GXO Reports Second Quarter 2025 Results

Core Insights - GXO Logistics, Inc. reported second quarter 2025 revenue of $3.3 billion, a 16% increase year over year, with organic revenue growth of 6%, marking the highest growth in nine quarters [1][4][9] - The company signed $307 million in new business wins during the second quarter, bringing total new business wins for the first half of 2025 to over $500 million [2][9] - GXO raised its full-year adjusted EBITDA guidance due to better-than-expected performance in the first half of the year [3][9] Financial Performance - Net income for the second quarter was $28 million, down from $39 million in the same quarter of 2024, with diluted earnings per share (EPS) at $0.23 compared to $0.32 [5][9] - Adjusted EBITDA for the second quarter was $212 million, up from $187 million year over year, with adjusted diluted EPS increasing to $0.57 from $0.55 [5][9] - Cash flow from operations was $3 million, significantly lower than $115 million in the second quarter of 2024, with free cash flow showing a usage of $43 million compared to a generation of $31 million in the prior year [6][9] Balance Sheet and Debt - As of June 30, 2025, GXO had cash and cash equivalents of $205 million, total debt of $2.7 billion, and net debt of $2.5 billion [8][50] - The company’s net leverage ratio stood at 3.0x, indicating its debt levels relative to trailing twelve months adjusted EBITDA [52] Guidance and Leadership Transition - The company updated its full-year 2025 guidance, projecting organic revenue growth of 3.5% to 6.5% and adjusted EBITDA between $865 million and $885 million [10][19] - A leadership transition is underway, with Patrick Kelleher set to take over as CEO, succeeding Malcolm Wilson [4][11]