LM    Topics     Logistics    3PL

GXO sets new revenue record in Q2 earnings results


Second quarter 2023 earnings for Greenwich, Conn.-based global contract logistics services provider GXO Logistics set a new company record, going back to when it was spun off from XPO Logistics in August 2021, the company reported this week.

Second quarter revenue rose 12% annually to $2.3 billion, for a new company record. And the company reported $25 million of net income attributable to GXO, down from $37 million a year ago, and $158 million of adjusted EBITDA. Adjusted earnings per share came in at $0.49, topping Wall Street expectations of $0.44. Operating income came in at $42 million, up 14% year over year compared with $37 million for the first quarter 2022.

“We’ve kicked off the year by signing exciting new partnerships and expanding relationships across multiple verticals and markets, with several transformative projects coming to fruition,” said GXO Chief Executive Officer Malcolm Wilson. “Our new project with Sainsbury’s, a leading grocery retailer in the UK, is the largest annual revenue contract awarded in GXO’s history and represents nearly $1 billion in lifetime value. Through the end of April, we’ve secured over $800 million of incremental revenue for 2023, while bringing our pipeline to a near-record level. We saw increased outsourcing and automation in the quarter. Operational tech was up a record 64 percent year over year, and we are accelerating our deployment of artificial intelligence, which boosts productivity significantly. We also continued to make strong progress on our key initiatives: we are seeing the benefits of our central efficiencies program sooner than expected, and the integration of Clipper is largely complete, allowing GXO to accelerate the expansion of GXO Direct, our industry-leading shared-user solution, to the UK.

Wilson added that GXO’s first quarter performance, strong wins, growing pipeline, and excellent execution put the company squarely on track for achieving its raised 2023 guidance and delivering our 2027 targets.

“It’s an exciting year, and we see significant opportunity to take share and grow our business,” he said.

Addressing the lower net income results on an annual basis, the reason for it, according to the company is due to non-operational items, including the impact of foreign exchange rates, interest expense, and reduced pension income.

“It is not a reflection of how the business is performing,” said GXO. “It was a very strong quarter—revenue; new business wins, pipeline growth etc.—and we raised FY adjusted EBITDA guidance [to $715-to-$745 million].

GXO highlighted various business highlights for the quarter, including:

  • Sales pipeline grows to approximately $2.3 billion, up from fourth quarter 2022;
  • Strong first half momentum in new wins, including signing GXO’s largest-ever annual revenue contract;
  • Incremental 2023 revenue of $782 million secured through the first quarter;
  • Revenue retention rate remains in the mid-to-high 90s;
  • First quarter e-commerce revenue up 34% year over year; reverse logistics revenue up 50% year over year;
  • Record operational tech deployment, up 64% year over year; and
  • Expanded GXO Direct product to UK; rollout to Continental Europe planned later this year

Article Topics

News
Logistics
3PL
Global Trade
Transportation
Warehouse
3PL
Contract Logistics
Global Logistics
GXO
GXO Logistics
   All topics

3PL News & Resources

Tale of Two Loads: LTLs managing reduced demand better than TL carriers
U.S. rail carload and intermodal volumes are mixed in May, reports AAR
DHL eCommerce moves into a new Missouri-based facility
Strike authorization vote for UPS Teamsters workers is underway
C.H. Robinson tabs Bozeman as its next CEO, effective later this month
Services economy activity continues to grow in May, reports ISM
RK Logistics announces expansion into Arizona
More 3PL

Latest in Logistics

U.S. Chamber of Commerce calls on the White House to appoint a mediator to resolve ILWU-PMA standstill
Tale of Two Loads: LTLs managing reduced demand better than TL carriers
U.S. rail carload and intermodal volumes are mixed in May, reports AAR
WMS + OMS: Maximize ROI & Win Customers for Life
Better wages in works as ABF, Teamsters reach tentative five-year deal
New Port Tracker report signals more U.S.-bound import declines over the rest of 2023
DHL eCommerce moves into a new Missouri-based facility
More Logistics

About the Author

Jeff Berman's avatar
Jeff Berman
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review and is a contributor to Robotics 24/7. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis.
Follow Modern Materials Handling on FaceBook

Subscribe to Logistics Management Magazine

Subscribe today!
Not a subscriber? Sign up today!
Subscribe today. It's FREE.
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today.

June 2023 Logistics Management

June 5, 2023 · To better manage through the constrained labor market, logistics operations are courting more women and other diverse job candidates; ramping up their training programs; investing in automation; and ensuring that positions offer the work-life balance that many new recruits are seeking.

Latest Resources

Your Road Guide to Worry-Free Shipping Between the U.S. and Canada
Your Road Guide to Worry-Free Shipping Between the U.S. and Canada
Get expert guidance and best practices to help you navigate the cross-border shipping process with ease. Download our free white paper today!
Warehouse/DC Automation & Technology: It’s “go time” for investment
Warehouse/DC Automation & Technology: It’s “go time” for investment
In our latest Special Digital Issue, Logistics Management has curated several feature stories that neatly encapsulate the rise of automated systems and...

Why accurate, real-time location data is a must for efficient operations
Why accurate, real-time location data is a must for efficient operations
Find out how next-generation workforce management apps use accurate, real-time location data to power successful operations in this webinar with Radar CEO...
Should you lease or buy your lift truck fleet?
Should you lease or buy your lift truck fleet?
Leasing critical equipment like lift trucks can offer flexibility, but some lease terms can be complex and costly if you’re not...
2023 State of the Third-Party Logistics (3PL) Industry Report
2023 State of the Third-Party Logistics (3PL) Industry Report
In this year’s Third-Party Logistics State of the Industry Report, you’ll learn about our top trends for the year and...