GXO Logistics (GXO) Jefferies Global Industrials Conference 2026 summary

Organic growth and sales pipeline

• Organic growth for Q2 was 3.4%, slightly below expectations due to minor contract startup delays, but full-year guidance of 4%-5% remains reaffirmed.

• New business signings in Q2 reached $412 million, a 35% increase year-on-year, with incremental revenue at a record $1 billion, up 29%.

• Sales pipeline hit a record $2.7 billion, driven by strategic focus on North America and B2B verticals like aerospace, defense, and technology.

• Pipeline conversion rate is about 28%, with the pipeline turning 1.5 times per year, supporting ongoing growth.

• Customer volumes are stable overall, with softness in European retail offset by strength in B2B sectors.

Strategic initiatives and vertical focus

• Emphasis on B2B verticals and North America is yielding results, with 40% of new business wins in North America and 41%-42% in B2B sectors.

• New Chief Commercial Officer and digital marketing capabilities are being established to further build the pipeline.

• Customer retention initiatives, including a global customer success model, aim to improve churn beyond the current 95%.

• Record deal with a hyperscaler highlights expansion into data center logistics, with long-term value in maintenance and sustainment services.

• Contract structures for new verticals are in line with company averages, with five-year terms and accretive margins.

Margin improvement and operational execution

• Transition from regional to global operating model is underway to leverage scale, improve procurement, and share best practices.

• Margin performance lags peers, with EBIT at 3.5% versus 6%+ for competitors; free cash flow conversion targeted to rise from under 30% to over 50%.

• Operational excellence agenda focuses on productivity, cost reduction, and capturing more value from contracts.

• North America and Asia are targeted for growth due to higher margin potential.

• Labor management system consolidation aims for 5%-15% productivity gains, with AI and automation investments supporting efficiency.