RXO touted the integration of Coyote Logistics in its first-quarter earnings release, with higher synergies now predicted and integration moving forward.
But the finances at the 3PL were not good. RXO posted an operating loss of $30 million, compared to a $12 million operating loss in the corresponding quarter a year ago and $24 million operating loss in the fourth quarter of 2024.
Revenue comparisons year on year are not on an equal basis due to the Coyote acquisition, which closed in September. Revenue at RXO was $1.43 billion compared to $913 million a year ago. But sequentially, when Coyote in the fourth quarter was part of RXO, revenue was down from $1.67 billion.
Earnings before interest, taxes, depreciation and amortization increased from a year ago — again, no Coyote in the first quarter of 2024 — but was down from the fourth quarter. EBITDA in the first quarter was $22 million, and it was $42 million in the final quarter of 2024.
Net income was an 18-cents-per-share loss for the quarter, deteriorating from minus 13 cents a year ago and minus 12 cents sequentially.
In the prepared statement announcing the company’s financial performance, CEO Drew Wilkerson said the company had reached a milestone in the Coyote integration: Technology is all on one system.
The estimate on cash savings from the synergies generated by the Coyote acquisition is now up to $70 million. In the fourth-quarter earnings report, the savings were forecast as $50 million.
The company’s conference call is at 8 a.m. EDT Wednesday.
