In the third quarter of 2024, GXO Logistics reported record revenue of $3.2 billion, a 28% year-on-year increase, driven largely by demand in the e-commerce sector. ID Logistics also performed strongly, achieving a 20.1% revenue growth, bolstered by new contracts and expansion efforts in the U.S. market.
Conversely, C.H. Robinson navigated a challenging freight market, demonstrating significant profitability gains despite a decline in truckload pricing that negatively impacted its North American Surface Transportation segment. Meanwhile, DHL Group experienced more modest revenue growth of 6.2%, reflecting broader economic uncertainties and resulting in a cautious adjustment to its full-year EBIT guidance.
GXO: record third-quarter revenue
GXO Logistics Inc. reported a robust third quarter for 2024, with revenue climbing to a record $3.2 billion, representing a 28% year-on-year increase, driven in part by a 3% rise in organic revenue. The third quarter also saw GXO maintain its forecast for the full year, with a projected organic revenue growth between 2% and 5%.
CEO Malcolm Wilson highlighted the firm’s momentum, noting,
“We delivered our highest-ever quarterly revenue of $3.2 billion, alongside strong cash flow and organic revenue growth.”
Wilson further attributed the company’s performance to sustained demand in e-commerce, a sector that accounted for over half of GXO’s new wins in the quarter. The company also opened its largest e-commerce warehouse in France, in collaboration with a long-term partner.
For the first nine months of 2024, GXO signed approximately $750 million in new business, with the sales pipeline swelling by 30% to reach $2.4 billion – its highest level in over two years. The firm expects 2024 to be a record year for new business.
Despite record revenue, GXO’s net income dropped to $35 million from $68 million in Q3 2023, with diluted earnings per share (EPS) at $0.28, down from $0.55 in the prior year. Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to $223 million, up from $200 million last year, while adjusted diluted EPS increased to $0.79 from $0.69.
GXO’s reaffirmed guidance for 2024 projects adjusted EBITDA between $805 million and $835 million, an adjusted EPS of $2.73 to $2.93, and a free cash flow conversion rate of 30% to 40%.
C.H. Robinson: 15.5% gross profit growth
C.H. Robinson Worldwide reported robust third-quarter financial performance for 2024 with significant profitability gains despite a challenging freight market. Key drivers included improved gross profits, disciplined volume growth, and a refined operating model that enhanced productivity and operating leverage.
For the quarter ending September 30, 2024, C.H. Robinson’s gross profits increased by 15.5% year-over-year to $723.8 million, while income from operations surged by 58.7% to $180.1 million.
The company’s total revenues grew by 7.0% to $4.6 billion, largely due to stronger pricing and volumes in ocean services. However, these gains were partly offset by reduced pricing and volumes in truckload services, impacted by a prolonged freight downturn and an oversupply in truckload capacity.
Despite these challenges, C.H. Robinson’s North American Surface Transportation (NAST) segment reported a 4.9% revenue decline to $2.9 billion, attributed to lower truckload pricing. Nevertheless, NAST-adjusted gross profits rose by 8.8%.
Global Forwarding experienced notable growth, with third-quarter revenues surging by 58.7% to $1.1 billion, supported by higher pricing and volumes in ocean services. Operating income reached $88.1 million, marking a significant improvement from last year’s figures.
Operating expenses grew by 6.5% to $555.1 million, driven primarily by personnel costs and a $57 million loss linked to the planned divestiture of C.H. Robinson’s European Surface Transportation business. Average employee headcount decreased by 9.6% as part of ongoing cost optimisation efforts.
CEO Dave Bozeman attributed the company’s success to a new operating model designed to drive operational discipline and enhance productivity. Bozeman highlighted that the model enabled effective problem resolution, stronger decision-making based on data, and more precise pricing strategies, creating a performance “flywheel” that supports talent development and accountability.
Year-to-date, C.H. Robinson reported a revenue increase of 1.2% to $13.5 billion, with operating income up 19.2% to $485.3 million. The company’s adjusted gross profits grew 4.4% to $2.0 billion, driven by gains in both ocean and truckload services.
ID Logistics: 20.1% revenue growth
ID Logistics, a European contract logistics provider, reported a strong third quarter for 2024 with revenues reaching €827.3 million, marking a 19.6% increase from the same period in 2023. Like-for-like growth stood slightly higher at 20.1%, driven by new contracts and geographic expansion. Cumulatively, revenue for the first nine months of 2024 amounted to €2.35 billion, reflecting a 19.0% increase year-on-year.
All regions contributed to the positive growth, led by a notable upturn in France, where revenue increased by 6.1% year-on-year, comprising 26% of the group’s total revenue. Europe, excluding France, saw an 18.5% revenue boost on a like-for-like basis and now accounts for nearly half of the group’s total revenue.
The United States continued its strong trajectory, posting a remarkable 48.6% revenue growth, while Latin America and Asia saw a combined increase of 31.7%.
In Q3, ID Logistics initiated seven new projects, including a contract with Intermarché in France, where the logistics firm took over a 52,200 square metre site near Saint-Etienne, transferring activities previously managed by Casino Group.
The company also expanded its operations in Romania with a Carrefour partnership, set to distribute non-food products to 420 stores from a new 32,000 square metre facility near Bucharest.
Other key projects include handling inventory and deliveries for Leroy Merlin in Milan and managing logistics for an e-commerce giant in Germany.
With continued growth across markets and sustained demand for its logistics services, ID Logistics anticipates a strong close to 2024.
DHL Group: 6.2% revenue growth
DHL Group announced a 6.2% revenue increase in the third quarter of 2024, reaching €20.6 billion, compared to €19.4 billion in Q3 2023, despite subdued global economic conditions. Operating profit (EBIT) remained steady at €1.37 billion, aligning with market expectations and substantially surpassing pre-pandemic levels (Q3 2019: €942 million).
CEO Tobias Meyer highlighted the company’s resilience amidst a weak economic backdrop, stating,
“We were able to significantly increase revenue and initiate a turnaround in EBIT compared to the prior-year quarter. Now it is crucial to provide our customers with the expected high quality during the peak season.”
Each of DHL’s five main divisions reported distinct performance trends:
- Express saw a 3% revenue increase to €6.06 billion. Daily time-definite international (TDI) volumes fell by 5.9%, yet steady revenue per shipment underscored effective yield management.
- Global Forwarding, Freight recorded the highest growth at 14%, with revenue reaching €5.04 billion, attributed to increased ocean freight volumes and rates. However, EBIT declined by 9.5% to €277 million, reflecting margin pressures.
- Supply Chain reported a 4% revenue growth to €4.43 billion, bolstered by new contract signings in sectors such as Energy and Retail. EBIT increased by 13.2% to €274 million, driven by efficiency measures and e-commerce demand.
- eCommerce grew by 11.4% to €1.65 billion, though EBIT decreased by 9.1% to €50 million due to higher depreciation costs associated with network expansion.
- Post & Parcel Germany saw revenue rise 2.4% to €4.05 billion, led by a 5.4% uptick in parcel volumes. The decline in letter mail volumes, however, led to a 17.4% reduction in EBIT to €171 million.
DHL adjusted its full-year EBIT guidance to over €5.8 billion, down from the previous range of €6.0-€6.6 billion.