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Jun 30, 2023
GXO Logistics Q2 2023 Earnings Report
GXO Logistics experienced substantial growth in Q2 2023, marked by increased revenue, profitability, and strategic advancements.
Key Takeaways
GXO Logistics reported strong second-quarter results with an 11% increase in revenue to $2.4 billion and a 3% rise in organic revenue. Net income grew by 27% to $65 million, and adjusted EBITDA reached $190 million. The company also raised its full-year 2023 profit guidance, reflecting confidence in its continued growth and market position.
Revenue increased by 11% year over year to $2.4 billion, with organic revenue growing by 3%.
Net income attributable to GXO rose by 27% to $65 million.
Operating income increased by 68%, and operating margins improved by 140 bps.
Full-year 2023 profit guidance was raised, with adjusted diluted earnings per share increased by $0.05 to $2.45-$2.65 and adjusted EBITDA raised by $10 million to $725-$755 million.
GXO Logistics
GXO Logistics
GXO Logistics Revenue by Segment
GXO Logistics Revenue by Geographic Location
Revenue by Segment
Omnichannel retail Revenue
CapyFin.comTechnology and consumer electronics Revenue
CapyFin.comIndustrial and manufacturing Revenue
CapyFin.comFood and beverage Revenue
CapyFin.comConsumer packaged goods Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United Kingdom Revenue
CapyFin.comUnited States Revenue
CapyFin.comNetherlands Revenue
CapyFin.comFrance Revenue
CapyFin.comSpain Revenue
CapyFin.comItaly Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
GXO Logistics provided its 2023 financial outlook, including organic revenue growth of 6% to 8%, adjusted EBITDA of $725 million to $755 million, free cash flow conversion of approximately 30% of adjusted EBITDA, and adjusted diluted earnings per share of $2.45 to $2.65.
Positive Outlook
- Organic revenue growth of 6% to 8%.
- Adjusted EBITDA of $725 million to $755 million.
- Free cash flow conversion of approximately 30% of adjusted EBITDA.
- Adjusted diluted earnings per share of $2.45 to $2.65.
- Secured incremental 2023 revenue from new business wins of $844 million through the second quarter.
Challenges Ahead
- Variability and complexity of reconciling items may have a significant impact on future GAAP financial results.
- Economic conditions generally might affect the results.
- Supply chain challenges, including labor shortages, might affect the results.
- The company's ability to align its investments in capital assets, including equipment, and warehouses, to its customers’ demands might affect the results.
- The company's ability to successfully integrate and realize anticipated synergies, cost savings and profit improvement opportunities with respect to acquired companies might affect the results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income