XPO Transport Solutions UK saw revenues surge in 2025 but pre-tax profit sank significantly as ongoing inflationary cost pressures and a fall in the profits of subsidiary XPO Bulk UK took their toll.
According to the logistics giant’s latest financial results for the year to 31 December 2025, UK revenue leapt by over 10% to £784.8m (2024: £713m). However, pre-profit plummeted by 81% to £4.36m, down from £22.6m in the previous year.
According to XPO’s strategic report on the results, the boost in revenues was generated by a string of new business wins and increased volumes with existing clients and defied a “challenging macro-economic environment”.
However, operating profit slid by 32% to £20.2m (2024: £29.7m) during the year. This was attributed to continued cost inflation in subcontracting, temporary labour, and short-term rental expenses, alongside rising royalty fees paid to US parent company XPO, Inc., which climbed to £11.9m, up from £10.5m in 2024.
The report also noted that the prior year’s figures were artificially boosted by a £4.35m release of a HSE legal provision as a result of the company being formally acquitted in 2024 on all charges brought by the HSE regarding historical alleged contraventions of Health and Safety laws.
Turning to the plummeting pre-tax profit in 2025, the report said it reflected the impact of “the lower operating profit, as well as increased lease interest expenses following the expansion of property and vehicle leases to support revenue growth”.
This revenue rise also saw the average headcount at the business grow from 4,412 to 4,776 employees during the year.
The report also pointed to the impact of an impairment of the investment in the company’s subsidiary XPO Bulk UK Limited of £6.8m (2024: £nil) on pre-tax profit, following “a decline in the subsidiary’s recent profitability”.
XPO Bulk UK’s annual results reveal that its profit was hit in 2025 by lower volumes from existing customers, the loss of a customer in the second half of 2025, falling demand for fuel thanks to the rise in hybrid working post-Covid, and the increase in electric vehicles. The company saw revenue decline to £69.3m (2024: £73.9m).
On the sustainability front, XPO Transport Solutions UK reported significant headway. Despite the expanded fleet footprint required to handle higher volumes, the operator achieved an 11.7% reduction in absolute CO2 emissions, beating its internal 10% reduction target for the year.
The company revealed that almost 25% of its UK fleet is now running on alternative fuels, primarily HVO and bio-LNG, which deliver an 80% to 90% carbon saving compared to diesel equivalents.
XPO said its transition to alternative fuels successfully saved 34,258 tonnes of CO2e in 2025 alone.
Looking ahead to 2026 and 2027, XPO Transport Solutions said it aims to further expand its electric vehicle HGV and van fleets, increase its intermodal rail and short-sea solutions, and push alternative fuel usage above 30% of total fuel demand, subject to supply and price stabilisation.
Despite the squeeze on profitability, the directors’ report remained optimistic about the operator’s trading position.
Turning to future developments, it concluded: “Despite economic uncertainties and increased cost inflation, the directors believe that the company is well positioned for future growth with a strong pipeline and the opportunity to capitalise on market uncertainty.”
XPO Transport Solutions handles commercial road transport, haulage, and freight services under the XPO brand. The company is the primary operating subsidiary for the UK road freight and haulage division of its US parent corporation XPO Inc. It operates a fleet of over 3,500 HGVs and more than 5,000 trailers.
