GXO Announces Share Repurchase Authorization

Rhea-AI Summary

GXO Logistics (NYSE: GXO) has announced that its Board of Directors has authorized a share repurchase program of up to $500 million of its common stock. The program allows for shares to be repurchased through various methods, including a 10b5-1 trading plan, open market purchases, and privately negotiated transactions.

The company plans to fund the repurchases using existing cash, borrowings from its revolving credit facility, and other financing sources. The timing and volume of repurchases will be influenced by factors such as price, business conditions, market conditions, and alternative investment opportunities. The authorization is effective immediately but does not obligate GXO to repurchase any specific number of shares and can be suspended or discontinued at any time.

Positive

• Authorization of substantial $500 million share buyback program
• Multiple funding sources available including existing cash and credit facility
• Flexibility in implementation through various repurchase methods

Negative

• Potential increase in debt if funded through credit facility
• Reduction in cash reserves if funded through existing cash
• No commitment to specific repurchase amount or timeline

GREENWICH, Conn., Feb. 18, 2025 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, today announced that its Board of Directors has authorized the Company to repurchase up to $500 million of its common stock.

The share repurchase authorization permits shares to be repurchased from time to time in management’s discretion, through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions or otherwise, and is effective immediately. The timing and number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, alternative investment opportunities, and funding considerations. GXO intends to fund the repurchases from existing cash, borrowings on GXO’s revolving credit facility and/or other financing sources. The share repurchase authorization does not obligate GXO to repurchase any specific number of shares and may be suspended or discontinued at any time.

About GXO

GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is benefiting from the rapid growth of ecommerce, automation and outsourcing. GXO is committed to providing a diverse, world-class workplace for more than 150,000 team members across more than 1,000 facilities totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube.

Forward-looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “plans,” “continue,” “will,” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. Unknown or unpredictable factors could cause actual events to differ materially from the forward-looking statements expressed herein.

Media contact 

Matthew Schmidt 
+1 203-307-2809 
matt.schmidt@gxo.com 

FAQ

How much is GXO's new share repurchase authorization worth?

GXO's Board of Directors has authorized a share repurchase program worth up to $500 million of its common stock.

When does GXO's share repurchase program begin?

The share repurchase authorization is effective immediately as of February 18, 2025.

How will GXO fund its $500 million share repurchase program?

GXO intends to fund the repurchases through existing cash, borrowings on its revolving credit facility, and/or other financing sources.

What methods will GXO use to repurchase shares?

GXO can repurchase shares through a 10b5-1 trading plan, open market purchases, privately negotiated transactions, or other methods.

Is GXO obligated to repurchase the full $500 million in shares?

No, the authorization does not obligate GXO to repurchase any specific number of shares and can be suspended or discontinued at any time.