GXO Organic Revenue Grows 6.4%, Its Fastest In Over Three Years, But Free Cash Flow Falls To $85 Million
The contract logistics company reaffirmed 2026 guidance, reported a record $3.1 billion sales pipeline and set Investor Day for November 16.
GXO Logistics, which runs warehouses and fulfillment operations for large corporations, said Tuesday that third-quarter organic revenue grew 6.4%, its highest in more than three years, while adjusted EBITDA was flat at $251 million and free cash flow fell to $85 million from $187 million.
Growth up, cash and profit flat
Revenue rose 5.7% to $3.6 billion, from $3.4 billion a year earlier, according to the 8-K and earnings release. Net income was $65 million against $60 million, and diluted earnings per share were $0.56 against $0.51. Adjusted earnings per share rose to $0.89 from $0.79.
Adjusted EBITDA, earnings before interest, taxes, depreciation and amortization with the company's adjustments, matched last year's $251 million. Adjusted EBITDA margin slipped to 7.0% from 7.4%.
Cash from operations dropped to $156 million from $232 million. Capital spending fell to $74 million from $144 million, but proceeds from equipment sales shrank to $3 million from $99 million, which helped drive the free cash flow decline.
A record $3.1 billion pipeline
New business wins totaled $375 million, up 34%, the second straight quarter of growth above 30%. Wins for the year to date topped $1 billion, and the sales pipeline reached a record $3.1 billion, up more than 30% from a year earlier.
About 40% of year-to-date wins came from aerospace and defense, technology, industrial and life sciences customers. CEO Patrick Kelleher said the new strategy "is delivering results," and that year-to-date wins are "nearly matching all of 2025 with a quarter still to go." He added that execution is improving, particularly in North America, with a unified labor management system rolling out and its GXO IQ platform being deployed across its footprint.
GXO's 10-K for 2025 describes a business that handles distribution, order fulfillment, e-commerce and returns for outsourcing clients, with no customer above 6% of 2025 revenue.
Guidance held, buybacks continue
GXO reaffirmed full-year guidance: organic revenue growth of 4% to 5%, adjusted EBITDA of $945 million to $965 million, adjusted diluted earnings per share of $2.95 to $3.15, and free cash flow conversion of 30% to 40%.
It repurchased $84 million of stock in the quarter, bringing the year-to-date total to $100 million, with $200 million left under its authorization. At September 30, net debt was $2.5 billion against trailing twelve-month adjusted EBITDA of $925 million, a net leverage ratio of 2.7x. Cash stood at $340 million.
GXO holds a conference call Wednesday at 8:30 a.m. ET, then an Investor Day at the New York Stock Exchange on November 16 at 9:00 a.m. ET to lay out its long-term strategy and financial framework.
Sources
- 8-K Filing — GXO Logistics, Inc. (GXO) — SEC EDGAR
- Exhibit gxo2026q3earningsreleaseex.htm — GXO Logistics, Inc. 8-K exhibit — SEC EDGAR
