GXO Logistics posted record revenue of $3.4 billion in the third quarter, up 8% year over year, with growth across all regions and a renewed strategic emphasis on expanding operations in North America.
The Greenwich, Connecticut company reported $801 million in U.S. revenue during the quarter, up from $771 million a year earlier.
CEO Patrick Kelleher, who took the helm in August, said North America has become a central priority as GXO targets market share in fast-growing industrial and technology supply chain sectors.
“North America represents one of the largest and fastest-growing logistics markets globally, with a total addressable market of more than $250 billion,” Kelleher told analysts during a call on Wednesday.
GXO (Nasdaq: GXO) is one of the largest pure-play contract logistics providers in the world. It has more than 970 facilities totaling approximately 200 million square feet, with a global workforce of more than 130,000 people.
Company officials also pointed to an expanding sales pipeline in North America, including new and pending contracts with aerospace suppliers and hyperscale data center operators — sectors undergoing rapid capital expansion.
“As I emphasized on the focus on aerospace defense, the industrial sector, and life sciences, all of those market verticals are seeing additional activity, manufacturing coming back to the U.S. in many cases in those verticals, or additional volume and new infrastructure being implemented in the U.S.,” Kelleher said. “And that is an opportunity that we’re standing in front of with our strategic focus there.”
Kelleher said that logistical complexity tied to changing trade rules, tariffs and regional sourcing shifts is benefiting the company’s outsourcing pipeline.
“I think the big thing is that macroeconomics is driving supply chain change. That is happening, and we win when there is change because we are so well positioned to help our customers make those changes,” he said.
GXO reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $251 million, up 13% year over year, with margins improving 30 basis points. The company generated $187 million in free cash flow, up from $110 million in the same period last year.
Company officials attributed the improvement to productivity gains at highly automated warehouse sites and maturing customer contracts launched earlier in the year. GXO reaffirmed full-year guidance, calling for:
- Organic revenue growth of 3.5% to 6.5%
- Adjusted EBITDA of $865 million to $885 million
- Adjusted diluted EPS of $2.43 to $2.63
“We are embarking on a new era of growth,” Kelleher said. “GXO is a fantastic company operating in a fast-growing, highly fragmented industry with a path towards higher organic growth, structurally higher margins, and strong free cash flow.”
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Fuente: https://www.freightwaves.com/news/gxo-posts-record-q3-ramps-up-north-america-growth-strategy
