GXO Reports 28% Revenue Jump for Q3
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GXO Logistics Inc. experienced a 28% jump in revenue as its operations built momentum in the third quarter, the company reported Nov. 5.
The Greenwich, Conn.-based contract logistics firm posted net income of $35 million, 28 cents a diluted share, for the three months ending Sept. 30. That compared with $68 million, 55 cents, during the 2023 period. Total revenue increased 28% to $3.16 billion from $2.47 billion.
GXO ranks No. 5 on the Transport Topics Top 100 list of the largest logistics companies in North America and No. 4 on the dry storage warehousing sector list.
“GXO has delivered a stellar third quarter,” CEO Malcolm Wilson said during a call with investors. “We’ve posted record revenues and adjusted EBITDA. We have increasing momentum in our business, including continued acceleration in our sequential organic growth. During the quarter, we signed $226 million of new business wins. We continue to grow with top brands.”
The company even saw its sales pipeline grow by 30% year over year and had won about $750 million of new business by the end of Q3. Wilson further noted that GXO has several major projects that are expected to be signed in the fourth quarter, and that the company is on course to set a record for new business wins in 2024.
“Looking ahead to the fourth quarter, we’re ready for the peak season,” Wilson said. “We’ve mentioned that we saw the bottom of the inventory cycle in the fourth quarter of last year. As we head into this year’s peak, we’re seeing inventory levels returning to normal, and demand for e-commerce capacity is accelerating. Our customer service satisfaction scores are at an all-time high.”
Wilson added the deployment of technologies, such as automation and artificial intelligence, is having a multiplier effect in terms of efficiency as commercial activity gains momentum. He also has seen this technology differentiation help in gaining new business.
GXO’s Q3 2024 financial results are in https://t.co/Sec1aI8jio pic.twitter.com/XgjjviSwwT — GXO (@GXOLogistics) November 4, 2024
“Our ongoing strong sales performance coupled with our targeted M&A in key geographies, and hard-to-penetrate verticals, is driving our long-term growth,” Wilson said. “In light of this continued strong performance, we’re reaffirming our full-year guidance for 2024.
“We have clear evidence we’re through the trough, and we intend to build from here. Looking further ahead in 2025, we expect an acceleration of growth.”
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GXO noted in the earnings report that the results included organic revenue growth of 3% and that there has been sequential improvements in organic revenue growth and strong free cash flow. The company also is seeing increasing demand for e-commerce capacity.
• Omnichannel retail: Revenue growth surged 41% year over year to $1.48 billion from $1.05 billion.
• Technology and consumer electronics: Revenue increased 8.9% to $392 million from $360 million.
• Food and beverage: Revenue decreased 5% to $344 million from $362 million.
• Industrial and manufacturing: Revenue rose 43% to $376 million from $263 million.
• Consumer packaged goods: Revenue climbed 34.6% to $311 million from $231 million.
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