Barclays Maintains Buy Rating on RXO, Cites Strong Q2 Performance, AI-Driven Productivity Gains

RXO Inc. (NYSE:RXO) is one of the best IPO stocks to buy and hold for 3 years. On September 10, Barclays analyst Brandon Oglenski maintained a Buy rating on RXO Inc. with a price target of $17. The previous month, RXO Inc. reported a total revenue of $1.4 billion in Q2 2025, with a gross margin of 17.8%.

Despite facing a prolonged soft freight market and challenges in the automotive sector, RXO achieved an adjusted EBITDA of $38 million, reaching the high end of its guidance. This resulted in an adjusted EBITDA margin of 2.7%. The company’s brokerage revenue was $1.025 billion, which accounted for 69% of total revenue, with a brokerage gross margin of 14.4%.

Although truckload volume declined by 12% due to a 28% year-over-year drop in automotive volume, the company’s truckload gross profit per load increased by 7% sequentially. The company’s strategy of optimizing price, volume, and service, which is now largely complete, contributed to the improved gross profit per load. RXO has also been using AI and ML for over a decade to improve pricing and productivity, which has increased by 45% over the last 2 years.

RXO Inc. (NYSE:RXO) engages in the truck brokerage business in the US, Canada, Mexico, Asia, and Europe. The company offers truckload freight brokering services.

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Disclosure: None. This article is originally published at Insider Monkey.