Gxo Logistics Incorporated Stock Price, News & Analysis

GXO Logistics reported strong Q4 and full year 2024 results, with record revenue reaching $3.3 billion in Q4 (up 25% YoY) and $11.7 billion for the full year (up 20% YoY). Organic revenue growth was 4% in Q4 and 3% for the full year.

Q4 net income increased to $100 million from $73 million YoY, with diluted EPS rising to $0.83 from $0.61. Full-year net income was $138 million compared to $233 million in 2023. The company secured over $1 billion in new business wins for the second consecutive year, including their largest-ever contract worth $2.5 billion in health sciences.

For 2025, GXO provided guidance projecting organic revenue growth of 3-6%, adjusted EBITDA of $840-860 million, adjusted diluted EPS of $2.40-2.60, and adjusted EBITDA to free cash flow conversion of 25-35%.

GXO Logistics (NYSE: GXO) has expanded its partnership with Castore, the performance sportswear brand, to manage warehousing and transportation operations across the UK, US, and Europe. The collaboration, which began in April 2024 in the UK, involves distributing teamwear to prominent sports teams including Oracle Red Bull Racing, McLaren F1, Everton FC, and England Cricket teams.

Following successful UK operations, the partnership now extends to the Netherlands with plans for US expansion. GXO handles distribution to wholesale customers, manages over 20 Castore retail stores across Europe, and fulfills global e-commerce orders. The implementation in the UK included rolling out a dedicated warehouse management system within eight weeks of contract signing. GXO provides integrated services including returns, courier management, and personalization while managing relationships with Castore's brand partners.

GXO Logistics (NYSE: GXO) has renewed its partnership with Versace to manage omnichannel logistics for all product lines in Italy. Operating from two warehouses in Bellinzago Novarese and Novara with 12,000-square-meters of mezzanine space, GXO handles approximately 2.4 million pieces annually, covering hanging and flat garments, accessories, perfumes, jewelry, home goods, and raw materials.

The partnership, extending to nearly two decades, includes B2B and B2C returns, quality control, and value-added services like labeling and garment repairs. GXO has implemented technological solutions including hanging garment sorters, RFID, and conveyor systems to increase operational efficiency. The company's European operations include over 60 sites dedicated to fashion logistics, featuring advanced technologies like 3D sortation systems that triple throughput during peak seasons.

GXO Logistics (NYSE: GXO) has announced its upcoming fourth quarter and full-year 2024 earnings conference call, scheduled for Thursday, February 13, 2025, at 8:30 a.m. Eastern Time. The company will release its financial results after market close on Wednesday, February 12, 2025.

The earnings information will be available on investors.gxo.com. Interested parties can access the conference call toll-free from U.S./Canada at 877-407-8029, while international callers can dial +1 201-689-8029 using Conference ID 13751179. A live webcast will be available on the investor relations website. A replay of the call will be accessible until February 25, 2025.

GXO Logistics has partnered with The Perfume Shop to provide weekly deliveries to over 200 stores through its shared transport network. The collaboration aims to reduce environmental impact, urban congestion, and transportation costs for the UK's largest specialist fragrance retailer.

The shared transport fleet combines deliveries for multiple retailers, with vehicles typically serving five different customers and making 8-10 stops per journey. This approach proves more efficient than dedicated delivery services, potentially saving retailers 5kg of CO2 per litre compared to dedicated transport solutions.

The partnership enables The Perfume Shop to maintain efficient store stock levels while reducing their environmental footprint. GXO's solution helps address urban congestion concerns, particularly relevant as cities implement stricter vehicle emission policies.

GXO Logistics (NYSE: GXO) has announced a long-term partnership with Calliope, a lifestyle brand of the Italian fashion franchise Teddy Group. The agreement includes comprehensive logistics services from a 10,000-square-meter warehouse in Stradella, Italy.

The partnership encompasses warehouse management, e-fulfillment, returns management, and value-added services like labeling and quality control. GXO will employ advanced automation technologies, including pick-to-light stations, automatic lines, and telescopic arms for package unloading, ensuring high-level service for both domestic and international distribution.

The facility features 100% LED lighting and implements an innovative direct staffing model. GXO's fashion logistics expertise in Europe spans over 60 dedicated sites, utilizing technologies like 3D sortation systems that triple throughput during peak seasons, robotic picking arms, and wearable scanners to optimize operations.

GXO Logistics (NYSE: GXO) has signed a contract with SAMSE Group, France's second-largest building materials distributor, to manage their omnichannel logistics operations. GXO will operate from two facilities in La Boisse, near Lyon, spanning 56,000 square meters and handling over 22,000 SKUs with approximately 100 team members.

The partnership marks SAMSE's first logistics outsourcing initiative, focusing on optimizing product availability and delivery speeds. GXO will implement innovative solutions including palm scanners, E-beacon technology, and automated guard posts. One site will manage cross-dock flows for all SAMSE stores, while the second will handle e-commerce operations for L'Entrepôt du Bricolage.

GXO Logistics announced an extension of its partnership with Guess in Italy and the Netherlands, extending the agreement until 2032. This collaboration, which began in 2011 in Italy and 2017 in the Netherlands, focuses on enhancing logistics services for the global lifestyle brand. GXO operates a bonded dedicated site in Italy, managing omnichannel logistics for bags, footwear, and outlets, including quality control and RFID services. In the Netherlands, GXO manages a bonded warehouse for clothing, handling tax operations for imports and exports. The company has optimized operations using advanced technologies such as ProGlove scanners, garment sorters, and auto-inducting machines. GXO plans to introduce Automated Goods Vehicles (AGVs) in the Netherlands soon and aims to continue implementing innovative solutions. The partnership also emphasizes ESG solutions, including eco-friendly packaging and LED lighting installations.

GXO Logistics announced that CEO Malcolm Wilson plans to retire in 2025. Wilson will continue leading the company during the search for his successor. Under his leadership since August 2021, GXO has achieved significant growth, including:

- Revenue increase from $7.9B (2021) to $11B (as of Sept 2024)
- Adjusted EBITDA growth from $633M (2021) to $757M (as of Sept 2024)
- Expansion to 130,000 employees and 200M square feet of facility space globally
- Strategic acquisitions of Clipper Logistics and Wincanton
- Return on invested capital exceeding 30% annually