GXO’s contract wins surge 34%, but growth comes amid cost pressures
GXO secured $375 million in third-quarter contracts, but the rapid pace of onboarding new customers created temporary cost pressures despite rising revenue and earnings.
GXO Logistics is seeing accelerating demand for its contract logistics services, particularly in North America, as data centers, aerospace and defense customers fuel a record sales pipeline.
During a Wednesday earnings call, CEO Patrick Kelleher said the company’s renewed commercial strategy is generating larger contracts and expanding opportunities in specialized industries, with momentum expected to continue into 2027.
“The focus on North America, the focus on the strategic verticals, has been additive to the organic growth agenda,” Kelleher told analysts during the call.
Greenwich, Connecticut-based GXO (NYSE: GXO) reported third-quarter revenue of $3.59 billion, a 5.7% increase from $3.4 billion a year earlier. Organic revenue increased 6.4%, while adjusted earnings per share rose 13% to 89 cents.
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