GXO Logistics (NYSE:GXO) reported record fourth-quarter and full-year 2025 results and issued 2026 guidance that management said reflects accelerating organic growth and expanding profitability. On the company’s earnings call, executives also highlighted leadership appointments intended to standardize operations globally, sharpen commercial execution, and intensify growth in North America.
Record 2025 results and cash flow
CEO Patrick Kelleher said GXO “delivered a strong finish to 2025,” citing record quarterly revenue of $3.5 billion and record fourth-quarter adjusted EBITDA of $255 million. For the full year, GXO posted record revenue of $13.2 billion and record adjusted EBITDA of $881 million.
Oran said GXO generated $163 million of free cash flow in the fourth quarter and achieved its targeted adjusted EBITDA-to-free-cash-flow conversion for the full year, citing disciplined capital expenditures and working capital management. He also said leverage improved to 2.5x net debt to adjusted EBITDA, even after $200 million in share buybacks completed in the first half of 2025 at an average price of $37.34.
New business wins and strategic vertical momentum
Management emphasized a growing backlog of new contracts. Kelleher said new business wins totaled $1.1 billion in 2025, which he said provides “good visibility to accelerating growth in 2026.” Kristine Kubacki, chief strategy officer, said fourth-quarter wins were $248 million, contributing to the $1.1 billion total for the year.
Executives highlighted momentum in several sectors, including life sciences, aerospace and defense, industrial and technology (including data centers), as well as omni-channel retail. Kelleher pointed to fourth-quarter wins that included contract awards in life sciences, several aerospace and defense wins, and a win with a global apparel brand. Kubacki said GXO expanded work with Boeing and won new aerospace and defense business including BAE Systems and Thales, which she said was a “direct result” of the Wincanton acquisition.
GXO also said it has already secured $774 million of expected incremental new business revenue for 2026 (Kelleher referenced $774 million, with similar references on the call to roughly $775 million), which management said is more than 20% higher than the company had secured at the same point last year. Kubacki described the company’s sales pipeline as $2.3 billion exiting 2025, and Kelleher later said the pipeline had grown to $2.5 billion.
In technology and data centers, Kubacki said GXO secured five new contracts during the quarter, including for the first time “wins across multiple regions with a leading hyperscaler.” She said the pipeline in the data center market had more than doubled over the last six months, even after those contract wins.
Leadership changes aimed at global operating standards and U.S. growth
Kelleher said his focus is bringing GXO’s regional strengths together “as one global organization,” with the goal of faster growth, higher margins, and improved execution. Over the past five months, GXO announced new leadership in commercial, operations, and the Americas and Asia Pacific region, which Kelleher described as “strategic accelerators” intended to:
- Scale consistent operating standards to sharpen execution and expand margins
- Sharpen go-to-market disciplines to accelerate organic growth
- Grow market share in the U.S.
Kelleher said the company created a chief operating officer role, and that Bart Beeks joined in January after more than two decades at CEVA Logistics, most recently as COO. Beeks’ mandate includes scaling a single operating methodology globally and leading the operationalization of GXO’s automation and technology strategy.
On the commercial side, Kelleher said Karen Baumberg joined as chief commercial officer from ABB Industries, with a mandate including more consistent global customer engagement, sharper go-to-market execution, and ensuring pricing reflects the value delivered.
In North America, Kelleher said Michael Jacobs took leadership of the business three months ago and is reallocating investments toward solutioning, sales, and digital marketing, while intensifying focus on labor productivity and operational performance. Kelleher also told analysts that North America is a priority for organic growth and will be the primary growth driver, adding that GXO is underrepresented in North America relative to the U.K. and Europe.
Automation, AI, and humanoid robotics initiatives
Executives repeatedly pointed to automation and AI as key long-term differentiators. Kelleher said GXO plans to move “even faster” in AI and robotics in 2026, including work with humanoid robots, and described GXO IQ as an AI-powered warehouse operating system that is already improving labor planning, inventory movement, forecasting, and workflow management at several large sites.
Kubacki said pilots of GXO IQ began in the second half of 2025, and the company expects it to move from pilot to scaling across more than 50 existing sites in 2026. She also said that by the end of 2026, GXO expects to have nearly 20,000 robots in operation, plus “several humanoid pilots” launched across all three regions.
In Q&A, management also described two dimensions of its AI strategy: improving overhead efficiency in corporate functions using market-available AI tools, and driving innovation in customer warehouse and transport operations through modules such as dynamic route planning, proactive replenishment, slotting, and forecasting.
Wincanton integration and 2026 outlook
Oran said the Wincanton integration is “moving at pace,” and the company remains on track to deliver $60 million of run-rate cost synergies by the end of 2026, with expectations for revenue synergies in the following years. Later in the call, he said integration benefits totaled about $15 million by the end of 2025 (including some in 2024) and that the company expects to enter 2027 with the full $60 million run rate.
For 2026, GXO guided to:
- Organic revenue growth: 4% to 5%
- Adjusted EBITDA: $930 million to $970 million
- Adjusted diluted EPS: $2.85 to $3.15
- Adjusted EBITDA-to-free-cash-flow conversion: 30% to 40%
Management said the guidance assumes flat volumes in existing operations, which executives described as a prudent view given the macro environment. Oran said inflation pass-through and retention assumptions are roughly similar between 2025 and 2026, and that incremental revenue from new business wins is expected to be the key growth lever.
Asked about phasing through the year, Oran said quarterly swings can reflect the timing of project startups and exits, while Kelleher described typical contract logistics sales cycles of six to nine months followed by a ramp-up period that can take up to nine months. Kelleher and Oran also said benefits from the Wincanton integration should be more visible in the second half of 2026.
The company also said it expects to hold an Investor Day in 2026 and plans to share additional detail on its multi-year margin opportunity then.
About GXO Logistics (NYSE:GXO)
GXO Logistics (NYSE: GXO) is a global contract logistics provider specializing in warehousing, distribution, and value-added supply chain services. Established in August 2021 as a spin-off from XPO Logistics, the company has built its reputation on integrating advanced technology and automation into traditional logistics operations. GXO’s core offerings include e-commerce fulfillment, inventory management, returns processing, and reverse logistics, supported by a network of fulfillment centers and distribution hubs designed to optimize order accuracy and delivery speed.
The company serves customers across a diverse array of industries, including retail, technology, consumer goods, automotive, industrial, and healthcare.
