GXO Logistics(US:GXO)2025-11-04 21:41Financial Performance - Record revenue of $3.4 billion in Q3 2025, an 8% increase year-over-year, with organic revenue growth of 4%[4] - Net income rose to $60 million, compared to $35 million in Q3 2024, with diluted EPS increasing to $0.51 from $0.28[4] - Adjusted EBITDA reached $251 million, up from $223 million in Q3 2024, maintaining adjusted diluted EPS at $0.79[5] - Operating income for Q3 2025 increased to $118 million, compared to $81 million in Q3 2024, reflecting a 45.7% growth[26] - Net income attributable to GXO for Q3 2025 was $59 million, up from $33 million in Q3 2024, representing a 78.8% increase[26] - Revenue for Q3 2025 was $3,395 million, a 7.5% increase from $3,157 million in Q3 2024[26] - Adjusted EBITDA for the nine months ended September 30, 2025, was $626 million, compared to $564 million for the same period in 2024, reflecting an increase of 11%[35] - Organic revenue for the three months ended September 30, 2025, was $3,280 million, with organic revenue growth of 3.9% compared to the same period in 2024[47] Cash Flow and Capital Expenditures - Operating cash flow generated was $232 million, compared to $198 million in Q3 2024, with free cash flow of $187 million, up from $110 million[5] - Free cash flow for the three months ended September 30, 2025, was $187 million, compared to $110 million for the same period in 2024, indicating a significant increase of 70.9%[45] - Capital expenditures for the nine months ended September 30, 2025, were $269 million, compared to $255 million in 2024[31] Debt and Leverage - Total debt outstanding as of September 30, 2025, was $2.7 billion, with net debt at $2.4 billion[6] - Total debt as of September 30, 2025, was $2,698 million, resulting in a debt to net income ratio of 29.0x[52] - Net leverage ratio as of September 30, 2025, was 2.7x, calculated using net debt of $2,359 million and trailing twelve months adjusted EBITDA of $877 million[53] Guidance and Future Outlook - Full-year 2025 guidance reaffirmed, including organic revenue growth of 3.5% to 6.5% and adjusted EBITDA of $865 million to $885 million[11] - Adjusted diluted EPS guidance set between $2.43 to $2.63 for the full year 2025[11] - The integration of Wincanton is progressing well, with synergy realization on track[3] - Company aims to accelerate growth and expand margins, positioning itself for a new era of growth[3] Assets and Liabilities - Cash and cash equivalents decreased to $339 million as of September 30, 2025, down from $413 million at December 31, 2024[29] - Total assets increased to $11,907 million as of September 30, 2025, compared to $11,266 million at December 31, 2024[29] - Total liabilities decreased to $8,923 million as of September 30, 2025, from $8,231 million at December 31, 2024[29] Investment Metrics - The company's invested capital as of September 30, 2025, is $995 million, down from $1,044 million in 2024[56] - The trailing twelve months net income to average invested capital is 9.1%[56] - The operating return on invested capital stands at 48.6%[56] - Adjusted net income attributable to GXO for the nine months ended September 30, 2025, was $191 million, compared to $215 million for the same period in 2024[41] - Adjusted basic EPS for the nine months ended September 30, 2025, was $1.65, down from $1.80 in the same period of 2024[41] Accounts and Current Liabilities - Accounts receivable increased to $2,015 million in 2025 from $1,968 million in 2024[56] - Accounts payable decreased to $(716) million in 2025 from $(748) million in 2024[56] - Accrued expenses rose to $(1,523) million in 2025 compared to $(1,411) million in 2024[56] - Other current liabilities increased to $(430) million in 2025 from $(369) million in 2024[56] - Property and equipment, net, increased to $1,197 million in 2025 from $1,161 million in 2024[56] - Other current assets slightly increased to $452 million in 2025 from $443 million in 2024[56] - The average invested capital for the period is $1,020 million[56]