GXO posts strong quarterly results, raises full-year outlook

Revenue up 11%, net income up 27%, EPS beats consensus

Wincanton board approves GXO buy-out offer (Photo GXO)

Contract logistics provider GXO Logistics Inc. (NYSE: GXO) reported better-than-expected second-quarter results late Wednesday and raised its full-year outlook for earnings per share and earnings before interest, taxes, depreciation and amortization.

Second-quarter revenue grew 11% year over year to $2.4 billion, with organic revenue increasing 3%. Net income rose 27% to $65 million. Operating income increased by 68%, and adjusted diluted earnings per share of 70 cents bettered consensus estimates of 61 cents per share.

For the full year, the Greenwich, Connecticut-based company raised adjusted diluted EPS by 5 cents to a range of $2.45 to $2.65 a share. Adjusted EBITDA was raised $10 million to a range of $725 million to $755 million.

“We’re pleased to have delivered an exceptional performance in the second quarter, including double-digit top and bottom line growth,” said CEO Malcolm Wilson. “We increased our market share in the quarter, and we raised our 2023 profit guidance. We’re one of the few companies in our industry expecting to grow this year.”

The company said it signed a record $500 million in new business wins in the quarter and grew its year-over-year sales pipeline to $2.1 billion.

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.