GXO Logistics has announced results for the second quarter 2023.
Malcolm Wilson, Chief Executive Officer of GXO, said:
“We’re pleased to have delivered an exceptional performance in the second quarter, including double-digit top- and bottom-line growth. We increased our market share in the quarter, and we raised our 2023 profit guidance. We’re one of the few companies in our industry expecting to grow this year.
“Demand for GXO’s transformative solutions continues to accelerate: our record sales wins this quarter, together with our robust sales pipeline, position us for a strong 2024 and underpin our confidence in our long-term growth targets.
”We’re extremely proud that, in the two years since becoming a publicly traded company, we’ve delivered eight consecutive quarters of stellar operating results, signed hundreds of new partnerships with blue-chip customers, accelerated tech deployment, and established ourselves as the global brand for logistics excellence.”
Second quarter 2023 results
Revenue increased to $2.4 billion, up 11% year over year, compared with $2.2 billion for the second quarter 2022. Organic revenue grew by 3%.
Operating income increased to $99 million, up 68% year over year, compared with $59 million for the second quarter 2022.
Net income attributable to GXO was $65 million, up 27% year over year, compared with $51 million for the second quarter 2022. Diluted earnings per share was $0.54, up 23% year over year, compared with $0.44 for the second quarter 2022.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) increased to $190 million from $176 million in the second quarter 2022.
Adjusted net income attributable to GXO1 was $84 million, compared with $79 million for the second quarter 2022. Adjusted diluted earnings per share1 was $0.70, compared with $0.68 for the second quarter 2022.
GXO generated $61 million of cash flow from operations, compared with $154 million for the second quarter 2022. In the second quarter of 2023, GXO generated $3 million of free cash flow compared to $68 million of free cash flow for the second quarter 2022.
Cash balances and outstanding debt
As of June 30, 2023, cash and cash equivalents and debt outstanding were $305 million and $1.7 billion, respectively, as part of GXO’s investment grade balance sheet.
2023 guidance
GXO’s current 2023 financial outlook is as follows:
- Organic revenue growth of 6% to 8%;
- Adjusted EBITDA of $725 million to $755 million (raised from $715 million to $745 million);
- Free cash flow conversion of approximately 30% of adjusted EBITDA; and
- Adjusted diluted earnings per share1 of $2.45 to $2.65 (raised from $2.40 to $2.60).
