Has The Time Arrived To Buy This Mid Cap Stock-RXO

Acrobull Canada Advisory Inc.

April 10			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
RXO Inc.	NYSE-RXO	Industrials		$2.449 Billion	Medium

RXO, Inc. operates a truck brokerage business in the United States, Canada, Mexico, Asia, and Europe. The company provides truckload freight brokering services. It also offers asset-light managed transportation and last mile services, as well as freight forwarding, which includes ocean and air transportation facilitation, customs brokerage, and extra domestic services. RXO, Inc. was established in 2022 and is headquartered in Charlotte, North Carolina.

Recent Highlights

CEO Statement- We will increase estimates of annual cost synergyagain, and coyote logistics integration willcontinue prior to schedule. Currently, we are expecting synergy worth at least US$50 million.

Wilkerson continues,"The focus on delivering the best services, solutions, innovations and relationships in the industry in the fourth quarter meant a 10% increase in RXO's mediation volume combined. Dynamics exists within our supplemental services. Managed Transport's sales pipeline currently has around US$2 billion in cargogoods, up 15% per year in the last mile.

Fourth Quarter 2024 Highlights

RXO's fourth-quarter sales was $1.7 billion, up from $1.0 billion in Q4 2023. The gross margin was 15.5%, compared to 18.0% in the fourth quarter of 2023.

The company recorded a GAAP net loss of $20 million in the fourth quarter of 2024, compared to a net income of $2 million in the fourth quarter of 2023. The GAAP net loss for the fourth quarter of 2024 included $34 million in transaction, integration, restructuring, and other expenditures. Adjusted net income for the quarter was $10 million, up from $7 million in Q4 2023.

Adjusted EBITDA totaled $42 million, compared to $31 million in the fourth quarter of 2023. Adjusted EBITDA margin was 2.5%, compared to 3.2% in Q4 2023.

Transaction, integration, restructuring, and other charges, intangible amortization, and a discrete tax item all had an impact on GAAP profits per share of $0.18, net of taxes. In the fourth quarter, RXO reported a GAAP diluted loss per share of $0.12. The adjusted diluted earnings per share were $0.06.

Stock Observation- The company has reported stable financial results in the fourth quarter of 2024 and is expected to perform better in the next financial quarter, however recent volatility in the market may impact the performance in the short hence right entry point is required. The RSI level for the stock is at 41 which shows close to oversold conditions.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Watch for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$14.94 USD
Acrobull Recommendation	Buy For Mid Term at $13.50
Target Price	$17.70 USD
RSI Level	14 Day RSI 41
Total Shares Outstanding	163.91 Million
Shares held by Insiders Risk Factor Stop Loss	1.15% Medium 5%