Latest news with #MalcolmWilson
Yahoo
08-08-2025
- Business
- Yahoo
GXO Sees Growth Opportunity in Reverse Logistics
GXO delivered its highest organic growth in nine quarters with a 6 percent increase as the company ushers in its new CEO. Total revenue when accounting for acquisitions and foreign exchange rates increased to $3.3 billion, up 16 percent year over year from $2.8 million in the year-ago quarter. Net income slowed to $26 million, down 32 percent from $38 million the year prior. More from Sourcing Journal Forward Air Reportedly at Center of Private Equity Bidding War US Warehouse Vacancies Hit Decade High as Tariff Fears Stall New Leasing Watchdog: US Shipbuilding Aid Programs Lack Clear Goals to Power Trump's Maritime Push Adjusted earnings were 57 cents per share, up from 55 cents last year and an improvement from the 55 cents expected by analysts from FactSet. The company also updated its guidance, revising its adjusted EBITDA range upwards by $5 million on the back and front ends. The metric is expected to come in at $865 million to $885 million. In a Tuesday earnings call, outgoing CEO Malcolm Wilson said GXO renewed and expanded contracts with two top customers in the quarter, with one being a multi-year agreement with H&M across multiple geographies. The third-party logistics (3PL) provider is also finalizing a nearly 20-year expansion of its business with a top-15 U.S. retailer, he said. More than half of year-to-date contract wins (51 percent) are coming from new activity, which is a vastly different makeup compared to 2024's 29 percent. Last year, 46 percent of contract wins were won from competitors, compared to just 26 percent this year. Wilson said the shift, particularly in the second quarter, was due to strong momentum in e-commerce. Levi's, Puma and Zalando are among the businesses that have teamed up with GXO on e-commerce automation projects. According to Wilson, more than half of the wins came from e-commerce sellers. Wilson also highlighted what he called 'outsized' growth in reverse logistics, which now represents over 10 percent of GXO's current pipeline. Reverse logistics also accounts for a similar 'high-single-digit, low-double-digit' percentage of revenue, according to Kristine Kubacki, GXO's chief strategy officer. Kubacki said the new e-commerce wins are driving the reverse logistics demand. The company is presently leveraging AI to enhancing reverse logistics capabilities and drive future growth opportunities. 'About a third of e-commerce orders are returned on average, which really reflects the material drag on our customers' margins,' Kubacki said. 'We can help unlock with AI the opportunity to rapidly resell products and help our customers unlock further margins. We're actually using that same tool that we've used on the inbound side around proactive replenishment on the back-end side for reverse logistics.' GXO's growth across its business comes as the Stamford, Conn.-based company is seeing some changes at the top. DHL Supply Chain veteran Patrick Kelleher, the CEO-in-waiting to replace Wilson, will take on the role starting Aug. 19. Wilson won't be the only high-ranking member who is making his exit, with GXO unveiling Tuesday that chief financial officer Baris Oran plans to step down from his role. The company did not give a timeline for Oran's exit, but the company said he would remain in the role until a successor is named to ensure a smooth transition. The company has also seen an influx of seven new board members since May, with five of them newly elected at the firm's annual shareholder meeting. Two more were appointed on July 31. GXO has 10 board members in total, three of whom were reelected at the meeting. Wilson said in the call that it was too soon to think about how the future of the company will play out amid the overhaul. 'We have to give Patrick time to get to know the company, and also our new board members time to acclimatize to GXO,' Wilson said. 'I'm sure that things will start to unfold as we start the planning process for 2026 and beyond.' The logistics company is currently implementing a new ERP system across its three main geographic regions, with 'phase two' of the deployment already going live in the U.K. This software deployment is set to take place in the U.S. next, before it will be extended to continental Europe, Oran said during the call. During the quarter, GXO got the regulatory go-ahead from the U.K. to move forward with its $965 million acquisition of Wincanton. GXO must divest some of Wincanton's grocery contracts in the U.K. as part of the approval. And in June, the contract logistics provider launched GXO IQ, a technology that leverages a suite of proprietary AI algorithms that can orchestrate millions of complex, multi-step actions across inventory distribution and movement, order picking and packing, shipping, and staffing.
Yahoo
05-08-2025
- Business
- Yahoo
First look: GXO Q2 earnings
Contract logistics provider GXO Logistics beat analysts' second-quarter expectations on Tuesday after the market closed. Greenwich, Connecticut-based GXO (NYSE: GXO) reported adjusted earnings per share, which exclude one-off charges like acquisition and restructuring expenses, of 57 cents. The result was 2 cents higher year over year and 1 cent ahead of consensus. Adjusted earnings before interest, taxes, depreciation and amortization of $212 million was 13% higher y/y. Consolidated revenue of $3.3 billion was 16% higher y/y and ahead of the consensus estimate of $3.1 billion. The bulk of the growth was tied to recent acquisitions. Organic revenue grew by 6% in the quarter. The company inked $307 million in new deals in the period, surpassing $500 million in business wins year-to-date. 'Given our better-than-expected performance in the first half of the year, we are again raising our full-year adjusted EBITDA guidance, following our guidance raise in June for organic revenue growth, adjusted EBITDA and adjusted diluted earnings per share,' said CEO Malcolm Wilson in a Tuesday news release. The new full-year 2025 adjusted EBITDA guidance is $865 million to $885 million ($5 million higher at each end of the range). The company reiterated guidance for organic revenue growth of 3.5% to 6.5% and adjusted EPS of $2.43 to $2.63. (The consensus EPS estimate was $2.50 at the time of the print.) GXO announced that Chief Financial Officer Baris Oran is leaving the company to pursue other opportunities. However, he will remain in place until his successor is named. 'Baris has been dedicated not only to the performance of the company, but to our customers and our people,' Wilson said. 'GXO is well positioned for its next chapter of growth thanks, in large part, to his valuable contributions.' The company announced in June that supply chain veteran Patrick Kelleher will succeed Wilson, who is retiring as CEO this month. Shares of GXO were up 1.1% in after-hours trading on Tuesday. GXO will host a conference call to discuss second-quarter results at 8:30 a.m. EDT on Wednesday. More FreightWaves articles by Todd Maiden: Freight market's 'holding pattern' continues in July Beleaguered TL carrier Pamt Corp. names new CEO XPO sees 'massive runway' to push margins higher The post First look: GXO Q2 earnings appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
09-07-2025
- Business
- Yahoo
5 Revealing Analyst Questions From GXO Logistics's Q1 Earnings Call
GXO's first quarter results were supported by notable revenue growth and exceeded Wall Street expectations, prompting a positive market response. Management attributed the quarter's performance to strong new business wins, especially in the healthcare sector, and a faster-than-expected ramp-up of new facilities. CEO Malcolm Wilson highlighted the landmark contract with the U.K. National Health Services supply chain as the company's largest ever, crediting it to the successful integration of the Clipper Logistics acquisition. In addition to new contract momentum, operational productivity initiatives and continued investment in automation drove improved site-level efficiency across GXO's regional footprint, while existing customer relationships deepened, notably with Boeing and Siemens Healthineers. Is now the time to buy GXO? Find out in our full research report (it's free). Revenue: $2.98 billion vs analyst estimates of $2.94 billion (21.2% year-on-year growth, 1.4% beat) Adjusted EPS: $0.29 vs analyst estimates of $0.25 (14.5% beat) Adjusted EBITDA: $163 million vs analyst estimates of $154.8 million (5.5% margin, 5.3% beat) Revenue Guidance for Q2 CY2025 is $2.97 billion at the midpoint, below analyst estimates of $3.05 billion Management reiterated its full-year Adjusted EPS guidance of $2.50 at the midpoint EBITDA guidance for the full year is $850 million at the midpoint, above analyst estimates of $843.1 million Operating Margin: -1.9%, in line with the same quarter last year Organic Revenue rose 2.7% year on year (1% in the same quarter last year) Market Capitalization: $5.75 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Joe Hafling (Jefferies) asked about scenario planning behind maintaining guidance in a dynamic macro environment. CFO Baris Oran responded that flat volumes are the base assumption and downside scenarios are built in, citing a 'narrow guidance range.' Brian Ossenbeck (JPMorgan) inquired about the ramp and cost implications of the NHS contract and broader healthcare opportunities. CEO Malcolm Wilson explained that startup costs are expected to be minimal due to the takeover-in-place model, emphasizing long-term pipeline growth from this vertical. Ravi Shanker (Morgan Stanley) probed the risk of contract renewal cliffs as pandemic-era deals reach maturity. Wilson clarified that contract renewals are staggered and customer relationships are typically renewed before expiration, with no sign of unusual churn. Chris Wetherbee (Wells Fargo) questioned the impact of tariffs on new business pipeline conversations. Wilson noted no material slowdown, stating that most pipeline opportunities are long-term and the recent sales organization redesign has improved win rates. Ben Moore (Citi) sought clarity on the shape of direct operating expenses post-Wincanton and share buyback strategy. Oran explained higher OpEx was driven by Wincanton's business mix and noted share repurchases will be balanced against other capital priorities moving forward. In the coming quarters, the StockStory team will monitor (1) the pace and financial impact of Wincanton's integration and associated cost synergies, (2) the scaling of AI and automation initiatives and their contribution to operational efficiency, and (3) continued momentum in healthcare and other targeted verticals. Updates on customer pipeline conversion and any macro-driven shifts in demand will also serve as important indicators of ongoing execution. GXO Logistics currently trades at $50.24, up from $38.11 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
Yahoo
24-06-2025
- Business
- Yahoo
After Last Week's Surge, Is GXO Logistics Ready for a Comeback?
GXO Logistics has struggled in recent years amid a slowdown in the industrial economy. The company raised its guidance after its plan to acquire Wincanton finally gained approval from U.K. regulators. It also named a new CEO six months after outgoing CEO Malcolm Wilson said he would retire when his successor was found. 10 stocks we like better than GXO Logistics › GXO Logistics (NYSE: GXO) shareholders have had to be patient in the years since the company was spun off from XPO in 2021. That event came at the height of the pandemic stock market boom, which was particularly kind to e-commerce businesses, and the new stock jumped out of the gate. However, GXO's stock tanked during the market-wide sell-off of 2022, and since then, the stock has struggled to build momentum amid broader weakness in the transportation and logistics industries. More recently, it has been held back by concerns about how President Donald Trump's tariffs will impact the global economy. However, the company, which is the world's largest pure-play logistics operator, got two pieces of good news last week that helped send the stock price up 12% on Friday. First, GXO's acquisition of Wincanton, a U.K.-based logistics company, was finally approved by the U.K. Competition and Markets Authority, more than a year after GXO announced its plans for the deal. The purchase was approved pending the divestment of a few grocery contracts, and integration will be allowed to go forward once certain administrative conditions are met. That is key because GXO has not been able to capture the benefits of the acquisition without integrating it. Management expects integration to begin in the third quarter and sees Wincanton adding value, in particular in the aerospace and defense industry. As a result of both that approval and other trends, management raised its guidance for the year. It now expects organic revenue growth of 3.5% to 6.5%, up from a previous range of 3% to 6%. It also raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) forecast to a range of $860 million to $880 million, from a prior range of $840 million to $860 million. Its adjusted EPS guidance was lifted from a range of $2.40 to $2.60 to a range of $2.43 to $2.63. In addition to the expected benefits from the Wincanton acquisition, outgoing CEO Malcolm Wilson noted, "Across our operations, we are seeing better than expected volumes and accelerated productivity gains in existing operations and new start-ups." Additionally, on Friday, the company named Patrick Kelleher as its next CEO. Wilson, who headed GXO since the spin-off, announced in December that he would be retiring once his successor was found. Kelleher was most recently the North American CEO of DHL Supply Chain. He also held a number of other executive positions with DHL and helped lead its advanced robotics initiative. Additionally, Kelleher oversaw four M&A transactions, making him a good fit for GXO, as the company has made M&A a key part of its strategy. "Patrick is a world-class operator with the relevant experience to lead GXO through the next phase of growth," said company Chairman Brad Jacobs in the press release announcing the hiring. With those two announcements, GXO put a lot of uncertainty behind it. The company has been waiting more than a year to capitalize on its Wincanton acquisition. Now, it can begin integrating the two operations, cutting costs and leveraging Wincanton's assets and expertise in areas like aerospace and defense. Naming Kelleher as the next CEO eliminates the uncertainty around the company's leadership and positions it to move forward and execute its strategy. Investors shouldn't overlook the other key factor that it revealed -- that its performance and productivity gains have been better than expected. In its first-quarter earnings report, the company pushed back on the assumption that uncertainty around tariffs was hurting the business by reaffirming its guidance. At the time, it noted that its contracts are designed to withstand macroeconomic volatility, and emphasized that its geographical diversification makes the company more resilient in challenging times. In sum, management asserted that the business can continue to grow even with a volatile economic backdrop. GXO's growth may not accelerate until there's some greater clarity about the trade war situation, but the stock still looks like a good value over the long term. This could be the beginning of GXO's recovery. Before you buy stock in GXO Logistics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GXO Logistics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Jeremy Bowman has positions in GXO Logistics and XPO. The Motley Fool recommends GXO Logistics and XPO. The Motley Fool has a disclosure policy. After Last Week's Surge, Is GXO Logistics Ready for a Comeback? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
Why GXO Stock Is Soaring Today
GXO won final U.K. approval to integrate its 2024 purchase of Wincanton. The company also named a new CEO, answering two of the biggest questions that have weighed on the stock of late. 10 stocks we like better than GXO Logistics › GXO (NYSE: GXO) named a new leader and won regulatory approval to integrate a big acquisition. Investors are celebrating the developments, sending shares of the contract logistics provider up 11% as of 2 p.m. ET. GXO operates warehouses and supply chain networks for large corporate and government customers. Last year, the company acquired Wincanton for $962 million to boost its European capabilities, but it has been barred from fully integrating the deal due to United Kingdom Competition and Markets Authority (CMA) concerns. On Thursday, GXO announced that the CMA has cleared it to integrate "the vast majority" of Wincanton subject to the divestment of "a small number" of grocery contracts. Integration is expected to begin in the third quarter, with collaboration on aerospace deals allowed to begin immediately. The company also announced Patrick Kelleher, who has more than 30 years of global supply chain experience, as its new CEO. GXO has been looking for a new leader since December when current CEO Malcolm Wilson announced his intention to retire. GXO raised its full-year revenue, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and adjusted earnings per share (EPS) guidance as well. GXO stock has lost to the market since being spun out of XPO in 2021. Thursday's announcements could be the first step in reversing those declines. The company has great potential capitalizing on the growing need to manage increasingly complex supply chains but has been held back by headwinds, including uncertainty about the Wincanton integration and over who will be the new CEO. Kelleher's U.S. experience could also help drive sales increases in North America, shifting GXO's European-heavy portfolio. GXO's recent performance has been disappointing, but the potential is there. The market's enthusiasm seems justified. Before you buy stock in GXO Logistics, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GXO Logistics wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Lou Whiteman has positions in GXO Logistics and XPO. The Motley Fool recommends GXO Logistics and XPO. The Motley Fool has a disclosure policy. Why GXO Stock Is Soaring Today was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
