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Jun 30, 2025
GXO Logistics Q2 2025 Earnings Report
GXO Logistics reported strong second quarter 2025 results, with significant revenue growth and improved adjusted EBITDA, while also announcing a CFO transition and raising full-year guidance.
Key Takeaways
GXO Logistics delivered a robust second quarter in 2025, achieving $3.3 billion in revenue, a 16% increase year-over-year, and its highest organic revenue growth in nine quarters at 6%. The company also saw a 13% rise in adjusted EBITDA to $212 million. Despite a decrease in GAAP net income and free cash flow, GXO raised its full-year adjusted EBITDA guidance, reflecting confidence in its continued performance and the benefits from the Wincanton acquisition.
Second quarter revenue reached $3.3 billion, marking a 16% increase year-over-year, driven by strong performance.
Organic revenue growth hit 6%, the highest in nine quarters, indicating healthy underlying business expansion.
Adjusted EBITDA grew by 13% year-over-year to $212 million, demonstrating improved operational profitability.
The company raised its full-year 2025 adjusted EBITDA guidance, signaling optimism for future financial performance.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
GXO Logistics updated its full-year 2025 guidance, raising expectations for adjusted EBITDA and maintaining strong outlooks for organic revenue growth and adjusted diluted EPS, reflecting confidence in continued operational strength and strategic acquisitions.
Positive Outlook
- Organic revenue growth is projected to be between 3.5% and 6.5%, indicating sustained underlying business expansion.
- Adjusted EBITDA guidance was raised to a range of $865 million to $885 million, reflecting improved profitability expectations.
- Adjusted diluted EPS is expected to be between $2.43 and $2.63, showing strong earnings potential.
- Adjusted EBITDA to free cash flow conversion is anticipated to be between 25% and 35%, highlighting efficient cash generation.
- The Wincanton acquisition is expected to unlock significant growth opportunities in the UK and across Europe.
Challenges Ahead
- The company announced a CFO transition, which could introduce a period of adjustment.
- Free cash flow in Q2 2025 was negative, reflecting investments in working capital and a one-time regulatory payment.
Historical Earnings Impact
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