Gxo Logistics Incorporated Stock Price, News & Analysis

U.K. Competition and Markets Authority completes review

GXO Logistics has received unconditional regulatory clearance from the U.K. CMA for its acquisition of Clipper Logistics. This acquisition, which was completed on May 24, 2022, enhances GXO’s capabilities by adding over 50 sites and 10 million square feet, alongside 10,000 additional team members. GXO anticipates significant productivity opportunities and cost synergies within two years. The integration process will commence immediately to ensure a successful transition during the upcoming holiday peak season.

GXO Logistics has inaugurated a new 350,000-square-foot GXO Direct facility in Kearney, Nebraska, enhancing its longstanding partnership with Bayer Crop Science. This facility will manage all shipping and receiving activities for Bayer, allowing for increased efficiency and productivity. The new warehouse also features cold storage and advanced warehouse management systems, expanding GXO's management of Bayer's warehouse space to over 1 million square feet. This strategic development supports Bayer's growth in seed operations and lowers carbon footprint.

GXO Logistics, the world's largest pure-play contract logistics provider, announced the recognition of three leaders by Supply & Demand Chain Executive magazine for their contributions to the company and industry. Donna Del Rosso, Lou Lebrun-Gonnet, and Cynthia Tyler were commended for their leadership and mentorship roles, particularly in championing women in logistics. Bill Fraine, GXO's Chief Commercial Officer, expressed pride in their achievements, highlighting their impact on creating a diverse workplace and promoting career opportunities for women at all levels.

GXO Logistics reported second quarter 2022 revenue of $2.2 billion, a 15% increase year-over-year, with organic growth reaching 20%. Net income was $51 million, while adjusted EBITDA stood at $176 million. Earnings per share rose to $0.44, with adjusted EPS at $0.68, marking 55% growth. The company upgraded its full-year guidance for organic revenue growth to 12%-16% and adjusted EBITDA to $715-$750 million. Record new business wins of $475 million were announced, boosting revenue visibility through 2024.

GXO Logistics has significantly increased its use of collaborative robots, tripling their number in 2021 and planning further additions in 2022. The company entered a multi-year agreement with 6 River Systems to enhance productivity in logistics operations across the U.S. and Europe. These robots, known as Chucks, are designed to improve training efficiency by 80% and optimize warehouse operations. GXO aims to bolster its technological capabilities in response to growing outsourcing demands, while enhancing workplace safety and engagement.

GXO Logistics, Inc. (NYSE: GXO) will host its second quarter conference call on August 3, 2022, at 8:30 a.m. ET, following the release of financial results on August 2, 2022. The event marks the one-year anniversary of GXO's listing on the NYSE as the leading pure-play logistics provider. Stakeholders can access the call via toll-free numbers or a live webcast. A replay will be available until August 17, 2022. With over 120,000 employees and more than 900 facilities globally, GXO continues to leverage growth opportunities in e-commerce and advanced supply chain solutions.