GXO Logistics reports big Q4 gains from e-commerce customers

Greenwich, Connecticut-based GXO Logistics (NYSE: GXO) is one of the largest pure-play contract logistics providers in the world. It has more than 970 facilities totaling approximately 200 million square feet, with a global workforce of more than 130,000 people.

GXO’s results exceeded Wall Street expectations for the quarter, which predicted earnings of 96 cents per share and revenue of $3.2 billion.

Wilson said the company sees an acceleration of revenue growth throughout the year, boosted by contracts with new customers and renewals with existing clients.

“Our [customer] pipeline is up 15% year over year as of the end of the fourth quarter, and our pipeline in The Americas is up 20%. This momentum will continue to drive our long-term growth,” Wilson said. “We also grew enormously with our existing customers in the year. Our land and expand strategy has been a cornerstone of our long-term partnerships, and we expanded into new geographies with more than 40 of our legacy customers, including Boeing, Guess, Michelin and Nespresso.”

GXO’s $2.5 billion contract with a health care company is to provide major fulfillment operations in the second half of the year. The name of the company is confidential at the moment, according to Wilson.

“This opportunity came through a legacy relationship we gained from our acquisition of Clipper Logistics in 2022. The Clipper deal also gave us a foothold in Germany, and I’m pleased to report that we’ve grown our revenue there by 60% year over year as of the end of 2024,” Wilson said.

The company’s full-year 2024 revenue increased 20% year over year to $11.7 billion from 2023. Net income was $138 million, compared with $233 million the previous year.

Adjusted earnings before interest, taxes, depreciation and amortization for full-year 2024 was $815 million, compared with $741 million for 2023.

GXO’s 2025 guidance calls for revenue growth of 3% to 6%, adjusted EBITDA of $840 million to $860 million and adjusted EPS of $2.40 to $2.60.

Baris Oran, GXO’s chief financial officer, said the company expects slower growth during the first quarter and for growth to ramp up by the end of the year.

“We expect low-single-digit organic revenue growth in Q1, and we expect to deliver around $155 million of adjusted EBITDA at the midpoint of our range,” Oran said. “The difference compared to full year bridge is that we have a larger impact from customer capacity alignments and new site implementations. We have positive net wins from a revenue standpoint in Q1, and capacity realignments are primarily in mature sites and our startups take time to reach the glide path.”

Growth industries in 2024 included the health sector, aerospace and defense, food and beverage, and omnichannel retail, officials said.

Wilson said the company landed new businesses in North America during the fourth quarter and could expand through an acquisition in the future.

“In North America, we won significant business in the technology sector, including a major contract managing a data center,” Wilson said. “Definitely geographically our focus of attention when we are finally ready to look at further M&A, it will definitely be here in North America.”