GXO Turns 1!

Malcolm Wilson, CEO  |  August 02, 2022

Today marks a very important milestone — GXO turns 1. One year ago, our debut on the New York Stock Exchange created the world’s largest publicly traded pure-play contract logistics provider. Today, as we rang the Opening Bell to mark this anniversary, it was a moment to reflect on our remarkable progress over the past 12 months and the significant opportunities ahead.

In becoming GXO, we created a logistics leader laser-focused on accelerating growth and creating value for all our stakeholders. In our first year, we delivered on this promise.

Since our spin, we’ve opened 90 new sites and 15 million square feet of new warehouse space, signed more than 450 new customer contracts and added more than 15,000 team members. We set the benchmark for ESG in our industry with an “AA” rating from MSCI, placing us first among our peers. We successfully completed the strategic acquisition of Clipper Logistics, accelerated automation enabling us to win profitable market share and joined the Fortune 500. And we were named “Supplier of the Year for Support & Services” by aerospace leader Boeing, a partnership that spans nearly two decades.

Today, we capped off our first year by reporting outstanding second quarter financial results, headlined by record organic revenue growth of 20% and our highest-ever quarterly new business wins — $475 million. We also delivered exceptional performance in Adjusted EBITDA, adjusted earnings per share and Free Cash Flow. 

Without a doubt, the foundation for all our success is our commitment to making GXO an employer of choice for our 120,000-plus team members and to making GXO a logistics provider of choice for companies worldwide.

The opportunities ahead of us are enormous.

The pandemic made clear the essential role warehouse solutions and services play in the global economy. Across markets and industries, supply chain complexities, elevated inventory levels and rising energy and labor costs have made seamless logistics management more critical than ever. This plays to the strengths of GXO — and is no doubt helping to drive our significant organic growth and market share gains as we demonstrate to customers the substantial flexibility and cost productivity benefits of outsourcing. 

And while consumers have begun to return to physical stores, ecommerce remains vibrant, as companies continue long-term efforts to reach consumers online. GXO is well-positioned to capture outsized growth from both trends. We see evidence of this in our omnichannel growth, which grew 4% faster than the GXO group as a whole.

As we look to the future, our record sales performance combined with the growing demand for outsourcing underpin our confidence in the long-term strength and attractiveness of our business. We’re one global team, committed to continuous improvement for our customers and winning the right way. Our business is resilient, and we are squarely positioned to take advantage of a worldwide addressable market we estimate at $430 billion, propelled by the durable growth tailwinds of automation, ecommerce and outsourcing.

To everyone who made our first year such a success, thank you. I am extremely proud of how we’ve changed the game for our customers and showed the world what we mean by “logistics at full potential.”

And we’re just getting started.