The RXO Strategy: From Acquisition to Execution in One Year
“When you look at some of the things that we’ve been able to do, a lot of people wouldn’t want to spin off at the soft part of the freight cycle, but for us, we’re actually relishing that opportunity because what we’re getting to show is not that can we perform in an upturn, but in a downturn by taking market share and doing it profitably.” - Drew Wilkinson
Over the past year, I’ve been keeping a close eye on RXO—and I’ve got to say, 2024 was a breakout year for them. From strategic acquisitions to digital innovation, RXO managed to grow aggressively while still staying true to its long-term vision. Here’s a quick breakdown of how they pulled it off and why I think their moves are worth paying attention to.
The Game-Changer: Acquiring Coyote Logistics
One of the biggest headlines of the year was RXO’s acquisition of Coyote Logistics. The deal officially closed in September 2024, and what impressed me was how fast they started seeing results. I’m assuming they initially expected some decent cost synergies, but by the time Q4 rolled around, they had already raised their target to over $50 million. That kind of integration speed is rare—and it's a sign of good leadership and strong operational discipline.
The Numbers Tell the Story
RXO didn’t just talk a big game—they backed it up with real performance. They ended the year with $4.55 billion in revenue, a jump from $3.93 billion in 2023. That’s a 15.9% increase year-over-year. Nearly $800 million of that came directly from the Coyote acquisition, which shows the deal is already paying off.
Looking at Q4 alone, revenue hit $1.7 billion—up from $1.0 billion the year before. That kind of quarterly growth is massive, and it put RXO on a lot of people’s radar in the logistics space.
Brokerage and Managed Transportation Took Off
Their core brokerage business also saw strong momentum. In Q4, brokerage volume was up 10% sequentially from Q3. That’s not a small feat, especially in a market that’s still dealing with a lot of uncertainty.
What really stood out to me was the strength of their managed transportation pipeline. They ended the year with nearly $2 billion in freight under management in the pipeline. That tells me RXO is landing some big accounts and growing in areas that are sticky and recurring.
Last Mile Delivery Got a Boost Too
RXO’s last mile segment—often the trickiest and most expensive part of the logistics chain—grew in all the right ways. They reported a 15% increase in last mile stops year-over-year during Q4. That’s a strong sign that their consumer-focused delivery business is scaling effectively. I personally got a dishwasher delivered by RXO. Their tracking is off the charts; you can see where your driver is in real time.
Technology Is Driving Efficiency
Another area I found impressive was how RXO leaned into digital. By the end of 2023, 97% of their brokerage loads were created or covered digitally. Just one year earlier, that number was 87%. That kind of adoption curve is rare in the freight world, and it shows that their platform is genuinely creating value for carriers and shippers.
Recognition That Matters
Beyond the numbers, RXO also picked up some well-earned recognition. They were named a 2024 EPA SmartWay Leader for Sustainability Excellence. In a sector that’s under increasing pressure to reduce emissions, being on that list says a lot about where RXO is heading.
What’s Next?
Looking ahead, RXO expects to bring in $20 to $30 million in adjusted EBITDA for Q1 2025. Brokerage gross margin is expected to land between 12% and 14%, and they’re staying focused on profitable market share—not just top-line growth. From my point of view, that’s the right call.
Final Thoughts
RXO’s 2024 playbook was a masterclass in strategic growth: make a big acquisition, integrate it fast, keep investing in tech, and stay disciplined. I’ll be watching closely to see how they carry this momentum into 2025—but if this past year is any indication, they’re not slowing down anytime soon.
