GXO sees stable North American freight demand, cautious on volumes in 2026

Core Insights - GXO Logistics Inc. identifies North America as a significant opportunity for organic growth, with expectations for revenue and margin expansion driven primarily by the U.S. market in 2026 and beyond [1] - The company reported a 7.9% increase in quarterly revenue, reaching $3.5 billion, compared to $3.25 billion in the same period last year [3] - Adjusted earnings per share for the fourth quarter were 87 cents, surpassing Wall Street expectations of 83 cents per share [4] North American Market Focus - CEO Patrick Kelleher emphasized that North America is a primary focus for the company, with a total addressable market of approximately $250 billion [1] - The company acknowledges being underrepresented in North America compared to its presence in the U.K. and Europe, expressing confidence in growth potential [2] Performance and Projections - North American performance in Q4 was stronger than that of parts of Europe, with a conservative outlook for 2026 assuming flat volumes across existing operations [5] - The company has secured $774 million in incremental revenue for 2026 and has a global pipeline of $2.5 billion, indicating growth momentum in strategic sectors [6] Strategic Initiatives - Newly appointed North America leader Michael Jacobs is reallocating resources towards solution design, sales, and digital marketing to enhance pipeline conversion in the U.S. [7]