GXO Caps Record-Setting Year With Q4 Revenue High-Water Mark
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GXO Logistics closed out a record-setting year with revenue and earnings increasing during the fourth quarter of 2024, the company reported Feb. 12.
The Greenwich, Conn.-based contract logistics firm posted net income of $100 million, or 83 cents a diluted share, for the three months ending Dec. 31. That compared with $73 million, 61 cents, during the same time the previous year. Total revenue increased 25% to $3.25 billion — a fourth-quarter record — from $2.59 billion.
GXO ranks No. 5 on the Transport Topics Top 100 list of the largest logistics companies in North America.
“In 2024, we had some great operational highlights,” GXO CEO Malcolm Wilson said during a call with investors. “We delivered record revenue and adjusted [earnings before interest, taxes, depreciation and amortization]. Notably, our adjusted EBITDA grew 30% year over year in the fourth quarter. We drove organic growth acceleration every quarter throughout the year.”
GXO reported full-year net income of $138 million, or $1.12, a share, on revenue of $11.7 billion. That compared with net income of $233 million, $1.92, on revenue of $9.8 billion in 2023. The company closed more than $1 billion of new business wins for the second consecutive year. That included winning its largest-ever contract at $2.5 billion in lifetime value.
“Also in the fourth quarter, we won a major new contract, a long-term $2.5 billion total lifetime value fulfillment operation in the health care sector,” Wilson said. “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 views these accomplishments as proof positive his company has been deploying a successful mergers-and-acquisitions strategy. More recently that has included the acquisition of Wincanton earlier in the year.
“This is a growing business that will bring us expertise in key verticals like aerospace and industrials, where we plan to accelerate our growth,” Wilson said. “Turning to our outlook for this year, we expect to deliver 3% to 6% organic growth with $840 million to $860 million of adjusted EBITDA for the full year 2025. Our guidance range reflects our strong core business growth, which is netted against capacity realignment by a small number of long-term customers where we have worked together to adjust their footprints to fit their future needs.”
Fourth-quarter revenue by segment:
- Omnichannel retail: Revenue increased 41% to $1.54 billion from $1.09 billion.
- Technology and consumer electronics: Revenue increased 6% to $404 million from $382 million.
- Industrial and manufacturing: Revenue increased 38% to $366 million from $266 million.
- Food and beverage: Revenue increased 6% to $345 million from $327 million.
- Consumer packaged goods: Revenue increased 12% to $363 million from $325 million.
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