Strong activity during pre-peak season bodes well for GXO, setting them up favorably for the year 2026
GXO Logistics, a leading global logistics provider, has announced impressive financial results for the second quarter of 2025, bolstering its outlook for the year.
The company reported adjusted earnings per share (EPS) of 57 cents for the quarter, a 2-cent increase year over year and 1 cent ahead of the consensus estimate. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $212 million, a 13% increase year over year.
GXO's revenue for the quarter reached $3.3 billion, up 16% year over year and exceeding the consensus estimate of $3.1 billion. This growth was driven by a 6% organic revenue growth, the highest in nine quarters, and $307 million in new business wins, a 13% increase year over year.
For the first half of 2025, new business wins exceeded $500 million, a testament to a strong growth pipeline. Many of these new wins are in the e-commerce space, including the use of AI inventory replenishment tools.
One of the key factors contributing to GXO's strong outlook is the final regulatory approval of its acquisition of Wincanton. This acquisition is expected to unlock additional growth opportunities in the UK and across aerospace and industrial sectors in Europe. Integration of Wincanton is underway, with collaborative efforts on strategic tenders supporting further revenue expansion.
GXO has updated its organic revenue growth guidance for the full year 2025, with expectations now ranging between 3.5% and 6.5%. The improved financial outlook also includes raised adjusted EBITDA guidance due to this strong performance.
Analysts remain mostly bullish, with an average 12-month price target increased by about 11%, reflecting confidence in GXO’s growth trajectory.
Management described the pipeline as "more diverse than ever before," with more warehouse automation opportunities than in the past. However, it's important to note that the pipeline excludes any contribution from the Wincanton acquisition, which was cleared by the UK Competition and Markets Authority in June.
Despite the strong results, Baris Oran, GXO's current CFO, will be leaving the company to pursue other opportunities. He will remain until a new CFO is named.
Looking ahead, 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 company also raised its adjusted EBITDA guidance by $5 million, now ranging from $865 million to $885 million.
CEO Malcolm Wilson expressed confidence in delivering the full-year organic outlooks, citing a strong level of customer preparation for the holiday season. Wilson also stated that the company is well-positioned for 2026 due to recent business wins, entering the new year with more incremental revenue booked than ever before.
Patrick Kelleher, a supply chain veteran, will succeed Malcolm Wilson as CEO, who is retiring this month.
In summary, GXO's strong 2025 outlook benefits from record-high organic revenue growth, substantial new business wins, strategic acquisitions, and positive analyst sentiment. The company's focus on warehouse automation and strategic growth initiatives positions it favorably in the logistics sector, with solid operational execution driving its success.
Investors and analysts are bullish about GXO's growth trajectory, as the company's improved financial outlook includes raised adjusted EBITDA guidance due to its impressive performance in the second quarter of 2025.
With a more diverse pipeline than ever before, GXO plans to leverage new business wins, strategic acquisitions, and warehouse automation opportunities to maintain its strong position in the logistics sector.
