XPO Logistics has announced mixed financial results for the fourth quarter and full year of 2015.
For the fourth quarter of 2015, total gross revenue increased 302.3 per cent year-over-year to US$3.3 billion, and net revenue increased 419.8 per cent to US$1.6 billion. However, the company also reported a net loss of US$63.1 million for the quarter, compared with a net loss of US$9.9 million for the same period in 2014.
Adjusted earnings before interest, taxes, depreciation and amortisation (“adjusted EBITDA”) improved to US$217.6 million for the quarter, compared with US$42.0 million for the same period in 2014.
For the full year 2015, the company reported total revenue of US$7.6 billion, a 223.5 per cent increase from 2014 and a net loss of US$191.6 million for the full year 2015, compared with a net loss of $63.6 million in 2014.
Adjusted EBITDA for 2015 improved to $493.1 million, compared with $81.4 million for 2014.
The company reaffirmed its full year target for 2016 of at least US$1.25 billion of adjusted EBITDA and US$1.7 billion of adjusted EBITDA for 2018.
“In the fourth quarter, we delivered organic adjusted EBITDA growth of 33 per cent, and organic revenue growth of 8.4 per cent ex-fuel,” said Chairman and Chief Executive Officer of XPO Logistics, Bradley Jacobs.
“EBITDA growth in our transportation segment was led by our asset-light freight brokerage business, which continues to improve productivity through technology and the increasing tenure of our sales force. For freight brokerage, last mile, expedite and global forwarding combined, we grew organic net revenue margin by 280 basis points to 21.7 per cent.
“In our logistics segment, we realised higher-than-expected EBITDA and operating income, led by our European logistics business. We're winning multi-year contracts with world-class customers in Europe, some of which can use our new last mile network. Globally, our transportation and logistics segments both have deep roots in e-commerce, the single biggest growth trend in retail.
“Looking at 2016, we have a high-impact agenda that includes accelerated cross-selling, the strategic sourcing of nearly US$3 billion of spend, the optimisation of our purchased transportation, and the global integration of corporate services. These and other major initiatives give us the ability to grow the business across a range of economic conditions.”