Open the filing on EDGARGXO Reports First Quarter 2026 Results
- Revenue of $3.3 billion, up 10.8% year over year, with organic revenue growth of 4.1%
- $227 million of new business wins across key verticals, with approximately 40% in strategic growth sectors - aerospace & defense, technology, industrial and life sciences
- Record sales pipeline of $2.7 billion
- Raises full-year 2026 guidance for adjusted EBITDA and adjusted diluted EPS
GREENWICH, Conn. - May 5, 2026 - GXO Logistics, Inc. (NYSE: GXO) today announced results for the first quarter 2026.
Patrick Kelleher, chief executive officer of GXO, said, “2026 is off to a strong start. In the first quarter, we delivered strong revenue growth and profitability, underscoring the strength and predictability of our business model. Our commercial efforts are driving wins in higher margin growth verticals, including aerospace & defense, technology, industrial and life sciences, and we’re seeing demand accelerating, with our pipeline growing to an all-time high of $2.7 billion.
“Three priorities are powering our path forward - sharpening our commercial strategy, strengthening execution, and leading in AI and next-generation automation, and we made good progress in each this quarter. Our commercial momentum is building, especially in North America where our pipeline grew 35% sequentially. We’re implementing a global framework for standardizing and scaling excellence and our deployment of AI, automation and robotics is accelerating.
“Given our better-than-expected performance in the first quarter, we are raising our full-year adjusted EBITDA and adjusted EPS guidance. We look forward to sharing additional detail on our long‑term strategy and financial framework at our Investor Day following our third quarter earnings later this year.”
First Quarter 2026 Results
Revenue increased to $3.3 billion, up 10.8% year over year, compared with $3.0 billion for the first quarter 2025. Organic revenue grew by 4.1%.
Net income was $5 million, compared with a net loss of $95 million for the first quarter 2025. Diluted earnings per share was $0.03, compared with a diluted loss per share of $0.81 for the first quarter 2025.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) was $200 million, compared with $163 million for the first quarter 2025. Adjusted EBITDA for the quarter included a $12.5 million net year-over-year benefit, primarily from an early site exit and the timing of contract termination costs.
Adjusted diluted earnings per share (“adjusted diluted EPS”) was $0.50, compared with $0.29 for the first quarter 2025.
For definitions of non-GAAP measures see the “Non-GAAP Financial Measures” section in this press release.
GXO generated $31 million of cash flow from operations, compared with $29 million for the first quarter 2025. In the first quarter of 2026, free cash flow was a use of $31 million, compared with $48 million used for the first quarter 2025.
Cash Balances and Outstanding Debt
As of March 31, 2026, cash and cash equivalents (excluding restricted cash), total debt outstanding and net debt were $794 million, $3.1 billion and $2.3 billion, respectively.
Updated 2026 Guidance
The Company updated its guidance for the full year 2026 as follows:
- Organic revenue growth of 4% to 5%;
- Adjusted EBITDA of $935 million to $975 million up from $930 million to $970 million;
- Adjusted diluted EPS of $2.90 to $3.20 up from $2.85 to $3.15; and
- Free cash flow conversion of 30% to 40%.
Conference Call
GXO will hold a conference call on Wednesday, May 6, 2026, at 8:30 a.m. Eastern Time. Participants can call toll free (from US/Canada) 877-407-8029; international callers dial +1 201-689-8029. Conference ID: 13759863. A live webcast of the conference will be available on the Investor Relations area of the company’s website, investors.gxo.com. The conference will be archived until May 20, 2026. To access the replay by phone, call toll-free (from US/Canada) 877-660-6853; international callers dial +1 201-612-7415. Use participant passcode 13759863.
About GXO Logistics
GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is positioned to capitalize on the rapid growth of ecommerce, automation and outsourcing. GXO has over 150,000 team members across more than 1,000 facilities totaling more than 200 million square feet. The company serves the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions, at scale and with speed. GXO corporate headquarters is in Greenwich, Connecticut. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube.
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the attached financial tables.
GXO’s non-GAAP financial measures in this press release include: adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted EBITDA margin, adjusted earnings before interest, taxes and amortization (“adjusted EBITA”), adjusted EBITA, net of income taxes paid/received, adjusted EBITA margin, adjusted net income attributable to GXO, adjusted earnings per share (basic and diluted) (“adjusted EPS”), free cash flow, free cash flow conversion, organic revenue, organic revenue growth, net leverage ratio, net debt, and operating return on invested capital (“ROIC”).
We believe that the above adjusted financial measures facilitate analysis of our ongoing business operations because they exclude items that may not be reflective of, or are unrelated to, GXO’s core
Our guidance reflects current FX rates.
operating performance, and may assist investors with comparisons to prior periods and assessing trends in our underlying businesses. Other companies may calculate these non-GAAP financial measures differently, and therefore our measures may not be comparable to similarly titled measures used by other companies. GXO’s non-GAAP financial measures should only be used as supplemental measures of our operating performance.
Adjusted EBITDA, adjusted EBITA, adjusted net income attributable to GXO and adjusted EPS include adjustments for transaction and integration costs, restructuring costs and unrealized gain/loss on FX contracts, a regulatory matter as well as net loss on divestiture of business, as set forth in the attached financial tables. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition and may include consulting fees, retention awards, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities), and certain costs related to integrating and separating IT systems. Restructuring costs and other primarily consisted of severance paid to exiting members of the Company’s leadership team and to individuals as part of an initiative to optimize corporate expenses. The regulatory matter relates to a regulatory settlement. And net loss on divestiture of business primarily relates to the write-down loss resulting from the held-for-sale classification.
We believe that adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA, net of income taxes paid/received, and adjusted EBITA margin, improve comparability from period to period by removing the impact of our capital structure (interest expense), asset base (depreciation and amortization), tax impacts and other adjustments as set forth in the attached financial tables, which management has determined are not reflective of core operating activities and thereby assist investors with assessing trends in our underlying businesses.
We believe that organic revenue and organic revenue growth are important measures because they exclude the impact of foreign currency exchange rate fluctuations.
We believe that adjusted net income attributable to GXO and adjusted EPS improve the comparability of our operating results from period to period by removing the impact of certain costs and gains as set forth in the attached financial tables, which management has determined are not reflective of our core operating activities, including amortization of intangible assets acquired.
We believe that free cash flow and free cash flow conversion are important measures of our ability to repay maturing debt or fund other uses of capital that we believe will enhance stockholder value. We calculate free cash flow as cash flows from operations less capital expenditures plus proceeds from sale of property and equipment. We calculate free cash flow conversion as free cash flow divided by adjusted EBITDA, expressed as a percentage.
We believe that net debt and net leverage ratio are important measures of our overall liquidity position and are calculated by removing cash and cash equivalents (excluding restricted cash) from our total debt and net debt as a ratio of our trailing twelve months adjusted EBITDA. We calculate ROIC as our trailing twelve months adjusted EBITA, net of income taxes paid/received, divided by the average invested capital. We believe ROIC provides investors with an important perspective on how effectively GXO deploys capital and use this metric internally as a high-level target to assess overall performance throughout the business cycle.
Management uses these non-GAAP financial measures in making financial, operating and planning decisions and evaluating GXO’s ongoing performance.
With respect to our financial targets for full-year 2026 organic revenue growth, adjusted EBITDA, adjusted diluted EPS, and free cash flow conversion, a reconciliation of these non-GAAP measures to the corresponding GAAP measures is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude from these non-GAAP target measures. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare forward-looking statements of income and cash flows in accordance with GAAP, that would be required to produce such a reconciliation.
Forward-Looking Statements
Forward-looking statements notice
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements, including our full-year 2026 financial guidance of organic revenue growth, adjusted EBITDA, adjusted diluted EPS and free cash flow conversion. In some cases, forward-looking statements can be identified by the use of forward-looking terms such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target,” “trajectory” or the negative of these terms or other comparable terms. However, the absence of these words does not mean that the statements are not forward-looking. These forward-looking statements are based on certain assumptions and analyses made by the company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors the company believes are appropriate in the circumstances.
Forward-looking statements notice
These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause or contribute to a material difference include, but are not limited to, the risks discussed in our filings with the SEC and the following: economic conditions generally; supply chain challenges, including labor shortages; competition and pricing pressures; our ability to align our investments in capital assets, including equipment, service centers and warehouses, to our respective customers’ demands; our ability to successfully integrate and realize anticipated benefits, synergies, cost savings and profit improvement opportunities with respect to acquired companies, including the acquisition of Wincanton; acquisitions may be unsuccessful or result in other risks or developments that adversely affect our financial condition and results; our ability to develop and implement suitable information technology systems and prevent failures in or breaches of such systems; our indebtedness; our ability to raise debt and equity capital; litigation; labor matters, including our ability to manage our subcontractors, and risks associated with labor disputes at our customers’ facilities and efforts by labor organizations to organize our employees; risks associated with defined benefit plans for our current and former employees; our ability to attract or retain necessary talent; the increased costs associated with labor; fluctuations in currency exchange rates; fluctuations in fixed and floating interest rates; fluctuations in customer confidence and spending; issues related to our intellectual property rights; governmental regulation, including environmental laws, trade compliance laws, as well as changes in international trade policies and tax regimes; governmental or political actions, including the United Kingdom’s exit from the European Union; natural disasters, terrorist attacks or similar incidents; damage to our reputation; a material disruption of our operations; the inability to achieve the level of revenue growth, cash generation, cost savings, improvement in profitability and margins, fiscal discipline, or strengthening of competitiveness and operations anticipated or targeted; failure in properly handling the inventory of our customers; failure to successfully incorporate artificial intelligence and humanoids in connection with our growth strategy; the impact of potential cyber-attacks and information technology or data security breaches; and the inability to implement technology initiatives or business systems successfully; our ability to achieve Environmental, Social and Governance goals; and a determination by the IRS that the distribution or certain related spin-off transactions should be treated as taxable transactions. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements. Such forward-looking statements should therefore be construed in the light of such factors.
All forward-looking statements set forth in this release are qualified by these cautionary statements and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to or effects on us or our business or operations. Forward-looking statements set forth in this release speak only as of the date hereof, and we do not undertake any obligation to update forward-looking statements to reflect subsequent events or circumstances, changes in expectations or the occurrence of unanticipated events, except to the extent required by law.
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended March 31, | |
|---|
| (Dollars in millions, shares in thousands, except per share amounts) | | 2026 | | 2025 |
| Revenue | $3,298 | | $2,977 | |
| Direct operating expense | 2,808 | | 2,558 | |
| Selling, general and administrative expense | 296 | | 261 | |
| Depreciation and amortization expense | 115 | | 109 | |
| Transaction and integration costs | 16 | | 22 | |
| Restructuring costs and other | 3 | | 17 | |
| Regulatory matter | - | | 66 | |
| Net loss on divestiture of business | 21 | | - | |
| Operating income (loss) | 39 | | (56) | |
| Other income (expense), net | 10 | | (5) | |
| Interest expense, net | (32) | | (32) | |
| Income (loss) before income taxes | 17 | | (93) | |
| Income tax expense | (12) | | (2) | |
| Net income (loss) | 5 | | (95) | |
| Net income attributable to noncontrolling interests (“NCI”) | (1) | | (1) | |
| Net income (loss) attributable to GXO | $4 | | $(96) | |
| Earnings (loss) per share | | |
| Basic | $0.03 | | $(0.81) | |
| Diluted | $0.03 | | $(0.81) | |
| Weighted-average shares outstanding used in computation of earnings (loss) per share | | |
| Basic | 114,710 | | 118,991 | |
| Diluted | 115,840 | | 118,991 | |
Condensed Consolidated Balance Sheets
| March 31, | December 31, |
|---|
| (Dollars in millions, shares in thousands, except per share amounts) | | 2026 | | 2025 |
| ASSETS | | |
| Current assets | | |
| Cash and cash equivalents | $794 | | $854 | |
| Accounts receivable, net of allowance of $15 and $15 | 2,020 | | 2,028 | |
| Other current assets | 397 | | 406 | |
| Total current assets | 3,211 | | 3,288 | |
| Long-term assets | | |
| Property and equipment, net of accumulated depreciation of $2,179 and $2,126 | 1,181 | | 1,151 | |
| Operating lease assets | 2,630 | | 2,563 | |
| Goodwill | 3,730 | | 3,781 | |
| Intangible assets, net of accumulated amortization of $780 and $781 | 865 | | 909 | |
| Other long-term assets | 577 | | 570 | |
| Total long-term assets | 8,983 | | 8,974 | |
| Total assets | $12,194 | | $12,262 | |
| LIABILITIES AND EQUITY | | |
| Current liabilities | | |
| Accounts payable | $713 | | $758 | |
| Accrued expenses | 1,437 | | 1,492 | |
| Current debt | 463 | | 446 | |
| Current operating lease liabilities | 749 | | 745 | |
| Other current liabilities | 413 | | 434 | |
| Total current liabilities | 3,775 | | 3,875 | |
| Long-term liabilities | | |
| Long-term debt | 2,646 | | 2,619 | |
| Long-term operating lease liabilities | 2,102 | | 2,044 | |
| Other long-term liabilities | 668 | | 709 | |
| Total long-term liabilities | 5,416 | | 5,372 | |
| Commitments and Contingencies | | |
| Stockholders’ Equity | | |
| Common Stock, $0.01 par value per share; 300,000 shares authorized, 120,380 and 119,868 shares issued and 115,024 and 114,512 shares outstanding, respectively | 1 | | 1 | |
| Treasury stock, at cost; 5,356 and 5,356 shares, respectively | (202) | | (202) | |
| Preferred Stock, $0.01 par value per share; 10,000 shares authorized, 0 issued and outstanding | - | | - | |
| Additional Paid-In Capital (“APIC”) | 2,669 | | 2,667 | |
| Retained earnings | 722 | | 718 | |
| Accumulated Other Comprehensive Income (Loss) (“AOCIL”) | (222) | | (201) | |
| Total stockholders’ equity before NCI | 2,968 | | 2,983 | |
| NCI | 35 | | 32 | |
| Total equity | 3,003 | | 3,015 | |
| Total liabilities and equity | $12,194 | | $12,262 | |
Condensed Consolidated Statements of Cash Flows
| Three Months Ended March 31, |
|---|
| (In millions) | | 2026 | | 2025 |
| Cash flows from operating activities: | | |
| Net income (loss) | $5 | | $(95) | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities | | |
| Depreciation and amortization expense | 115 | | 109 | |
| Stock-based compensation expense | 10 | | 12 | |
| Deferred tax benefit | (3) | | (10) | |
| Other | 2 | | 5 | |
| Changes in operating assets and liabilities | | |
| Accounts receivable | (26) | | (49) | |
| Other assets | (2) | | 91 | |
| Accounts payable | (39) | | (88) | |
| Accrued expenses and other liabilities | (31) | | 54 | |
| Net cash provided by operating activities | 31 | | 29 | |
| Cash flows from investing activities: | | |
| Capital expenditures | (65) | | (78) | |
| Proceeds from sale of property and equipment | 3 | | 1 | |
| Net cash used in investing activities | (62) | | (77) | |
| Cash flows from financing activities: | | |
| Common stock repurchased | - | | (106) | |
| Net borrowings under revolving credit facilities | - | | 56 | |
| Repayments of finance lease obligations | (14) | | (11) | |
| Proceeds from exercise of stock options | 7 | | - | |
| Taxes paid related to net share settlement of equity awards | (15) | | (6) | |
| Other | (4) | | 1 | |
| Net cash used in financing activities | (26) | | (66) | |
| Effect of exchange rates on cash and cash equivalents | (3) | | 11 | |
| Net decrease in cash, restricted cash and cash equivalents | (60) | | (103) | |
| Cash, restricted cash and cash equivalents, beginning of period | | 857 | | 485 |
| Cash, restricted cash and cash equivalents, end of period | $797 | | $382 | |
| Non-cash financing activities: | | |
| Unsettled stock repurchases for which trades occurred | $ - | | $4 | |
| Excise tax liability related to stock repurchases | - | | 1 | |
| Reconciliation of cash, restricted cash and cash equivalents | March 31, 2026 | December 31, 2025 |
| Cash and cash equivalents | $794 | | $854 | |
| Restricted Cash (included in Other current assets) | 2 | | 2 | |
| Restricted Cash (included in Other long-term assets) | 1 | | 1 | |
| Total cash, restricted cash and cash equivalents | $797 | | $857 | |
Key Data
Disaggregation of Revenue
Revenue disaggregated by geographical area was as follows:
| Three Months Ended March 31, | |
|---|
| (In millions) | | 2026 | | 2025 |
| United Kingdom | $1,595 | | $1,391 | |
| United States | 751 | | 752 | |
| Netherlands | 270 | | 232 | |
| France | 208 | | 186 | |
| Spain | 162 | | 143 | |
| Italy | 109 | | 95 | |
| Other | 203 | | 178 | |
| Total | $3,298 | | $2,977 | |
The Company’s revenue can also be disaggregated by various verticals, reflecting the customers’ principal industry. Revenue disaggregated by industry was as follows:
| Three Months Ended March 31, | |
|---|
| (In millions) | | 2026 | | 2025 |
| Omnichannel retail | $1,561 | | $1,422 | |
| Technology and consumer electronics | 433 | | 393 | |
| Industrial and manufacturing | 394 | | 362 | |
| Consumer packaged goods | 334 | | 284 | |
| Food and beverage | 317 | | 314 | |
| Other | 259 | | 202 | |
| Total | $3,298 | | $2,977 | |
Reconciliation of Net Income (Loss) to Adjusted EBITDA
and Adjusted EBITDA Margins
(Unaudited)
| Three Months Ended March 31, | Year Ended December 31, 2025 | Trailing TwelveMonths EndedMarch 31, 2026 | |
|---|
| (In millions) | 2026 | 2025 | | |
| Net income (loss) attributable to GXO | $4 | $(96) | $32 | $132 |
| Net income attributable to NCI | 1 | 1 | 4 | 4 |
| Net income (loss) | $5 | $(95) | $36 | $136 |
| Interest expense, net | 32 | 32 | 133 | 133 |
| Income tax expense | 12 | 2 | 68 | 78 |
| Depreciation and amortization expense | 115 | 109 | 457 | 463 |
| Transaction and integration costs | 16 | 22 | 54 | 48 |
| Restructuring costs and other | 3 | 17 | 27 | 13 |
| Regulatory matter | - | 66 | 65 | (1) |
| Net loss on divestiture of business | 21 | - | 34 | 55 |
| Unrealized (gain) loss on foreign currency contracts | (4) | 10 | 7 | (7) |
| Adjusted EBITDA | $200 | $163 | $881 | $918 |
| Revenue | $3,298 | $2,977 | | |
| Operating income (loss) | $39 | $(56) | | |
| Operating income (loss) margin | 1.2% | (1.9)% | | |
| Adjusted EBITDA margin(1)(3) | 6.1% | 5.5% | | |
(2) Operating income (loss) margin is calculated as operating income (loss) divided by revenue for the period.
(3) Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue for the period.
Reconciliation of Net Income (Loss) to Adjusted EBITA
and Adjusted EBITA Margins
(Unaudited)
| Three Months Ended March 31, | Year Ended December 31, 2025 | Trailing Twelve Months Ended March 31, 2026 | |
|---|
| (In millions) | | 2026 | | 2025 | | |
| Net income (loss) attributable to GXO | $4 | | $(96) | | $32 | $132 |
| Net income attributable to NCI | 1 | | 1 | | 4 | 4 |
| Net income (loss) | $5 | | $(95) | | $36 | $136 |
| Interest expense, net | 32 | | 32 | | 133 | 133 |
| Income tax expense | 12 | | 2 | | 68 | 78 |
| Amortization of intangible assets acquired | 29 | | 29 | | 119 | 119 |
| Transaction and integration costs | 16 | | 22 | | 54 | 48 |
| Restructuring costs and other | 3 | | 17 | | 27 | 13 |
| Regulatory matter | - | | 66 | | 65 | (1) |
| Net loss on divestiture of business | 21 | | - | | 34 | 55 |
| Unrealized (gain) loss on foreign currency contracts | (4) | | 10 | | 7 | (7) |
| Adjusted EBITA | $114 | | $83 | | $543 | $574 |
| Revenue | | $3,298 | | $2,977 | | |
| Adjusted EBITA margin(1)(2) | | 3.5% | | 2.8% | | |
(2) Adjusted EBITA margin is calculated as adjusted EBITA divided by revenue for the period.
Reconciliation of Net Income (Loss) to Adjusted Net Income
and Adjusted Earnings Per Share
(Unaudited)
| (Dollars in millions, shares in thousands, except per share amounts) | Three Months Ended March 31, | |
| 2026 | | 2025 | |
| Net income (loss) | | $5 | | $(95) |
| Net income attributable to NCI | | (1) | | (1) |
| Net income (loss) attributable to GXO | | $4 | | $(96) |
| Amortization of intangible assets acquired | | 29 | | 29 |
| Transaction and integration costs | | 16 | | 22 |
| Restructuring costs and other | | 3 | | 17 |
| Regulatory matter | | - | | 66 |
| Net loss on divestiture of business | | 21 | | - |
| Unrealized (gain) loss on foreign currency contracts | | (4) | | 10 |
| Income tax associated with the adjustments above | | (11) | | (14) |
| Adjusted net income attributable to GXO | | $58 | | $34 |
| Adjusted basic EPS | | $0.51 | | $0.29 |
| Adjusted diluted EPS | | $0.50 | | $0.29 |
| Weighted-average shares outstanding used in computation of adjusted earnings per share | | | | |
| Basic | | 114,710 | | 118,991 |
| Diluted | | 115,840 | | 119,288 |
(1) The income tax rate applied to items is based on the GAAP annual effective tax rate.
(3) The three months ended March 31, 2025 calculation of loss per share - diluted (GAAP) excludes 297 thousand shares due to their anti-dilutive effect.
Other Reconciliations
(Unaudited)
Reconciliation of Cash Flows from Operations to Free Cash Flow:
| Three Months Ended March 31, | |
|---|
| (In millions) | | 2026 | | 2025 |
| Cash flows from operations | $31 | | $29 | |
| Capital expenditures | (65) | | (78) | |
| Proceeds from sale of property and equipment | 3 | | 1 | |
| Free cash flow | $(31) | | $(48) | |
(1) Net cash provided by operating activities.
Reconciliation of Revenue to Organic Revenue:
| Three Months Ended March 31, | |
|---|
| (In millions) | | 2026 | | 2025 |
| Revenue | $3,298 | | $2,977 | |
| Foreign exchange rates | (198) | | - | |
| Organic revenue | $3,100 | | $2,977 | |
| Revenue growth | | 10.8% | |
| Organic revenue growth(1)(3) | | 4.1% | |
(2) Revenue growth is calculated as the change in the period-over-period revenue divided by the prior period, expressed as a percentage.
(3) Organic revenue growth is calculated as the change in the period-over-period organic revenue divided by the prior period, expressed as a percentage.
Liquidity Reconciliations
(Unaudited)
Reconciliation of Total Debt and Net Debt:
| (In millions) | March 31, 2026 |
| Current debt | $463 |
| Long-term debt | 2,646 |
| Total debt | $3,109 |
| Less: Cash and cash equivalents (excluding restricted cash) | (794) |
| Net debt | $2,315 |
(1) Includes finance leases and other debt of $379 million as of March 31, 2026.
Reconciliation of Total debt to Net income Ratio:
| (In millions) | March 31, 2026 |
| Total debt | $3,109 | |
| Trailing twelve months net income | $136 | |
| Debt to net income ratio | | 22.9x |
Reconciliation of Net Leverage Ratio:
| (In millions) | March 31, 2026 |
| Net debt | $2,315 | |
| Trailing twelve months adjusted EBITDA | $918 | |
| Net leverage ratio | | 2.5x |
Return on Invested Capital
(Unaudited)
Adjusted EBITA, net of income taxes paid/received:
| Three Months Ended March 31, | Year Ended December 31, 2025 | Trailing Twelve Months Ended March 31, 2026 |
|---|
| (In millions) | | 2026 | | 2025 | | |
| Adjusted EBITA | $114 | | $83 | | $543 | $574 |
| Less: Cash (paid) received for income taxes | (6) | | 8 | | (59) | (73) |
| Adjusted EBITA, net of income taxes paid/received | $108 | | $91 | | $484 | $501 |
Return on Invested Capital (ROIC):
| March 31, | |
|---|
| (In millions) | | 2026 | | 2025 | Average |
| Selected Assets: | | | |
| Accounts receivable, net | $2,020 | | $1,895 | | $1,958 | |
| Other current assets | 397 | | 446 | | 422 | |
| Property and equipment, net | 1,181 | | 1,216 | | 1,199 | |
| Selected Liabilities: | | | |
| Accounts payable | $(713) | | $(720) | | $(717) | |
| Accrued expenses | (1,437) | | (1,398) | | (1,418) | |
| Other current liabilities | (413) | | (396) | | (405) | |
| Invested capital | $1,035 | | $1,043 | | $1,039 | |
| Trailing twelve months net income to average invested capital | | | | 13.1% |
| Operating return on invested capital(1)(2) | | | | 48.2% |
(2) The ratio of operating return on invested capital is calculated as trailing twelve months adjusted EBITA, net of income taxes paid/received, divided by the average invested capital.
Contacts
Kristine Kubacki, CFA
+1 (203) 769-7206 kristine.kubacki@gxo.com
Matthew Schmidt
+1 (203) 307-2809 matt.schmidt@gxo.com