GXO shares rise 9.4% after Q3 profit tops estimates

GXO Logistics (GXO) topped third-quarter profit estimates on Nov. 3 and reaffirmed its full-year 2026 guidance, the company said in its press release.

Shares rose 9.4% in regular trading as of 3:59 p.m. ET on Nov. 4, from a regular-session close of $52.03.

Adjusted diluted earnings per share were 89 cents, topping the 87-cent consensus estimate. Revenue of $3.59 billion was in line with the $3.58 billion consensus estimate.

GXO runs contract logistics for more than 150,000 team members across more than 1,000 facilities totaling more than 200 million square feet.

Here's how the company did:

• Adjusted diluted EPS: 89 cents vs. 79 cents a year earlier, topping the 87-cent consensus estimate
• Revenue: $3.59 billion vs. $3.4 billion a year earlier, in line with the $3.58 billion consensus estimate
• Net income: $65 million vs. $60 million a year earlier
• Adjusted EBITDA: $251 million vs. $251 million a year earlier

Revenue rose 5.7% from a year earlier. Organic revenue, which excludes currency effects, grew 6.4%, the highest rate in more than three years, the company said.

“The new strategy we put in motion over the past year is delivering results,” CEO Patrick Kelleher said. He added that the company is “entering 2027 from a position of strength.”

GXO won $375 million of new business in the quarter, up 34% from a year earlier. It was the second straight quarter of growth above 30%. About 40% of year-to-date wins came from strategic growth verticals: aerospace and defense, technology, industrial and life sciences.

Year-to-date new business wins exceeded $1 billion. The company's sales pipeline reached a record $3.1 billion, up more than 30% from a year earlier.

Transaction and integration costs were $26 million, compared with $14 million a year earlier. Restructuring costs and other were $3 million, and the net loss on a business divestiture was $1 million.

2026 guidance

GXO reaffirmed its full-year 2026 guidance. It expects 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%.

Those are the same ranges the company gave in its Aug. 4 results release. The company said its guidance reflects current foreign currency rates.

Cash, debt and buybacks

GXO generated $156 million of cash flow from operations in the quarter, down from $232 million a year earlier. Free cash flow was $85 million, compared with $187 million.

The company repurchased $84 million of its common stock in the quarter. Year-to-date repurchases total $100 million, or 2.1 million shares at an average price of $47.46. As of Sept. 30, $200 million remained under its share repurchase authorization.

As of Sept. 30, GXO held $340 million in cash and cash equivalents. Total debt was $2.8 billion and net debt was $2.5 billion.

Investor Day

GXO will host an Investor Day on Nov. 16 at the New York Stock Exchange, where management will discuss its long-term strategy and financial framework. The in-person event begins at 9:00 a.m. Eastern Time and will be webcast live.

The company will hold a conference call on Nov. 4 at 8:30 a.m. Eastern Time.