate resources to the segments and to assess their performance. We include items directly attributable to a segment, and those that can be allocated on a reasonable basis, including corporate costs, in segment results reported to the CODM. We do not provide asset information by segment to the CODM.
Our CODM evaluates segment profit (loss) based on adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), which we define as income from continuing operations before debt extinguishment loss, interest expense, income tax provision, depreciation and amortization expense, legal matters, transaction and integration costs, restructuring costs and other adjustments.
Our CODM uses adjusted EBITDA to allocate resources, including property and equipment and financial or capital resources, to the segments and to assess their performance by monitoring budget-to-actual and year-over-year variances.
The following tables present revenue and significant segment expenses that are included within adjusted EBITDA:
Year Ended December 31, 2025
(in millions)North American LTLEuropean Transportation
Corporate (1)
Total
Revenue$4,832 $3,324 $— $8,157 
Salaries, wages and employee benefits2,520 888 15 3,424 
Purchased transportation123 1,539 — 1,662 
Fuel, operating expenses and supplies885 686 1 1,571 
Operating taxes and licenses67 17 — 83 
Insurance and claims111 55 1 167 
Gains on sales of property and equipment(9)(8)— (17)
Pension (income) expense(6)1 — (6)
Other (income) expense— 1 (1)— 
Adjusted EBITDA$1,142 $147 $(16)$1,272 
Year Ended December 31, 2024
(in millions)North American LTLEuropean Transportation
Corporate (1)
Total
Revenue$4,899 $3,173 $— $8,072 
Salaries, wages and employee benefits2,515 846 16 3,377 
Purchased transportation248 1,454 — 1,701 
Fuel, operating expenses and supplies928 661 — 1,589 
Operating taxes and licenses65 15 — 80 
Insurance and claims80 51 3 134 
Gains on sales of property and equipment(27)(14)— (40)
Pension (income) expense(25)1 — (25)
Other (income) expense— 1 (12)(12)
Adjusted EBITDA$1,115 $158 $(7)$1,266 
Year Ended December 31, 2023
(in millions)North American LTLEuropean Transportation
Corporate (1)
Total
Revenue$4,671 $3,073 $— $7,744 
Salaries, wages and employee benefits2,346 795 18 3,159 
Purchased transportation366 1,394 — 1,760 
Fuel, operating expenses and supplies956 661 6 1,623 
Operating taxes and licenses48 12 — 60 
Insurance and claims102 59 6 167 
(Gains) losses on sales of property and equipment8 (13)— (5)
Pension (income) expense(17)— — (17)
Other (income) expense(2)2 1 1 
Adjusted EBITDA$864 $163 $(31)$996 
(1)    Primarily represents unallocated corporate costs, as well as investment income of approximately $13 million within Other (income) expense in 2024.
The following table presents adjusted EBITDA by segment and provides a reconciliation to consolidated income from continuing operations:
Years Ended December 31,
(in millions)202520242023
Adjusted EBITDA
North American LTL$1,142 $1,115 $864 
European Transportation147 158 163 
Corporate(16)(7)(31)
Total Adjusted EBITDA1,272 1,266 996 
Less:
Debt extinguishment loss6 — 25 
Interest expense219 223 168 
Income tax provision121 86 68 
Depreciation and amortization expense521 490 432 
Pre-Con-way acquisition environmental matter (1)
35 — — 
Legal matters (2)
(13)— 8 
Transaction and integration costs8 53 58 
Restructuring costs59 27 44 
Other— — 1 
Income from continuing operations$316 $387 $192 
(1)    Relates to environmental and product liability claims involving a former subsidiary of Con-way, which was sold prior to XPO's acquisition of Con-way in 2015.
(2)    In 2025, reflects the settlement of claims against certain truck manufacturers related to purchases by our European Transportation segment covering periods prior to our acquisition of Norbert Dentressangle SA in 2015. For 2023, see Note 17— Commitments and Contingencies for further information on the California Environmental Matters.
The following table presents depreciation and amortization expense by segment:
Years Ended December 31,
(in millions)202520242023
Depreciation and amortization expense
North American LTL$381 $346 $291 
European Transportation136 140 136 
Corporate4 4 5 
Total$521 $490 $432 
As of December 31, 2025 and 2024, we held long-lived tangible assets outside of the U.S., including right of use assets, of $844 million and $715 million, respectively.