GXO Reports Fourth Quarter and Full Year 2024 Results
- Delivered
record revenue for both Q4 and full year 2024
- Organic
revenue growth accelerated sequentially each quarter in
2024
- Closed more
than $1 billion of new business wins for the second consecutive
year; won largest-ever contract, of $2.5 billion lifetime value, in
health sciences
- Announced
2025 guidance:
- Organic
revenue growth of 3% - 6%
- Adjusted
EBITDA of $840 million - $860 million
- Adjusted
diluted EPS of $2.40 - $2.60
- Adjusted
EBITDA to free cash flow conversion of 25% to
35%
GREENWICH, Conn., Feb. 12, 2025 (GLOBE NEWSWIRE) -- GXO
Logistics, Inc. (NYSE: GXO) today announced results for the
fourth quarter and full year 2024.
Malcolm Wilson, Chief Executive Officer of GXO, said, “In 2024,
GXO delivered record revenue and adjusted EBITDA, and drove strong
operating return on invested capital. We also accelerated our
organic growth sequentially throughout the year and closed more
than $1 billion of new business wins for the second consecutive
year.
“Our customer satisfaction scores are at an all-time high, and
we are particularly proud that more than 40 existing customers
expanded into new geographies with GXO.
“In 2024, we completed the acquisition of Wincanton, which will
accelerate our growth in key verticals, and we expanded in new
geographies like Germany, which is now our fastest-growing market.
Our pipeline is up 15% year over year, and our pipeline in the
Americas is up 20%.
“Our guidance for 2025 reflects our confidence in our core
business growth, the phasing of startups, the impact of foreign
exchange, and our current expectation of the timing of the
Wincanton regulatory review. The strength of our pipeline and the
pace of our new business wins continue to benefit from the
structural tailwinds – outsourcing, automation and e-commerce – at
our backs. As brands around the world face unprecedented supply
chain complexity, GXO is well positioned to help them turn supply
chain challenges into competitive advantages.”
Fourth Quarter 2024
Results
Revenue increased to $3.3 billion, up 25% year over year,
compared with $2.6 billion for the fourth quarter 2023. Organic
revenue1 grew by 4%.
Net income increased to $100 million, compared with $73 million
for the fourth quarter 2023. Diluted earnings per share increased
to $0.83, compared with $0.61 for the fourth quarter 2023.
____________________________
1 For definitions of non-GAAP measures see the “Non-GAAP
Financial Measures” section in this press release.
Adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA1”) increased to
$251 million, compared with $193 million for the fourth
quarter 2023. Adjusted diluted earnings per share (“Adjusted
EPS1”) was $1.00, compared with $0.70 for the fourth
quarter 2023.
GXO generated $186 million of cash flows from operations,
compared with $215 million for the fourth quarter 2023. In the
fourth quarter of 2024, GXO generated $127 million of free cash
flow1, compared with $151 million for the fourth quarter
2023.
Full Year 2024 Results
Revenue increased to $11.7 billion, up 20% year over year
compared with $9.8 billion for 2023. Organic revenue1
grew by 3%.
Net income was $138 million, compared with $233 million for
2023. Diluted earnings per share was $1.12, compared with $1.92 for
2023.
Adjusted EBITDA1 was $815 million, compared with $741
million for 2023. Adjusted EPS1 was $2.80, compared with
$2.59 for 2023.
GXO generated $549 million of cash flows from operations,
compared with $558 million for 2023. GXO generated $251 million of
free cash flow1, compared with $302 million for
2023.
Cash flows from operations to net income and free cash flow
conversion1 ratios were 398% and 31%, respectively, for
2024. Cash flows from operations to net income and free cash flow
conversion1 ratios were 239% and 41%, respectively, for
2023.
Net income to average invested capital and operating return on
invested capital1 ratios were 14% and 46%, respectively,
for 2024.
Cash Balances and Outstanding Debt
As of December 31, 2024, cash and cash equivalents
(excluding restricted cash), debt outstanding and net
debt1 were $413 million, $2.6 billion and $2.2
billion, respectively.
2025 Guidance2
GXO’s 2025 financial outlook is as follows:
- Organic revenue
growth1 of 3% to 6%;
- Adjusted
EBITDA1 of $840 million to $860 million;
- Adjusted diluted
earnings per share1 of $2.40 to $2.60; and
- Adjusted
EBITDA1 to free cash flow conversion1 of 25%
to 35%.
Conference Call
GXO will hold a conference call on Thursday, February 13, 2025,
at 8:30 a.m. Eastern Time. Participants can call toll-free (from
US/Canada) 877-407-8029; international callers dial +1
201-689-8029. Conference ID: 13751179. A live webcast of the
conference will be available on the Investor Relations area of the
company’s website, investors.gxo.com. The conference will be
archived until February 25, 2025. To access the replay by phone,
call toll-free (from US/Canada) 877-660-6853; international callers
dial +1 201-612-7415. Use participant passcode 13751179.
____________________________
2 Our guidance reflects current FX rates.
About GXO Logistics
GXO Logistics, Inc. (NYSE: GXO) is the world’s
largest pure-play contract logistics provider and is benefiting
from the rapid growth of ecommerce, automation and outsourcing. GXO
is committed to providing a diverse, world-class workplace for more
than 150,000 team members across more than 1,000 facilities
totaling approximately 200 million square feet. The company
partners with the world’s leading blue-chip companies to solve
complex logistics challenges with technologically advanced supply
chain and ecommerce solutions, at scale and with speed. GXO
corporate headquarters is in Greenwich, Connecticut, USA. Visit
GXO.com for more information and connect with
GXO on LinkedIn, X,
Facebook,
Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange
Commission (“SEC”), we provide reconciliations of the non-GAAP
financial measures contained in this press release to the most
directly comparable measure under GAAP, which are set forth in the
financial tables below.
GXO’s non-GAAP financial measures in this press release include:
adjusted earnings before interest, taxes, depreciation and
amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted
earnings before interest, taxes and amortization (“adjusted
EBITA”), adjusted EBITA, net of income taxes paid, adjusted EBITA
margin, adjusted net income attributable to GXO, adjusted earnings
per share (basic and diluted) (“adjusted EPS”), free cash flow,
free cash flow conversion, organic revenue, organic revenue growth,
net leverage ratio, net debt, and operating return on invested
capital (“ROIC”).
We believe that the above adjusted financial measures facilitate
analysis of our ongoing business operations because they exclude
items that may not be reflective of, or are unrelated to, GXO’s
core operating performance, and may assist investors with
comparisons to prior periods and assessing trends in our underlying
businesses. Other companies may calculate these non-GAAP financial
measures differently, and therefore our measures may not be
comparable to similarly titled measures used by other companies.
GXO’s non-GAAP financial measures should only be used as
supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITA, adjusted net income
attributable to GXO and adjusted EPS include adjustments for
transaction and integration costs and litigation expenses as well
as restructuring costs and other adjustments as set forth in the
financial tables below. Transaction and integration adjustments are
generally incremental costs that result from an actual or planned
acquisition, divestiture or spin-off and may include transaction
costs, consulting fees, retention awards, internal salaries and
wages (to the extent the individuals are assigned full-time to
integration and transformation activities) and certain costs
related to integrating and separating IT systems. Litigation costs
primarily relate to the settlement of legal matters. Restructuring
costs primarily relate to severance costs associated with business
optimization initiatives.
We believe that free cash flow and free cash flow conversion are
important measures of our ability to repay maturing debt or fund
other uses of capital that we believe will enhance stockholder
value. We calculate free cash flow as cash flows from operations
less capital expenditures plus proceeds from sale of property and
equipment. We calculate free cash flow conversion as free cash flow
divided by adjusted EBITDA, expressed as a percentage.
We believe that adjusted EBITDA, adjusted EBITDA margin,
adjusted EBITA, adjusted EBITA, net of income taxes paid, and
adjusted EBITA margin, improve comparability from period to period
by removing the impact of our capital structure (interest and
financing expenses), asset base (depreciation and amortization of
intangible assets acquired), tax impacts and other adjustments as
set forth in the financial tables below, which management has
determined are not reflective of core operating activities and
thereby assist investors with assessing trends in our underlying
businesses.
We believe that adjusted net income attributable to GXO and
adjusted EPS improve the comparability of our operating results
from period to period by removing the impact of certain costs and
gains as set forth in the financial tables below, which management
has determined are not reflective of our core operating activities,
including amortization of acquisition-related intangible
assets.
We believe that organic revenue and organic revenue growth are
important measures because they exclude the impact of foreign
currency exchange rate fluctuations, revenue from acquired
businesses and revenue from disposed business.
We believe that net leverage ratio and net debt are important
measures of our overall liquidity position and are calculated by
removing cash and cash equivalents from our total debt and net debt
as a ratio of our adjusted EBITDA. We calculate ROIC as our
adjusted EBITA, net of income taxes paid, divided by the average
invested capital. We believe ROIC provides investors with an
important perspective on how effectively GXO deploys capital and
use this metric internally as a high-level target to assess overall
performance throughout the business cycle.
Management uses these non-GAAP financial measures in making
financial, operating and planning decisions and evaluating GXO’s
ongoing performance.
With respect to our financial targets for full-year 2025 organic
revenue growth, adjusted EBITDA, adjusted diluted EPS, and free
cash flow conversion, a reconciliation of these non-GAAP measures
to the corresponding GAAP measures is not available without
unreasonable effort due to the variability and complexity of the
reconciling items described above that we exclude from these
non-GAAP target measures. The variability of these items may have a
significant impact on our future GAAP financial results and, as a
result, we are unable to prepare the forward-looking statements of
income and cash flows prepared in accordance with GAAP, that would
be required to produce such a reconciliation.
Forward-Looking Statements
This press release includes forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements other than statements of historical fact
are, or may be deemed to be, forward-looking statements, including
our full year 2025 financial targets of organic revenue
growth, adjusted EBITDA, adjusted diluted earnings per share and
free cash flow conversion; our accelerated growth in key verticals
from the acquisition of Wincanton; and our current expectation of
the timing of the Wincanton regulatory review. In some
cases, forward-looking statements can be identified by the use of
forward-looking terms such as “anticipate,” “estimate,” “believe,”
“continue,” “could,” “intend,” “may,” “plan,” “potential,”
“predict,” “should,” “will,” “expect,” “objective,” “projection,”
“forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,”
“trajectory” or the negative of these terms or other comparable
terms. However, the absence of these words does not mean that the
statements are not forward-looking. These forward-looking
statements are based on certain assumptions and analyses made by
the company in light of its experience and its perception of
historical trends, current conditions and expected future
developments, as well as other factors the company believes are
appropriate in the circumstances.
These forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions that may cause actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such
forward-looking statements. Factors that might cause or contribute
to a material difference include, but are not limited to, the risks
discussed in our filings with the SEC and the following: economic
conditions generally; supply chain challenges, including labor
shortages; competition and pricing pressures; our ability to align
our investments in capital assets, including equipment, service
centers and warehouses, to our respective customers’ demands; our
ability to successfully integrate and realize anticipated benefits,
synergies, cost savings and profit improvement opportunities with
respect to acquired companies, including the acquisition of
Wincanton; acquisitions may be unsuccessful or result in other
risks or developments that adversely affect our financial condition
and results; our ability to develop and implement suitable
information technology systems and prevent failures in or breaches
of such systems; our indebtedness; our ability to raise debt and
equity capital; litigation; labor matters, including our ability to
manage our subcontractors, and risks associated with labor disputes
at our customers’ facilities and efforts by labor organizations to
organize our employees; risks associated with defined benefit plans
for our current and former employees; our ability to attract or
retain necessary talent; the increased costs associated with labor;
fluctuations in currency exchange rates; fluctuations in fixed and
floating interest rates; fluctuations in customer confidence and
spending; issues related to our intellectual property rights;
governmental regulation, including environmental laws, trade
compliance laws, as well as changes in international trade policies
and tax regimes; governmental or political actions, including the
United Kingdom’s exit from the European Union; natural disasters,
terrorist attacks or similar incidents; damage to our reputation; a
material disruption of our operations; the inability to achieve the
level of revenue growth, cash generation, cost savings, improvement
in profitability and margins, fiscal discipline, or strengthening
of competitiveness and operations anticipated or targeted; failure
in properly handling the inventory of our customers; the impact of
potential cyber-attacks and information technology or data security
breaches; and the inability to implement technology initiatives or
business systems successfully; our ability to achieve
Environmental, Social and Governance goals; and a determination by
the IRS that the distribution or certain related spin-off
transactions should be treated as taxable transactions. Other
unknown or unpredictable factors could cause actual results to
differ materially from those in the forward-looking statements.
Such forward looking statements should therefore be construed in
the light of such factors.
All forward-looking statements set forth in this release are
qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by us
will be realized or, even if substantially realized, that they will
have the expected consequences to or effects on us or our business
or operations. Forward-looking statements set forth in this release
speak only as of the date hereof, and we do not undertake any
obligation to update forward-looking statements to reflect
subsequent events or circumstances, changes in expectations or the
occurrence of unanticipated events, except to the extent required
by law.
| Investor
Contact |
| |
| Kristine Kubacki, CFA |
| +1 (203) 769-7206 |
| kristine.kubacki@gxo.com |
| |
| Media
Contact |
| |
| Matthew Schmidt |
| +1 (203) 307-2809 |
| matt.schmidt@gxo.com |
GXO Logistics, Inc.
Consolidated Statements of Operations
(Unaudited) |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(Dollars in millions, shares in thousands, except per share
amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
$ |
3,250 |
|
|
$ |
2,590 |
|
|
$ |
11,709 |
|
|
$ |
9,778 |
|
|
Direct operating expense |
|
|
2,737 |
|
|
|
2,160 |
|
|
|
9,853 |
|
|
|
8,035 |
|
|
Selling, general and administrative expense |
|
|
277 |
|
|
|
237 |
|
|
|
1,061 |
|
|
|
998 |
|
|
Depreciation and amortization expense |
|
|
113 |
|
|
|
93 |
|
|
|
415 |
|
|
|
361 |
|
|
Transaction and integration costs |
|
|
21 |
|
|
|
12 |
|
|
|
76 |
|
|
|
34 |
|
|
Restructuring costs and other |
|
|
1 |
|
|
|
1 |
|
|
|
27 |
|
|
|
32 |
|
|
Litigation expense(1) |
|
|
— |
|
|
|
— |
|
|
|
59 |
|
|
|
— |
|
| Operating
income |
|
|
101 |
|
|
|
87 |
|
|
|
218 |
|
|
|
318 |
|
|
Other income (expense), net |
|
|
30 |
|
|
|
(7 |
) |
|
|
31 |
|
|
|
1 |
|
|
Interest expense, net |
|
|
(34 |
) |
|
|
(12 |
) |
|
|
(103 |
) |
|
|
(53 |
) |
| Income before income
taxes |
|
|
97 |
|
|
|
68 |
|
|
|
146 |
|
|
|
266 |
|
|
Income tax (expense) benefit |
|
|
3 |
|
|
|
5 |
|
|
|
(8 |
) |
|
|
(33 |
) |
| Net
income |
|
|
100 |
|
|
|
73 |
|
|
|
138 |
|
|
|
233 |
|
|
Net income attributable to Noncontrolling Interests (‘‘NCI”) |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
| Net income
attributable to GXO |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
134 |
|
|
$ |
229 |
|
| |
|
|
|
|
|
|
|
|
| Earnings per
share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.84 |
|
|
$ |
0.61 |
|
|
$ |
1.12 |
|
|
$ |
1.93 |
|
|
Diluted |
|
$ |
0.83 |
|
|
$ |
0.61 |
|
|
$ |
1.12 |
|
|
$ |
1.92 |
|
| Weighted-average
common shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
119,489 |
|
|
|
118,983 |
|
|
|
119,413 |
|
|
|
118,908 |
|
|
Diluted |
|
|
120,035 |
|
|
|
119,671 |
|
|
|
119,798 |
|
|
|
119,490 |
|
|
(1) |
On June 14, 2024, the Company’s subsidiary GXO Warehouse Company,
Inc. entered into a Confidential Settlement Agreement (the
“Settlement Agreement”) to settle all claims in connection with a
dispute between the Company and one of its customers related to the
start-up of the customer’s warehouse that occurred in 2018 (the
“Dispute”). A payment under the Settlement Agreement was made by
the Company on July 5, 2024. As of July 10, 2024, the Dispute,
which was litigated under the caption Lindt et al. v. GXO Warehouse
Company, Inc., docket no. 4:22-cv-00384-BP, in Federal District
Court for the Western District of Missouri (the “Court”), was
dismissed with prejudice with each side to bear their own costs and
fees, and the Court retained jurisdiction to enforce the terms of
the Settlement Agreement. Among other things in the Settlement
Agreement, the parties each denied the allegations and
counterclaims asserted in the Dispute and agreed to a mutual
release of claims arising from, under or otherwise in connection
with their prior business relationship and the Dispute, in exchange
for a payment by the Company of $45 million. The Company intends to
pursue reimbursement in connection with this Dispute under its
existing insurance policies. The Company recognized $59 million
expense for the year ended December 31, 2024, for the settlement,
associated legal fees, and other related expenses. |
|
|
|
GXO Logistics, Inc.
Consolidated Balance Sheets
(Unaudited) |
| |
| |
|
December 31, |
|
(Dollars in millions, shares in thousands, except per share
amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
ASSETS |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
413 |
|
|
$ |
468 |
|
|
Accounts receivable, net of allowance of $15 and $11 |
|
|
1,799 |
|
|
|
1,753 |
|
|
Other current assets |
|
|
429 |
|
|
|
347 |
|
|
Total current assets |
|
|
2,641 |
|
|
|
2,568 |
|
|
Long-term assets |
|
|
|
|
|
Property and equipment, net of accumulated depreciation of $1,732
and $1,545 |
|
|
1,160 |
|
|
|
953 |
|
|
Operating lease assets |
|
|
2,329 |
|
|
|
2,201 |
|
|
Goodwill |
|
|
3,549 |
|
|
|
2,891 |
|
|
Intangible assets, net of accumulated amortization of $618 and
$528 |
|
|
986 |
|
|
|
567 |
|
|
Other long-term assets |
|
|
601 |
|
|
|
327 |
|
|
Total long-term assets |
|
|
8,625 |
|
|
|
6,939 |
|
|
Total assets |
|
$ |
11,266 |
|
|
$ |
9,507 |
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
$ |
776 |
|
|
$ |
709 |
|
|
Accrued expenses |
|
|
1,271 |
|
|
|
966 |
|
|
Current debt |
|
|
110 |
|
|
|
27 |
|
|
Current operating lease liabilities |
|
|
647 |
|
|
|
597 |
|
|
Other current liabilities |
|
|
385 |
|
|
|
327 |
|
|
Total current liabilities |
|
|
3,189 |
|
|
|
2,626 |
|
|
Long-term liabilities |
|
|
|
|
|
Long-term debt |
|
|
2,521 |
|
|
|
1,620 |
|
|
Long-term operating lease liabilities |
|
|
1,898 |
|
|
|
1,842 |
|
|
Other long-term liabilities |
|
|
623 |
|
|
|
473 |
|
|
Total long-term liabilities |
|
|
5,042 |
|
|
|
3,935 |
|
|
Commitments and Contingencies |
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
Common Stock, $0.01 par value per share; 300,000 shares authorized,
119,496 and 119,057 shares issued and outstanding |
|
|
1 |
|
|
|
1 |
|
|
Preferred Stock, $0.01 par value per share; 10,000 shares
authorized, none issued and outstanding |
|
|
— |
|
|
|
— |
|
|
Additional paid-in capital (‘‘APIC”) |
|
|
2,629 |
|
|
|
2,598 |
|
|
Retained earnings |
|
|
686 |
|
|
|
552 |
|
|
Accumulated other comprehensive Income (Loss) (‘‘AOCIL”) |
|
|
(313 |
) |
|
|
(239 |
) |
|
Total stockholders’ equity before NCI |
|
|
3,003 |
|
|
|
2,912 |
|
|
NCI |
|
|
32 |
|
|
|
34 |
|
|
Total equity |
|
|
3,035 |
|
|
|
2,946 |
|
|
Total liabilities and equity |
|
$ |
11,266 |
|
|
$ |
9,507 |
|
|
|
GXO Logistics, Inc.
Consolidated Statements of Cash Flows
(Unaudited) |
| |
| |
|
Year Ended December 31, |
|
(In millions) |
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities: |
|
|
|
|
|
Net income |
|
$ |
138 |
|
|
$ |
233 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities |
|
|
|
|
|
Depreciation and amortization expense |
|
|
415 |
|
|
|
361 |
|
|
Stock-based compensation expense |
|
|
39 |
|
|
|
35 |
|
|
Deferred tax benefit |
|
|
(38 |
) |
|
|
(41 |
) |
|
Other |
|
|
1 |
|
|
|
23 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
Accounts receivable |
|
|
118 |
|
|
|
(17 |
) |
|
Other assets |
|
|
(54 |
) |
|
|
28 |
|
|
Accounts payable |
|
|
23 |
|
|
|
(3 |
) |
|
Accrued expenses and other liabilities |
|
|
(93 |
) |
|
|
(61 |
) |
|
Net cash provided by operating activities |
|
|
549 |
|
|
|
558 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
Capital expenditures |
|
|
(359 |
) |
|
|
(274 |
) |
|
Proceeds from sale of property and equipment |
|
|
61 |
|
|
|
18 |
|
|
Acquisition of business, net of cash acquired |
|
|
(863 |
) |
|
|
(149 |
) |
|
Cross-currency swap agreements settlement |
|
|
4 |
|
|
|
(3 |
) |
|
Other |
|
|
— |
|
|
|
(2 |
) |
|
Net cash used in investing activities |
|
|
(1,157 |
) |
|
|
(410 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
Proceeds from debt, net |
|
|
1,090 |
|
|
|
— |
|
|
Repayments of debt, net |
|
|
(408 |
) |
|
|
(140 |
) |
|
Repayments of finance lease obligations |
|
|
(45 |
) |
|
|
(29 |
) |
|
Taxes paid related to net share settlement of equity awards |
|
|
(8 |
) |
|
|
(12 |
) |
|
Other |
|
|
7 |
|
|
|
(5 |
) |
|
Net cash provided by (used in) financing
activities |
|
|
636 |
|
|
|
(186 |
) |
|
Effect of exchange rates on cash and cash equivalents |
|
|
(13 |
) |
|
|
13 |
|
|
Net increase (decrease) in cash, restricted cash and cash
equivalents |
|
|
15 |
|
|
|
(25 |
) |
| Cash, restricted cash
and cash equivalents, beginning of year |
|
|
470 |
|
|
|
495 |
|
| Cash, restricted cash
and cash equivalents, end of year |
|
$ |
485 |
|
|
$ |
470 |
|
| |
|
|
|
|
| Reconciliation of
cash, restricted cash and cash equivalents |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
413 |
|
|
$ |
468 |
|
|
Restricted cash (included in Other long-term assets) |
|
|
72 |
|
|
|
2 |
|
| Total cash, restricted
cash and cash equivalents |
|
$ |
485 |
|
|
$ |
470 |
|
| |
GXO Logistics, Inc.
Consolidated Statements of Cash Flows |
| |
| |
|
Year Ended December 31, |
|
(In millions) |
|
2024 |
|
2023 |
|
Supplemental cash flow information: |
|
|
|
|
|
Cash paid for interest, net |
|
$ |
97 |
|
$ |
57 |
|
Cash paid for income taxes, net |
|
|
43 |
|
|
84 |
|
|
|
|
|
|
|
|
GXO Logistics, Inc.
Key Data
Disaggregation of Revenue
(Unaudited) |
| |
| Revenue
disaggregated by geographical area was as follows: |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(In millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
United Kingdom |
|
$ |
1,521 |
|
$ |
969 |
|
$ |
5,248 |
|
$ |
3,664 |
|
United States |
|
|
838 |
|
|
792 |
|
|
3,087 |
|
|
2,909 |
|
Netherlands |
|
|
242 |
|
|
221 |
|
|
922 |
|
|
831 |
|
France |
|
|
213 |
|
|
204 |
|
|
809 |
|
|
830 |
|
Spain |
|
|
150 |
|
|
133 |
|
|
571 |
|
|
529 |
|
Italy |
|
|
103 |
|
|
103 |
|
|
391 |
|
|
382 |
|
Other |
|
|
183 |
|
|
168 |
|
|
681 |
|
|
633 |
|
Total |
|
$ |
3,250 |
|
$ |
2,590 |
|
$ |
11,709 |
|
$ |
9,778 |
| |
The Company’s revenue can also be disaggregated by the
customer’s primary industry. Revenue disaggregated by industries
was as follows:
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(In millions) |
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Omnichannel retail |
|
$ |
1,543 |
|
$ |
1,092 |
|
$ |
5,360 |
|
$ |
4,100 |
|
Technology and consumer electronics |
|
|
404 |
|
|
382 |
|
|
1,541 |
|
|
1,467 |
|
Industrial and manufacturing |
|
|
366 |
|
|
266 |
|
|
1,339 |
|
|
1,078 |
| Food
and beverage |
|
|
345 |
|
|
327 |
|
|
1,331 |
|
|
1,331 |
|
Consumer packaged goods |
|
|
363 |
|
|
325 |
|
|
1,259 |
|
|
1,027 |
|
Other |
|
|
229 |
|
|
198 |
|
|
879 |
|
|
775 |
|
Total |
|
$ |
3,250 |
|
$ |
2,590 |
|
$ |
11,709 |
|
$ |
9,778 |
| |
GXO Logistics, Inc.
Reconciliation of Net Income to Adjusted
EBITDA
and Adjusted EBITDA Margins
(Unaudited) |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(In millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income attributable to GXO |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
134 |
|
|
$ |
229 |
|
| Net income attributable to
NCI |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
| Net
income |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
138 |
|
|
$ |
233 |
|
| Interest expense, net |
|
|
34 |
|
|
|
12 |
|
|
|
103 |
|
|
|
53 |
|
| Income tax expense
(benefit) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
8 |
|
|
|
33 |
|
| Depreciation and amortization
expense |
|
|
113 |
|
|
|
93 |
|
|
|
415 |
|
|
|
361 |
|
| Transaction and integration
costs |
|
|
21 |
|
|
|
12 |
|
|
|
76 |
|
|
|
34 |
|
| Restructuring costs and
other |
|
|
1 |
|
|
|
1 |
|
|
|
27 |
|
|
|
32 |
|
| Litigation expense |
|
|
— |
|
|
|
— |
|
|
|
59 |
|
|
|
— |
|
| Unrealized (gain) loss on
foreign currency contracts and other |
|
|
(15 |
) |
|
|
7 |
|
|
|
(11 |
) |
|
|
(5 |
) |
| Adjusted
EBITDA(1) |
|
$ |
251 |
|
|
$ |
193 |
|
|
$ |
815 |
|
|
$ |
741 |
|
| |
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
3,250 |
|
|
$ |
2,590 |
|
|
$ |
11,709 |
|
|
$ |
9,778 |
|
| Operating
income |
|
$ |
101 |
|
|
$ |
87 |
|
|
$ |
218 |
|
|
$ |
318 |
|
| Operating income
margin(2) |
|
|
3.1 |
% |
|
|
3.4 |
% |
|
|
1.9 |
% |
|
|
3.3 |
% |
| Adjusted EBITDA
margin(1)(3) |
|
|
7.7 |
% |
|
|
7.5 |
% |
|
|
7.0 |
% |
|
|
7.6 |
% |
|
(1) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
(2) |
Operating income margin is calculated as operating income divided
by revenue for the period. |
|
(3) |
Adjusted EBITDA margin is calculated as adjusted EBITDA divided by
revenue for the period. |
|
|
|
GXO Logistics, Inc.
Reconciliation of Net Income to Adjusted EBITA
and Adjusted EBITA Margins
(Unaudited) |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(In millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income attributable to GXO |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
134 |
|
|
$ |
229 |
|
| Net income attributable to
NCI |
|
|
— |
|
|
|
— |
|
|
|
4 |
|
|
|
4 |
|
| Net
income |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
138 |
|
|
$ |
233 |
|
| Interest expense, net |
|
|
34 |
|
|
|
12 |
|
|
|
103 |
|
|
|
53 |
|
| Income tax expense
(benefit) |
|
|
(3 |
) |
|
|
(5 |
) |
|
|
8 |
|
|
|
33 |
|
| Amortization of intangible
assets acquired |
|
|
31 |
|
|
|
17 |
|
|
|
108 |
|
|
|
71 |
|
| Transaction and integration
costs |
|
|
21 |
|
|
|
12 |
|
|
|
76 |
|
|
|
34 |
|
| Restructuring costs and
other |
|
|
1 |
|
|
|
1 |
|
|
|
27 |
|
|
|
32 |
|
| Litigation expense |
|
|
— |
|
|
|
— |
|
|
|
59 |
|
|
|
— |
|
| Unrealized (gain) loss on
foreign currency contracts and other |
|
|
(15 |
) |
|
|
7 |
|
|
|
(11 |
) |
|
|
(5 |
) |
| Adjusted
EBITA(1) |
|
$ |
169 |
|
|
$ |
117 |
|
|
$ |
508 |
|
|
$ |
451 |
|
| |
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
3,250 |
|
|
$ |
2,590 |
|
|
$ |
11,709 |
|
|
$ |
9,778 |
|
| Adjusted EBITA
margin(1)(2) |
|
|
5.2 |
% |
|
|
4.5 |
% |
|
|
4.3 |
% |
|
|
4.6 |
% |
|
(1) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
(2) |
Adjusted EBITA margin is calculated as adjusted EBITA divided by
revenue for the period. |
|
|
|
GXO Logistics, Inc.
Reconciliation of Net Income to Adjusted Net
Income
and Adjusted Earnings Per Share
(Unaudited) |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(Dollars in millions, shares in thousands, except per share
amounts) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
138 |
|
|
$ |
233 |
|
| Net income attributable to
NCI |
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
(4 |
) |
| Net income
attributable to GXO |
|
$ |
100 |
|
|
$ |
73 |
|
|
$ |
134 |
|
|
$ |
229 |
|
| Amortization of intangible
assets acquired |
|
|
31 |
|
|
|
17 |
|
|
|
108 |
|
|
|
71 |
|
| Transaction and integration
costs |
|
|
21 |
|
|
|
12 |
|
|
|
76 |
|
|
|
34 |
|
| Restructuring costs and
other |
|
|
1 |
|
|
|
1 |
|
|
|
27 |
|
|
|
32 |
|
| Litigation expense |
|
|
— |
|
|
|
— |
|
|
|
59 |
|
|
|
— |
|
| Unrealized (gain) loss on
foreign currency contracts and other |
|
|
(15 |
) |
|
|
7 |
|
|
|
(11 |
) |
|
|
(5 |
) |
| Income tax associated with the
adjustments above(1) |
|
|
(2 |
) |
|
|
(9 |
) |
|
|
(42 |
) |
|
|
(30 |
) |
| Discrete income tax
benefit(2) |
|
|
(16 |
) |
|
|
(17 |
) |
|
|
(16 |
) |
|
|
(22 |
) |
| Adjusted net income
attributable to GXO(3) |
|
$ |
120 |
|
|
$ |
84 |
|
|
$ |
335 |
|
|
$ |
309 |
|
| |
|
|
|
|
|
|
|
|
| Adjusted basic
EPS(3) |
|
$ |
1.00 |
|
|
$ |
0.71 |
|
|
$ |
2.81 |
|
|
$ |
2.60 |
|
| Adjusted diluted
EPS(3) |
|
$ |
1.00 |
|
|
$ |
0.70 |
|
|
$ |
2.80 |
|
|
$ |
2.59 |
|
| |
|
|
|
|
|
|
|
|
| Weighted-average
common shares outstanding |
|
|
|
|
|
|
|
|
| Basic |
|
|
119,489 |
|
|
|
118,983 |
|
|
|
119,413 |
|
|
|
118,908 |
|
| Diluted |
|
|
120,035 |
|
|
|
119,671 |
|
|
|
119,798 |
|
|
|
119,490 |
|
|
(1) |
The income tax rate applied to items is based on the GAAP annual
effective tax rate. |
|
(2) |
The discrete income tax benefit in 2024 comes from the release of
the valuation allowance, and in 2023, it comes from intangible
assets and the release of the valuation allowance. |
|
(3) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
|
|
GXO Logistics, Inc.
Other
Reconciliations
(Unaudited) |
| |
| Reconciliation of
Cash Flows from Operations to Free Cash Flow: |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(In millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from
operations(1) |
|
$ |
186 |
|
|
$ |
215 |
|
|
$ |
549 |
|
|
$ |
558 |
|
| Capital expenditures |
|
|
(104 |
) |
|
|
(69 |
) |
|
|
(359 |
) |
|
|
(274 |
) |
| Proceeds from sale of property
and equipment |
|
|
45 |
|
|
|
5 |
|
|
|
61 |
|
|
|
18 |
|
| Free cash
flow(2) |
|
$ |
127 |
|
|
$ |
151 |
|
|
$ |
251 |
|
|
$ |
302 |
|
| |
|
|
|
|
|
|
|
|
| Cash flows from
operations to net income |
|
|
|
|
|
|
397.8 |
% |
|
|
239.5 |
% |
| Free cash flow
conversion(2) |
|
|
|
|
|
|
30.8 |
% |
|
|
40.8 |
% |
|
(1) |
Net cash provided by operating activities. |
|
(2) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
|
|
| Reconciliation of
Revenue to Organic Revenue: |
| |
| |
|
Three Months Ended
December 31, |
|
Year Ended
December 31, |
|
(In millions) |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue |
|
$ |
3,250 |
|
|
$ |
2,590 |
|
|
$ |
11,709 |
|
|
$ |
9,778 |
|
| Revenue from acquired
business(1) |
|
|
(538 |
) |
|
|
— |
|
|
|
(1,588 |
) |
|
|
— |
|
| Revenue from disposed
business(1) |
|
|
— |
|
|
|
(2 |
) |
|
|
(1 |
) |
|
|
(12 |
) |
| Foreign exchange rates |
|
|
(24 |
) |
|
|
— |
|
|
|
(109 |
) |
|
|
— |
|
| Organic
revenue(2) |
|
$ |
2,688 |
|
|
$ |
2,588 |
|
|
$ |
10,011 |
|
|
$ |
9,766 |
|
| |
|
|
|
|
|
|
|
|
| Revenue
growth(3) |
|
|
25.5 |
% |
|
|
|
|
19.7 |
% |
|
|
| Organic revenue
growth(2)(4) |
|
|
3.9 |
% |
|
|
|
|
2.5 |
% |
|
|
|
(1) |
The Company excludes revenue from the acquired and disposed
business for periods that are not comparable. |
|
(2) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
(3) |
Revenue growth is calculated as the change in the
period-over-period revenue divided by the prior period, expressed
as a percentage. |
|
(4) |
Organic revenue growth is calculated as the change in the
period-over-period organic revenue divided by the prior period,
expressed as a percentage. |
|
|
|
GXO
Logistics, Inc.
Liquidity Reconciliations
(Unaudited) |
| |
| Reconciliation of Total Debt and Net Debt: |
| |
| (In
millions) |
|
December 31, 2024 |
|
Current debt |
|
$ |
110 |
|
| Long-term debt |
|
|
2,521 |
|
| Total
debt(1) |
|
$ |
2,631 |
|
| Less: Cash and cash
equivalents (excluding restricted cash) |
|
|
(413 |
) |
| Net
debt(2) |
|
$ |
2,218 |
|
|
(1) |
Includes finance leases and other debt of $303 million as of
December 31, 2024. |
|
(2) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
|
|
| Reconciliation of
Total debt to Net income Ratio: |
| |
| (In
millions) |
|
December 31, 2024 |
|
Total debt |
|
$ |
2,631 |
| Net income |
|
$ |
138 |
| Debt to net income
ratio |
|
19.1x |
| |
| Reconciliation of
Net Leverage Ratio: |
| |
| (In
millions) |
|
December 31, 2024 |
|
Net debt |
|
$ |
2,218 |
| Adjusted
EBITDA(1) |
|
$ |
815 |
| Net leverage
ratio(1) |
|
2.7x |
|
(1) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
|
|
GXO Logistics, Inc.
Return on Invested
Capital
(Unaudited) |
| |
| Adjusted EBITA,
net of income taxes paid: |
| |
| |
|
Year Ended |
| (In
millions) |
|
December 31, 2024 |
|
Adjusted EBITA(1) |
|
$ |
508 |
|
| Less: Cash paid for income
taxes |
|
|
(43 |
) |
| Adjusted
EBITA(1), net of
income taxes paid |
|
$ |
465 |
|
|
(1) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
|
|
| Return on
Invested Capital (ROIC): |
| |
| |
|
Year Ended December 31, |
|
|
| (In
millions) |
|
|
2024 |
|
|
|
2023 |
|
|
Average |
|
Selected Assets: |
|
|
|
|
|
|
|
Accounts receivable, net |
|
$ |
1,799 |
|
|
$ |
1,753 |
|
|
$ |
1,776 |
|
|
Other current assets |
|
|
429 |
|
|
|
347 |
|
|
|
388 |
|
|
Property and equipment, net |
|
|
1,160 |
|
|
|
953 |
|
|
|
1,057 |
|
| Selected
Liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
(776 |
) |
|
$ |
(709 |
) |
|
$ |
(743 |
) |
|
Accrued expenses |
|
|
(1,271 |
) |
|
|
(966 |
) |
|
|
(1,119 |
) |
|
Other current liabilities |
|
|
(385 |
) |
|
|
(327 |
) |
|
|
(356 |
) |
| Invested
capital |
|
$ |
956 |
|
|
$ |
1,051 |
|
|
$ |
1,003 |
|
| |
|
|
|
|
|
|
| Net income to average
invested capital |
|
|
|
|
|
|
13.8 |
% |
| Operating return on
invested capital(1)(2) |
|
|
|
|
|
|
46.4 |
% |
|
(1) |
See the “Non-GAAP Financial Measures” section of this press
release. |
|
(2) |
The ratio of operating return on invested capital is calculated as
adjusted EBITA, net of income taxes paid, divided by the average
invested capital. |
|
|
|
GXO Logistics (TG:93N)
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GXO Logistics (TG:93N)
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From Mar 2024 to Mar 2025
