GXO Logistics (GXO) Q4 2024 earnings summary

Executive summary

• Achieved record revenue and adjusted EBITDA for both Q4 and full year 2024, with organic growth accelerating each quarter and adjusted EBITDA up 30% year over year in Q4.

• 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 key geographies such as Germany.

• Launched proprietary AI applications in warehouses, driving significant productivity improvements.

• Invested 2.5% of sales in capex to drive growth.

Financial highlights

• Full year 2024 revenue reached $11.7 billion, up 20% year over year, with 3% organic growth.

• Q4 2024 revenue was $3.3 billion, up 25% year over year, with 4% organic growth.

• Adjusted EBITDA for 2024 was $815 million, up 10%, with a margin of 7%.

• Q4 adjusted EBITDA was $251 million, up 30% year over year; Q4 net income was $100 million.

• Adjusted diluted EPS for 2024 was $2.80, up from $2.59 in 2023; full year net income was $138 million.

Outlook and guidance

• 2025 guidance: organic revenue growth of 3%-6%, adjusted EBITDA of $840-$860 million, and adjusted diluted EPS of $2.40-$2.60.

• Adjusted EBITDA to free cash flow conversion expected at 25%-35%.

• Sequential acceleration of organic growth expected throughout 2025, with Q1 impacted by customer capacity realignments.

• Free cash flow conversion targeted at 30% of adjusted EBITDA for 2025.