GXO Logistics beats Q2 revenue expectations, raises EBITDA outlook

GXO Logistics

05/08/2025 21:52

Overview

GXO Q2 revenue rises 16% yr/yr, beating analyst expectations, per LSEG data

Adjusted EPS and EBITDA for Q2 beat consensus, indicating operational efficiency

Co announces that Baris Oran plans to step down from his role as CFO but he will remain in the role until a successor is appointed

Outlook

GXO raises full-year 2025 adjusted EBITDA guidance to $865 mln to $885 mln

Company expects 2025 organic revenue growth of 3.5% to 6.5%

GXO forecasts 2025 adjusted diluted EPS of $2.43 to $2.63

Company anticipates 2025 adjusted EBITDA to free cash flow conversion of 25% to 35%

Result Drivers

NEW BUSINESS WINS - GXO signed $307 mln in new business, up 13% yr/yr, contributing to revenue growth

WINCANTON ACQUISITION - Completion of acquisition expected to unlock growth opportunities in UK and Europe

ORGANIC REVENUE GROWTH - Achieved 6% organic revenue growth, highest in nine qtrs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$3.30 bln
$3.10 bln (14 Analysts)
Q2 Adjusted EPS
Beat
$0.57
$0.54 (16 Analysts)
Q2 EPS
$0.23
Q2 Net Income
$28 mln
Q2 Adjusted EBITDA
Beat
$212 mln
$201.50 mln (12 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"

Wall Street's median 12-month price target for GXO Logistics Inc is $58.00, about 16.4% above its August 4 closing price of $48.47

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nGNX4f0C3s

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)