GXO Announces Third Quarter 2025 Earnings Results

GXO Logistics, Inc. (GXO) today announced its financial results for the recent quarter, revealing a mixed performance. The company reported quarterly revenue of $3.395 billion, slightly surpassing analysts’ expectations by approximately $8.4 million. However, GXO fell short on earnings per share, posting a figure of $0.51, which missed the estimate of $0.78 by a notable margin.

Key Highlights:

• Record quarterly revenue of $3.4 billion, up 8% year over year, with organic revenue growth of 4%.
• Signed new business wins of $280 million, an increase of 24% year over year.
• Generated $232 million of operating cash flow and $187 million of free cash flow.
• Reaffirmed full-year 2025 guidance.

Summary: GXO Logistics reported impressive third-quarter results for 2025, achieving record revenue of $3.4 billion, which reflects an 8% increase compared to the same period last year. The company also noted a 4% organic revenue growth, alongside significant new business wins totaling $280 million, marking a 24% rise year over year. CEO Patrick Kelleher emphasized the strength of the company’s business model, stating, “We delivered record revenue in the third quarter, as well as double-digit adjusted EBITDA growth, underscoring the strength and resilience of GXO’s business model.”

Looking ahead, GXO is focused on accelerating growth and expanding margins, with a robust commercial pipeline of $2.3 billion that is geographically diversified and concentrated in high-growth sectors. Kelleher expressed confidence in the company’s trajectory, mentioning, “We’re building from a position of strength and are primed to enter a new era of growth that delivers significant value to our customers and shareholders.” The company has reaffirmed its full-year guidance, projecting organic revenue growth between 3.5% to 6.5% and adjusted EBITDA of $865 million to $885 million.

GXO Logistics, Inc. (GXO) has experienced a notable price fluctuation recently, with a 2.08% increase over the past week and a more substantial 14.24% rise over the last three months, reflecting a growing investor interest. However, the stock’s performance over the past year has been less favorable, showing a decline of 5.51%, which raises questions about its long-term viability. The company’s price-to-earnings ratio stands at a staggering 103.85, indicating that investors are paying a premium for future earnings that may not materialize, especially given the negative two-year compound annual growth rate (CAGR) of -43.58% for earnings per share. While revenue has grown at a more promising rate of 15.72% over the same period, the free cash flow has also declined, suggesting potential liquidity issues. Furthermore, GXO’s return on invested capital is a modest 2.73%, and its net profit margin is a mere 0.42%, highlighting challenges in profitability. As the market continues to react to these mixed signals, investors will need to weigh the company’s growth potential against its current financial health.

GXO Logistics, Inc., together with its subsidiaries, provides logistics services worldwide. The company provides warehousing and distribution, order fulfilment, e-commerce, and other supply chain services, as well as reverse logistics or returns management services. As of December 31, 2021, it operated in approximately 906 facilities. The company serves various customers in the e-commerce, omnichannel retail, consumer technology, food and beverage, industrial and manufacturing, and consumer packaged goods industries. GXO Logistics, Inc. was incorporated in 2021 and is headquartered in Greenwich, Connecticut.