GXO Reports Topline Growth as New CEO Kelleher Settles In
Total Revenue Increases 8% to $3.4 Billion in Third Quarter
Key Takeaways:
- Patrick Kelleher took over as CEO on Aug. 19. He succeeds Malcolm Wilson, who had guided the company since its August 2021 spin-off from XPO.
- During Q3, GXO continued its integration of Wincanton, a British logistics provider acquired in April 2024.
- GXO ranks No. 3 on the Transport Topics Top 100 list of the largest logistics companies in North America.
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experienced revenue and earnings growth during the third quarter, its first under the leadership of a new CEO, the company reported Nov. 5.
The Greenwich, Conn.-based contract logistics firm posted net income of $60 million, or 51 cents a diluted share, for the three months ending Sept. 30. That compared with $35 million, 28 cents, during the previous year. Total revenue increased by 8% to $3.4 billion from $3.16 billion.
CEO Patrick Kelleher during a call with analysts and investors thanked his predecessor Malcolm Wilson — who led the company since its August 2021 spin-off from XPO— for a smooth transition that Kelleher said enabled him to “hit the ground running.” Kelleher took the reins on Aug. 19 Since then, he been visiting company facilities across the U.S., United Kingdom and continental Europe while looking for areas to further accelerate growth.
“Malcolm played a pivotal role in establishing GXO as a global leader, and I am so energized to build on the strong foundation that he set,” Kelleher said. “That strong foundation is evident in our third-quarter results.”
Kelleher noted that the company in Q3 generated organic revenue growth across every region where it operates. He also highlighted that new business wins were up 24% year-over-year to $280 million, while adjusted EBITDA grew 13% from last year to $251 million.
GXO also during the quarter continued its integration of Wincanton, a British logistics provider acquired in April 2024.
“The Wincanton integration is underway and primed to unlock growth opportunities for us across Europe,” Kelleher said, “most notably in the industrial and aerospace and defense sectors.
GXO releases our Q3 financial results, featuring record quarterly revenue and double-digit EBITDA growth. — GXO (@GXOLogistics)
“Wincanton and GXO business units were integrated in October, with back-office functions following this month. We are actively collaborating on a range of strategic customer tenders and have already realized our first win as a combined team. Synergy realization remains on track.”
Kelleher sees opportunities to not just drive organic growth but also improve execution. This includes near-term opportunities in North America, and across high-growth customer segments and verticals globally. GXO has been strategically reallocating resources toward sales, solutions and digital marketing for North America in response, he said.
“Profitable growth is the priority,” Kelleher stressed. “Organic growth is a critical element of this, and every decision and action will be taken with an eye towards accelerating this engine. I see clear opportunities to expand margins as we focus on profit, market verticals and geographies, leverage technology to drive performance and share in the value that we generate for customers.”
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Omnichannel retail revenue increased 11.2% to $1.65 billion from $1.48 billion last year. Technology and consumer electronics revenue increased 7.1% to $420 million from $392 million the prior year. Industrial and manufacturing revenue increased 2.7% to $386 million from $376 million. Food and beverage revenue increased 7.8% to $371 million from $344 million. Consumer packaged goods revenue increased 4.2% to $324 million from $311 million.
“Regarding customer segments, technological innovation continues to redefine what’s possible within the warehouse,” Kelleher said. “As I visited our sites, I have seen firsthand use cases of AI in large retail operations, including volume forecasting and proactive replenishment. These highlight the opportunity to further improve our cost to serve. This is already a differentiator for GXO, but greater focus in this area will enable us to grow our market share.”
GXO ranks No. 3 on the Transport Topics Top 100 list of the largest logistics companies in North America.
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