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Sep 30, 2023
GXO Logistics Q3 2023 Earnings Report
GXO Logistics reported strong Q3 2023 results driven by the resilience of its contractual business model and high-caliber operational and financial execution.
Key Takeaways
GXO Logistics reported an 8% increase in revenue to $2.5 billion, with organic revenue growing by 3%. Net income attributable to GXO increased to $66 million, and adjusted EBITDA grew to $200 million. The company updated its full-year guidance, upgrading adjusted diluted earnings per share and adjusted EBITDA while revising organic revenue growth.
Revenue increased by 8% year over year to $2.5 billion, and organic revenue grew by 3%.
Net income attributable to GXO grew to $66 million, and adjusted EBITDA grew to $200 million.
Cash flow from operations was $243 million, and free cash flow was $191 million.
Full-year adjusted diluted earnings per share upgraded from $2.45-$2.65 to $2.55-$2.65.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
GXO updated its full-year 2023 guidance, upgrading adjusted EBITDA and adjusted diluted earnings per share, while revising organic revenue growth.
Positive Outlook
- Adjusted EBITDA upgraded from $725-$755 million to $730-$755 million.
- Adjusted diluted earnings per share upgraded from $2.45-$2.65 to $2.55-$2.65.
- Free cash flow conversion of approximately 30% of adjusted EBITDA reiterated.
- Secured incremental 2024 revenue from new business wins of $520 million.
- Sales pipeline remains at approximately $2 billion.
Challenges Ahead
- Organic revenue growth revised from 6-8% to 2-4%.
- Macro environment is uncertain.
- Expectations for a softer peak season.
- Variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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