GXO Logistics(GXO) - 2025 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2025 reached $3.3 billion, a 16% increase year over year, with organic revenue growth of 6%[2] - Adjusted EBITDA for Q2 2025 was $212 million, up 13% from $187 million in Q2 2024[6] - Net income for Q2 2025 was $28 million, down from $39 million in Q2 2024, with diluted EPS at $0.23 compared to $0.32[5] - Adjusted diluted EPS for Q2 2025 was $0.57, slightly up from $0.55 in Q2 2024[6] - Operating income for Q2 2025 was $89 million, up from $75 million in Q2 2024, reflecting a 18.7% increase[30] - Net income attributable to GXO for Q2 2025 was $26 million, compared to $38 million in Q2 2024, indicating a decline of 31.6%[30] - Revenue for the three months ended June 30, 2025, was $3,299 million, representing a 15.9% increase compared to $2,846 million in the same period of 2024[51] - Adjusted EBITDA for the three months ended June 30, 2025, was $212 million, with an adjusted EBITDA margin of 6.4%[39] - Organic revenue for the three months ended June 30, 2025, was $3,004 million, reflecting a 5.6% organic revenue growth compared to the same period in 2024[51] - Adjusted net income attributable to GXO for the three months ended June 30, 2025, was $66 million, with adjusted diluted EPS of $0.57[45] Cash Flow and Capital Expenditures - Free cash flow for Q2 2025 was negative at $43 million, reflecting investments in working capital[6] - Net cash provided by operating activities for the first half of 2025 was $32 million, a significant decrease from $165 million in the same period of 2024[35] - Capital expenditures for the first half of 2025 were $125 million, down from $161 million in the first half of 2024[35] - Free cash flow for the three months ended June 30, 2025, was $(43) million, compared to $31 million in the same period of 2024[49] - Capital expenditures for the three months ended June 30, 2025, were $(47) million, compared to $(88) million in the same period of 2024[49] Debt and Liquidity - As of June 30, 2025, cash and cash equivalents were $205 million, with total debt at $2.7 billion and net debt at $2.5 billion[8] - Total debt as of June 30, 2025, was $2,686 million, resulting in a debt to net income ratio of 39.5x[57] - Net leverage ratio as of June 30, 2025, was 3.0x, calculated using net debt of $2,545 million and trailing twelve months adjusted EBITDA of $849 million[58] - Interest expense for the three months ended June 30, 2025, was $36 million, up from $23 million in the same period of 2024[39] Assets and Liabilities - Total assets increased to $11,926 million as of June 30, 2025, compared to $11,266 million at the end of 2024, representing a growth of 5.9%[33] - Total liabilities increased to $8,951 million as of June 30, 2025, compared to $8,231 million at the end of 2024, reflecting an increase of 8.8%[33] - Cash and cash equivalents decreased to $205 million as of June 30, 2025, down from $413 million at the end of 2024[33] Business Growth and Acquisitions - New business wins totaled $307 million in Q2 2025, bringing the total for the first half of the year to over $500 million[3] - The acquisition of Wincanton received final regulatory approval, expected to enhance growth opportunities in the UK and Europe[3] - The company raised its full-year 2025 adjusted EBITDA guidance following better-than-expected performance in the first half[4] - The company anticipates organic revenue growth of 3.5% to 6.5% for the full year 2025[13] Investment Metrics - The trailing twelve months net income to average invested capital is 6.3%[61] - The operating return on invested capital is 45.9%[62] - Invested capital increased to $1,124 million in June 2025 from $1,046 million in June 2024[61] - Average invested capital for the period was $1,085 million[61] Accounts and Current Liabilities - Accounts receivable, net rose to $1,950 million in June 2025 from $1,909 million in June 2024[61] - Property and equipment, net increased to $1,264 million in June 2025 compared to $1,093 million in June 2024[61] - Accounts payable remained stable at approximately $(691) million for both June 2025 and June 2024[61] - Accrued expenses increased to $(1,381) million in June 2025 from $(1,286) million in June 2024[61] - Other current liabilities rose to $(452) million in June 2025 from $(399) million in June 2024[61] - The company excluded $64 million and $3 million of bank overdraft from the invested capital calculations for June 2025 and June 2024, respectively[62]