GXO Reports Third Quarter 2026 Results

Year-to-date new business wins exceeded $1 billion, with approximately 40% in GXO’s strategic growth verticals.

Rhea-AI Summary

GXO Logistics (NYSE: GXO) reported third-quarter 2026 revenue of $3.6 billion, up 5.7% from the same quarter last year. Organic revenue, which excludes currency fluctuations, grew 6.4%. Net income rose to $65 million from $60 million, and diluted earnings per share increased to $0.56 from $0.51. Adjusted earnings before interest, taxes, depreciation and amortization remained $251 million; adjusted diluted earnings per share rose to $0.89 from $0.79.

New business wins reached $375 million, up 34% year over year, and the sales pipeline reached $3.1 billion. Operating cash flow fell to $156 million from $232 million; free cash flow declined to $85 million from $187 million. GXO repurchased $84 million of shares during the quarter. The company reaffirmed 2026 guidance, including organic revenue growth of 4%–5% and adjusted diluted earnings per share of $2.95–$3.15. At September 30, cash was $340 million and total debt was $2.8 billion.

21 points · 0 major

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Positive

• Moderate pointThird-quarter revenue increased 5.7% year over year to $3.6 billion.
• Moderate pointOrganic revenue growth of 6.4% was the highest in more than three years.
• Moderate pointThird-quarter net income increased to $65 million from $60 million a year earlier.
• Moderate pointThird-quarter diluted earnings per share rose to $0.56 from $0.51 a year earlier.
• Moderate pointAdjusted diluted earnings per share increased to $0.89 from $0.79 in third-quarter 2025.
• Moderate pointThird-quarter new business wins of $375 million rose 34% year over year. 6.3% of market cap
• Moderate pointYear-to-date new business wins exceeded $1 billion; approximately 40% were in strategic growth verticals. 17% of market cap
• Moderate pointShare repurchases totaled $84 million in the quarter, bringing year-to-date purchases to $100 million. 1.4% of market cap
• Moderate pointNine-month revenue increased to $10,329 million from $9,671 million in the comparable 2025 period.
• Moderate pointNine-month operating income increased to $212 million from $151 million in the comparable 2025 period.
• Moderate pointNine-month net income reached $97 million versus a $7 million loss in the comparable 2025 period.
• Moderate pointNine-month diluted earnings per share reached $0.81 versus a $0.09 loss in the comparable 2025 period.

9 minor points

• Minor pointSales pipeline of $3.1 billion increased more than 30% year over year.
• Minor pointYear-to-date repurchases covered 2.1 million shares at an average price of $47.46 per share.
• Minor point$200 million remained available under the share repurchase authorization at September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reaffirmed 2026 organic revenue growth guidance remains 4% to 5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reaffirmed 2026 adjusted EBITDA guidance remains $945 million to $965 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reaffirmed 2026 adjusted diluted EPS guidance remains $2.95 to $3.15.
• Minor point. Forward-looking: it has not happened yet and may not happen.Reaffirmed 2026 free cash flow conversion guidance remains 30% to 40%.
• Minor pointCurrent debt declined to $366 million at September 30, 2026, from $446 million at December 31, 2025.
• Minor pointLong-term debt declined to $2,452 million at September 30, 2026, from $2,619 million at December 31, 2025.

Negative

• Moderate pointThird-quarter operating income fell to $96 million from $118 million a year earlier.
• Moderate pointThird-quarter operating cash flow declined to $156 million from $232 million a year earlier.
• Moderate pointThird-quarter free cash flow fell to $85 million from $187 million a year earlier.
• Moderate pointCash and cash equivalents fell to $340 million at September 30, 2026, from $854 million at December 31, 2025.
• Minor pointThird-quarter direct operating expense increased to $3,064 million from $2,857 million a year earlier.

2 minor points

• Minor pointThird-quarter transaction and integration costs increased to $26 million from $14 million a year earlier.
• Minor pointNine-month divestiture loss totaled $24 million versus none in the comparable 2025 period.

Key Figures

Revenue: $3.6 billion; up 5.7% year over year Organic revenue growth: 6.4% Adjusted diluted EPS: $0.89 vs. $0.79 +5 more

Revenue

$3.6 billion; up 5.7% year over year

Third quarter 2026

Organic revenue growth

6.4%

Third quarter 2026

Adjusted diluted EPS

$0.89 vs. $0.79

Third quarter 2026 vs. third quarter 2025

Free cash flow

$85 million vs. $187 million

Third quarter 2026 vs. third quarter 2025

Full-year organic revenue growth guidance

4% to 5%

2026 guidance reaffirmed

Full-year adjusted EBITDA guidance

$945 million to $965 million

2026 guidance reaffirmed

Full-year adjusted diluted EPS guidance

$2.95 to $3.15

2026 guidance reaffirmed

Full-year free cash flow conversion guidance

30% to 40%

2026 guidance reaffirmed

Previous Earnings Reports

2 past events · Latest: Aug 04

Same Type 2 events

1. Aug 04

   Q2 earnings results

   24h Move

   -9.1%

   Revenue and adjusted EBITDA rose, while net income and diluted EPS remained below prior-year levels.

2. Nov 04

   Q3 earnings results

   24h Move

   -5.1%

   Revenue grew year over year and guidance was reaffirmed; quarterly adjusted EBITDA was $251 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

adjusted ebitda, adjusted diluted eps, free cash flow conversion, non-gaap financial measures

4 terms

adjusted ebitda financial

"Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA1”)"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted diluted eps financial

"Adjusted diluted earnings per share (“adjusted diluted EPS1”) increased to $0.89"

Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.

free cash flow conversion financial

"Free cash flow conversion1 of 30% to 40%."

Free cash flow conversion measures how effectively a company turns its reported profits into actual cash that can be used for growth, debt repayment, or dividends. It compares the cash generated after expenses to the company's net income, similar to how a person might compare their savings to their paycheck. High conversion indicates the company is efficient at translating profits into cash, which is important for investors assessing its financial health and flexibility.

non-gaap financial measures financial

"we provide reconciliations of the non-GAAP financial measures contained in this press release"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Revenue of $3.6 billion, up 5.7% year over year, with organic revenue growth of 6.4%, the highest in more than three years
• $375 million of new business wins, up 34% year over year, the second consecutive quarter of growth above 30%, with approximately 40% of year-to-date wins in strategic growth verticals — aerospace & defense, technology, industrial and life sciences
• Year-to-date new business wins of more than $1 billion and a record sales pipeline of $3.1 billion, up more than 30% year over year
• Repurchased $84 million of shares in the quarter, bringing year-to-date repurchases to $100 million
• Reaffirms full-year 2026 guidance
• Company to host Investor Day on November 16, 2026
  
  

GREENWICH, Conn., Nov. 03, 2026 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO) today announced results for the third quarter 2026.

Patrick Kelleher, chief executive officer of GXO, said, “The new strategy we put in motion over the past year is delivering results: In the third quarter, we generated our fastest organic growth in more than three years, increased new business wins by more than 30% for the second consecutive quarter, and expanded our sales pipeline to a record level. Across our strategic growth verticals and core markets, we are winning more business, converting opportunities more quickly and building greater visibility into future revenue. With our pipeline up more than 30% year over year and year-to-date wins already above $1 billion, nearly matching all of 2025 with a quarter still to go, we are entering 2027 from a position of strength.

“At the same time, we are improving execution across the business, particularly in North America, and advancing the productivity initiatives that will support future margin expansion, including the rollout of a unified labor management system and the continued deployment of GXO IQ across our global footprint. We are pleased to reaffirm our full-year guidance and look forward to sharing more about our long-term strategy and growth outlook at our Investor Day on November 16 at the New York Stock Exchange.”

Third Quarter 2026 Results

Revenue increased to $3.6 billion, up 5.7% year over year, compared with $3.4 billion for the third quarter 2025. Organic revenue¹ grew by 6.4%.

Net income was $65 million, compared with $60 million for the third quarter 2025. Diluted earnings per share was $0.56, compared with $0.51 for the third quarter 2025.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA¹”) was $251 million, compared with $251 million for the third quarter 2025.

Adjusted diluted earnings per share (“adjusted diluted EPS¹”) increased to $0.89, compared with $0.79 for the third quarter 2025.

GXO generated $156 million of cash flow from operations, compared with $232 million for the third quarter 2025. In the third quarter of 2026, GXO generated $85 million of free cash flow¹, compared with $187 million for the third quarter 2025.

In the third quarter of 2026, GXO repurchased $84 million of its common stock, bringing year-to-date repurchases to $100 million, or 2.1 million shares at an average price of $47.46 per share. As of September 30, 2026, $200 million remained available under the Company’s existing share repurchase authorization.

Cash Balances and Outstanding Debt

As of September 30, 2026, cash and cash equivalents (excluding restricted cash), total debt outstanding and net debt¹ were $340 million, $2.8 billion and $2.5 billion, respectively.

2026 Guidance²

The Company reaffirmed its guidance for the full year 2026 as follows:

• Organic revenue growth¹ of 4% to 5%;
• Adjusted EBITDA¹ of $945 million to $965 million;
• Adjusted diluted EPS¹ of $2.95 to $3.15; and
• Free cash flow conversion¹ of 30% to 40%.
  
  

Investor Day

The Company will host its 2026 Investor Day on November 16, 2026, at the New York Stock Exchange, where management will discuss its long-term strategy, financial framework and value creation opportunities. The in-person event will begin at 9:00 a.m. Eastern Time and will also be webcast live. Webcast and presentation materials will be available on the Company’s Investor Relations website at investors.gxo.com. A replay will be available following the event.

Conference Call

GXO will hold a conference call on Wednesday, November 4, 2026, at 8:30 a.m. Eastern Time. Participants can call toll free (from US/Canada) 877-407-8029; international callers dial +1 201-689-8029. Conference ID: 13762379. A live webcast of the conference will be available on the Investor Relations area of the company’s website, investors.gxo.com. The conference will be archived until November 19, 2026. To access the replay by phone, call toll-free (from US/Canada) 877-660-6853; international callers dial +1 201-612-7415. Use participant passcode 13762379.

About GXO Logistics

GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is positioned to capitalize on the rapid growth of ecommerce, automation and outsourcing. GXO has more than 150,000 team members across more than 1,000 facilities totaling more than 200 million square feet. The company serves 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. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube.

Non-GAAP Financial Measures

As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the attached financial tables.

GXO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted earnings before interest, taxes and amortization (“adjusted EBITA”), adjusted EBITA, net of income taxes paid, adjusted EBITA margin, adjusted net income attributable to GXO, adjusted earnings per share (basic and diluted) (“adjusted EPS”), free cash flow, free cash flow conversion, organic revenue, organic revenue growth, net leverage ratio, net debt, and operating return on invested capital (“ROIC”).

We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, GXO’s core operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. GXO’s non-GAAP financial measures should only be used as supplemental measures of our operating performance.

Adjusted EBITDA, adjusted EBITA, adjusted net income attributable to GXO and adjusted EPS include adjustments for transaction and integration costs, restructuring costs and unrealized gain/loss on foreign currency contracts, a regulatory matter as well as net loss on divestiture of business, as set forth in the attached financial tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition and may include consulting fees, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities), and certain costs related to integrating facilities and separating IT systems. Restructuring costs and other primarily consisted of severance paid to exiting members of the Company’s leadership team and to individuals as part of an initiative to optimize corporate expenses. The regulatory matter relates to a regulatory settlement. And net loss on divestiture of business primarily relates to the write-down loss resulting from the held-for-sale classification.

We believe that adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA, net of income taxes paid, and adjusted EBITA margin, improve comparability from period to period by removing the impact of our capital structure (interest expense), asset base (depreciation and amortization), tax impacts and other adjustments as set forth in the attached financial tables, which management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses.

We believe that organic revenue and organic revenue growth are important measures because they exclude the impact of foreign currency exchange rate fluctuations.

We believe that adjusted net income attributable to GXO and adjusted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains as set forth
in the attached financial tables, which management has determined are not reflective of our core operating activities, including amortization of intangible assets acquired.

We believe that free cash flow and free cash flow conversion are important measures of our ability to repay maturing debt or fund other uses of capital that we believe will enhance stockholder value. We calculate free cash flow as cash flows from operations less capital expenditures plus proceeds from sale of property and equipment. We calculate free cash flow conversion as free cash flow divided by adjusted EBITDA, expressed as a percentage.

We believe that net debt and net leverage ratio are important measures of our overall liquidity position and are calculated by removing cash and cash equivalents (excluding restricted cash) and adding back bank overdrafts from our total debt and net debt as a ratio of our trailing twelve months adjusted EBITDA. We calculate ROIC as our trailing twelve months adjusted EBITA, net of income taxes paid, divided by the average invested capital. We believe ROIC provides investors with an important perspective on how effectively GXO deploys capital and use this metric internally as a high-level target to assess overall performance throughout the business cycle.

Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating GXO’s ongoing performance.

With respect to our financial targets for full-year 2026 organic revenue growth, adjusted EBITDA, adjusted diluted EPS, and free cash flow conversion, a reconciliation of these non-GAAP measures to the corresponding GAAP measures is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statements of income and cash flows in accordance with GAAP, that would be required to produce such a reconciliation.

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, including our full-year 2026 financial guidance of organic revenue growth, adjusted EBITDA, adjusted diluted EPS and free cash flow conversion. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” 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. These forward-looking statements are based on certain assumptions and analyses made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the company believes are appropriate in the circumstances.

These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks discussed in our filings with the SEC and the following: economic conditions generally; supply chain challenges, including labor shortages; competition and pricing pressures; our ability to align our investments in capital assets, including equipment, service centers and warehouses, to our respective customers’ demands; our ability to successfully integrate and realize anticipated benefits, synergies, cost savings and profit improvement opportunities with respect to acquired companies, including the acquisition of Wincanton; acquisitions may be unsuccessful or result in other risks or developments that adversely affect our financial condition and results; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; our indebtedness; our ability to raise debt and equity capital; litigation; labor matters, including our ability to manage our subcontractors, and risks associated with labor disputes at our customers’ facilities and efforts by labor organizations to organize our employees; risks associated with defined benefit plans for our current and former employees; our ability to attract or retain necessary talent; the increased costs associated with labor; fluctuations in currency exchange rates; fluctuations in fixed and floating interest rates; fluctuations in customer confidence and spending; issues related to our intellectual property rights; governmental regulation, including environmental laws, trade compliance laws, as well as changes in international trade policies and tax regimes; governmental or political actions, including the United Kingdom’s exit from the European Union; natural disasters, terrorist attacks or similar incidents; damage to our reputation; a material disruption of our operations; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; failure in properly handling the inventory of our customers; failure to successfully incorporate artificial intelligence and humanoids in
connection with our growth strategy; the impact of potential cyber-attacks and information technology or data security breaches; and the inability to implement technology initiatives or business systems successfully; our ability to achieve Environmental, Social and Governance goals; and a determination by the IRS that the distribution or certain related spin-off transactions should be treated as taxable transactions. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors.

All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.

Investor Contact
Kristine Kubacki, CFA
+1 (203) 769-7206
kristine.kubacki@gxo.com
Media Contact
Matthew Schmidt
+1 (203) 307-2809
matt.schmidt@gxo.com

GXO Logistics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
(Dollars in millions, shares in thousands, except per share amounts)			2026				2025				2026				2025
Revenue		$	3,590			$	3,395			$	10,329			$	9,671
Direct operating expense			3,064				2,857				8,805				8,228
Selling, general and administrative expense			285				285				876				818
Depreciation and amortization expense			115				118				347				337
Transaction and integration costs			26				14				54				50
Restructuring costs and other			3				3				11				22
Regulatory matter			—				—				—				65
Net loss on divestiture of business			1				—				24				—
Operating income			96				118				212				151
Other income (expense), net			12				5				28				(10	)
Interest expense, net			(36	)			(35	)			(103	)			(103	)
Income before income taxes			72				88				137				38
Income tax expense			(7	)			(28	)			(40	)			(45	)
Net income (loss)			65				60				97				(7	)
Net income attributable to noncontrolling interests (“NCI”)			(1	)			(1	)			(4	)			(4	)
Net income (loss) attributable to GXO		$	64			$	59			$	93			$	(11	)
Earnings (loss) per share
Basic		$	0.56			$	0.52			$	0.81			$	(0.09	)
Diluted		$	0.56			$	0.51			$	0.81			$	(0.09	)
Weighted-average shares outstanding used in computation of earnings (loss) per share
Basic			113,899				114,473				114,538				116,075
Diluted			114,636				115,329				115,395				116,075

GXO Logistics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
		September 30,				December 31,
(Dollars in millions, shares in thousands, except per share amounts)			2026				2025
ASSETS
Current assets
Cash and cash equivalents		$	340			$	854
Accounts receivable, net of allowance of $14 and $15			2,188				2,028
Other current assets			416				406
Total current assets			2,944				3,288
Long-term assets
Property and equipment, net of accumulated depreciation of $2,270 and $2,126			1,268				1,151
Operating lease right-of-use assets			2,786				2,563
Goodwill			3,722				3,781
Intangible assets, net of accumulated amortization of $851 and $781			812				909
Other long-term assets			613				570
Total long-term assets			9,201				8,974
Total assets		$	12,145			$	12,262
LIABILITIES AND EQUITY
Current liabilities
Accounts payable		$	740			$	758
Accrued expenses			1,555				1,492
Current debt			366				446
Current operating lease liabilities			777				745
Other current liabilities			415				434
Total current liabilities			3,853				3,875
Long-term liabilities
Long-term debt			2,452				2,619
Long-term operating lease liabilities			2,225				2,044
Other long-term liabilities			591				709
Total long-term liabilities			5,268				5,372
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.01 par value per share; 300,000 shares authorized, 120,490 and 119,868 shares issued and 113,026 and 114,512 shares outstanding, respectively			1				1
Treasury stock, at cost; 7,464 and 5,356 shares, respectively			(303	)			(202	)
Preferred stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding			—				—
Additional Paid-In Capital (“APIC”)			2,691				2,667
Retained earnings			811				718
Accumulated Other Comprehensive Income (Loss) (“AOCIL”)			(207	)			(201	)
Total stockholders’ equity before NCI			2,993				2,983
NCI			31				32
Total equity			3,024				3,015
Total liabilities and equity		$	12,145			$	12,262

GXO Logistics, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
		Nine Months Ended September 30,
(In millions)			2026				2025
Cash flows from operating activities:
Net income (loss)		$	97			$	(7	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization expense			347				337
Stock-based compensation expense			35				34
Deferred tax benefit			(20	)			(24	)
Other			(11	)			11
Changes in operating assets and liabilities
Accounts receivable			(215	)			(76	)
Other assets			(39	)			40
Accounts payable			(4	)			(91	)
Accrued expenses and other liabilities			73				40
Net cash provided by operating activities			263				264
Cash flows from investing activities:
Capital expenditures			(204	)			(269	)
Proceeds from the sale of property and equipment			7				101
Cash paid in connection with divestiture			(38	)			—
Cross-currency swap agreements settlement			—				(1	)
Net cash used in investing activities			(235	)			(169	)
Cash flows from financing activities:
Common stock repurchased and excise tax paid			(102	)			(200	)
Net borrowings under revolving credit facilities			—				38
Repayments of long-term and other debt			(401	)			(56	)
Repayments of finance lease obligations			(46	)			(38	)
Proceeds from exercise of stock options			7				—
Taxes paid related to net share settlement of equity awards			(18	)			(8	)
Obligations under factoring arrangements			20				(2	)
Other			4				—
Net cash used in financing activities			(536	)			(266	)
Effect of exchange rates on cash and cash equivalents			(6	)			30
Net decrease in cash, restricted cash and cash equivalents			(514	)			(141	)
Cash, restricted cash and cash equivalents, beginning of period			857				485
Cash, restricted cash and cash equivalents, end of period		$	343			$	344
Non-cash financing activities:
Excise tax liability related to stock repurchases		$	1			$	2
Reconciliation of cash, restricted cash and cash equivalents		September 30, 2026				December 31, 2025
Cash and cash equivalents		$	340			$	854
Restricted cash			3				3
Total cash, restricted cash and cash equivalents		$	343			$	857

GXO Logistics, Inc.
Key Data
Disaggregation of Revenue
(Unaudited)
Revenue disaggregated by geographical area was as follows:
		Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)		2026			2025			2026			2025
United Kingdom		$	1,751		$	1,628		$	5,030		$	4,609
United States			846			801			2,379			2,320
Netherlands			263			275			789			760
France			216			210			637			612
Spain			184			170			527			479
Italy			111			103			332			303
Other			219			208			635			588
Total		$	3,590		$	3,395		$	10,329		$	9,671

The Company’s revenue can also be disaggregated by various verticals, reflecting the customers’ principal industry. Revenue disaggregated by industry was as follows:

		Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)		2026			2025			2026			2025
Omnichannel retail		$	1,689		$	1,645		$	4,887		$	4,693
Technology and consumer electronics			498			420			1,370			1,215
Industrial and manufacturing			405			386			1,207			1,151
Food and beverage			351			371			1,009			1,044
Consumer packaged goods			333			324			998			898
Other			314			249			858			670
Total		$	3,590		$	3,395		$	10,329		$	9,671

GXO Logistics, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA,
Operating Income and Adjusted EBITDA Margins
(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,								Year Ended December 31, 2025			Trailing Twelve Months Ended September 30, 2026
(In millions)			2026				2025				2026				2025
Net income (loss) attributable to GXO		$	64			$	59			$	93			$	(11	)		$	32		$	136
Net income attributable to NCI			1				1				4				4				4			4
Net income (loss)		$	65			$	60			$	97			$	(7	)		$	36		$	140
Interest expense, net			36				35				103				103				133			133
Income tax expense			7				28				40				45				68			63
Depreciation and amortization expense			115				118				347				337				457			467
Transaction and integration costs			26				14				54				50				54			58
Restructuring costs and other			3				3				11				22				27			16
Regulatory matter			—				—				—				65				65			—
Net loss on divestiture of business			1				—				24				—				34			58
Unrealized (gain) loss on foreign currency contracts			(2	)			(7	)			(6	)			11				7			(10	)
Adjusted EBITDA(1)		$	251			$	251			$	670			$	626			$	881		$	925
Revenue		$	3,590			$	3,395			$	10,329			$	9,671
Operating income		$	96			$	118			$	212			$	151
Operating income margin(2)			2.7	%			3.5	%			2.1	%			1.6	%
Adjusted EBITDA margin(1)(3)			7.0	%			7.4	%			6.5	%			6.5	%
(1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Operating income margin is calculated as operating income divided by revenue for the period.
(3) Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue for the period.

GXO Logistics, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITA
and Adjusted EBITA Margin
(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,								Year Ended December 31, 2025			Trailing Twelve Months Ended September 30, 2026
(In millions)			2026				2025				2026				2025
Net income (loss) attributable to GXO		$	64			$	59			$	93			$	(11	)		$	32		$	136
Net income attributable to NCI			1				1				4				4				4			4
Net income (loss)		$	65			$	60			$	97			$	(7	)		$	36		$	140
Interest expense, net			36				35				103				103				133			133
Income tax expense			7				28				40				45				68			63
Amortization of intangible assets acquired			27				31				84				90				119			113
Transaction and integration costs			26				14				54				50				54			58
Restructuring costs and other			3				3				11				22				27			16
Regulatory matter			—				—				—				65				65			—
Net loss on divestiture of business			1				—				24				—				34			58
Unrealized (gain) loss on foreign currency contracts			(2	)			(7	)			(6	)			11				7			(10	)
Adjusted EBITA(1)		$	163			$	164			$	407			$	379			$	543		$	571
Revenue		$	3,590			$	3,395			$	10,329			$	9,671
Adjusted EBITA margin(1)(2)			4.5	%			4.8	%			3.9	%			3.9	%
(1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Adjusted EBITA margin is calculated as adjusted EBITA divided by revenue for the period.

GXO Logistics, Inc.
Reconciliation of Net Income (Loss) to Adjusted Net Income
and Adjusted Earnings Per Share
(Unaudited)
(Dollars in millions, shares in thousands, except per share amounts)		Three Months Ended September 30,								Nine Months Ended September 30,
			2026				2025				2026				2025
Net income (loss)		$	65			$	60			$	97			$	(7	)
Net income attributable to NCI			(1	)			(1	)			(4	)			(4	)
Net income (loss) attributable to GXO		$	64			$	59			$	93			$	(11	)
Amortization of intangible assets acquired			27				31				84				90
Transaction and integration costs			26				14				54				50
Restructuring costs and other			3				3				11				22
Regulatory matter			—				—				—				65
Net loss on divestiture of business			1				—				24				—
Unrealized (gain) loss on foreign currency contracts			(2	)			(7	)			(6	)			11
Income tax associated with the adjustments above(1)			(17	)			(9	)			(32	)			(36	)
Adjusted net income attributable to GXO(2)		$	102			$	91			$	228			$	191
Adjusted basic EPS(2)		$	0.90			$	0.79			$	1.99			$	1.65
Adjusted diluted EPS(2)		$	0.89			$	0.79			$	1.98			$	1.64
Weighted-average shares outstanding used in computation of adjusted earnings per share
Basic			113,899				114,473				114,538				116,075
Diluted(3)			114,636				115,329				115,395				116,540
(1) The income tax rate applied to items is based on the GAAP annual effective tax rate.
(2) See the “Non-GAAP Financial Measures” section of this press release.
(3) The nine months ended September 30, 2025, calculation of earnings per share - diluted (GAAP) excludes 465 thousand shares due to their anti-dilutive effect.

GXO Logistics, Inc.
Other Reconciliations
(Unaudited)

Reconciliation of Cash Flows from Operations to Free Cash Flow:

		Three Months Ended September 30,								Nine Months Ended September 30,
(In millions)			2026				2025				2026				2025
Cash flows from operations(1)		$	156			$	232			$	263			$	264
Capital expenditures			(74	)			(144	)			(204	)			(269	)
Proceeds from sale of property and equipment			3				99				7				101
Free cash flow(2)		$	85			$	187			$	66			$	96
(1) Net cash provided by operating activities.
(2) See the “Non-GAAP Financial Measures” section of this press release.

Reconciliation of Revenue to Organic Revenue:

		Three Months Ended September 30,							Nine Months Ended September 30,
(In millions)			2026			2025				2026			2025
Revenue		$	3,590			$	3,395		$	10,329			$	9,671
Foreign exchange rates			22				—			(205	)			—
Organic revenue(1)		$	3,612			$	3,395		$	10,124			$	9,671
Revenue growth(2)			5.7	%						6.8	%
Organic revenue growth(1)(3)			6.4	%						4.7	%
(1) See the “Non-GAAP Financial Measures” section of this press release.
(2) Revenue growth is calculated as the change in the period-over-period revenue divided by the prior period, expressed as a percentage.
(3) Organic revenue growth is calculated as the change in the period-over-period organic revenue divided by the prior period, expressed as a percentage.

GXO Logistics, Inc.
Liquidity Reconciliations
(Unaudited)

Reconciliation of Total Debt and Net Debt:

(In millions)		September 30, 2026
Current debt		$	366
Long-term debt			2,452
Total debt(1)		$	2,818
Plus: Bank overdrafts (included in Other current liabilities)			2
Less: Cash and cash equivalents (excluding restricted cash)			(340	)
Net debt(2)		$	2,480
(1) Includes finance leases and other debt of $497 million as of September 30, 2026.
(2) See the “Non-GAAP Financial Measures” section of this press release.

Reconciliation of Total debt to Net income Ratio:

(In millions)		September 30, 2026
Total debt		$	2,818
Trailing twelve months net income		$	140
Debt to net income ratio		20.1x

Reconciliation of Net Leverage Ratio:

(In millions)		September 30, 2026
Net debt(1)		$	2,480
Trailing twelve months adjusted EBITDA(1)		$	925
Net leverage ratio(1)		2.7x
(1) See the “Non-GAAP Financial Measures” section of this press release.

GXO Logistics, Inc.
Return on Invested Capital
(Unaudited)

Adjusted EBITA, net of income taxes paid:

		Nine Months Ended September 30,								Year Ended December 31, 2025				Trailing Twelve Months Ended September 30, 2026
(In millions)			2026				2025
Adjusted EBITA(1)		$	407			$	379			$	543			$	571
Less: Cash paid for income taxes			(54	)			(35	)			(59	)			(78	)
Adjusted EBITA(1), net of income taxes paid		$	353			$	344			$	484			$	493
(1) See the “Non-GAAP Financial Measures” section of this press release.

Return on Invested Capital (ROIC):

		September 30,
(In millions)			2026				2025			Average
Selected Assets:
Accounts receivable, net		$	2,188			$	2,015			$	2,102
Other current assets			416				452				434
Property and equipment, net			1,268				1,197				1,233
Selected Liabilities:
Accounts payable		$	(740	)		$	(716	)		$	(728	)
Accrued expenses			(1,555	)			(1,523	)			(1,539	)
Other current liabilities(1)			(413	)			(430	)			(422	)
Invested capital		$	1,164			$	995			$	1,080
Trailing twelve months net income to average invested capital											13.0	%
Operating return on invested capital(2)(3)											45.6	%
(1) As of September 30, 2026, excludes $2 million of bank overdraft.
(2) See the “Non-GAAP Financial Measures” section of this press release.
(3) The ratio of operating return on invested capital is calculated as trailing twelve months adjusted EBITA, net of income taxes paid, divided by the average invested capital.

^{__________________________________
1} For definitions of non-GAAP measures see the “Non-GAAP Financial Measures” section in this press release.
² Our guidance reflects current foreign currency rates.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were GXO’s third-quarter 2026 earnings and revenue?

GXO reported $3.6 billion in revenue and diluted earnings per share of $0.56 for third-quarter 2026. Revenue increased 5.7% year over year, while diluted earnings per share rose from $0.51. Net income increased to $65 million from $60 million.

What is GXO’s full-year 2026 guidance?

GXO reaffirmed its 2026 outlook for 4% to 5% organic revenue growth, adjusted EBITDA of $945 million to $965 million, adjusted diluted earnings per share of $2.95 to $3.15, and free cash flow conversion of 30% to 40%.

How does GXO calculate free cash flow conversion?

GXO calculates free cash flow conversion as free cash flow divided by adjusted EBITDA, expressed as a percentage. Free cash flow equals operating cash flow less capital expenditures plus proceeds from sales of property and equipment.

Which growth verticals contributed to GXO’s 2026 new business wins?

Approximately 40% of year-to-date new business wins were in aerospace and defense, technology, industrial and life sciences. These are GXO’s strategic growth verticals.