GXO Logistics (GXO) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $3.3 billion, up 16% year-over-year, with 6% organic growth, the highest in nine quarters, driven by the Wincanton acquisition and positive foreign currency movements.

• New business wins totaled $307 million in Q2, up 13% year-over-year, with first-half wins exceeding $500 million.

• Raised full-year 2025 guidance for organic revenue growth, adjusted EBITDA, and adjusted diluted EPS due to strong first-half performance.

• Final regulatory approval received for the Wincanton acquisition, unlocking growth in the UK and Europe; integration to begin shortly.

• CEO transition announced, with Patrick Kelleher to assume the role; CFO Baris Oran to step down.

Financial highlights

• Adjusted EBITDA for Q2 2025 was $212 million, up 13% year-over-year, with a margin of 6.4%; adjusted diluted EPS was $0.57.

• Net income for Q2 2025 was $28 million, down from $39 million in Q2 2024; diluted EPS was $0.23.

• Free cash flow for Q2 2025 was negative $43 million, reflecting working capital investment and a one-time $65 million regulatory payment related to an Italian VAT matter.

• Net leverage ratio as of June 30, 2025, was 3.0x; net debt stood at $2.5 billion.

• Share repurchases totaled $202 million in H1 2025, with 5.4 million shares repurchased at a 26% discount to average share price.

Outlook and guidance

• Full-year 2025 guidance raised: organic revenue growth of 3.5%–6.5%, adjusted EBITDA of $865–$885 million, adjusted diluted EPS of $2.43–$2.63, and adjusted EBITDA to free cash flow conversion of 25%–35%.

• Expect to realize most of $60 million Wincanton synergies by end of 2026.

• Q3 2025 adjusted EBITDA expected to be 27.5%–28.5% of FY 2025 EBITDA.

• Sufficient liquidity is expected for at least the next 12 months, supported by cash, credit facilities, and factoring programs.

• Conservative approach maintained for organic growth guidance despite strong momentum.