North America becomes GXO’s fastest-growing market in Q2, topping $782M
GXO Logistics reported higher second-quarter revenue and earnings, highlighted by its strongest quarter for new business wins in three years. The post North America becomes GXO’s fastest-growing market in Q2, topping $782M appeared first on FreightWaves.
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Executives at GXO Logistics said its transformation strategy is beginning to pay off as the company reported its strongest commercial quarter in three years and expressed confidence that growth will accelerate into 2027.
During the second-quarter earnings call on Wednesday before the market opened, CEO Patrick Kelleher said the company has moved beyond leadership changes and strategic planning into execution, with commercial momentum, artificial intelligence deployments and operational improvements beginning to translate into financial results.
“This quarter marks five years since GXO became an independent public company,” Kelleher said. “The foundation established over the past five years combined with new leadership and a new strategic agenda are now translating into results. We’re seeing real momentum build behind our strategy and we’re still in the early innings.”
Greenwich, Connecticut-based GXO Logistics (NYSE: GXO) is one of the largest pure-play contract logistics providers in the world. It has more than 970 facilities totaling approximately 200 million square feet, with a global workforce of more than 130,000 people. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.
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push(function() {googletag. display('div-gpt-ad-1709668545404-0'); }); The company released its second quarter earnings after the market closed on Tuesday. GXO reported revenue of $3. 4 billion in the second-quarter, up 4. 3% year over year, but missing Wall Street forecasts of $3. 45 billion.
Adjusted EBITDA rose to $219 million, and adjusted diluted earnings per share increased to 59 cents. The adjusted EPS results topped Wall Street expectations of 58 cents per share. The company generated $76 million in operating cash flow and $12 million in free cash flow during the quarter.
Kelleher said approximately 40% of new business wins came from four strategic verticals the company has prioritized: aerospace and defense, technology and data centers, industrials and life sciences.
“We’re winning more and we’re winning better,” Kelleher said, highlighting expanded relationships with customers including Nike, PepsiCo, Marks & Spencer, Boeing and Raytheon, along with a major new hyperscaler data center customer. Executives said they see North America as GXO’s largest long-term growth opportunity. window. googletag = window.
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collapseEmptyDivs(); googletag. enableServices(); }); googletag. cmd. push(function() {googletag. display('div-gpt-ad-1665767553440-0'); }); Kelleher said commercial changes implemented over the past year have significantly improved the company’s performance in the region, with first-half North American wins increasing 85% from the same period a year ago.
Chief Strategy Officer Kristine Kubacki added that North America’s sales pipeline expanded 34% year over year, helping push GXO’s overall commercial pipeline back to $2. 7 billion only weeks after the quarter ended.
Executives said the company now has more than $1 billion of incremental revenue already secured for 2026 and approximately $353 million already committed for 2027. Artificial intelligence was one of the major themes throughout the earnings call.
Kelleher said GXO IQ, the company’s proprietary AI platform, has shifted from launch mode into scaled deployment, with the technology expected to reach approximately 50 facilities by the end of 2026. window. googletag = window. googletag || {cmd: []}; googletag. cmd. push(function() {googletag.
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push(function() {googletag. display('div-gpt-ad-1709668086344-0'); }); The platform is being used to improve demand forecasting, inventory replenishment, labor planning and warehouse picking. GXO officials also expect to deploy around 20,000 robots across its global network this year.
While analysts asked about humanoid robots, Kelleher said GXO remains in the testing phase. “We have done 45 pilots on humanoids so far,” he said. “We have not achieved ROI on humanoids yet. I think we are a couple of years away from
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This briefing is based on reporting from Freightwaves. Use the original post for full primary-source context.
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