GXO Logistics, Inc. Reports Record Revenue and Adjusted EBITDA for Q4 and Full Year 2024, Announces 2025 Guidance

GXO Logistics reported record revenues and adjusted EBITDA for Q4 and full year 2024, with strong organic growth and business wins.

Quiver AI Summary

GXO Logistics, Inc. reported record revenue of $3.3 billion for the fourth quarter and $11.7 billion for the full year 2024, reflecting a year-over-year increase of 25% and 20%, respectively. The company experienced organic revenue growth of 4% in Q4 and 3% for the year, while net income rose to $100 million in Q4 compared to $73 million in 2023. For the second consecutive year, GXO secured over $1 billion in new business wins, including a significant $2.5 billion lifetime value contract in health sciences. Guidance for 2025 anticipates organic revenue growth of 3% to 6%, adjusted EBITDA of $840 million to $860 million, and adjusted diluted earnings per share of $2.40 to $2.60. CEO Malcolm Wilson highlighted strong customer satisfaction and the company’s expansion into new markets, underscoring GXO's robust position to leverage ongoing supply chain complexities in a rapidly changing economic environment.

Potential Positives

• Achieved record revenue for both Q4 and full year 2024, with revenue increasing by 25% year over year in Q4 and 20% year over year for the full year.
• Closed over $1 billion in new business wins for the second consecutive year, including the largest contract ever worth $2.5 billion in lifetime value, significantly enhancing growth potential.
• Announced optimistic 2025 guidance, forecasting organic revenue growth of 3% to 6%, indicating continued growth momentum.
• Adjusted EBITDA increased to $815 million for the full year, demonstrating improved operational efficiency and profitability compared to previous years.

Potential Negatives

• Net income for the full year 2024 decreased to $138 million, down significantly from $233 million in 2023, indicating a potential decline in profitability despite revenue growth.
• The company generated less free cash flow in 2024 ($251 million) compared to 2023 ($302 million), suggesting a decrease in financial flexibility.
• Debt levels have increased significantly, with total outstanding debt rising to $2.6 billion, creating concerns about financial leverage and risk in a possibly volatile market environment.

FAQ

What were GXO Logistics' Q4 2024 revenue results?

GXO reported Q4 2024 revenue of $3.3 billion, a 25% increase from Q4 2023.

How much new business did GXO win in 2024?

GXO closed over $1 billion in new business wins for the second consecutive year.

What is GXO's guidance for 2025?

GXO's 2025 guidance includes organic revenue growth of 3% to 6% and adjusted EBITDA of $840 to $860 million.

How did adjusted EBITDA perform in Q4 2024?

Adjusted EBITDA for Q4 2024 rose to $251 million, compared to $193 million in Q4 2023.

What are GXO's key financial metrics for 2024?

GXO achieved $11.7 billion in revenue, $815 million in adjusted EBITDA, and diluted EPS of $1.12 in 2024.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$GXO Hedge Fund Activity

We have seen 178 institutional investors add shares of $GXO stock to their portfolio, and 250 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• AMERICAN CENTURY COMPANIES INC removed 2,212,970 shares (-71.4%) from their portfolio in Q4 2024, for an estimated $96,264,195
• AMUNDI removed 1,714,856 shares (-96.1%) from their portfolio in Q4 2024, for an estimated $74,596,236
• FMR LLC removed 1,168,172 shares (-50.9%) from their portfolio in Q3 2024, for an estimated $60,826,716
• VAUGHAN NELSON INVESTMENT MANAGEMENT, L.P. added 1,094,860 shares (+inf%) to their portfolio in Q4 2024, for an estimated $47,626,410
• RIVER ROAD ASSET MANAGEMENT, LLC added 699,636 shares (+53.5%) to their portfolio in Q4 2024, for an estimated $30,434,166
• HANDELSBANKEN FONDER AB removed 559,600 shares (-94.7%) from their portfolio in Q4 2024, for an estimated $24,342,600
• COOPER CREEK PARTNERS MANAGEMENT LLC added 501,009 shares (+26.9%) to their portfolio in Q3 2024, for an estimated $26,087,538

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

• 
  
  Delivered record revenue for both Q4 and full year 2024
  
  


• 
  
  Organic revenue growth accelerated sequentially each quarter in 2024
  
  


• 
  
  Closed more than $1 billion of new business wins for the second consecutive year; won largest-ever contract, of $2.5 billion lifetime value, in health sciences
  
  


• 
  
  Announced 2025 guidance:
  
  
  
  
  • 
    
    Organic revenue growth of 3% - 6%
    
    
  
  
  • 
    
    Adjusted EBITDA of $840 million - $860 million
    
    
  
  
  • 
    
    Adjusted diluted EPS of $2.40 - $2.60
    
    
  
  
  • 
    
    Adjusted EBITDA
    
    
    to free cash flow conversion of 25% to 35%
    
    
  
  
  
  

GREENWICH, Conn., Feb. 12, 2025 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO) today announced results for the fourth quarter and full year 2024.

Malcolm Wilson, Chief Executive Officer of GXO, said, “In 2024, GXO delivered record revenue and adjusted EBITDA, and drove strong operating return on invested capital. We also accelerated our organic growth sequentially throughout the year and closed more than $1 billion of new business wins for the second consecutive year.

“Our customer satisfaction scores are at an all-time high, and we are particularly proud that more than 40 existing customers expanded into new geographies with GXO.

“In 2024, we completed the acquisition of Wincanton, which will accelerate our growth in key verticals, and we expanded in new geographies like Germany, which is now our fastest-growing market. Our pipeline is up 15% year over year, and our pipeline in the Americas is up 20%.

“Our guidance for 2025 reflects our confidence in our core business growth, the phasing of startups, the impact of foreign exchange, and our current expectation of the timing of the Wincanton regulatory review. The strength of our pipeline and the pace of our new business wins continue to benefit from the structural tailwinds – outsourcing, automation and e-commerce – at our backs. As brands around the world face unprecedented supply chain complexity, GXO is well positioned to help them turn supply chain challenges into competitive advantages.”

Fourth Quarter


2024


Results

Revenue increased to $3.3 billion, up 25% year over year, compared with $2.6 billion for the fourth quarter 2023. Organic revenue

¹

grew by 4%.

Net income increased to $100 million, compared with $73 million for the fourth quarter 2023. Diluted earnings per share increased to $0.83, compared with $0.61 for the fourth quarter 2023.

<sup>____________________________


1</sup>

For definitions of non-GAAP measures see the “Non-GAAP Financial Measures” section in this press release.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA

¹

”) increased to $251 million, compared with $193 million for the fourth quarter 2023. Adjusted diluted earnings per share (“Adjusted EPS

¹

”) was $1.00, compared with $0.70 for the fourth quarter 2023.

GXO generated $186 million of cash flows from operations, compared with $215 million for the fourth quarter 2023. In the fourth quarter of 2024, GXO generated $127 million of free cash flow

¹

, compared with $151 million for the fourth quarter 2023.

Full Year 2024


Results

Revenue increased to $11.7 billion, up 20% year over year compared with $9.8 billion for 2023. Organic revenue

¹

grew by 3%.

Net income was $138 million, compared with $233 million for 2023. Diluted earnings per share was $1.12, compared with $1.92 for 2023.

Adjusted EBITDA

¹

was $815 million, compared with $741 million for 2023. Adjusted EPS

¹

was $2.80, compared with $2.59 for 2023.

GXO generated $549 million of cash flows from operations, compared with $558 million for 2023. GXO generated $251 million of free cash flow

¹

, compared with $302 million for 2023.

Cash flows from operations to net income and free cash flow conversion

¹

ratios were 398% and 31%, respectively, for 2024. Cash flows from operations to net income and free cash flow conversion

¹

ratios were 239% and 41%, respectively, for 2023.

Net income to average invested capital and operating return on invested capital

¹

ratios were 14% and 46%, respectively, for 2024.

Cash Balances and Outstanding Debt

As of December 31, 2024, cash and cash equivalents (excluding restricted cash), debt outstanding and net debt

¹

were $413 million, $2.6 billion and $2.2 billion, respectively.

2025 Guidance



²

GXO’s 2025 financial outlook is as follows:

• 
  Organic revenue growth
  
  ¹
  
  of 3% to 6%;
  


• 
  Adjusted EBITDA
  
  ¹
  
  of $840 million to $860 million;
  


• 
  Adjusted diluted earnings per share
  
  ¹
  
  of $2.40 to $2.60; and
  


• 
  Adjusted EBITDA
  
  ¹
  
  to free cash flow conversion
  
  ¹
  
  of 25% to 35%.
  

Conference Call

GXO will hold a conference call on Thursday, February 13, 2025, at 8:30 a.m. Eastern Time. Participants can call toll-free (from US/Canada) 877-407-8029; international callers dial +1 201-689-8029. Conference ID: 13751179. A live webcast of the conference will be available on the Investor Relations area of the company’s website, investors.gxo.com. The conference will be archived until February 25, 2025. To access the replay by phone, call toll-free (from US/Canada) 877-660-6853; international callers dial +1 201-612-7415. Use participant passcode 13751179.

____________________________



²

Our guidance reflects current FX rates.

About GXO Logistics

GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is benefiting from the rapid growth of ecommerce, automation and outsourcing. GXO is committed to providing a diverse, world-class workplace for more than 150,000 team members across more than 1,000 facilities totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit



GXO.com



for more information and connect with GXO on



LinkedIn



,



X



,



Facebook



,



Instagram



and



YouTube



.

Non-GAAP Financial Measures

As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables below.

GXO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted earnings before interest, taxes and amortization (“adjusted EBITA”), adjusted EBITA, net of income taxes paid, adjusted EBITA margin, adjusted net income attributable to GXO, adjusted earnings per share (basic and diluted) (“adjusted EPS”), free cash flow, free cash flow conversion, organic revenue, organic revenue growth, net leverage ratio, net debt, and operating return on invested capital (“ROIC”).

We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, GXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. GXO’s non-GAAP financial measures should only be used as supplemental measures of our operating performance.

Adjusted EBITDA, adjusted EBITA, adjusted net income attributable to GXO and adjusted EPS include adjustments for transaction and integration costs and litigation expenses as well as restructuring costs and other adjustments as set forth in the financial tables below. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition, divestiture or spin-off and may include transaction costs, consulting fees, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and separating IT systems. Litigation costs primarily relate to the settlement of legal matters. Restructuring costs primarily relate to severance costs associated with business optimization initiatives.

We believe that free cash flow and free cash flow conversion are important measures of our ability to repay maturing debt or fund other uses of capital that we believe will enhance stockholder value. We calculate free cash flow as cash flows from operations less capital expenditures plus proceeds from sale of property and equipment. We calculate free cash flow conversion as free cash flow divided by adjusted EBITDA, expressed as a percentage.

We believe that adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA, net of income taxes paid, and adjusted EBITA margin, improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization of intangible assets acquired), tax impacts and other adjustments as set forth in the financial tables below, which management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses.

We believe that adjusted net income attributable to GXO and adjusted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains as set forth in the financial tables below, which management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets.

We believe that organic revenue and organic revenue growth are important measures because they exclude the impact of foreign currency exchange rate fluctuations, revenue from acquired businesses and revenue from disposed business.

We believe that net leverage ratio and net debt are important measures of our overall liquidity position and are calculated by removing cash and cash equivalents from our total debt and net debt as a ratio of our adjusted EBITDA. We calculate ROIC as our adjusted EBITA, net of income taxes paid, divided by the average invested capital. We believe ROIC provides investors with an important perspective on how effectively GXO deploys capital and use this metric internally as a high-level target to assess overall performance throughout the business cycle.

Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating GXO’s ongoing performance.

With respect to our financial targets for full-year 2025 organic revenue growth, adjusted EBITDA, adjusted diluted EPS, and free cash flow conversion, a reconciliation of these non-GAAP measures to the corresponding GAAP measures is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statements of income and cash flows prepared in accordance with GAAP, that would be required to produce such a reconciliation.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including our full year 2025 financial targets


of organic revenue growth, adjusted EBITDA, adjusted diluted earnings per share and free cash flow conversion; our accelerated growth in key verticals from the acquisition of Wincanton; and our current expectation of the timing of the Wincanton regulatory review.


In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the company believes are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks discussed in our filings with the SEC and the following: economic conditions generally; supply chain challenges, including labor shortages; competition and pricing pressures; our ability to align our investments in capital assets, including equipment, service centers and warehouses, to our respective customers’ demands; our ability to successfully integrate and realize anticipated benefits, synergies, cost savings and profit improvement opportunities with respect to acquired companies, including the acquisition of Wincanton; acquisitions may be unsuccessful or result in other risks or developments that adversely affect our financial condition and results; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; our indebtedness; our ability to raise debt and equity capital; litigation; labor matters, including our ability to manage our subcontractors, and risks associated with labor disputes at our customers’ facilities and efforts by labor organizations to organize our employees; risks associated with defined benefit plans for our current and former employees; our ability to attract or retain necessary talent; the increased costs associated with labor; fluctuations in currency exchange rates; fluctuations in fixed and floating interest rates; fluctuations in customer confidence and spending; issues related to our intellectual property rights; governmental regulation, including environmental laws, trade compliance laws, as well as changes in international trade policies and tax regimes; governmental or political actions, including the United Kingdom’s exit from the European Union; natural disasters, terrorist attacks or similar incidents; damage to our reputation; a material disruption of our operations; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; failure in properly handling the inventory of our customers; the impact of potential cyber-attacks and information technology or data security breaches; and the inability to implement technology initiatives or business systems successfully; our ability to achieve Environmental, Social and Governance goals; and a determination by the IRS that the distribution or certain related spin-off transactions should be treated as taxable transactions. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward looking statements should therefore be construed in the light of such factors.

All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

The Company’s revenue can also be disaggregated by the customer’s primary industry. Revenue disaggregated by industries was as follows: