GXO Logistics (GXO) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 2025 revenue of $3.4 billion, up 8% year-over-year, with organic growth in every region and 4% organic revenue growth.

• Net income rose to $60 million, a 71% increase year-over-year, and diluted EPS increased to $0.51 from $0.28.

• Adjusted EBITDA grew 13% to $251 million, with margins expanding 100 bps sequentially and 30 bps year-over-year.

• New business wins totaled $280 million in Q3, up 24% year-over-year, with a $2.3 billion sales pipeline and $700 million in incremental 2026 revenue secured.

• Wincanton integration is progressing, targeting $60 million in cost synergies by end of 2026 and supporting growth in Europe.

Financial highlights

• Q3 2025 revenue: $3.4 billion (+8% YoY, +4% organic); adjusted EBITDA: $251 million (+13% YoY); net income: $60 million; adjusted net income: $91 million.

• Diluted EPS: $0.51 (up from $0.28 YoY); adjusted diluted EPS: $0.79.

• Free cash flow: $187 million; operating cash flow: $232 million; cash and cash equivalents: $339 million.

• Net debt at $2.4 billion; total debt at $2.7 billion; net leverage ratio at 2.7x.

• Operating ROIC at 48.6%–49% and adjusted EBITDA margin at 7.4% (up from 7.1% YoY).

Outlook and guidance

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

• Margin expansion expected in 2026 as Wincanton synergies materialize.

• Plans to update long-term guidance at Investor Day in 2026.

• Liquidity is sufficient for at least the next 12 months, with $969 million in borrowing capacity.