XPO Tonnage Returns to Growth in February After 8-Month Slump

Key Details XPO Logistics reported its first year-over-year tonnage increase since June 2024, posting a 0.2% gain in February. The Connecticut-based LTL carrier saw daily shipments rise 3% while weight per shipment declined 2.8%, reflecting mixed demand signals across its network. Why It Matters Positive tonnage trends suggest freight demand may be stabilizing after a prolonged contraction. Manufacturing data released the same day showed a PMI reading of 52.4, indicating industrial expansion for only the second time in three years. The new orders subindex hit 55.8, historically leading LTL volumes by several months. What's Ahead XPO management previously guided for flat first-quarter tonnage year-over-year. However, late-month winter weather likely dampened February results, and the company expects margin improvement despite typical Q1 seasonal headwinds. Cost-cutting initiatives including AI-driven dock efficiency, reduced outsourcing, and lower equipment maintenance should support profitability. Bottom Line XPO's turnaround reflects a potential inflection point for the trucking sector. The carrier's focus on high-margin local accounts and strategic customer wins positions it well if manufacturing momentum continues into spring.