GXO Logistics Q3 Adjusted EPS Rises 12.7% to $0.89 on Fastest Organic Growth in Three Years; Guidance Reaffirmed
GXO Logistics posted a 12.7% rise in third-quarter adjusted earnings per share to $0.89 and reaffirmed its full-year guidance, as organic revenue growth reached its fastest pace in more than three years and new business wins climbed.
Revenue rose 5.7% to $3.59 billion from $3.40 billion a year earlier, with organic revenue up 6.4%, according to the earnings release the contract logistics provider filed with an 8-K on Tuesday. Net income increased 8.3% to $65 million from $60 million, and diluted EPS rose 9.8% to $0.56 from $0.51. Adjusted EBITDA was flat at $251 million, and the adjusted EBITDA margin slipped to 7.0% from 7.4%. Operating income fell to $96 million from $118 million.
"The new strategy we put in motion over the past year is delivering results: In the third quarter, we generated our fastest organic growth in more than three years, increased new business wins by more than 30% for the second consecutive quarter, and expanded our sales pipeline to a record level," CEO Patrick Kelleher said in the release.
New wins and a record pipeline
GXO signed $375 million of new business in the quarter, up 33.9% from $280 million a year earlier, and year-to-date wins topped $1 billion. Its sales pipeline reached a record $3.1 billion. An investor presentation GXO furnished in a separate 8-K the same day said contracts won through the third quarter are expected to add $630 million of incremental revenue in 2027, and that new business wins in its strategic growth verticals, including aerospace and defense, technology and data centers, industrials and life sciences, totaled $411 million year to date versus $132 million a year earlier.
Guidance reaffirmed
GXO reaffirmed its 2026 outlook for organic revenue growth of 4% to 5%, adjusted EBITDA of $945 million to $965 million, adjusted diluted EPS of $2.95 to $3.15 and free cash flow conversion of 30% to 40%. The presentation described the guidance as consistent with its prior outlook. The company will host an investor day on Nov. 16 at the New York Stock Exchange to discuss its long-term strategy and financial framework.
Cash flow and buybacks
Operating cash flow fell 32.8% to $156 million from $232 million, and free cash flow dropped 54.5% to $85 million from $187 million. GXO repurchased $84 million of stock in the quarter, bringing year-to-date buybacks to $100 million, or 2.1 million shares at an average price of $47.46. It had $200 million remaining under its repurchase authorization as of Sept. 30.
Cash and cash equivalents stood at $340 million, with total debt of $2.8 billion and net debt of $2.5 billion. Net leverage was 2.7 times, unchanged from a year earlier, according to the presentation.
By the numbers
- Adjusted EPS: $0.89, up 12.7%
- Diluted EPS: $0.56, up 9.8%
- Revenue: $3.59 billion, up 5.7%; organic growth 6.4%
- New business wins: $375 million, up 33.9%
- Third-quarter buybacks: $84 million
- 2026 guidance: reaffirmed
Sources
- GXO Logistics Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001852244-26-000051)
- GXO Logistics Form 8-K with third-quarter 2026 investor presentation (Item 7.01), filed Nov. 3, 2026 (accession 0001852244-26-000053)
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