GXO posts 16% rise in profit on strong organic growth
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GXO Logistics reported second quarter revenue of $3.3 billion, up 16 percent from the previous year. The company achieved 6 percent organic revenue growth, its highest in nine quarters, reflecting continued strength in long-term customer relationships and high-complexity logistics services.
Net income for the quarter was $28 million, compared with $39 million in the same period last year. Despite the year-over-year decline in earnings, adjusted EBITDA rose to $212 million, up from $187 million. Adjusted diluted earnings per share reached $0.57, slightly above last year’s $0.55. GXO’s consistent operating income and improved margin efficiency supported its eleventh earnings beat in the last twelve quarters.
Customer retention remained strong, and automation gains contributed to margin resilience amid uneven global freight trends. CEO Malcolm Wilson pointed to disciplined execution and high-value contract renewals as key contributors to performance.
Organic momentum and strategic wins
The company signed $307 million in new business during the quarter, a 13 percent increase from a year ago. This brought GXO’s total new business for the first half of 2025 to over half a billion dollars, underscoring ongoing demand for outsourced, high-precision logistics services.
GXO emphasized sectors like aerospace, health care, and consumer goods as continued growth drivers. These verticals tend to favor providers with automation capabilities and the ability to tailor solutions for complex supply chain environments.
Warehouse automation remains a pillar of GXO’s strategy. Over the last year, the company has continued to roll out robotics and AI-supported systems across its fulfillment centers, which are designed to reduce labor dependency while increasing efficiency. Wilson described these tools as now “embedded” in the growth model.
Wincanton integration sets the stage for UK expansion
During the quarter, GXO received final regulatory approval for its acquisition of UK-based Wincanton. The integration process is scheduled to begin in the coming weeks, though the two companies have already started working together on strategic tenders across Europe.
The deal is expected to unlock growth opportunities not just in the UK retail and grocery sectors, but also in aerospace and industrial logistics across Europe. Management sees the transaction as additive to both scale and capability in high-growth segments.
Cash flow declines reflect investment cycle
GXO generated $3 million in operating cash flow in the second quarter, a sharp drop from $115 million the previous year. The company used $43 million in free cash flow, compared with $31 million generated in the same period last year. This shift reflects planned working capital investments and the payment of a one-time regulatory matter from the first quarter.
While near-term cash flow was compressed, management framed these costs as short-term. The company reaffirmed full-year guidance and expects continued gains from automation and integration initiatives.
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