Moody’s Ratings upgraded XPO, Inc.’s corporate family rating to Ba1 from Ba2 on improved credit metrics and execution of a multi-year operational improvement plan.
The rating agency also raised the company’s senior secured bank credit facility and senior secured notes to Baa3 from Ba1, while lifting senior unsecured notes to Ba2 from Ba3. Moody’s speculative-grade liquidity rating was upgraded to SGL-1 from SGL-2, reflecting stronger liquidity buffers.
Moody’s expects XPO’s adjusted debt-to-EBITDA to decline to about 2.8 times for the 12 months ended June 30, 2026, down from prior levels, with further improvement to roughly 2.6 times in 2026 and around 2.2 times in 2027. EBITDA margins are projected to remain above 17%, supported by sustained yield improvements and operational efficiencies.
XPO reported consolidated revenue in the first half of 2026 up approximately 10% year-over-year, driven by higher yields and positive volume growth in its North American less-than-truckload segment. The company also benefited from greater utilization of service centers acquired from Yellow Corporation and technology-enabled cost reductions.
Liquidity remained robust, with a fully available $600 million revolving credit facility and a $200 million letters-of-credit facility, of which $69 million was unused. Cash and cash equivalents totaled $298 million as of June 30, 2026, while the company repaid $200 million in term-loan principal year-to-date and refinanced its capital structure, with no significant maturities until 2028.
Moody’s noted that while XPO’s freight market recovery remains gradual, its execution of cost controls and margin expansion has strengthened credit quality. The agency maintained a stable outlook, citing balanced risks between operational execution and potential strategic shifts, including the evaluation of its European transportation platform for a potential divestiture.
