Q2 2024 GXO Logistics Inc Earnings Call Transcript
Key Points
- GXO Logistics Inc (GXO) delivered record revenue of $2.8 billion in Q2 2024, growing 19% year-over-year.
- The company signed $270 million of new business wins in the quarter, with a pipeline reaching a 12-month high of $2.3 billion.
- GXO Logistics Inc (GXO) reaffirmed its full-year 2024 guidance, expecting organic revenue growth of 2% to 5% and adjusted EBITDA of $805 million to $835 million.
- The acquisition of Wincanton is expected to be accretive to earnings this year, with double-digit accretion to adjusted diluted earnings per share once fully integrated.
- The company is making significant strides in automation and AI, with AI deployments up 10 times year-over-year and the introduction of humanized robotics in their operations.
- Core volumes remain relatively sluggish and generally flat year-over-year, particularly in North America.
- The company is experiencing a drag on margins due to the integration of Wincanton, which is expected to continue into Q3 and Q4.
- Despite strong new business wins, the overall volume environment remains negative, impacting organic growth.
- Food and beverage sector showed a decline, reflecting the current consumer environment.
- There is still uncertainty in the North American market, with modest improvements in customer volumes but no significant return to growth yet.
Hello and welcome to the GXO second-quarter 2024 earnings Conference call and Webcast. My name is Donna and I'll be your operator for today's call. (Operator Instructions) Please note that this conference is being recorded.
Before the call begins. Let me read a brief statement on behalf of the company regarding forward-looking statements. The use of non-GAAP financial measures and the company's guidance. During the call, the company will be making certain forward-looking statements within the meanings of applicable security law which by their nature involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those projected in the forward-looking statements.
A discussion of factors that could cause actual results to differ materially is contained in the company's SEC filings. The forward-looking statements made in the company's earnings release or made on this call are made only as of today, and the company has no obligation to update any of these forward-looking statements except to the extent required by law.
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