GXO Logistics Inc (GXO, Financial) released its 8-K filing on February 13, 2024, detailing its financial performance for the fourth quarter and full year of 2023. The company, a global leader in contract logistics, operates across various verticals, offering warehousing and distribution, order fulfillment, e-commerce, and reverse logistics services. With a significant revenue share from the United Kingdom, GXO continues to expand its technological capabilities and customized solutions.
Financial Performance Highlights
In Q4 2023, GXO reported a revenue increase to $2.6 billion, up from $2.5 billion in the same quarter the previous year. The full-year revenue also saw an uptick from $9.0 billion in 2022 to $9.8 billion in 2023. This growth reflects the company's robust operational performance and strategic initiatives.
Net income attributable to GXO for Q4 jumped to $73 million, a significant rise from $46 million in Q4 2022. The full-year net income also increased to $229 million from $197 million in the previous year. The diluted earnings per share (EPS) for the year improved to $1.92, and the adjusted diluted EPS reached $2.59.
Adjusted EBITDA for the full year was reported at $741 million, a slight increase from $728 million in 2022. The company's cash flows from operations were strong at $558 million, which is 244% of the net income attributable to GXO, and the free cash flow was $302 million, equivalent to 41% of adjusted EBITDA.
Operational and Strategic Developments
GXO's operational achievements include signing over $1 billion in annualized revenue in 2023, with approximately 40% coming from outsourcing. The company also booked an incremental $600 million in revenue for 2024 and an additional $230 million for 2025, marking a 29% increase from the previous year. The sales pipeline remains robust at approximately $2 billion.
The acquisition of PFSweb, completed on October 23, 2023, brought over 100 brands into GXO's portfolio, enhancing the company's presence in high-growth verticals. GXO's focus on automation and AI deployment is expected to accelerate in 2024, further solidifying its industry leadership.
2024 Financial Outlook and Conference Call
Looking ahead to 2024, GXO anticipates organic revenue growth of 2% to 5%, with adjusted EBITDA ranging from $760 million to $790 million and adjusted diluted EPS between $2.70 and $2.90. The company also projects a free cash flow conversion of 30% to 40% of adjusted EBITDA.
A conference call to discuss the results and outlook was scheduled for February 14, 2024. Details for accessing the call and webcast were provided in the earnings release.
Conclusion
GXO Logistics Inc (GXO, Financial) has demonstrated a strong financial performance in 2023, with significant growth in revenue and net income. The company's strategic focus on technology and automation, coupled with a solid sales pipeline, positions it well for continued success in 2024. Investors and stakeholders can look forward to another year of solid growth and profitability.
For more detailed information on GXO's financial performance, readers are encouraged to view the full 8-K filing.
Explore the complete 8-K earnings release (here) from GXO Logistics Inc for further details.
