GXO again sets a new company record with Q2 earnings

As was the case a year ago, second quarter 2024 earnings for Greenwich, Conn.-based global contract logistics services provider GXO Logistics set a new company record, going back to when it was spun off from XPO Logistics in August 2021, the company reported this week.

Second quarter revenue rose 19% annually to $2.8 billion, for a new company record. And the company reported a 12% gain in organic growth.  

“In the second quarter, GXO delivered record revenue of $2.8 billion, reflecting growth of 19% year over year, along with sequential improvement in organic revenue growth and strong free cash flow,” said GXO CEO Malcolm Wilson in a statement.  “We signed about $270 million of new business wins. We’re also seeing contract lengths increase as customers look to outsource to a trusted partner. Our pipeline grew to $2.3 billion, a new twelve-month high, and we’re on track to sign a record amount of new business this year.

Wilson added that GXO is proud of its growth in Germany, where it has started operations on its 20-year contract with Levi’s and signed a new deal with Tchibo, a leading retailer and coffee distributor.

“During the quarter, we also completed our acquisition of Wincanton, which will provide a platform for GXO to grow in aerospace & defense and industrials across Europe,” he said. “Given the momentum in our business, combined with strengthening consumer demand in the UK and European markets, we’re reaffirming our full-year 2024 guidance.”

On the company’s earnings call earlier today, Wilson said that with its sales pipeline at a new 12-month high worth $12.3 billion in new contract opportunities, GXO is seeing contract duration increase, as customers look to outsource to a trusted partner with global scale who can manage the complexity of their supply chain.

Along with the company’s deals with Tchibo and Levi’s, Wilson said that GXO expanded its relationships with several long-standing customers this quarter, including Boeing, Guess, Marks & Spencer and Raytheon.

Addressing market conditions, Wilson said that GXO believes it saw the bottom of the inventory cycle in the fourth quarter of last year.

“We're beyond that inflection point, and we're seeing volume trends beginning to improve,” he said. “At an industry level, e-commerce has returned to sustainable structural growth. Customer demand for outsourcing has remained strong throughout the cycle, as customers look to improve productivity, reduce complexity and recognize their supply chain as part of their strategy. About half of the contracts we've signed this quarter were for newly outsourced activities.”