February 12, 2025 Fourth quarter and full year 2024 results © GXO Logistics, Inc. Disclaimer Non-GAAP Financial Measures: As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial tables included in the attached appendix. GXO's non-GAAP financial measures in this presentation include: adjusted earnings before i ...

Financial Data and Key Metrics Changes - In Q4 2024, the company generated revenue of $3.3 billion, a 25% year-over-year increase, and delivered adjusted EBITDA of $251 million, growing 30% year-over-year [8][19] - For the full year 2024, revenue reached $11.7 billion, a 20% increase, with 3% being organic growth, and adjusted EBITDA was $815 million, growing 10% [8][18] - The adjusted diluted earnings per share for 2024 was $2.8, up from $2.59 in 2023 [18] Business Line Data and Key Metrics Changes - The omni-channel retail and consumer goods business led the organic revenue growth acceleration throughout 2024 [18] - The company closed over $1 billion in new business wins for the second consecutive year, including significant contracts in the healthcare sector [9][16] - E-commerce business saw a 60% increase in new business year-over-year [16] Market Data and Key Metrics Changes - Germany emerged as the fastest-growing market, with a 60% year-over-year revenue growth by the end of 2024 [10] - The sales pipeline increased by 15% year-over-year, with a 20% increase in the Americas [15] Company Strategy and Development Direction - The company aims for 3% to 6% organic growth in 2025, with adjusted EBITDA guidance of $840 million to $860 million [11][22] - Focus on technology leadership and AI-enabled solutions is a key differentiator, with ongoing investments in proprietary AI applications [13][26] - The company plans to leverage its M&A strategy to enhance growth in key verticals like aerospace and industrials following the acquisition of Wincanton [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth driven by outsourcing, automation, and e-commerce trends [12] - The company anticipates a sequential improvement in organic growth throughout 2025, despite short-term impacts from customer capacity realignments [21][23] - Management highlighted the importance of customer relationships and the ability to adapt to changing market conditions [64][100] Other Important Information - The company achieved a net leverage of 2.7 times by the end of Q4 2024, down from a peak of 3.1 times [20] - Customer satisfaction scores reached an all-time high by the end of 2024 [30] Q&A Session Summary Question: Can you elaborate on the $15 million EBITDA hit in Q1? - Management expects low single-digit organic revenue growth in Q1 and around $155 million of adjusted EBITDA, impacted by customer capacity alignments and new site implementations [35][36] Question: Is there confidence that this is not a structural issue? - Management indicated that network realignment is a short-term impact and emphasized strong relationships with customers [41][63] Question: How is transactional volume with existing customers trending? - Management noted that Continental Europe is showing the fastest growth, while the UK market has softened slightly due to economic conditions [46][48] Question: Can you discuss the healthcare win and its potential? - The healthcare contract is seen as a milestone win, expected to drive further business inquiries and opportunities in that vertical [55][56] Question: What is the outlook for free cash flow in 2025? - Management targets a free cash flow conversion of 25% to 35% for 2025, with some integration costs impacting the cash flow profile [68][70] Question: How is the customer pipeline evolving? - The sales pipeline is up 15% year-over-year, with strong activity across various regions and verticals [104] Question: What are the competitive dynamics in the market? - Management noted that the competitive landscape remains stable, with a focus on technology and AI as key differentiators [111]

GXO Logistics exceeded earnings expectations with strong revenue growth, despite a decline in cash flow.GXO Logistics (GXO -0.56%), a leader in the supply chain solutions industry, unveiled its earnings for the fourth quarter of 2024 on Feb. 12. The company reported an adjusted earnings per share (EPS) of $1.00, surpassing analysts' expectations of $0.94. Revenue stood at $3.3 billion, exceeding forecasts of $3.2 billion, reflecting a 26.9% year-over-year increase. While these figures showcase GXO's growth ...

Company Performance - GXO Logistics reported quarterly earnings of $1 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and up from $0.70 per share a year ago, representing an earnings surprise of 6.38% [1] - The company posted revenues of $3.25 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.31%, compared to year-ago revenues of $2.59 billion [2] - Over the last four quarters, GXO Logistics has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Market Outlook - GXO Logistics shares have underperformed the market, losing about 1.2% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.49 on revenues of $2.99 billion, and $3.06 on revenues of $12.8 billion for the current fiscal year [7] Industry Context - The Transportation - Air Freight and Cargo industry, to which GXO Logistics belongs, is currently in the bottom 10% of the Zacks industry rankings, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact GXO Logistics' stock performance [5] - The unfavorable estimate revisions trend for GXO Logistics has resulted in a Zacks Rank 5 (Strong Sell), suggesting that the shares are expected to underperform the market in the near future [6]

Delivered record revenue for both Q4 and full year 2024Organic revenue growth accelerated sequentially each quarter in 2024Closed more than $1 billion of new business wins for the second consecutive year; won largest-ever contract, of $2.5 billion lifetime value, in health sciencesAnnounced 2025 guidance: Organic revenue growth of 3% - 6%Adjusted EBITDA of $840 million - $860 millionAdjusted diluted EPS of $2.40 - $2.60Adjusted EBITDA to free cash flow conversion of 25% to 35% GREENWICH, Conn., Feb. 12, 20 ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) GXO's CEO highlighted record revenue and adjusted EBITDA in 2024, strong operating return on invested capital, and accelerated organic growth, closing over $1 billion in new business wins and completing the Wincanton acquisition - GXO achieved **record revenue** and **adjusted EBITDA** in 2024, demonstrating **strong operating return on invested capital**[2](index=2&type=chunk) - **Organic growth accelerated** sequentially throughout 2024, with new business wins exceeding **$1 billion** for the second consecutive year[2](index=2&type=chunk) - The Wincanton acquisition was completed, expected to **accelerate growth** in key verticals, and GXO expanded into Germany, now its fastest-growing market[3](index=3&type=chunk) - The company's pipeline increased by **15%** year-over-year, with the Americas pipeline up **20%**, benefiting from structural tailwinds like outsourcing, automation, and e-commerce[3](index=3&type=chunk)[4](index=4&type=chunk) [Key Highlights](index=1&type=section&id=Key%20Highlights) GXO reported record revenue for both Q4 and full year 2024, with organic revenue growth accelerating each quarter, secured significant new business including its largest-ever health sciences contract, and provided optimistic guidance for 2025 - Delivered **record revenue** for both Q4 and full year 2024[6](index=6&type=chunk) - **Organic revenue growth accelerated** sequentially each quarter in 2024[6](index=6&type=chunk) - Closed more than **$1 billion** of new business wins for the second consecutive year, including the largest-ever contract (**$2.5 billion** lifetime value) in health sciences[6](index=6&type=chunk) 2025 Guidance | Metric | Range | | :--------------------------------- | :------------------- | | Organic revenue growth | 3% - 6% | | Adjusted EBITDA | $840 million - $860 million | | Adjusted diluted EPS | $2.40 - $2.60 | | Adjusted EBITDA to free cash flow conversion | 25% - 35% | [Financial Results](index=1&type=section&id=Financial%20Results) [Fourth Quarter 2024 Results](index=1&type=section&id=Fourth%20Quarter%202024%20Results) GXO reported strong Q4 2024 results with significant year-over-year increases in revenue, net income, and adjusted EBITDA, alongside solid organic revenue growth, though cash flows from operations and free cash flow slightly decreased Fourth Quarter 2024 Financial Performance (YoY) | Metric | Q4 2024 | Q4 2023 | Change | Chunk Num | | :-------------------------- | :------ | :------ | :----- | :-------- | | Revenue | $3.3 billion | $2.6 billion | +25% | [5] | | Organic Revenue Growth | 4% | N/A | N/A | [5] | | Net Income | $100 million | $73 million | +37% | [5] | | Diluted EPS | $0.83 | $0.61 | +36% | [5] | | Adjusted EBITDA | $251 million | $193 million | +30% | [7] | | Adjusted Diluted EPS | $1.00 | $0.70 | +43% | [7] | | Cash Flows from Operations | $186 million | $215 million | -13% | [7] | | Free Cash Flow | $127 million | $151 million | -16% | [7] | [Full Year 2024 Results](index=2&type=section&id=Full%20Year%202024%20Results) For full year 2024, GXO achieved substantial revenue growth and increased adjusted EBITDA and adjusted EPS, despite a decrease in net income and diluted EPS primarily due to a significant litigation expense, with cash flow metrics also slightly declining Full Year 2024 Financial Performance (YoY) | Metric | FY 2024 | FY 2023 | Change | Chunk Num | | :-------------------------- | :------ | :------ | :----- | :-------- | | Revenue | $11.7 billion | $9.8 billion | +20% | [8] | | Organic Revenue Growth | 3% | N/A | N/A | [8] | | Net Income | $138 million | $233 million | -41% | [8] | | Diluted EPS | $1.12 | $1.92 | -42% | [8] | | Adjusted EBITDA | $815 million | $741 million | +10% | [8] | | Adjusted EPS | $2.80 | $2.59 | +8% | [8] | | Cash Flows from Operations | $549 million | $558 million | -2% | [8] | | Free Cash Flow | $251 million | $302 million | -17% | [8] | | Cash Flows from Operations to Net Income | 398% | 239% | +159pp | [8] | | Free Cash Flow Conversion | 31% | 41% | -10pp | [8] | | Net Income to Average Invested Capital | 14% | N/A | N/A | [8] | | Operating Return on Invested Capital | 46% | N/A | N/A | [8] | Cash Balances and Outstanding Debt (as of Dec 31, 2024) | Metric | Amount (Millions) | | :-------------------------- | :---------------- | | Cash and Cash Equivalents | $413 million | | Debt Outstanding | $2,600 million | | Net Debt | $2,200 million | [Financial Outlook & Guidance](index=2&type=section&id=Financial%20Outlook%20%26%20Guidance) [2025 Guidance](index=2&type=section&id=2025%20Guidance) GXO provided its full year 2025 financial outlook, projecting continued organic revenue growth, increased adjusted EBITDA and adjusted diluted EPS, and a healthy free cash flow conversion rate, incorporating current foreign exchange rates and Wincanton regulatory review expectations 2025 Financial Outlook | Metric | Range | | :--------------------------------- | :------------------- | | Organic revenue growth | 3% to 6% | | Adjusted EBITDA | $840 million to $860 million | | Adjusted diluted earnings per share | $2.40 to $2.60 | | Adjusted EBITDA to free cash flow conversion | 25% to 35% | - The **2025 guidance reflects confidence** in core business growth, phasing of startups, foreign exchange impact, and the timing of the Wincanton regulatory review[4](index=4&type=chunk) [Company Overview](index=4&type=section&id=Company%20Overview) [About GXO Logistics](index=4&type=section&id=About%20GXO%20Logistics) GXO Logistics, the world's largest pure-play contract logistics provider, leverages e-commerce, automation, and outsourcing, operating over 1,000 global facilities with more than 150,000 team members to offer advanced supply chain solutions to blue-chip companies - GXO Logistics is the **world's largest pure-play contract logistics provider**, benefiting from **rapid growth** in e-commerce, automation, and outsourcing[12](index=12&type=chunk) - The company employs over **150,000 team members** across more than **1,000 facilities**, totaling approximately **200 million square feet**[12](index=12&type=chunk) - GXO partners with **leading blue-chip companies** to provide technologically advanced supply chain and e-commerce solutions[12](index=12&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Purpose](index=4&type=section&id=Definition%20and%20Purpose) GXO provides non-GAAP financial measures like adjusted EBITDA, adjusted EPS, and free cash flow to offer supplemental insights into core operating performance, facilitate analysis, assist with period-over-period comparisons, and assess underlying business trends by excluding non-core items - GXO's non-GAAP measures include **adjusted EBITDA**, **adjusted EBITA**, **adjusted net income**, **adjusted EPS**, **free cash flow**, **organic revenue**, **net leverage ratio**, **net debt**, and **operating ROIC**[14](index=14&type=chunk) - These measures are used to facilitate analysis of ongoing business operations by excluding items not reflective of core operating performance, assisting investors with comparisons and trend assessment[15](index=15&type=chunk) - Management uses these non-GAAP measures for financial, operating, and planning decisions, and to evaluate ongoing performance[22](index=22&type=chunk) [Adjustments and Calculations](index=4&type=section&id=Adjustments%20and%20Calculations) Non-GAAP measures are adjusted for items such as transaction and integration costs, litigation expenses, restructuring costs, and amortization of acquisition-related intangible assets, with free cash flow derived from cash flows from operations and organic revenue excluding foreign currency and acquired/disposed business impacts - Adjusted EBITDA, adjusted EBITA, adjusted net income, and adjusted EPS include adjustments for **transaction and integration costs**, **litigation expenses**, **restructuring costs**, and other items[16](index=16&type=chunk) - **Free cash flow** is calculated as cash flows from operations less capital expenditures plus proceeds from sale of property and equipment, and **free cash flow conversion** is free cash flow divided by adjusted EBITDA[17](index=17&type=chunk) - **Organic revenue** and **organic revenue growth** exclude the impact of foreign currency exchange rate fluctuations, revenue from acquired businesses, and revenue from disposed businesses[20](index=20&type=chunk) - Reconciliation of **2025 non-GAAP targets** to GAAP measures is not available without unreasonable effort due to the variability and complexity of reconciling items[23](index=23&type=chunk) [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Risks) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section outlines GXO's forward-looking statements, including 2025 financial targets and expectations for acquisitions and regulatory reviews, which are based on company assumptions and perceptions of trends but are subject to various known and unknown risks and uncertainties - The press release includes **forward-looking statements** regarding full year **2025 financial targets** (organic revenue growth, adjusted EBITDA, adjusted diluted EPS, free cash flow conversion) and expectations for the Wincanton acquisition and regulatory review[24](index=24&type=chunk) - These statements are based on company assumptions and analyses of historical trends, current conditions, and expected future developments[24](index=24&type=chunk) [Risk Factors](index=5&type=section&id=Risk%20Factors) Forward-looking statements are subject to significant risks and uncertainties that could cause actual results to differ materially, including general economic conditions, supply chain challenges, competition, integration of acquisitions, IT system failures, indebtedness, litigation, labor matters, currency fluctuations, regulatory changes, and potential cyber-attacks - Known and unknown **risks and uncertainties** may cause actual results to differ materially from forward-looking statements[25](index=25&type=chunk) - Key risk factors include **economic conditions**, **supply chain challenges** (e.g., labor shortages), **competition**, **integration risks** of acquired companies (like Wincanton), **IT system failures or breaches**, **indebtedness**, **litigation**, and **labor disputes**[25](index=25&type=chunk)[26](index=26&type=chunk) - Other risks involve **currency exchange rate fluctuations**, **governmental regulation**, **political actions**, **natural disasters**, **damage to reputation**, **cyber-attacks**, and the inability to achieve targeted growth or profitability[26](index=26&type=chunk) [Investor & Media Contacts](index=6&type=section&id=Investor%20%26%20Media%20Contacts) [Contact Information](index=6&type=section&id=Contact%20Information) Contact details for investor relations and media inquiries are provided for GXO Logistics - Investor Contact: **Kristine Kubacki, CFA** at +1 (203) 769-7206, kristine.kubacki@gxo.com[28](index=28&type=chunk) - Media Contact: **Matthew Schmidt** at +1 (203) 307-2809, matt.schmidt@gxo.com[28](index=28&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations show GXO's revenue, expenses, and net income for Q4 and full year 2024 compared to 2023, with full-year net income significantly decreasing due to a $59 million litigation expense in 2024 Consolidated Statements of Operations (Selected Data) | Metric | Q4 2024 (Millions) | Q4 2023 (Millions) | FY 2024 (Millions) | FY 2023 (Millions) | | :---------------------------------- | :----------------- | :----------------- | :----------------- | :----------------- | | Revenue | $3,250 million | $2,590 million | $11,709 million | $9,778 million | | Operating Income | $101 million | $87 million | $218 million | $318 million | | Income Before Income Taxes | $97 million | $68 million | $146 million | $266 million | | Net Income | $100 million | $73 million | $138 million | $233 million | | Net Income Attributable to GXO | $100 million | $73 million | $134 million | $229 million | | Diluted EPS | $0.83 | $0.61 | $1.12 | $1.92 | - A **litigation expense of $59 million** was recognized for the year ended December 31, 2024, related to a settlement in connection with a warehouse dispute[30](index=30&type=chunk) [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets as of December 31, 2024, show an increase in total assets, primarily driven by higher goodwill and intangible assets reflecting recent acquisitions, with total liabilities also increasing, particularly long-term debt, while total equity saw a modest rise Consolidated Balance Sheets (Selected Data) | Metric | Dec 31, 2024 (Millions) | Dec 31, 2023 (Millions) | | :---------------------------------- | :---------------------- | :---------------------- | | Total Current Assets | $2,641 million | $2,568 million | | Total Long-Term Assets | $8,625 million | $6,939 million | | Total Assets | $11,266 million | $9,507 million | | Total Current Liabilities | $3,189 million | $2,626 million | | Total Long-Term Liabilities | $5,042 million | $3,935 million | | Total Liabilities and Equity | $11,266 million | $9,507 million | | Goodwill | $3,549 million | $2,891 million | | Intangible Assets, net | $986 million | $567 million | | Long-Term Debt | $2,521 million | $1,620 million | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows indicate a slight decrease in net cash provided by operating activities for 2024 compared to 2023, a significant increase in net cash used in investing activities primarily due to business acquisitions, and a shift from net cash outflow to substantial net cash inflow in financing activities driven by debt proceeds Consolidated Statements of Cash Flows (Selected Data) | Metric | FY 2024 (Millions) | FY 2023 (Millions) | | :---------------------------------- | :----------------- | :----------------- | | Net Cash Provided by Operating Activities | $549 million | $558 million | | Net Cash Used in Investing Activities | $(1,157) million | $(410) million | | Net Cash Provided by (Used in) Financing Activities | $636 million | $(186) million | | Net Increase (Decrease) in Cash, Restricted Cash and Cash Equivalents | $15 million | $(25) million | | Cash, Restricted Cash and Cash Equivalents, End of Year | $485 million | $470 million | - Acquisition of business, net of cash acquired, amounted to **$863 million in 2024**, significantly higher than **$149 million in 2023**[34](index=34&type=chunk) - Proceeds from debt, net, were **$1,090 million in 2024**, compared to none in 2023[34](index=34&type=chunk) [Supplemental Cash Flow Information](index=10&type=section&id=Supplemental%20Cash%20Flow%20Information) Supplemental cash flow information details cash paid for interest and income taxes for the full year 2024 and 2023 Supplemental Cash Flow Information | Metric | FY 2024 (Millions) | FY 2023 (Millions) | | :-------------------------- | :----------------- | :----------------- | | Cash Paid for Interest, net | $97 million | $57 million | | Cash Paid for Income Taxes, net | $43 million | $84 million | [Key Data & Reconciliations (Unaudited)](index=11&type=section&id=Key%20Data%20%26%20Reconciliations%20(Unaudited)) [Disaggregation of Revenue](index=11&type=section&id=Disaggregation%20of%20Revenue) GXO's revenue is disaggregated by geographical area and customer industry, providing insights into its market presence and sector focus, with the United Kingdom as the largest geographical contributor and omnichannel retail as the dominant industry segment [Revenue by Geographical Area](index=11&type=section&id=Revenue%20by%20Geographical%20Area) Revenue by geographical area shows the United Kingdom as the largest market, with significant contributions from the United States and the Netherlands, and all major regions experienced revenue growth in 2024 Revenue by Geographical Area (Millions) | Region | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------- | :------ | :------ | :------ | :------ | | United Kingdom | $1,521 million | $969 million | $5,248 million | $3,664 million | | United States | $838 million | $792 million | $3,087 million | $2,909 million | | Netherlands | $242 million | $221 million | $922 million | $831 million | | France | $213 million | $204 million | $809 million | $830 million | | Spain | $150 million | $133 million | $571 million | $529 million | | Italy | $103 million | $103 million | $391 million | $382 million | | Other | $183 million | $168 million | $681 million | $633 million | | Total | $3,250 million | $2,590 million | $11,709 million | $9,778 million | [Revenue by Industry](index=11&type=section&id=Revenue%20by%20Industry) Omnichannel retail remains the largest industry segment for GXO, showing substantial growth in 2024, with technology and consumer electronics, industrial and manufacturing, and consumer packaged goods also contributing significantly to revenue Revenue by Industry (Millions) | Industry | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | | Omnichannel retail | $1,543 million | $1,092 million | $5,360 million | $4,100 million | | Technology and consumer electronics | $404 million | $382 million | $1,541 million | $1,467 million | | Industrial and manufacturing | $366 million | $266 million | $1,339 million | $1,078 million | | Food and beverage | $345 million | $327 million | $1,331 million | $1,331 million | | Consumer packaged goods | $363 million | $325 million | $1,259 million | $1,027 million | | Other | $229 million | $198 million | $879 million | $775 million | | Total | $3,250 million | $2,590 million | $11,709 million | $9,778 million | [Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margins](index=12&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margins) This section reconciles GAAP net income to Adjusted EBITDA, highlighting adjustments for interest, taxes, depreciation, amortization, transaction and integration costs, restructuring, litigation, and unrealized foreign currency gains/losses, with Adjusted EBITDA and its margin showing improved performance in Q4 and full year 2024 compared to 2023 Adjusted EBITDA and Margins (Millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net Income | $100 million | $73 million | $138 million | $233 million | | Adjusted EBITDA | $251 million | $193 million | $815 million | $741 million | | Operating Income Margin | 3.1% | 3.4% | 1.9% | 3.3% | | Adjusted EBITDA Margin | 7.7% | 7.5% | 7.0% | 7.6% | - Adjustments to net income for calculating Adjusted EBITDA include **interest expense**, **income tax expense (benefit)**, **depreciation and amortization**, **transaction and integration costs**, **restructuring costs**, **litigation expense**, and **unrealized foreign currency gains/losses**[41](index=41&type=chunk) [Reconciliation of Net Income to Adjusted EBITA and Adjusted EBITA Margins](index=13&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITA%20and%20Adjusted%20EBITA%20Margins) This reconciliation details adjustments from net income to Adjusted EBITA, primarily adding back amortization of intangible assets acquired, in addition to other non-GAAP adjustments, with Adjusted EBITA and its margin increasing in Q4 2024 but slightly decreasing for the full year 2024 compared to 2023 Adjusted EBITA and Margins (Millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | | Net Income | $100 million | $73 million | $138 million | $233 million | | Adjusted EBITA | $169 million | $117 million | $508 million | $451 million | | Adjusted EBITA Margin | 5.2% | 4.5% | 4.3% | 4.6% | - Amortization of intangible assets acquired was **$31 million in Q4 2024** and **$108 million for FY 2024**, a key adjustment in calculating Adjusted EBITA[45](index=45&type=chunk) [Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20and%20Adjusted%20Earnings%20Per%20Share) This reconciliation adjusts GAAP net income attributable to GXO to arrive at Adjusted Net Income and Adjusted EPS, with key adjustments including amortization of intangible assets, transaction and integration costs, restructuring, litigation, and tax impacts, and both Adjusted Net Income and Adjusted EPS showed growth for Q4 and the full year 2024 Adjusted Net Income and EPS (Millions, except per share) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :---------------------------------- | :------ | :------ | :------ | :------ | | Net Income Attributable to GXO | $100 million | $73 million | $134 million | $229 million | | Adjusted Net Income Attributable to GXO | $120 million | $84 million | $335 million | $309 million | | Adjusted Basic EPS | $1.00 | $0.71 | $2.81 | $2.60 | | Adjusted Diluted EPS | $1.00 | $0.70 | $2.80 | $2.59 | - Adjustments include **amortization of intangible assets acquired**, **transaction and integration costs**, **restructuring costs**, **litigation expense**, **unrealized foreign currency impacts**, and associated income tax adjustments[49](index=49&type=chunk) [Other Reconciliations](index=15&type=section&id=Other%20Reconciliations) This section provides reconciliations for cash flows from operations to free cash flow and revenue to organic revenue, indicating that free cash flow and its conversion rate decreased in 2024, while organic revenue growth showed a positive trend [Reconciliation of Cash Flows from Operations to Free Cash Flow](index=15&type=section&id=Reconciliation%20of%20Cash%20Flows%20from%20Operations%20to%20Free%20Cash%20Flow) Free cash flow is derived from cash flows from operations by adjusting for capital expenditures and proceeds from asset sales, with both free cash flow and its conversion rate decreasing in 2024 compared to 2023 Free Cash Flow and Conversion (Millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | | Cash Flows from Operations | $186 million | $215 million | $549 million | $558 million | | Capital Expenditures | $(104) million | $(69) million | $(359) million | $(274) million | | Proceeds from Sale of Property and Equipment | $45 million | $5 million | $61 million | $18 million | | Free Cash Flow | $127 million | $151 million | $251 million | $302 million | | Cash Flows from Operations to Net Income | N/A | N/A | 397.8% | 239.5% | | Free Cash Flow Conversion | N/A | N/A | 30.8% | 40.8% | [Reconciliation of Revenue to Organic Revenue](index=15&type=section&id=Reconciliation%20of%20Revenue%20to%20Organic%20Revenue) Organic revenue is calculated by excluding revenue from acquired and disposed businesses and the impact of foreign exchange rates, with organic revenue growth at 3.9% in Q4 2024 and 2.5% for the full year 2024 Organic Revenue and Growth (Millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :-------------------------- | :------ | :------ | :------ | :------ | | Revenue | $3,250 million | $2,590 million | $11,709 million | $9,778 million | | Revenue from Acquired Business | $(538) million | — | $(1,588) million| — | | Revenue from Disposed Business | — | $(2) million | $(1) million | $(12) million | | Foreign Exchange Rates | $(24) million | — | $(109) million | — | | Organic Revenue | $2,688 million | $2,588 million | $10,011 million | $9,766 million | | Revenue Growth | 25.5% | N/A | 19.7% | N/A | | Organic Revenue Growth | 3.9% | N/A | 2.5% | N/A | [Liquidity Reconciliations](index=16&type=section&id=Liquidity%20Reconciliations) This section provides reconciliations for total debt, net debt, debt to net income ratio, and net leverage ratio, with GXO reporting total debt of $2.631 billion and net debt of $2.218 billion, and a net leverage ratio of 2.7x as of December 31, 2024 [Reconciliation of Total Debt and Net Debt](index=16&type=section&id=Reconciliation%20of%20Total%20Debt%20and%20Net%20Debt) Total debt includes current and long-term debt, while net debt subtracts cash and cash equivalents (excluding restricted cash) from total debt Total Debt and Net Debt (as of Dec 31, 2024, Millions) | Metric | Amount | | :---------------------------------- | :----- | | Current Debt | $110 million | | Long-Term Debt | $2,521 million | | Total Debt | $2,631 million | | Less: Cash and Cash Equivalents (excluding restricted cash) | $(413) million | | Net Debt | $2,218 million | [Reconciliation of Total Debt to Net Income Ratio](index=16&type=section&id=Reconciliation%20of%20Total%20Debt%20to%20Net%20Income%20Ratio) The total debt to net income ratio for GXO as of December 31, 2024, was 19.1x Total Debt to Net Income Ratio (as of Dec 31, 2024, Millions) | Metric | Amount | | :-------------------------- | :----- | | Total Debt | $2,631 million | | Net Income | $138 million | | Debt to Net Income Ratio | 19.1x | [Reconciliation of Net Leverage Ratio](index=16&type=section&id=Reconciliation%20of%20Net%20Leverage%20Ratio) The net leverage ratio, calculated as net debt divided by adjusted EBITDA, was 2.7x as of December 31, 2024 Net Leverage Ratio (as of Dec 31, 2024, Millions) | Metric | Amount | | :-------------------------- | :----- | | Net Debt | $2,218 million | | Adjusted EBITDA | $815 million | | Net Leverage Ratio | 2.7x | [Return on Invested Capital](index=17&type=section&id=Return%20on%20Invested%20Capital) This section presents the calculation of Adjusted EBITA, net of income taxes paid, and the Return on Invested Capital (ROIC), with GXO's operating ROIC at 46.4% for the full year 2024, indicating efficient capital deployment [Adjusted EBITA, net of income taxes paid](index=17&type=section&id=Adjusted%20EBITA%2C%20net%20of%20income%20taxes%20paid) Adjusted EBITA, net of income taxes paid, is calculated by subtracting cash paid for income taxes from Adjusted EBITA Adjusted EBITA, net of income taxes paid (FY 2024, Millions) | Metric | Amount | | :---------------------------------- | :----- | | Adjusted EBITA | $508 million | | Less: Cash Paid for Income Taxes | $(43) million | | Adjusted EBITA, net of income taxes paid | $465 million | [Return on Invested Capital (ROIC)](index=17&type=section&id=Return%20on%20Invested%20Capital%20(ROIC)) Operating return on invested capital (ROIC) is calculated as adjusted EBITA, net of income taxes paid, divided by average invested capital, with GXO achieving an operating ROIC of 46.4% in 2024 Return on Invested Capital (FY 2024, Millions) | Metric | FY 2024 | FY 2023 | Average | | :-------------------------- | :------ | :------ | :------ | | Invested Capital | $956 million | $1,051 million | $1,003 million | | Net Income to Average Invested Capital | N/A | N/A | 13.8% | | Operating Return on Invested Capital | N/A | N/A | 46.4% |

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for GXO Logistics, driven by higher revenues, with a focus on how actual results will compare to estimates [1][2] Earnings Expectations - GXO Logistics is expected to report earnings of $0.94 per share, reflecting a year-over-year increase of +34.3% [3] - Revenue projections stand at $3.21 billion, indicating a rise of 23.9% from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 6.15% over the last 30 days, indicating a reassessment by analysts [4] - The Most Accurate Estimate for GXO Logistics is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.51% [10][11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8] - However, the current Zacks Rank for GXO Logistics is 4, complicating the prediction of an earnings beat despite the positive Earnings ESP [11] Historical Performance - In the last reported quarter, GXO Logistics had an earnings surprise of +1.28%, with actual earnings of $0.79 per share compared to an expected $0.78 [12] - Over the past four quarters, the company has beaten consensus EPS estimates two times [13] Conclusion - While GXO Logistics may not be a compelling earnings-beat candidate, investors should consider other factors when making investment decisions ahead of the earnings release [16]

Investors in GXO Logistics, Inc. (GXO) need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 21, 2025 $62.50 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could al ...

Castore partners with GXO to support its logistics operations globally GXO will distribute teamwear to Oracle Red Bull Racing, McLaren F1, Everton FC, Glasgow Rangers, England Cricket and many more high-profile sports teams and individual athletes. Teamwear, merchandise and high-quality mainline sportswear will be distributed through GXO’s expert logistics services GXO will distribute teamwear to Oracle Red Bull Racing, McLaren F1, Everton FC, Glasgow Rangers, England Cricket and many more high-profile ...

Renewal of omnichannel logistics agreement brings partnership to over 15 years TREZZO SULL’ADDA, Italy, Jan. 30, 2025 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, announced that it has renewed its partnership with Versace, the iconic luxury fashion brand, to manage omnichannel logistics for all of Versace’s product lines, including B2B and B2C returns, quality control and value-added services such as labelling and garment repairs. “We are ...