GXO Logistics Q4 Earnings: A Strong Finish to 2024

GXO Logistics Inc. (NYSE: GXO) reported strong fourth-quarter and full-year 2024 earnings results, capping off a year of record revenue and adjusted EBITDA. The company's robust performance was driven by organic revenue growth, new business wins, and strategic acquisitions. Here's a closer look at GXO's Q4 earnings and the key trends that contributed to its success.

Q4 Earnings Beat Expectations

GXO Logistics reported Q4 2024 earnings of $1.00 per share, surpassing analysts' expectations of $0.96 per share. This represents a 43% increase from the fourth quarter of 2023, when the company reported earnings of $0.70 per share. Additionally, GXO's Q4 2024 revenue of $3.25 billion exceeded analysts' expectations of $3.2 billion and marked a 25% increase from the fourth quarter of 2023, when revenue was $2.59 billion.



Key Drivers of Revenue Growth

GXO Logistics' revenue growth in Q4 2024 was driven by several key factors:

1. Organic Revenue Growth: GXO reported organic revenue growth of 4% in Q4 2024 compared to the same period in 2023. This indicates that the company's core operations and customer base contributed significantly to the revenue increase.
2. New Business Wins: GXO closed over $1 billion in new business wins for the second consecutive year, including a significant $2.5 billion lifetime value contract in health sciences. These new wins contributed to the company's revenue growth.
3. Expansion into New Markets: GXO expanded into new geographies like Germany, which is now the company's fastest-growing market. This expansion helped drive revenue growth.
4. Acquisition of Wincanton: GXO completed the acquisition of Wincanton in 2024, which accelerated the company's growth in key verticals. This acquisition contributed to the company's revenue growth.

These trends appear to be sustainable, as GXO's 2025 guidance anticipates organic revenue growth of 3% to 6%. The company's strong pipeline and the pace of new business wins continue to benefit from structural tailwinds, such as outsourcing, automation, and e-commerce. Additionally, GXO's expansion into new markets and strategic acquisitions, like Wincanton, are expected to contribute to the company's ongoing revenue growth.

Looking Ahead to 2025

GXO Logistics' 2025 financial outlook is as follows:

* Organic revenue growth of 3% to 6%
* Adjusted EBITDA of $840 million to $860 million
* Adjusted diluted earnings per share of $2.40 to $2.60
* Adjusted EBITDA to free cash flow conversion of 25% to 35%

GXO's strong Q4 earnings and full-year 2024 results demonstrate the company's ability to deliver consistent growth and outperform expectations. As GXO continues to expand its market share, invest in new technologies, and capitalize on structural tailwinds, investors can expect the company to maintain its momentum in 2025 and beyond.