GXO Logistics posts earnings per share of $0.57 above analyst predictions by a penny, recording revenue of $3.3 billion, which is $200 million more than expected.
GXO Logistics Boosts Full-Year 2025 Outlook Following Strong Q2 Results
GXO Logistics, Inc. (NYSE: GXO) has raised its full-year 2025 guidance, reflecting a robust performance in the second quarter. The logistics giant expects organic revenue growth of between 3.5% and 6.5%, adjusted EBITDA of between $865 million and $885 million, and adjusted diluted EPS of $2.43 to $2.63.
The organic revenue growth guidance was lifted from previously lower ranges, signifying the impact of strong new business wins and increased e-commerce demand. The adjusted EBITDA guidance increased notably, signaling confidence in profitability growth, moving from earlier estimates in the $805 million-$835 million range.
The adjusted diluted EPS is forecasted at $2.43-$2.63, which incorporates operational efficiencies and excludes nonrecurring items. The adjusted EBITDA to free cash flow conversion is anticipated to be between 25% and 35%, indicating a strong ability to convert earnings to cash flow.
This positive outlook update was driven by GXO's impressive second-quarter 2025 results. The company reported $3.3 billion in revenue, a 17.9% year-over-year increase and $200 million more than expected. Organic revenue growth stood at 6%, and adjusted EPS was $0.57, exceeding expectations by $0.01. GXO also secured $307 million in new business wins during the quarter.
In addition to the outlook update, GXO Logistics has signed a partnership agreement with Sky Italia for logistics services. The company will also release its Q1 2025 earnings call presentation and has a Q2 2025 earnings preview scheduled.
Seeking Alpha has provided a Quant Rating for GXO Logistics, and a transcript of GXO Logistics, Inc.'s Q1 2025 earnings call is available for those interested in further insights. Following the announcement, GXO Logistics' shares increased by 1.47% after hours.
Sources: [1] GXO Logistics Press Release, Q2 2025 Earnings Release, 2025 [2] GXO Logistics Investor Presentation, Q2 2025 Earnings Presentation, 2025 [3] Seeking Alpha, GXO Logistics Q2 2025 Earnings Call Transcript, 2025 [4] MarketWatch, GXO Logistics Q2 2025 Earnings: What to Expect, 2025
- The strong Q2 results of GXO Logistics have led to an increased confidence in its profitability growth, as indicated by the raised full-year 2025 adjusted EBITDA guidance.
- With the positive outlook update and new business wins, GXO Logistics is poised to continue its growth in the finance and investing arena, as demonstrated by its business expansion efforts.
