GXO Logistics sees growth opportunities in e-commerce, health care

The company recently finalized a deal with England’s National Health Service Supply Chain, its largest-ever contract, with a value of about $2.5 billion.

GXO also signed $228 million of new business contracts in the first quarter and has a sales pipeline of $2.5 billion, its highest level in three years.

Some of the company’s clients include DuPont, Boeing, Kimberly-Clark, Mitsubishi and Schneider Electric.

During the first quarter, 41% of GXO’s new wins were in newly outsourced business, 39% involved automation and 42% came from e-commerce firms, Wilson said.

“We’re operating in an environment that demands unprecedented agility from global supply chains,” Wilson said. “The structural tailwinds of outsourcing, automation and e-commerce continue to drive our industry’s growth, illustrating that the need for our solutions is more important than ever.”

While many transportation and logistics companies have revised or changed their earnings forecasts, GXO Logistics reaffirmed its guidance for the full year.

The company’s full-year 2025 guidance projects organic revenue growth of 3% to 6% and adjusted earnings before interest, taxes, depreciation and amortization of $840 million-$860 million. GXO also expects adjusted EPS of $2.40 to $2.60.

“Right now, our business is trading well in a dynamic environment, and the base case for our guidance is flat volumes year over year in 2025,” CFO Baris Oran said during the call. “Should we see a softer environment in the U.S. economy, we estimate that we would still land within our narrow guidance range for 2025. Even if we were to see our second-half volume in our consumer-facing business in the U.S. decline by … low to mid-single digits, we would still be forecasting to be within this tight guidance range.”

GXO’s largest market is the United Kingdom, representing $1.4 billion in revenue during the first quarter, compared with $913 million in the same period last year.

The United States was GXO’s second-largest market at $752 million in the first quarter, a 1% year-over-year increase.

GXO is still pending final approval of its acquisition of Wincanton, which officials said they expected to be resolved shortly.

GXO announced it was acquiring Wincanton in April 2024 for about $1 billion. Wincanton is a major logistics and supply chain operator in the U.K. and Ireland.

GXO and Wincanton have continued to be run independently until the U.K.’s Competition and Markets Authority (CMA) has completed its review of the acquisition.

“The Wincanton business has been trading really well since the acquisition,” Wilson said. “We’re very pleased with the management, very pleased with the revenue that is developing. We’re nearing the conclusion of the discussions with the CMA. In fact, in the coming weeks, we’re expecting to receive a full clearance of the deal.”