RXO Inc (NYSE: RXO), a leading provider of asset-light transportation solutions, saw its stock plummet 5.52% in pre-market trading on Wednesday after issuing a disappointing outlook for the first quarter of 2025, despite reporting better-than-expected results for the fourth quarter of 2024.

In the fourth quarter, RXO posted revenue of $1.67 billion, up 70.4% year-over-year and beating Wall Street's estimate of $1.66 billion. The company reported an adjusted earnings per share (EPS) of $0.06, in line with analysts' expectations, and an adjusted EBITDA of $42 million, narrowly beating the consensus estimate of $41.5 million.

However, RXO's GAAP net loss for the quarter came in at $20 million, or $0.12 per share, impacted by $34 million in transaction, integration, restructuring, and other costs related to the Coyote Logistics acquisition.

The company provided an outlook for the first quarter of 2025, expecting adjusted EBITDA to be between $20 million and $30 million, below analysts' expectations of around $30.4 million. This disappointing guidance overshadowed the company's strong performance in the fourth quarter and weighed on the stock price.

Despite the lukewarm EBITDA guidance, RXO reported positive developments in its operations. The integration of Coyote Logistics, a major acquisition announced in 2024, remains ahead of schedule, prompting the company to raise its annualized cost synergy estimate to at least $50 million, up from its previous target.

Additionally, RXO's brokerage volume increased by 10% sequentially in the fourth quarter, and its managed transportation sales pipeline now stands at nearly $2 billion in freight under management. The company's last mile stop growth also continued to accelerate, growing 15% year-over-year.