GXO Logistics reports strong third quarter results with increased revenue and reaffirmed guidance
From GlobeNewswire.: 2024-11-04 16:30:00
GXO Logistics announced record third quarter revenue of $3.2 billion, up 28% year over year, with 3% organic growth. The company signed about $750 million in new business year to date and has a sales pipeline of $2.4 billion. Full-year 2024 guidance was reaffirmed, showing continued strong performance and growth potential.
Despite a decrease in net income and free cash flow compared to the previous year, GXO Logistics reported a strong third quarter in 2024. Revenue increased to $3.2 billion, with adjusted EBITDA reaching $223 million. The company generated $198 million in cash flow from operations and has cash balances of $548 million.
GXO Logistics is well-positioned to capitalize on the growth of ecommerce and automation, with increasing demand for ecommerce capacity driving new business wins. The company has a strong focus on long-term growth and profitability, emphasizing its commitment to providing advanced supply chain and ecommerce solutions to its global blue-chip clients. Litigation expenses and restructuring costs are outlined in the financial report. Adjusted EBITDA, organic revenue, and adjusted net income are key metrics used for comparability. Free cash flow and net debt ratios are crucial for assessing liquidity. Management uses these non-GAAP measures for decision-making. Forward-looking statements indicate expectations for organic revenue growth and guidance for 2024. Risks and uncertainties are noted in the projections. GXO Logistics, Inc. reported $3.157 billion in revenue for the three months ended September 30, 2024, up from $2.471 billion in the same period last year. The company also saw a net income of $35 million for the quarter, down from $68 million in 2023. Earnings per share were $0.28.
A major factor contributing to the decrease in net income was a $59 million expense related to a settlement agreement reached with a customer regarding a dispute from 2018. The settlement agreement resulted in a payment of $45 million by GXO Logistics, Inc. on July 5, 2024. The company recognized this expense for the nine months ending September 30, 2024.
GXO Logistics, Inc. also incurred direct operating expenses of $2.671 billion, selling, general, and administrative expenses of $265 million, and depreciation and amortization expenses of $111 million for the three months ended September 30, 2024. The company’s operating income for the quarter was $81 million.
Despite facing challenges like supply chain issues and competition, GXO Logistics, Inc. remains optimistic about its ability to align investments to customer demands and integrate acquired companies successfully. The company is focused on achieving growth, cost savings, and improved profitability while maintaining its commitment to Environmental, Social, and Governance goals. GXO Logistics, Inc. reported total assets of $11.9 billion as of September 30, 2024, compared to $9.5 billion as of December 31, 2023. The company’s total liabilities and equity also increased to $11.9 billion from $9.5 billion over the same period.
In the nine months ended September 30, 2024, GXO Logistics, Inc. generated $363 million in net cash from operating activities. The company also invested $1.1 billion in capital expenditures and acquired businesses with a net cash outflow of $863 million during the period. Financing activities provided a net cash inflow of $829 million.
Revenue for GXO Logistics, Inc. was disaggregated by geographical area. In the three months ended September 30, 2024, the United Kingdom contributed $1.5 billion, the United States $771 million, and the Netherlands $242 million to the total revenue of $3.2 billion. For the nine months ended September 30, 2024, the United Kingdom contributed $3.7 billion, the United States $2.2 billion, and the Netherlands $680 million.
Read more at GlobeNewswire.:: GXO Reports Third Quarter 2024 Results