GXO Reports Q1 Revenue Increase to Nearly $3 Billion
[Stay on top of transportation news: Get TTNews in your inbox.]
GXO Logistics experienced an increase in revenue but a loss in earnings during the first quarter of 2025, the company reported May 8.
The Greenwich, Conn.-based contract logistics firm posted a net loss of $95 million, or 81 cents a diluted share, for the three months ending March 31. That compared with a loss of $36 million, 31 cents, during the same time the previous year. Total revenue increased 21% to $2.98 billion from $2.46 billion.
“GXO delivered a strong set of results against a dynamic macro backdrop,” GXO CEO Malcolm Wilson said during a call with investors. “Our new business wins in the quarter were $228 million, and our sales pipeline, excluding Wincanton, grew to a three-year high of $2.5 billion.”
Wincanton is a British transport and logistics services company that was acquired in April 2024. But both companies are continuing to be run independently until the U.K. Competition and Markets Authority (CMA) completes its review.
“I’d especially like to highlight the progress we’ve made in developing our business in the health care sector,” Wilson said. “We’ve finalized a landmark deal with the U.K. National Health Service’s Supply Chain. This is our largest-ever contract and carries a total lifetime value of about $2.5 billion. We’ll commence operations for the NHS early in the third quarter. We’ve also recently signed other exciting health care contracts.”
Wilson credited this growth into health care as being a direct result of GXO’s earlier acquisition of Clipper Logistics. He also views it as proof positive that the merger and acquisition strategy the company has been pursuing is working. Wincanton is expected to drive similar results in target verticals like aerospace and defense.
“We’re operating in an environment that demands unprecedented agility from global supply chains,” Wilson said. “The structural tailwinds of outsourcing, automation and e-commerce continue to drive our industry’s growth, illustrating that the need for our solutions is more important than ever. … On top of this, the complexity related to potential tariffs has created a new array of challenges for our customers.”
Wilson added that the range of activities to support customers in this environment is evolving in real time and includes everything from strategic reviews of how to manage volatility to value-added services like retagging and rebagging millions of stockkeeping units that are already in circulation.
“It’s a great quarter,” Baris Oran, chief financial officer of GXO, told Transport Topics. “This is a time for us to showcase our resilience and contractual business model. Yet again, four years in a row, we have been showing and proving what a predictable and growth business this company is. There’s no better business.”
GXO Reports First Quarter 2025 Results
President Donald Trump has made tariffs a cornerstone of his foreign trade agenda. This included sweeping tariff actions against numerous countries April 2. But due to ongoing negotiations and delays, a lot of the tariffs have yet to take effect, though the impact has already been felt as companies worked to bring shipments in earlier to avoid higher costs.
“Our Q1 numbers didn’t have much impact from the tariffs at all,” Oran said. “Our volumes were slightly positive in Q1, driven by the aerospace and technology infrastructure business, which doesn’t have much to do with tariffs. Looking at our site levels at the moment, the inventory levels in our sites are healthy, somewhat elevated. So I don’t expect any empty shelves risk anytime soon.”
Oran noted that customers had managed to diversify their supply chain and prepare for contingencies, so he doesn’t see much near-term risk even with the elevated inventory levels. But he also noted there is demand for certain durable and value-added services.
“What I see is the durable goods, like appliances and technology products, are selling more, and the levels of inventory in the U.S. for those is more elevated, and also somewhat more elevated in apparel, but not as much as technology,” Oran said. “So people have done their homework and got prepared for it. What is impacting us right now is there’s quite a lot of demand for value-added services like retagging, rebagging, bonded warehouses.”
Revenue by vertical:
- Omnichannel retail operations increased 39.1% to $1.42 billion from $1.02 billion.
- Technology and consumer electronics increased 2.9% to $393 million from $382 million.
- Industrial and manufacturing increased 36.1% to $362 million from $266 million.
- Food and beverage decreased 0.6% to $314 million from $316 million.
- Consumer packaged goods decreased 3.7% to $284 million from $295 million.
“1Q came in above expectations as GXO reiterated full-year guidance despite an increasingly uncertain macro backdrop,” TD Cowen analyst Jason Seidl wrote in a report. “New deal pipeline is robust and NHS contract shows growth into emerging categories.”
GXO ranks No. 3 on the Transport Topics Top 100 list of the largest logistics companies in North America.
Want more news? Listen to today's daily briefing below or go here for more info:
