Press release

GXO reports fourth quarter and full year 2023 results

Greenwich, USA  |  February 13, 2024

Highlights

  • Fourth quarter revenue of $2.6 billion; net income attributable to GXO of $73 million; adjusted EBITDA1 of $193 million; diluted EPS of $0.61 and adjusted diluted EPS1 of $0.70
  • Full year revenue of $9.8 billion; net income attributable to GXO of $229 million; adjusted EBITDA1 of $741 million; diluted EPS of $1.92 and adjusted diluted EPS1 of $2.59
  • Full year cash flows from operations of $558 million, equivalent to 244% of net income attributable to GXO, and free cash flow1 of $302 million; equivalent to 41% of adjusted EBITDA1
  • Announced 2024 guidance2:
    • Organic revenue growth1 of 2%-5%
    • Adjusted EBITDA1 of $760-$790 million
    • Adjusted diluted earnings per share1 of $2.70-$2.90
    • Free cash flow conversion1 of 30%-40% of adjusted EBITDA1

Business Highlights

  • Signed more than $1 billion annualized revenue in 2023; ~40% from outsourcing
  • ~$600 million of incremental revenue booked for 2024, and ~$230 million of additional incremental revenue booked for 2025; 29% higher than last year
  • Sales pipeline remains strong at approximately $2 billion
  • Closed the acquisition of PFSweb on October 23, 2023

GXO Logistics, Inc. (NYSE: GXO) today announced results for the fourth quarter and full year 2023.

Malcolm Wilson, Chief Executive Officer of GXO, said, “In the fourth quarter, we delivered a successful operational peak for our customers, capping off what was a truly great year for GXO.

“In 2023, GXO delivered strong growth in revenue, net income and adjusted EBITDA, as well as record cash flows from operations and free cash flow, and a stellar return on invested capital. We closed a tremendous $1 billion of annualized new business wins, with nearly 40% coming from outsourcing as more companies look to GXO to transform their supply chains. Through our acquisition of PFS, we welcomed over 100 fantastic brands in high-growth verticals, and we are now focused on supercharging PFS’ growth.

“During the year, GXO continued to lead the industry in automation, deploying a record amount of robotics and winning multiple long-term, highly automated contracts with global blue-chip companies. These companies are looking to GXO for continued innovation, and we anticipate the proliferation of AI and automation deployment across our operations to accelerate in 2024 and beyond.

“We’re uniquely positioned to help our customers make their supply chain operations more productive today and more resilient tomorrow. Our 2024 guidance reflects another year of solid revenue growth as well as continued strength in profit and cash flow, and we are very excited about our long-term growth trajectory.”

Fourth Quarter 2023 Results

Revenue increased to $2.6 billion, compared with $2.5 billion for the fourth quarter 2022.

Operating income increased to $87 million, compared with $74 million for the fourth quarter 2022. Net income attributable to GXO increased to $73 million, compared with $46 million for the fourth quarter 2022. Diluted earnings per share increased to $0.61, compared with $0.39 for the fourth quarter 2022.

Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA1”) was $193 million, compared with $205 million for the fourth quarter 2022. Adjusted net income attributable to GXO1 was $84 million, compared with $99 million for the fourth quarter 2022. Adjusted diluted earnings per share1 was $0.70, compared with $0.83 for the fourth quarter 2022.

GXO generated $215 million of cash flows from operations, compared with $226 million for the fourth quarter 2022. In the fourth quarter of 2023, GXO generated $151 million of free cash flow1, compared with $141 million for the fourth quarter 2022.

Full Year 2023 Results

Revenue increased to $9.8 billion, compared with $9.0 billion for 2022.

Operating income increased to $318 million, compared with $242 million for 2022. Net income attributable to GXO increased to $229 million, compared with $197 million for 2022. Diluted earnings per share increased to $1.92, compared with $1.67 for 2022.

Adjusted EBITDA1 increased to $741 million, compared with $728 million for 2022. Adjusted net income attributable to GXO1 was $309 million, compared with $335 million for 2022. Adjusted diluted earnings per share1 was $2.59, compared with $2.85 for 2022.

GXO generated $558 million of cash flows from operations, compared with $542 million for 2022. GXO generated $302 million of free cash flow1, compared with $240 million for 2022. Cash flows from operations to net income attributable to GXO and free cash flow conversion1 ratios were 244% and 41%, respectively, for 2023. Cash flows from operations to net income attributable to GXO and free cash flow conversion1 ratios were 275% and 33%, respectively, for 2022.

Net income attributable to GXO to average invested capital and operating return on invested capital1 ratios were 22% and 36%, respectively, for 2023.

Cash Balances and Outstanding Debt

As of December 31, 2023, cash and cash equivalents and debt outstanding were $468 million and $1.6 billion, respectively. GXO’s balance sheet remains investment grade and received credit rating outlook upgrades from S&P, Moody’s and Fitch during 2023.

2024 Guidance2

GXO’s 2024 financial outlook is as follows:

  • Organic revenue growth1 of 2% to 5%;
  • Adjusted EBITDA1 of $760 million to $790 million;
  • Adjusted diluted earnings per share1 of $2.70 to $2.90; and
  • Free cash flow conversion1 of 30% to 40% of adjusted EBITDA1.

Conference Call

GXO will hold a conference call on Wednesday, February 14, 2024, 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: 13743710. 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 28, 2024. 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 13743710.

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 130,000 team members across more than 970 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 (formerly Twitter), Facebook, Instagram and YouTube.


Consolidated Statements of Operations

Consolidated Balance Sheets

Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows

Key Data: Disaggregation of Revenue

Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITA and Adjusted EBITDA and Adjusted EBITA Margins

Reconciliation of Net Income to Adjusted Net Income and Adjusted Earnings Per Share

Other Reconciliations

Liquidity Reconciliations

Liquidity Reconciliations

Return on Invested Capital

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