GXO growth fueled by data center demand

GXO Logistics benefited from strong data center demand in the third quarter, helping fuel the company’s growth, executives said during a Nov. 3 investor call. The Greenwich, Conn.-based contract logistics firm posted net income of $65 million, or 56 cents a diluted share, for the three months ending Sept. 30. That compared with $60 million, 51 cents, during the same time the previous year. Total revenue increased 5.7% to $3.59 billion from $3.4 billion. The results follow the launch of a new corporate strategy to shift focus to organic growth, accelerating technology and targeted expansion into high-value verticals. “I’m pleased that we’re beginning to see the results of the strategy we set in motion over the past year,” CEO Patrick Kelleher said during an investor call. “The headline for the quarter is simple: Organic growth accelerated to its fastest pace in over three years.” GXO Quotes by TradingView See more transportation stock listings Kelleher specifically pointed to improvements in its commercial performance, sales pipeline, technology and North American business. The results showed that about 40% of new business wins this year for GXO have come from strategic growth verticals, such as data centers, aerospace and defense, life sciences and industrials. “Our core business continues to grow alongside our strategic verticals,” Kelleher said. “In the quarter, we again saw strong momentum with our technology and data center customers, where we see no signs of slowing, and there are more [request for proposals] in the market than ever. We’re also building out our aerospace and defense capabilities.” Kelleher views the quarter as…

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