Contract logistics provider GXO Logistics touted new business wins and slightly raised its 2025 outlook on Tuesday after the market closed. The Greenwich, Connecticut-based company cited increased interest from e-commerce and reverse logistics companies as a reason.
GXO (NYSE: GXO) reported second-quarter adjusted earnings per share of 57 cents. The result was 2 cents higher year over year and 1 cent ahead of the consensus estimate. (Adjusted results exclude nonrecurring acquisition and restructuring expenses, among other items.)
Adjusted earnings before interest, taxes, depreciation and amortization of $212 million was 13% higher y/y.
GXO inked $307 million in new deals during the second quarter, pushing total business wins to $535 million in the first half of 2025. The company’s pipeline was $2.4 billion at the end of the period, a modest step down from $2.5 billion at the end of the first quarter, however it continues to convert the pipeline into revenue.
(The pipeline excludes any contribution from the Wincanton acquisition, which was cleared by the UK Competition and Markets Authority in June.)
Management described the pipeline on a Wednesday call with analysts as “more diverse than ever before,” and noted it contains more warehouse automation opportunities than in the past. It said many of its new wins in the e-commerce space include the use of AI inventory replenishment tools.
Consolidated revenue of $3.3 billion was 16% higher y/y and ahead of the consensus estimate of $3.1 billion. The bulk of the growth was tied to recent acquisitions. Organic revenue grew by 6% in the quarter.
GXO reiterated its full-year 2025 outlook for organic revenue growth of 3.5% to 6.5% and adjusted EPS of $2.43 to $2.63. (The consensus EPS estimate was $2.50 at the time of the print.)
It raised adjusted EBITDA guidance by $5 million to a new range of $865 million to $885 million. This was the second increase to the EBITDA outlook since it released first-quarter results in May.
“We’re seeing customers really preparing in earnest for what will be a good holiday season,” said GXO CEO Malcolm Wilson on the call. He said the recent activity provides “a strong level of confidence in delivering the full-year organic outlooks.”
He also said that the company is set up well for 2026 given the recent business wins, noting it will enter a new year with more incremental revenue booked than ever before.
Wilson admitted the management team has a reputation for “being prudent” with guidance. While acknowledging “several opportunities” to outperform the new guide, he said a level of conservatism is warranted given market uncertainties and the company’s upcoming executive leadership transition.
GXO announced in June that supply chain veteran Patrick Kelleher will succeed Wilson, who is retiring as CEO this month. It also announced on Tuesday that Chief Financial Officer Baris Oran is leaving the company to pursue other opportunities but will remain in place until a new CFO in named.
Shares of GXO were off 0.2% at 11:29 a.m. EDT on Wednesday compared to the S&P 500, which was up 0.6%.
