GXO's contract wins surge 34%, but growth comes amid cost pressures. Warehouse startup expenses weigh on profitability as the logistics giant prepares for more than $850 million in new revenue entering 2027. · Wednesday, November 04, 2026 GXO Logistics is seeing accelerating demand for its contract logistics services, particularly in North America, as data centers, aerospace and defense customers fuel a record sales pipeline. During a Wednesday earnings call, CEO Patrick Kelleher said the company's renewed commercial strategy is generating larger contracts and expanding opportunities in specialized industries, with momentum expected to continue into 2027. "The focus on North America, the focus on the strategic verticals, has been additive to the organic growth agenda," Kelleher told analysts during the call. Greenwich, Connecticut-based GXO (NYSE: GXO) reported third-quarter revenue of $3.59 billion, a 5.7% increase from $3.4 billion a year earlier. Organic revenue increased 6.4%, while adjusted earnings per share rose 13% to 89 cents. The company secured $375 million in new business wins during the quarter, a 34% year-over-year increase, and ended September with a record $3.1 billion sales pipeline, up more than 30%. He said GXO's contract logistics business typically operates on a six-month sales cycle, meaning initiatives launched over the past year are only beginning to translate into revenue. North America, data centers drive expansion. North America has emerged as GXO's largest growth opportunity, with its regional sales pipeline increasing more than 80% year over year to approximately $1.3 billion. Chief Strategy Officer Kristine Kubacki said the company's pipeline across the United Kingdom and Europe reached approximately $1.7 billion. Technology and consumer electronics were GXO's fastest-growing customer category during the quarter, with revenue increasing 19%, largely driven by data center activity. Kelleher said GXO continues to see strong demand from technology companies expanding their data center infrastructure, with no signs of a slowdown in requests for proposals. The company is also pursuing more business in aerospace and defense, industrial logistics and life sciences. Those strategic growth industries accounted for approximately 40% of GXO's new business wins through the first nine months of 2026. Kubacki said contracts involving data centers and aerospace customers often require more complex logistics services than traditional retail and consumer distribution. "Those are very complex mandates, very complicated supply chains," Kubacki said. "It tends to be stickier. It tends to be higher value-added services." GXO also reported new or expanded business relationships during the quarter with Applied Materials, Boeing, NetApp, Unilever and L'Oréal. The company expects to enter 2027 with more than $850 million in incremental revenue from previously signed contracts, compared with $774 million entering 2026. Rapid contract growth pressures margins. While revenue and contract wins accelerated, GXO executives said that the pace of new customer onboarding created additional expenses during the quarter. Adjusted earnings before interest, taxes, depreciation and amortization remained flat at $251 million, resulting in a 7% adjusted EBITDA margin. Kelleher said the company had to bring in outside consulting and implementation resources to support the rapid launch of several large customer operations. "With organic growth accelerating at the pace it has, we really found ourselves in Q3 stretched in terms of implementation resources," he said. Kelleher characterized those additional expenses as specific to the quarter rather than an ongoing structural problem. He said GXO is expanding its internal implementation capabilities to support future growth. GXO maintains 2026 outlook. Despite the costs associated with expanding operations, GXO reaffirmed its full-year financial guidance. The company continues to expect organic revenue growth of 4% to 5%, adjusted EBITDA of $945 million to $965 million and adjusted diluted earnings per share of $2.95 to $3.15. Suchinski said GXO expects fourth-quarter organic growth slightly above 5%, assuming flat customer volumes. However, if stronger demand continues through the holiday shipping season, growth could approach the 6.4% achieved in the third quarter. Third-quarter operating cash flow declined to $156 million from $232 million a year earlier, while free cash flow fell to $85 million from $187 million. Suchinski attributed the free cash flow decline primarily to the timing of enterprise resource planning investments and higher net capital expenditures. GXO expects the fourth quarter to be its strongest cash-generating period of the year. GXO third-quarter financial results. Why it matters: GXO's results highlight the challenge facing contract logistics providers: scaling operations quickly enough to capture new business without sacrificing margins.

First look: GXO Logistics Q3 revenue hits $3.6B. Contract logistics giant reports strongest organic growth in more than three years, but operating profits and cash flow decline. · Tuesday, November 03, 2026 GXO Logistics reported third-quarter revenue of $3.59 billion, a 5.7% increase from a year earlier, as the global contract logistics provider secured more new business and expanded its sales pipeline to record levels. The Greenwich, Connecticut-based company (NYSE: GXO) said Tuesday that organic revenue grew 6.4% during the quarter ended Sept. 30, its fastest pace in more than three years. GXO also reported $375 million in new business wins, a 34% year-over-year increase and the second consecutive quarter in which new contract wins grew more than 30%. The company's sales pipeline reached a record $3.1 billion, up more than 30% from a year earlier, signaling continued demand for outsourced warehousing, distribution and supply chain services. "The new strategy we put in motion over the past year is delivering results," GXO CEO Patrick Kelleher said in a news release. Kelleher said the company is winning more business across its core markets and strategic growth sectors while improving its ability to convert opportunities into revenue. GXO Q3 financial performance. GXO reported net income of $65 million, compared with $60 million during the same period in 2025. Diluted earnings per share increased to 56 cents from 51 cents. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) remained unchanged at $251 million, while adjusted diluted earnings per share rose to 89 cents from 79 cents. However, operating income declined to $96 million from $118 million, and adjusted EBITDA margin narrowed to 7% from 7.4%. The company also reported a decline in operating cash flow to $156 million from $232 million a year earlier. Free cash flow fell to $85 million from $187 million. Direct operating expenses increased to $3.06 billion from $2.86 billion, outpacing revenue growth and contributing to pressure on operating profitability. GXO Logistics: Third-quarter year-over-year comparison. Three months ended Sept. 30; dollar amounts in millions unless otherwise indicated. New contracts drive growth across strategic industries. GXO said its year-to-date new business wins exceeded $1 billion, nearly matching the company's total contract wins for all of 2025 with one quarter remaining. Around 40% of those wins came from strategic growth industries, including aerospace and defense, technology, industrial operations and life sciences. The company's technology and consumer electronics business generated $498 million in third-quarter revenue, up 18.6% from $420 million a year earlier. Industrial and manufacturing revenue increased 4.9% to $405 million, while omnichannel retail, GXO's largest customer segment, generated $1.69 billion, up 2.7%. Food and beverage revenue declined 5.4% to $351 million. The United Kingdom remained GXO's largest geographic market, generating $1.75 billion in quarterly revenue, an increase of 7.6%. U.S. revenue rose 5.6% to $846 million, compared with $801 million during the third quarter of 2025. GXO reaffirms 2026 financial outlook. Despite lower operating margins and cash flow during the quarter, GXO reaffirmed its full-year 2026 financial guidance. The company continues to project: * Organic revenue growth of 4% to 5%. * Adjusted EBITDA of $945 million to $965 million. * Adjusted diluted earnings per share of $2.95 to $3.15. * Free cash flow conversion of 30% to 40%. Through the first nine months of 2026, GXO generated $10.33 billion in revenue, up 6.8% from $9.67 billion during the same period last year. Nine-month adjusted EBITDA totaled $670 million, compared with $626 million a year earlier. GXO also repurchased $84 million in common stock during the third quarter, bringing year-to-date share repurchases to $100 million. As of Sept. 30, the company reported $340 million in cash and cash equivalents and approximately $2.8 billion in outstanding debt. GXO will hold its third-quarter earnings conference call at 8:30 a.m. Wednesday. Why it matters: GXO's accelerating contract wins and record sales pipeline indicate strengthening demand for outsourced logistics services, although declining operating margins and free cash flow highlight the challenge of converting revenue growth into higher profitability.

GXO opens strategic logistics hub in Malaysia to support growth across Asia Pacific. October 27, 2026 07:00 ET | Source: GXO Logistics Located in the Johor-Singapore Special Economic Zone, the Medini site expands GXO's presence in Asia Pacific and provides enhanced flexibility across regional supply chains GREENWICH, Conn., Oct. 27, 2026 (GLOBE NEWSWIRE) - GXO Logistics, Inc. (NYSE: GXO), the world's largest pure-play contract logistics provider, today announced the opening of a new, state-of-the-art strategic logistics hub in Medini, Malaysia, further expanding its footprint in Asia Pacific and reinforcing the company's commitment to one of its fastest-growing regions. Located within the Johor-Singapore Special Economic Zone (SEZ), the new site offers the benefits of a Free Trade Zone (FTZ) alongside access to one of Southeast Asia's most strategically positioned logistics corridors. Direct connectivity to major manufacturing centers, ports and airports enables companies to optimize inventory positioning, strengthen supply chain resilience and reduce operating costs. "Asia Pacific continues to be one of the most dynamic growth markets for GXO," said Michael Jacobs, Chief Executive Officer of the Americas and Asia Pacific, GXO. "The opening of our Medini facility reflects our commitment to bringing world-class logistics solutions to high-growth markets. From its strategic location within the Johor-Singapore Special Economic Zone, the site will offer customers greater flexibility, resilience and speed while connecting them with some of the region's most important manufacturing, technology and trade hubs." The Medini facility is designed to support customers across technology and advanced industrial sectors and currently serves as the regional hub for a leading global supplier of semiconductor manufacturing equipment. GXO is evaluating additional capabilities for the site, including emerging warehouse technologies, that could further enhance supply chain visibility and strengthen collaboration with customers. "As technology and advanced manufacturing continue to expand in Asia Pacific, companies are increasingly looking for ways to position inventory closer to regional demand," said Scott Copeland, Managing Director, Asia Pacific, GXO. "With access to Singapore and southern Malaysia's key ports and manufacturing hubs, our new Medini site gives customers a strategic base to scale efficiently and serve both regional and global markets." About GXO 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 over 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.