GXO Logistics delivered its strongest commercial performance in three years during the second quarter, with executives saying the company’s transformation strategy is beginning to produce tangible results. The company also identified North America as its largest long-term growth opportunity, driven by a sharp increase in customer wins and an expanding sales pipeline.
Speaking during Wednesday’s earnings call, CEO Patrick Kelleher said GXO has transitioned from restructuring and strategic planning to executing its growth agenda. He pointed to stronger commercial activity, broader use of artificial intelligence, and operational improvements as key drivers behind the company’s recent performance.
Marking five years as an independent publicly traded company, Kelleher said the foundations built over that period, combined with new leadership and a refreshed strategy, are now translating into measurable business momentum.
Headquartered in Greenwich, Connecticut, GXO operates more than 970 facilities covering approximately 200 million square feet and employs over 130,000 people worldwide, making it one of the world’s largest pure-play contract logistics providers.
For the second quarter, GXO generated $3.4 billion in revenue, an increase of 4.3% compared with the same period last year, although the result came in slightly below analysts’ expectations of $3.45 billion.
Profitability continued to improve, with adjusted EBITDA rising to $219 million, while adjusted diluted earnings per share reached $0.59, exceeding Wall Street’s forecast of $0.58 per share. The company also generated $76 million in operating cash flow and $12 million in free cash flow during the quarter.
Commercial activity remained particularly strong. Around 40% of new contracts came from four priority sectors: aerospace and defense, technology and data centers, industrial manufacturing, and life sciences. GXO also expanded partnerships with major customers including Nike, PepsiCo, Marks & Spencer, Boeing and Raytheon, while securing a significant new hyperscale data center client.
North America stood out as the company’s fastest-growing region. Kelleher said commercial initiatives introduced over the past year helped increase first-half contract wins in the region by 85% compared with a year earlier.
Chief Strategy Officer Kristine Kubacki added that North America’s sales pipeline grew 34% year over year, contributing to GXO’s overall commercial pipeline reaching $2.7 billion only weeks after the quarter closed.
The company has already secured more than $1 billion in incremental revenue for 2026, with an additional $353 million already committed for 2027.
Artificial intelligence remained a central focus throughout the earnings presentation. GXO’s proprietary GXO IQ platform is moving from initial deployment to large-scale implementation and is expected to be operating in around 50 facilities by the end of 2026.
The platform is being used to improve demand forecasting, inventory replenishment, workforce planning and warehouse picking operations. The company also plans to deploy approximately 20,000 robots across its global network this year.
While discussing humanoid robots, Kelleher said GXO has completed 45 pilot projects, but the technology has not yet generated a sufficient return on investment. He believes widespread commercial adoption remains several years away.
Chief Financial Officer Mark Suchinski said improving margins has become one of the company’s top priorities. Investments in standardized operational dashboards, labor management systems, procurement processes and automation are expected to deliver measurable profitability gains later this year.
Kelleher acknowledged that GXO still trails some competitors in EBITDA and EBIT performance but said narrowing—and ultimately surpassing—that gap remains a long-term objective.
Executives also confirmed that the integration of the recently acquired Wincanton business remains on schedule. The company expects to achieve $60 million in annual cost synergies by the end of the year, with about 90% of the planned integration work already completed.
Looking ahead, GXO reaffirmed its full-year 2026 outlook, maintaining guidance for 4% to 5% organic revenue growth, adjusted EBITDA between $945 million and $965 million, adjusted diluted EPS of $2.95 to $3.15, and free cash flow conversion of 30% to 40%.
