Dive Brief:
- XPO Logistics reported strong Q2 results and what CEO Bradley Jacobs called a "record level for revenue" at $3.76 billion for the quarter, in an earnings call Wednesday.
- Jacobs used the positive Q2 announcement as an opportunity to inform investors that as XPO Logistics continues its upward trend, the company will not slow its acquisition spree. In fact, Jacobs said the company plans to pursue deals priced up to $8 billion.
- Jacobs said investments in sales and technology largely contributed to the strong quarter results, with 62% growth YOY, according to the company's press release.
Dive Insight:
Ever since XPO acquired Con-way in 2015, the company has refrained from participating in the M&A market while focusing on integrating the big trucking company into its operations. The Greenwich-based logistics company has continued a strong trajectory of growth since the acquisition, and Jacobs said integration is "winding down," so it makes sense that the company is now ready to plunge back into the M&A market.
According to the earnings call, XPO will pursue mainly "asset light" companies, further reinforcing its plan to become a global 3PL company. Jacobs also told investors that he plans to expand XPO's last mile network, and that the company plans to install 10 new last mile hubs by the end of 2017.
"We are doing that so that we will get close to the customer and reduce transit times," Jacobs said.
There seems to be no end in sight for XPO's growth: it will be the company to watch as it pursues new acquisitions later this year and continues to streamline its logistics network to compete with companies including UPS, FedEx and even Amazon.
