GXO reports mixed results in Q4, with strong gains for the full year

GREENWICH, Conn. – Contract logistics giant GXO reported a fourth quarter revenue gain from last year and stronger results for the full year. Company leadership pointed to strong gains in outsourcing revenue and incremental revenue booked for 2024, a healthy sales pipeline of $2 billion and the closing of its acquisition of e-commerce fulfillment platform PFSweb.

For fourth quarter, revenue was $2.6 billion, more than a $100 million gain from last year. Operating income for the quarter increased to $87 million, compared with $74 million last year.

Adjusted EBITDA fell $12 million from last year to $193 million, and cash flow from operations also fell $11 million to $215 million.

For the full year, results were stronger. Revenue increased to $9.8 billion, compared with just under $9 billion in 2022. Operating income increased to $318 million from $242 million, and adjusted EBITDA increased to $741 million from $728 million.

“In the fourth quarter, we delivered a successful operational peak for our customers, capping off what was a truly great year for GXO,” said CEO Malcolm Wilson in an earnings report.

“In 2023, GXO delivered strong growth in revenue, net income and adjusted EBITDA, as well as record cash flows from operations and free cash flow, and a stellar return on invested capital,” he continued. “We closed a tremendous $1 billion of annualized new business wins, with nearly 40% coming from outsourcing as more companies look to GXO to transform their supply chains. Through our acquisition of PFS, we welcomed over 100 fantastic brands in high-growth verticals, and we are now focused on supercharging PFS’ growth.”

The company predicts revenue growth of 2% to 5% in 2024 and adjusted EBITDA of $760 million to $790 million.

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