Contract logistics giant GXO Logistics Inc.’s fourth-quarter revenue increased 25% year over year to $3.25 billion, thanks to strong sales and a major new customer contract, company officials said.
The company reported its fourth-quarter and full-year 2024 earnings results after the market closed on Wednesday.
GXO’s adjusted earnings per share in the fourth quarter increased 43% year over year to $1.
“We had a stellar sales year, closed over $1 billion of new business wins for the second year in a row, grew our relationships with our customers and won a landmark $2.5 billion deal in the health sector,” CEO Malcolm Wilson said during a call with analysts Thursday before the market opened. “Existing customers are very busy, got lots of new projects. We’ve seen a resurgence of e-fulfillment projects, e-commerce activities coming back in every region that we’re working in.”
Greenwich, Connecticut-based GXO Logistics (NYSE: GXO) is one of the largest pure-play contract logistics providers in the world. It has more than 970 facilities totaling approximately 200 million square feet, with a global workforce of more than 130,000 people.
GXO’s results exceeded Wall Street expectations for the quarter, which predicted earnings of 96 cents per share and revenue of $3.2 billion.
Wilson said the company sees an acceleration of revenue growth throughout the year, boosted by contracts with new customers and renewals with existing clients.
“Our [customer] pipeline is up 15% year over year as of the end of the fourth quarter, and our pipeline in The Americas is up 20%. This momentum will continue to drive our long-term growth,” Wilson said. “We also grew enormously with our existing customers in the year. Our land and expand strategy has been a cornerstone of our long-term partnerships, and we expanded into new geographies with more than 40 of our legacy customers, including Boeing, Guess, Michelin and Nespresso.”
GXO’s $2.5 billion contract with a health care company is to provide major fulfillment operations in the second half of the year. The name of the company is confidential at the moment, according to Wilson.
“This opportunity came through a legacy relationship we gained from our acquisition of Clipper Logistics in 2022. The Clipper deal also gave us a foothold in Germany, and I’m pleased to report that we’ve grown our revenue there by 60% year over year as of the end of 2024,” Wilson said.
The company’s full-year 2024 revenue increased 20% year over year to $11.7 billion from 2023. Net income was $138 million, compared with $233 million the previous year.