GXO shifts to global operating model to drive growth

GXO had new business signings of $410 million in the second quarter, up 30% from last year, according to CEO Patrick Kelleher.

GXO Logistics on Aug. 5 announced significant changes to its operating model aimed at sustaining growth through high-margin contracts and reducing costs.

The Greenwich, Conn.-based contract logistics firm began its pivot over the past year, initially focusing on strengthening the leadership team. With that in place, emphasis has shifted to the structure and operating model, with a focus on high-margin growth verticals, technology and scaled execution.

Since its launch in 2021, GXO has largely operated through regional silos, CEO Patrick Kelleher told Transport Topics.

“We are now at the inflection point where it really makes sense to shift toward managing the business as a global enterprise,” Kelleher said.

The business has nearly doubled since its launch, he said, primarily through mergers and acquisitions that provided the capabilities necessary for this next phase, especially in business-to-business operations. But the focus going forward will be more on organic growth and less on regional silos. The plan also includes further technology improvements, especially in artificial intelligence and automation through GXO IQ.

>

Kelleher said future M&A activity would be selective, aimed at entering new countries, particularly in Asia, or adding capabilities in key B2B verticals.

He also expressed optimism that this shift will allow for additional efficiencies and scale that will benefit customer operations. The company already operates in 26 countries and is fairly insulated from transportation headwinds as a pure-play contract logistics company. He noted larger macroeconomic obstacles such as tariffs could actually help attract customers.

“Those have really always been proven to be a catalyst for growth in contract logistics,” Kelleher said. “Our demand for free trade zone solutions continues to accelerate. So when customers are faced with the challenge of tariffs, we have solutions for that.”

GXO’s Q2 results are here, showcasing strong commercial momentum, tech acceleration and the global expansion of the GXO Way. https://t.co/x6O9NfrFMR pic.twitter.com/x89sMvb9En — GXO (@GXOLogistics) August 4, 2026

Kelleher first discussed the strategic shift during his second-quarter earnings call Aug. 5. The company posted net income of $27 million, or 22 cents a diluted share. That compared with $28 million, 23 cents, in the year-earlier period. Total revenue increased 4.3% to $3.44 billion from $3.3 billion. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also increased 3.3% to $219 million.

“One of the highlights of the second quarter was our new business signings of $410 million, up 30% from last year, which I think is benefiting twofold from the initiatives that we put in place when I joined last August,” Kelleher said. “That has proven to be a good catalyst for our growth as we strive to move more toward organic growth.”

Kelleher highlighted aerospace and defense, technology, industrial and life sciences as among the most critical high-margin growth verticals the company is focusing on as it looks to scale globally. This is also bolstered by the company further building out its North American operations, where those verticals are growing fast.

Revenue by vertical

• Omnichannel retail: Increased 0.6% to $1.64 billion from $1.63 billion.
• Technology and consumer electronics: Increased 9.2% to $439 million from $402 million.
• Industrial and manufacturing: Increased 1.2% to $408 million from $403 million.
• Consumer packaged goods: Increased 14.1% to $331 million from $290 million.
• Food and beverage: Decreased 5% to $341 million from $359 million.

GXO ranks No. 3 on the TT Top 100 list of the largest logistics companies in North America.