On August 6, 2024, GXO Logistics Inc (GXO, Financial) released its 8-K filing for the second quarter of 2024. GXO Logistics Inc is a contract logistics company providing warehousing, distribution, order fulfillment, e-commerce, reverse logistics, and other supply chain services. The company operates globally, with significant revenue contributions from the United Kingdom, the United States, and other European countries.
Performance Overview
GXO Logistics Inc reported a record revenue of $2.8 billion for Q2 2024, marking a 19% year-over-year increase from $2.4 billion in Q2 2023. This growth was driven by organic revenue growth of 2% and new business wins amounting to approximately $270 million in annualized revenue. Despite the revenue surge, the company faced challenges with net income, which fell to $39 million from $66 million in the same quarter last year. Diluted earnings per share (EPS) also declined to $0.32 from $0.54 in Q2 2023, missing the analyst estimate of $0.38.
Financial Achievements and Challenges
GXO's adjusted EBITDA for Q2 2024 was $187 million, slightly down from $190 million in Q2 2023. Adjusted diluted EPS was $0.55, compared to $0.70 in the previous year. The company generated $115 million in cash flows from operations, a significant increase from $61 million in Q2 2023, and free cash flow improved to $31 million from $3 million in the same period last year.
Malcolm Wilson, CEO of GXO, stated, “In the second quarter, GXO delivered record revenue of $2.8 billion, reflecting growth of 19% year over year, along with sequential improvement in organic revenue growth and strong free cash flow.”
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $2.8 billion | $2.4 billion |
| Net Income | $39 million | $66 million |
| Diluted EPS | $0.32 | $0.54 |
| Adjusted EBITDA | $187 million | $190 million |
| Adjusted Diluted EPS | $0.55 | $0.70 |
Balance Sheet and Cash Flow
As of June 30, 2024, GXO reported cash and cash equivalents of $469 million and outstanding debt of $2.8 billion. The company’s total assets stood at $11.36 billion, up from $9.51 billion at the end of 2023. GXO's cash flow from operations was $165 million for the first half of 2024, compared to $100 million in the same period last year. However, the company used $1.01 billion in investing activities, primarily due to the acquisition of Wincanton.
Geographical and Industry Revenue Breakdown
GXO's revenue is diversified across various regions and industries. The United Kingdom contributed $1.29 billion to the Q2 2024 revenue, followed by the United States with $731 million. The company also saw significant contributions from the Netherlands, France, Spain, and Italy.
| Region | Q2 2024 Revenue | Q2 2023 Revenue |
|---|---|---|
| United Kingdom | $1.29 billion | $893 million |
| United States | $731 million | $692 million |
| Netherlands | $220 million | $198 million |
| France | $201 million | $217 million |
| Spain | $145 million | $136 million |
| Italy | $97 million | $94 million |
Guidance and Outlook
GXO Logistics Inc reaffirmed its full-year 2024 guidance, expecting organic revenue growth of 2% to 5%, adjusted EBITDA between $805 million and $835 million, adjusted diluted EPS of $2.73 to $2.93, and free cash flow conversion of 30% to 40% of adjusted EBITDA. The company remains optimistic about its growth prospects, particularly in the UK and European markets, driven by strengthening consumer demand and strategic acquisitions.
For more detailed insights and the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from GXO Logistics Inc for further details.
