GXO’s contract wins surge 34%, but growth comes amid cost pressures
GXO secured $375 million in third-quarter contracts, but the rapid pace of onboarding new customers created temporary cost pressures despite rising revenue and earnings. The post GXO’s contract wins surge 34%, but growth comes amid cost pressures appeared first on FreightWaves .
GXO Logistics reported a 5.7% increase in third-quarter revenue to $3.59 billion, as demand for its contract logistics services surged. The company secured $375 million in new business wins, a 34% increase compared to the previous year. North America, particularly data centers, is driving GXO's expansion, with the regional sales pipeline reaching $1.3 billion.
The company also saw strong growth from technology and consumer electronics customers, with revenue increasing 19% due to data center activity. GXO's strategic growth industries, including aerospace and defense, industrial logistics, and life sciences, accounted for around 40% of its new business wins. However, the rapid expansion of customer operations came with additional costs, resulting in flat adjusted EBITDA and a 7% adjusted EBITDA margin.
Despite the challenges, GXO reaffirmed its full-year guidance, expecting organic revenue growth of 4% to 5% and adjusted EBITDA between $945 million and $965 million.
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