GXO Logistics(US:GXO)2025-11-06 21:31Revenue and Income - Revenue for the three months ended September 30, 2025 increased by 8%, or $238 million, to $3.4 billion compared to $3.2 billion for the same period in 2024[94] - Net income for the three months ended September 30, 2025 was $60 million, a 71% increase compared to $35 million for the same period in 2024[94] - Revenue for the nine months ended September 30, 2025 increased by 14%, or $1.2 billion, to $9.7 billion compared to $8.5 billion for the same period in 2024[103] - Operating income for the three months ended September 30, 2025 was $118 million, a 46% increase compared to $81 million for the same period in 2024[94] Expenses - Direct operating expense for the three months ended September 30, 2025 increased by 7%, or $186 million, to $2.9 billion compared to $2.7 billion for the same period in 2024, representing 84.2% of revenue[96] - Direct operating expense for the nine months ended September 30, 2025 increased by 16%, or $1.1 billion, to $8.2 billion compared to $7.1 billion for the same period in 2024, representing 85.1% of revenue[104] - Selling, general and administrative expense for the nine months ended September 30, 2025 increased by $34 million to $818 million compared to $784 million for the same period in 2024[105] - Interest expense, net increased by 49% to $103 million, primarily due to debt incurred for the Wincanton Acquisition[109] Taxation - The effective tax rate for the three months ended September 30, 2025 was 31.2%, up from 16.5% for the same period in 2024, primarily due to a jurisdictional shift in pre-tax income[100] - Effective tax rate rose significantly to 118.1% for the nine months ended September 30, 2025, compared to 21.9% in 2024, driven by a non-deductible regulatory matter[110] Cash Flow and Investments - Cash and cash equivalents as of September 30, 2025, totaled $339 million, with an additional $5 million in restricted cash[113] - Net cash provided by operating activities decreased by $99 million to $264 million for the nine months ended September 30, 2025[118] - Investing activities used $169 million in cash, a significant decrease from $1.1 billion in the same period of 2024[120] - Financing activities resulted in a cash outflow of $266 million, primarily due to $200 million spent on share repurchases[121] Acquisitions and Related Costs - The Wincanton Acquisition contributed $655 million to revenue for the nine months ended September 30, 2025[103] - Transaction and integration costs for the nine months ended September 30, 2025 were $50 million, primarily related to the Wincanton Acquisition[107] Other Income and Litigation - Other income (expense), net decreased from income to expense, with a total foreign currency loss of $22 million, an increase of 83% from the previous year[109] - Litigation expense related to a customer dispute amounted to $59 million, settled in Q2 2024[109] Stock Repurchase - The company authorized a $500 million stock repurchase plan, with $300 million remaining as of September 30, 2025[114]