Carmen Gil and Joanne Mawditt honored for their contributions to GXO’s global success GREENWICH, Conn., Sept. 08, 2025 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, announced today that Carmen Gil and Joanne Mawditt are recipients of the 2025 Women in Supply Chain award by Supply & Demand Chain Executive. The award honors female supply chain leaders whose accomplishments, mentorship and examples set a foundation for women in all levels of a ...

Core Insights - GXO Logistics and B&Q are collaborating to achieve net-zero carbon emissions in B&Q's logistics operations by 2040, with significant advancements in alternative fuel usage and AI technology [1][2][3] Group 1: Partnership and Goals - The partnership between GXO and B&Q began in 2015, managing B&Q's retail transport network and focusing on sustainability and innovation in logistics [2] - B&Q aims to decarbonize its logistics fleet, with a comprehensive roadmap called the B&Q Sustainability Glidepath launched in 2022, targeting a 40% reduction in emissions by 2024 [3] Group 2: Fleet Transformation - B&Q has deployed 105 Liquified Natural Gas (LNG) vehicles since 2019, now holding the second-largest LNG fleet in the UK, which has reduced carbon emissions by 16,000 tonnes [4] - All remaining vehicles and 80 refrigerated trailers were converted to Hydrotreated Vegetable Oil (HVO) by December 2024, achieving up to 90% reduction in CO₂ emissions compared to diesel [4] Group 3: Electrification and Operational Efficiency - The current electric vehicle (EV) fleet includes five electric vans and two electric HGVs, with plans to add 55 more EVs over the next five years, projected to save 250 tonnes of CO₂ equivalent annually [5] - Initiatives to reduce road miles include backhaul optimization, saving 104 tonnes of Scope 3 emissions in 2024, and a 9.5% reduction in fleet size since 2021 through improved scheduling [5] Group 4: AI and Future Innovations - B&Q is piloting GXO's AI-powered transport optimization platform, which is expected to save 240,000 kilometers and 150 tonnes of CO₂ annually, with full implementation planned for 2025 [7] - In Q1 2025, 35 new LNG-powered Volvo FH Aero tractor units were introduced, improving fuel efficiency by 3% and saving an estimated 100 tonnes of CO₂ annually [6]

Core Viewpoint - The Zacks Transportation—Air Freight and Cargo industry is facing significant challenges due to ongoing supply-chain disruptions, high inflation, and weaker demand, leading to reduced package volumes [1][4]. Industry Overview - The industry comprises companies providing air delivery and freight services, with many offering specialized transportation and logistics solutions. The health of these companies is closely tied to the overall economy, with major players like FedEx transporting millions of packages daily [3]. Key Trends - **Economic Uncertainty & Tariff Concerns**: The industry is affected by market volatility and tariff uncertainties, particularly with China, which may lead to higher costs and dampen consumer spending [4]. - **Demand Slowdown**: A decline in shipping demand, especially in Asia and Europe, is negatively impacting key players like UPS and FedEx, leading to withheld earnings and revenue forecasts [5]. - **Strong Financial Returns for Shareholders**: Companies are increasing dividends and buybacks to reward shareholders, indicating financial strength. UPS raised its quarterly dividend to $1.64 per share, while FedEx increased its dividend by 5.1% to $1.45 [6]. Industry Performance - The Zacks Air Freight and Cargo industry ranks 202, placing it in the bottom 18% of 245 Zacks industries, indicating poor near-term prospects [7][8]. - The industry has underperformed the S&P 500, decreasing by 26.5% over the past year compared to the S&P 500's increase of 17.7% [9]. Current Valuation - The industry is currently trading at an enterprise value-to-EBITDA (EV/EBITDA) ratio of 7.97X, significantly lower than the S&P 500's 17.45X and the sector's 9.37X [12]. Stocks to Watch - **FedEx (FDX)**: The company is focused on rewarding shareholders through dividends and buybacks, with a solid liquidity position and cost-cutting efforts driving its bottom line. FDX has surpassed earnings estimates in two of the last four quarters [16][17]. - **GXO Logistics (GXO)**: The company is enhancing its logistics capabilities, benefiting from increased e-commerce and automation. GXO has consistently surpassed earnings estimates, with shares rising 9.7% over the past year [19].

Group 1 - The article discusses the investment outlook for GXO, highlighting a strong growth trajectory due to new business wins and improving fundamentals [1] - The author emphasizes a fundamentals-based approach to value investing, focusing on companies with long-term durability and robust balance sheets [1] - There is a critique of the misconception that low multiple stocks are inherently cheap, advocating for a focus on long-term growth rather than immediate price concerns [1] Group 2 - The article does not contain any disclosures related to stock positions or business relationships with the companies mentioned [2] - It clarifies that past performance does not guarantee future results and that no specific investment advice is provided [3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40470 __________ ...

Financial Data and Key Metrics Changes - The company reported record revenue of $3.3 billion, growing 16% year over year, with 6% being organic growth, marking the highest organic growth in nine quarters [16][21] - Adjusted EBITDA was $212 million, with margins expanding by 90 basis points sequentially due to improved site-level efficiencies and better space utilization [18][21] - The company raised its full-year adjusted EBITDA guidance to a range of $865 million to $885 million, an increase of $25 million from the initial range [7][21] Business Line Data and Key Metrics Changes - New business wins totaled $307 million, up 13% year over year, contributing to over $500 million in new business for the first half of the year [6][7] - The strongest organic growth was observed in the omnichannel retail and technology verticals, with a retention rate in the mid-90s [16][17] Market Data and Key Metrics Changes - The sales pipeline remains robust at $2.4 billion, exclusive of the Wincanton sales pipeline, and has grown by more than 13% since the last full year prior to the spin [12] - The company is seeing strong demand in the healthcare market, with a landmark deal with England's National Health Services supply chain [25][26] Company Strategy and Development Direction - The company is focused on accelerating organic growth and integrating Wincanton, expecting significant revenue synergies from this acquisition [20][21] - The strategy emphasizes leveraging AI and automation to enhance operational efficiency and customer satisfaction, with a strong focus on high-growth verticals [24][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering the full-year organic growth outlook, citing strong customer preparations for the holiday season and a robust level of new business signed for 2026 [40][41] - The operating environment is described as stable, with no significant disruptions currently affecting operations, allowing for more long-term decision-making by customers [100][102] Other Important Information - The company has received an upgrade from Moody's, achieving investment-grade ratings from all three major agencies for the first time since the spin [19][20] - The CFO announced plans to step down, with a successor to be named, highlighting the company's strong performance and future potential [13][15] Q&A Session Summary Question: Can you highlight what has changed from a geographic and market perspective regarding organic growth acceleration? - Management noted improvements in North America and the UK, with strong performance in aerospace and technology sectors, and normal inventory levels preparing for the holiday season [36][39] Question: Do you think organic revenue growth could reaccelerate into upper single-digit ranges? - Management indicated that the integration of Wincanton and strong new business momentum could support higher growth rates, while remaining cautious about macroeconomic conditions [50][51] Question: What is driving the increased rate of change in guidance? - The CFO attributed the improvements to internal efficiencies, better space utilization, and contributions from new business wins, with expectations for continued sequential improvement [66][68] Question: Can you share details on the aerospace and defense business? - Management highlighted a strong presence in the US market with significant growth potential in Europe, supported by a robust pipeline related to industrial and aerospace sectors [70][71] Question: What are the expectations for CapEx in the second half of the year? - The CFO mentioned a decrease in CapEx due to some customers opting to handle their own capital expenditures, but assured that this would not impact future growth [108][110] Question: What advice would you give to the new CEO? - The outgoing CEO expressed confidence in the new CEO's capabilities and emphasized the importance of continuing the company's growth trajectory while improving margins and diversifying the customer base [112][116]

Financial Data and Key Metrics Changes - The company reported record revenue of $3.3 billion, growing 16% year over year, with 6% being organic growth, marking the highest quarter organic growth in nine quarters [16] - Adjusted EBITDA was $212 million, with margins expanding by 90 basis points sequentially due to improved productivity initiatives [17] - The company raised its full-year adjusted EBITDA guidance to a new range of $865 million to $885 million, an increase of $25 million from the initial range [6][20] Business Line Data and Key Metrics Changes - New business wins totaled $307 million, up 13% year over year, with significant contracts from major clients like Boeing and L'Oreal [5] - The company secured approximately $800 million of incremental revenue for 2025, supported by a mid-90s retention rate [16] - The sales pipeline stands at $2.4 billion, exclusive of the Wincanton sales pipeline, reflecting a more diverse and robust opportunity set [12] Market Data and Key Metrics Changes - Strongest organic growth was observed in the omnichannel retail and technology verticals, with notable performance in aerospace and defense sectors [16][25] - The healthcare market represents a $34 billion opportunity, with the company starting operations for a significant deal with England's National Health Services [25] - The industrial and aerospace businesses are among the fastest-growing verticals, with the pipeline in these areas doubling over the last eighteen months [25] Company Strategy and Development Direction - The company aims to leverage its global scale and technological expertise to capitalize on market tailwinds driving the future of fulfillment [23] - Integration of Wincanton is expected to unlock growth opportunities in industrial and aerospace markets across Europe, with anticipated revenue synergies [7][20] - The focus for 2025 will be on accelerating organic growth and integrating Wincanton, with expectations of capturing strategic growth opportunities from acquisitions [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering the full-year organic growth outlook, citing strong customer preparations for the holiday season [39] - The operating environment is described as dynamic but stable, with no significant disruptions currently affecting operations [96] - Management maintains a conservative outlook for the remainder of the year while acknowledging opportunities for better performance [42] Other Important Information - The company has repurchased 5.4 million shares, about 4% of total shares outstanding, at an average price of $37.34, reflecting a 26% discount to the average share price over the last thirty trading days [19][57] - Moody's upgraded the company's credit rating, achieving investment-grade ratings from all three major agencies for the first time since the spin [20] Q&A Session Summary Question: Can you highlight what has changed from a geographic and market perspective regarding organic growth acceleration? - Management noted improvements in North America and the UK, with strong performance in aerospace and technology sectors, and normal inventory levels preparing for the holiday season [36][39] Question: Do you think organic revenue growth could reaccelerate back into upper single-digit ranges? - Management indicated that the integration of Wincanton and strong new business momentum could support higher growth rates, while remaining cautious about macroeconomic conditions [51][56] Question: What is driving the increased rate of change in guidance? - The company cited internal efficiencies, improved space utilization, and strong momentum from new business wins as key drivers for the improved guidance [64] Question: Can you discuss the A&D space and its growth potential? - Management highlighted a strong presence in the US with blue-chip customers and significant growth potential in Europe, with a pipeline of $500 million related to industrial and aerospace [68] Question: What are the strategic priorities with the new CEO transition? - Management emphasized the importance of the new board members' industry expertise and the need for the new CEO to acclimatize to the company before making strategic adjustments [118]

Financial Performance - Revenue reached $33 billion, with organic revenue up by 6%[13] - Adjusted EBITDA was $212 million[13] - Adjusted diluted EPS stood at $057[13] - Free cash flow was $(43) million[13] Business Growth - New business wins totaled $307 million in annualized revenue during Q2 2025[11, 16] - The sales pipeline increased year-over-year to $24 billion as of Q2 2025[16] - $795 million of incremental revenue for 2025 was won through Q2 2025[16] Capital Allocation and Returns - Operating return on invested capital increased year-over-year to 46% in Q2 2025[16, 24] - The company repurchased an additional 26 million shares[11] Balance Sheet and Liquidity - Total debt amounted to $2686 million[24] - Net debt was $2545 million, with a net leverage ratio of 30x[24] - Liquidity of $1208 million was available at the end of Q2 2025[24] FY 2025 Guidance - Organic revenue growth is projected to be between 35% and 65%[25] - Adjusted EBITDA is expected to range from $865 million to $885 million[25] - Adjusted diluted EPS is forecasted to be between $243 and $263[25] - Adjusted EBITDA to free cash flow conversion is targeted at 25% to 35%[25]

Core Insights - GXO Logistics reported strong Q2 2025 earnings with GAAP revenue of $3.30 billion, a 15.9% increase year-over-year, exceeding analyst estimates by $200 million [1][5] - Adjusted earnings per share (EPS) reached $0.57, surpassing expectations, while adjusted EBITDA margin decreased to 6.4% [1][7] - The company faced operational challenges with negative free cash flow of $(43) million, a significant decline from positive $31 million a year earlier [1][8] Financial Performance - GAAP revenue for Q2 2025 was $3,299 million, up from $2,846 million in Q2 2024, reflecting a 15.9% year-over-year growth [2] - Non-GAAP EPS was $0.57, a 3.6% increase from $0.55 in Q2 2024 [2] - Adjusted EBITDA was $212 million, up 13.4% from $187 million in the previous year [2] - Free cash flow (non-GAAP) fell to $(43) million from $31 million, marking a 238.7% decline [2][8] Business Overview - GXO Logistics specializes in contract logistics, focusing on distribution, warehousing, and supply chain automation for large customers across various industries [3] - The company is investing in technology-led efficiencies, including automation and AI platforms, to enhance productivity in warehouse management [4][10] Growth Drivers - Organic revenue growth reached 5.6% for Q2 2025, the fastest rate in nine quarters, with $307 million in new annualized business signed, a 13% increase year-over-year [6] - The sales pipeline stands at $2.4 billion, also up 13% year-over-year, indicating strong future growth potential [6] - The customer base is diversified, with no single client contributing more than 6% of revenue [12] Strategic Initiatives - The integration of Wincanton is a key focus, expected to deliver $58 million in annual cost synergies starting in late 2025 [4][11] - Management plans to monitor margin progression and the success of the Wincanton integration while maintaining a healthy sales pipeline [14] Future Outlook - Management raised its FY2025 adjusted EBITDA guidance to a range of $865 million to $885 million, with organic revenue growth expected between 3.5% and 6.5% [13] - The company anticipates adjusted EBITDA to free cash flow conversion to range from 25% to 35% [13] - Despite potential softening in U.S. consumer activity, the company expects to remain within its full-year guidance [14]

GXO Logistics (GXO) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.79%. A quarter ago, it was expected that this contract logistics provider would post earnings of $0.26 per share when it actually produced earnings of $0.29, delivering a surprise of +11.54%. Over the last four qu ...