GXO Logistics reported a 21% year-on-year increase in revenue for the first quarter of 2025, reaching $3 billion, driven in part by new contract wins and the ongoing integration of recent acquisitions. Organic revenue growth for the period was 3%.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $163 million in the quarter, up from $154 million in Q1 2024. However, net losses widened to $95 million, compared to $36 million a year earlier. Adjusted diluted earnings per share fell from $0.45 to $0.29.
The company’s sales pipeline reached a three-year high of $2.5 billion, excluding Wincanton, which GXO recently acquired. In total, the group secured $228 million in new business during the quarter and stated that it has locked in more than $700 million in additional revenue for 2025, with $300 million already won for 2026.
Commenting on the results, GXO CEO Malcolm Wilson said:
“We’ve finalised a landmark deal with England’s National Health Service Supply Chain. This is our largest-ever contract and carries a total lifetime value of about $2.5 billion.”
Despite the positive revenue figures, cash flow indicators weakened. Operating cash flow fell to $29 million from $50 million in the same period last year. Free cash flow usage also increased, reaching $48 million compared to $17 million a year earlier.
As of 31 March 2025, the company held $288 million in cash and cash equivalents, with outstanding debt of $2.7 billion and net debt totalling $2.4 billion. GXO also repurchased 2.8 million shares during the quarter.
Looking ahead, the company reaffirmed its full-year 2025 guidance. GXO expects organic revenue growth of 3% to 6%, adjusted EBITDA between $840 million and $860 million, and adjusted diluted EPS of $2.40 to $2.60. It also anticipates converting 25% to 35% of adjusted EBITDA into free cash flow.
Wilson noted that GXO’s business model, based on long-term contracts and a diverse geographic footprint, enables the company to manage through “a dynamic macro backdrop”.
In parallel with its financial performance, GXO announced a new multi-year global partnership with supply chain software provider Blue Yonder. The agreement, signed in early May, designates Blue Yonder as one of GXO’s preferred providers of warehouse management systems (WMS). The technology will support GXO’s efforts to increase operational flexibility, automate onboarding, and improve real-time forecasting across its 1,000-plus sites in 27 countries.
“With businesses navigating new logistics challenges daily and global supply chains facing increased unpredictability, our technology solutions will be more productive and more predictable,” said Nizar Trigui, Chief Technology Officer at GXO.
Blue Yonder has also expanded its own sustainability offerings through the acquisition of UK-based carbon tracking startup Pledge Earth Technologies. The acquisition will allow customers to track and report Scope 3 emissions across multiple transport modes in line with frameworks such as ISO 14083 and the GLEC standard.
The NHS Supply Chain deal announced a couple of days ago, described by GXO as its largest-ever contract, marks a major expansion of its public sector logistics footprint in the UK.
At the same time, GXO is progressing with the integration of British logistics firm Wincanton. Although the company did not detail Wincanton’s contribution to Q1 results, it confirmed that the current sales pipeline figures exclude the acquisition’s impact.
