Noticia

• Net income attributable to GXO grew 27% to $65 million; operating income increased by 68%; operating margins improved by 140 bps; adjusted EBITDA grew to $190 million; diluted EPS increased to $0.54, and adjusted diluted EPS to $0.70
• Raised full-year 2023 profit guidance:
- Adjusted diluted earnings per share raised $0.05 to $2.45-$2.65
- Adjusted EBITDA raised $10 million to $725-$755 million
• Reiterated 2023 guidance for organic revenue growth and free cash flow conversion

Business Highlights

• Signed record new business wins of nearly $500 million
• Secured incremental 2023 revenue from new business wins of $844 million through the second quarter; won a further $457 million in 2024 revenue
• Grew sales pipeline year over year to $2=.1 billion
• Released 2022 ESG Report; reduced Scope 1 and 2 emissions 17% since 2019; on track to achieve environmental targets
• Created Chief Automation Officer role to accelerate technology deployment

GREENWICH, Conn.—August 2, 2023—GXO Logistics,Inc.(NYSE: GXO) today announced results for the second quarter 2023.

Malcolm Wilson, Chief Executive Officer of GXO, said, “We’re pleased to have delivered an exceptional performance in the second quarter, including double-digit top-and bottom-line growth. We increased our market share in the quarter, and we raised our 2023 profit guidance. We’re one of the few companies in our industry expecting to grow this year.

“Demand for GXO’s transformative solutions continues to accelerate: our record sales wins this quarter, together with our robust sales pipeline, position us for a strong 2024 and underpin our confidence in our long-term growth targets.

”We’re extremely proud that, in the two years since becoming a publicly traded company, we’ve delivered eight consecutive quarters of stellar operating results, signed hundreds of new partnerships with blue-chip customers, accelerated tech deployment, and established ourselves as the global brand for logistics excellence.”

• Second Quarter 2023 Results

Revenue increased to $2.4 billion, up 11% year over year, compared with $2.2 billion for the second quarter 2022. Organic revenue grew by 3%.
Operating income increased to $99 million, up 68% year over year, compared with $59 million for the second quarter 2022.

Net income attributable to GXO was $65 million, up 27% year over year, compared with $51 million for the second quarter 2022. Diluted earnings per share was $0.54, up 23% year over year, compared with $0.44 for the second quarter 2022.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA1”) increased to $190 million from $176 million in the second quarter 2022.
Adjusted net income attributable to GXO was $84 million, compared with$79 million for the second quarter 2022. Adjusted diluted earnings per share1was $0.70, compared with $0.68 for the second quarter 2022.

GXO generated $61 million of cash flow from operations, compared with $154 million for the second quarter 2022. In the second quarter of 2023, GXO generated $3 million of free cash flow compared to $68million of free cash flow for the second quarter 2022.

• Cash Balances and Outstanding Debt

As of June30, 2023, cash and cash equivalents and debt outstanding were $305 million and $1.7billion, respectively, as part of GXO’s investment grade balance sheet.

• 2023 Guidance

GXO’s current 2023 financial outlook is as follows:

Organic revenue growth1of 6% to 8%;
• Adjusted EBITDA of $725 million to $755 million (raised from $715 million to $745 million);
• Free cash flow conversion of approximately 30% of adjusted EBITDA; and
• Adjusted diluted earnings per share of $2.45 to $2.65 (raised from $2.40 to $2.60).