RXO profit returned in the third quarter of 2026, with net income of $3 million on revenue of $1.87 billion, after a $14 million net loss in the same quarter a year earlier. The Charlotte based transportation services company reported the results on 29 October. Revenue rose from $1.421 billion a year earlier, and GAAP basic and diluted earnings per share were both $0.02, against a loss of $0.08 per diluted share a year earlier.
RXO profit in the quarter included $7 million in transaction, integration, restructuring and other costs. Adjusted net income was $16 million, against $2 million a year earlier, and adjusted diluted earnings per share were $0.09, against $0.01 a year earlier. Adjusted EBITDA increased to $51 million from $32 million. Chairman and chief executive Drew Wilkerson said, “We exceeded the high end of our third-quarter profit outlook, demonstrating the momentum we’re building across RXO.”
The results beat Wall Street expectations on both lines. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 8 cents a share, and five analysts expected revenue of $1.81 billion. RXO shares slipped only 0.6% to $27.49 after the release, according to Simply Wall St, even though the company had swung to a small profit. The muted reaction reflected questions about valuation against a trailing year that remains loss making.
How RXO profit was built in the quarter
Operating income was $17 million in the third quarter, against an operating loss of $7 million a year earlier. That swing of $24 million came as revenue grew and costs were held in check across truck brokerage, managed transportation and last mile services. Operating margin improved to 0.9%, according to Simply Wall St analysis of the quarter. Gross profit rose to $273 million from $234 million a year earlier, while gross margin fell to 14.6% from 16.5%. That swing underpinned RXO profit in the quarter.
Cost of transportation and services rose to $1.538 billion from $1.137 billion, in line with higher revenue. Direct operating expense increased to $58 million from $48 million. Sales, general and administrative expense was $223 million against $208 million a year earlier. Depreciation and amortisation fell to $28 million from $26 million in the prior year figures as reported. Restructuring costs were $6 million in the quarter against $4 million a year earlier.
RXO profit against the nine month picture
For the first nine months of 2026, revenue rose to $5.070 billion from $4.273 billion, while the company recorded a net loss of $42 million against a $54 million loss in the same period of 2025. Nine month operating loss narrowed to $10 million from $37 million. Trailing twelve month net income still shows an $88 million loss, against a $79 million loss a year earlier, so the cumulative loss over the last year widened even as the quarter turned profitable. The nine month loss puts RXO profit in context.
RXO profit and the C.H. Robinson takeover
The quarter was reported against a takeover that will change the company’s future. On 5 October, RXO entered into a definitive agreement to be acquired by C.H. Robinson in a stock and cash transaction with an implied value of $5.8 billion as of the announcement. Closing is expected in the first half of 2027, subject to customary conditions. Because of the proposed transaction, RXO will not host an earnings conference call. Closing conditions will shape what RXO profit trends mean next.
That agreement explains part of the market reaction. With a takeover price already agreed, quarterly results matter less for the share price than they would for a standalone company, and valuation questions centre on the deal terms and on whether closing conditions are met. Analyst storyline cited by Simply Wall St points to revenue of $8.1 billion and earnings of $212.5 million by 2029, but that longer term view will be overtaken by the takeover if it closes in the first half of 2027 as planned.
RXO filed its quarterly report on Form 10-Q on 29 October, giving the full breakdown behind the headline figures. The return to RXO profit in the third quarter, the second straight quarterly profit, the $51 million in adjusted EBITDA and the beat against analyst expectations all point to tighter cost control. The $42 million nine month loss, negative operating cash flow and wider trailing twelve month loss show the recovery is incomplete. The takeover by C.H. Robinson, valued at $5.8 billion, will decide what comes next for the business. The quarter showed RXO profit can return even as the full year stays in loss.