GXO Logistics (GXO) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $11.7 billion for 2024, up 20% year-over-year, with 3% organic growth and sequential acceleration each quarter.

• Adjusted EBITDA reached $815 million for the year, exceeding guidance and growing 10% year-over-year.

• Secured over $1 billion in new business wins for the second consecutive year, including a landmark $2.5 billion healthcare contract.

• Completed the acquisition of Wincanton, expanding expertise in aerospace, industrials, and new geographies, notably Germany.

• Customer satisfaction scores reached all-time highs, and the company received multiple industry awards.

Financial highlights

• Q4 2024 revenue was $3.3 billion, up 25% year-over-year, with 4% organic growth; adjusted EBITDA was $251 million, up 30%.

• Full-year adjusted diluted EPS was $2.80, up from $2.59 in 2023; net income was $138 million.

• Operating income for 2024 was $218 million; Q4 net income was $100 million.

• Free cash flow for Q4 was $127 million; full-year free cash flow conversion was 31%.

• Net leverage reduced to 2.7x by year-end, with $2.2 billion in net debt.

Outlook and guidance

• 2025 organic revenue growth expected at 3%-6%, with adjusted EBITDA guidance of $840-$860 million.

• Full-year adjusted diluted EPS guidance is $2.40-$2.60, reflecting higher tax rates.

• Free cash flow conversion targeted at 25%-35% of adjusted EBITDA for 2025.

• Q1 2025 adjusted EBITDA expected at $153–$157 million, with new business wins offsetting customer capacity realignment.

• Integration benefits from Wincanton expected to ramp up after regulatory approval.