• GXO Reports Third Quarter 2024 Results

    Source: Nasdaq GlobeNewswire / 04 Nov 2024 15:30:01   America/Chicago

    • Third quarter revenue increased 28% year over year to a record $3.2 billion, with organic revenue growth of 3%
    • Signed approximately $750 million in annualized revenue year to date; on track to win a record level of new business in 2024
    • Sales pipeline increased 30% year over year to $2.4 billion and stands at a two-year high
    • Reaffirmed full-year 2024 guidance

    GREENWICH, Conn., Nov. 04, 2024 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO) today announced results for the third quarter 2024.

    Malcolm Wilson, chief executive officer of GXO, said, “We have increasing momentum in our business. In the third quarter, we delivered our highest-ever quarterly revenue of $3.2 billion, reflecting growth of 28% year over year, along with sequential improvement in organic revenue growth and strong free cash flow.

    “We signed $226 million of new business wins, bringing year-to-date wins to about $750 million. Our sales pipeline stands at its highest level in more than two years, and we are on track to deliver a record year for new business wins in 2024.

    “We’re seeing increasing demand for ecommerce capacity. This is a long-term structural tailwind that has been a key growth driver for us over the past five years. More than half of our new wins in the third quarter originated from e-fulfillment, and we also opened the largest ecommerce warehouse in France, in partnership with one of our long-term customers.

    “Our performance gives us confidence in the acceleration of our organic growth in 2025 and beyond. GXO is well positioned to capitalize on the secular supply chain trends of complexity, ecommerce, automation and outsourcing, and to deliver long-term profitable growth.”

    Third Quarter 2024 Results

    Revenue increased to $3.2 billion, up 28% year over year, compared with $2.5 billion for the third quarter 2023. Organic revenue1 grew by 3%.

    Net income was $35 million, compared with $68 million for the third quarter 2023. Diluted earnings per share was $0.28, compared with $0.55 for the third quarter 2023.

    Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA1”) was $223 million, compared with $200 million for the third quarter 2023. Adjusted diluted EPS1 was $0.79, compared with $0.69 for the third quarter 2023.

    ____________________________

    1 For definitions of non-GAAP measures see the “Non-GAAP Financial Measures” section in this press release.

    GXO generated $198 million of cash flow from operations, compared with $243 million for the third quarter 2023. In the third quarter of 2024, GXO generated $110 million of free cash flow1, compared with $191 million of free cash flow1 for the third quarter 2023.

    Cash Balances and Outstanding Debt

    As of September 30, 2024, cash and cash equivalents (excluding restricted cash), debt outstanding and net debt1 were $548 million, $2.8 billion and $2.2 billion, respectively.

    Guidance

    The company reaffirms its guidance for the full year 20242 as follows:

    • Organic revenue growth1 of 2% to 5%;
    • Adjusted EBITDA1 of $805 million to $835 million;
    • Adjusted diluted EPS1 of $2.73 to $2.93; and
    • Adjusted EBITDA1 to free cash flow1 conversion of 30% to 40%.

    Conference Call

    GXO will hold a conference call on Tuesday, November 5, 2024, 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: 13749227. 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 November 19, 2024. 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 13749227.

    About GXO Logistics

    GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is capitalizing on the rapid growth of ecommerce and automation. GXO is committed to providing a world-class, diverse workplace for more than 130,000 team members in more than 970 facilities totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions. GXO is headquartered in Greenwich, Connecticut, USA. 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 financial tables below.

    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, 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”).

    ____________________________

    2 Our guidance reflects current FX rates.

    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 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, litigation expenses as well as restructuring costs and other adjustments as set forth in the financial table below. Transaction and integration adjustments are generally incremental costs that result from an actual or planned acquisition, divestiture or spin-off and may include transaction costs, 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. Litigation expenses primarily relate to the settlement of ongoing legal matters. Restructuring costs primarily relate to severance costs associated with business optimization initiatives.

    We believe that adjusted EBITDA, adjusted EBITDA margin, adjusted EBITA, adjusted EBITA, net of income taxes paid, and adjusted EBITA margin, improve comparability from period to period by removing the impact of our capital structure (interest and financing expenses), asset base (depreciation and amortization of intangible assets acquired), tax impacts and other adjustments as set out in the attached 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, revenue from acquired businesses and revenue from disposed business.

    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, which management has determined are not reflective of our core operating activities, including amortization of acquisition-related intangible assets.

    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 flow 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 adding bank overdrafts and removing cash and cash equivalents from our total debt and net debt as a ratio of our adjusted EBITDA. We calculate ROIC as our trailing twelve months adjusted EBITA, net of income taxes paid, 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 2024 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 the forward-looking statements of income and cash flows prepared in accordance with GAAP, that would be required to produce such a reconciliation.

    Forward-Looking Statements

    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 the acceleration of our organic revenue growth in 2025 and beyond and our full-year 2024 guidance. 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.

    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 its subcontractors, and risks associated with labor disputes at our customers’ facilities and efforts by labor organizations to organize its 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; 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.

    Investor Contact
     
    Chris Jordan
    +1 (203) 769-7228
    chris.jordan@gxo.com
     
    Media Contact
     
    Matthew Schmidt
    +1 (203) 307-2809
    matt.schmidt@gxo.com


    GXO Logistics, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)
     
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (Dollars in millions, shares in thousands, except per share amounts) 2024
     2023
     2024
     2023
    Revenue $3,157  $2,471  $8,459  $7,188 
    Direct operating expense  2,671   2,012   7,116   5,875 
    Selling, general and administrative expense  265   258   784   761 
    Depreciation and amortization expense  111   101   302   268 
    Transaction and integration costs  21   3   55   22 
    Restructuring costs and other  9   7   26   31 
    Litigation expense (1)  (1)     59    
    Operating income  81   90   117   231 
    Other income (expense), net  (6)  7   1   8 
    Interest expense, net  (33)  (14)  (69)  (41)
    Income before income taxes  42   83   49   198 
    Income tax expense  (7)  (15)  (11)  (38)
    Net income  35   68   38   160 
    Net income attributable to Noncontrolling Interests (“NCI”)  (2)  (2)  (4)  (4)
    Net income attributable to GXO $33  $66  $34  $156 
             
    Earnings per share        
    Basic $0.28  $0.55  $0.28  $1.31 
    Diluted $0.28  $0.55  $0.28  $1.31 
             
    Weighted-average common shares outstanding        
    Basic  119,461   118,941   119,387   118,883 
    Diluted  119,793   119,645   119,718   119,430 
                     


    (1)On June 14, 2024, the Company’s subsidiary GXO Warehouse Company, Inc. entered into a Confidential Settlement Agreement (the “Settlement Agreement”) to settle all claims in connection with a dispute between the Company and one of its customers related to the start-up of the customer’s warehouse that occurred in 2018 (the “Dispute”). A payment under the Settlement Agreement was made by the Company on July 5, 2024. As of July 10, 2024, the Dispute, which was litigated under the caption Lindt et al. v. GXO Warehouse Company, Inc., docket no. 4:22-cv-00384-BP, in Federal District Court for the Western District of Missouri (the “Court”), was dismissed with prejudice with each side to bear their own costs and fees, and the Court retained jurisdiction to enforce the terms of the Settlement Agreement. Among other things in the Settlement Agreement, the parties each denied the allegations and counterclaims asserted in the Dispute, and agreed to a mutual release of claims arising from, under or otherwise in connection with their prior business relationship and the Dispute, in exchange for a payment by the Company of $45 million. The Company intends to pursue reimbursement in connection with this Dispute under its existing insurance policies. The Company recognized $59 million expense for the nine months ended September 30, 2024 for the settlement, associated legal fees, costs and other related expenses.


    GXO Logistics, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
     
      September 30, December 31,
    (Dollars in millions, shares in thousands, except per share amounts) 2024 2023
    ASSETS    
    Current assets    
    Cash and cash equivalents $548  $468 
    Accounts receivable, net of allowance of $14 and $11  1,968   1,753 
    Other current assets  443   347 
    Total current assets  2,959   2,568 
    Long-term assets    
    Property and equipment, net of accumulated depreciation of $1,723 and $1,545  1,161   953 
    Operating lease assets  2,501   2,201 
    Goodwill  3,676   2,891 
    Intangible assets, net of accumulated amortization of $612 and $528  1,061   567 
    Other long-term assets  542   327 
    Total long-term assets  8,941   6,939 
    Total assets $11,900  $9,507 
    LIABILITIES AND EQUITY    
    Current liabilities    
    Accounts payable $748  $709 
    Accrued expenses  1,411   966 
    Current debt  223   27 
    Current operating lease liabilities  681   597 
    Other current liabilities  369   327 
    Total current liabilities  3,432   2,626 
    Long-term liabilities    
    Long-term debt  2,556   1,620 
    Long-term operating lease liabilities  2,067   1,842 
    Other long-term liabilities  704   473 
    Total long-term liabilities  5,327   3,935 
    Commitments and Contingencies    
    Stockholders’ Equity    
    Common Stock, $0.01 par value per share; 300,000 shares authorized, 119,472 and 119,057 issued and outstanding  1   1 
    Preferred Stock, $0.01 par value per share; 10,000 shares authorized, none issued and outstanding      
    Additional Paid-In Capital (“APIC”)  2,620   2,598 
    Retained earnings  586   552 
    Accumulated Other Comprehensive Income (Loss) (“AOCIL”)  (101)  (239)
    Total stockholders’ equity before NCI  3,106   2,912 
    NCI  35   34 
    Total equity  3,141   2,946 
    Total liabilities and equity $11,900  $9,507 
             


    GXO Logistics, Inc.
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
      Nine Months Ended
    September 30,
    (In millions) 2024 2023
    Cash flows from operating activities:    
    Net income $38  $160 
    Adjustments to reconcile net income to net cash provided by operating activities    
    Depreciation and amortization expense  302   268 
    Stock-based compensation expense  30   25 
    Deferred tax benefit  (37)  (29)
    Other  11   16 
    Changes in operating assets and liabilities    
    Accounts receivable  50   (23)
    Other assets  (21)  (39)
    Accounts payable  (29)  (69)
    Accrued expenses and other liabilities  19   34 
    Net cash provided by operating activities  363   343 
    Cash flows from investing activities:    
    Capital expenditures  (255)  (205)
    Proceeds from sale of property and equipment  16   13 
    Acquisition of businesses, net of cash acquired  (863)   
    Cross-currency swap agreements settlement  (5)   
    Net cash used in investing activities  (1,107)  (192)
    Cash flows from financing activities:    
    Proceeds from debt, net  1,085    
    Repayments of debt, net  (216)  (139)
    Repayments of finance lease obligations  (32)  (24)
    Taxes paid related to net share settlement of equity awards  (8)  (7)
    Net cash provided by (used in) financing activities  829   (170)
    Effect of exchange rates on cash and cash equivalents  14   (2)
    Net increase (decrease) in cash, restricted cash and cash equivalents  99   (21)
    Cash, restricted cash and cash equivalents, beginning of period  470   495 
    Cash, restricted cash and cash equivalents, end of period $569  $474 
         
    Reconciliation of cash, restricted cash and cash equivalents    
    Cash and cash equivalents $548  $473 
    Restricted Cash (included in Other long-term assets)  21   1 
    Total cash, restricted cash and cash equivalents $569  $474 


    GXO Logistics, Inc.
    Key Data
    Disaggregation of Revenue
    (Unaudited)
     
    Revenue disaggregated by geographical area was as follows:
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (In millions) 2024 2023 2024 2023
    United Kingdom $1,525 $958 $3,727 $2,695
    United States  771  711  2,249  2,117
    Netherlands  242  216  680  610
    France  195  207  596  626
    Spain  147  133  421  396
    Italy  98  97  288  279
    Other  179  149  498  465
    Total $3,157 $2,471 $8,459 $7,188
     


    The Company’s revenue can also be disaggregated by the customer’s primary industry. Revenue disaggregated by industries was as follows:
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (In millions) 2024 2023 2024 2023
    Omnichannel retail $1,479 $1,051 $3,817 $3,041
    Technology and consumer electronics  392  360  1,137  1,081
    Food and beverage  344  362  986  1,004
    Industrial and manufacturing  376  263  973  803
    Consumer packaged goods  311  231  896  689
    Other  255  204  650  570
    Total $3,157 $2,471 $8,459 $7,188
                 


    GXO Logistics, Inc.
    Reconciliation of Net Income to Adjusted EBITDA
    and Adjusted EBITDA Margins
    (Unaudited)
     
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
     Year Ended 
    December 31, 2023
     Trailing Twelve 
    Months Ended 
    September 30, 2024
    (In millions) 2024
     2023
     2024
     2023
      
    Net income attributable to GXO $33  $66  $34  $156  $229  $107
    Net income attributable to NCI  2   2   4   4   4   4
    Net income $35  $68  $38  $160  $233  $111
    Interest expense, net  33   14   69   41   53   81
    Income tax expense  7   15   11   38   33   6
    Depreciation and amortization expense  111   101   302   268   361   395
    Transaction and integration costs  21   3   55   22   34   67
    Restructuring costs and other  9   7   26   31   32   27
    Litigation expense  (1)     59         59
    Unrealized (gain) loss on foreign currency contracts and other  8   (8)  4   (12)  (5)  11
    Adjusted EBITDA (1) $223  $200  $564  $548  $741  $757
                 
    Revenue $3,157  $2,471  $8,459  $7,188     
    Operating income $81  $90  $117  $231     
    Operating income margin (2)  2.6%  3.6%  1.4%  3.2%    
    Adjusted EBITDA margin (1)(3)  7.1%  8.1%  6.7%  7.6%    
     

    (1) See the “Non-GAAP Financial Measures” section of this press release.
    (2) Operating income margin is calculated as operating income divided by revenue for the period.
    (3) Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue for the period.

    GXO Logistics, Inc.
    Reconciliation of Net Income to Adjusted EBITA
    and Adjusted EBITA Margins
    (Unaudited)
     
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
     Year Ended
    December 31, 2023

     Trailing Twelve
    Months Ended
    September 30, 2024

    (In millions) 2024 2023 2024 2023  
    Net income attributable to GXO $33  $66  $34  $156  $229  $107
    Net income attributable to NCI  2   2   4   4   4   4
    Net income $35  $68  $38  $160  $233  $111
    Interest expense, net  33   14   69   41   53   81
    Income tax expense  7   15   11   38   33   6
    Amortization of intangible assets acquired  36   18   77   54   71   94
    Transaction and integration costs  21   3   55   22   34   67
    Restructuring costs and other  9   7   26   31   32   27
    Litigation expense  (1)     59         59
    Unrealized (gain) loss on foreign currency contracts and other  8   (8)  4   (12)  (5)  11
    Adjusted EBITA (1) $148  $117  $339  $334  $451  $456
                 
    Revenue $3,157  $2,471  $8,459  $7,188     
    Adjusted EBITA margin (1)(2)  4.7%  4.7%  4.0%  4.6%    
                         

    (1) See the “Non-GAAP Financial Measures” section of this press release.
    (2) Adjusted EBITA margin is calculated as adjusted EBITA divided by revenue for the period.

    GXO Logistics, Inc.
    Reconciliation of Net Income to Adjusted Net Income
    and Adjusted Earnings Per Share
    (Unaudited)
     
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (Dollars in millions, shares in thousands, except per share amounts) 2024 2023 2024 2023
    Net income $35  $68  $38  $160 
    Net income attributable to NCI  (2)  (2)  (4)  (4)
    Net income attributable to GXO $33  $66  $34  $156 
    Amortization of intangible assets acquired  36   18   77   54 
    Transaction and integration costs  21   3   55   22 
    Restructuring costs and other  9   7   26   31 
    Litigation expense  (1)     59    
    Unrealized (gain) loss on foreign currency contracts and other  8   (8)  4   (12)
    Income tax associated with the adjustments above (1)  (11)  (4)  (40)  (21)
    Discrete tax benefit (2)           (5)
    Adjusted net income attributable to GXO (3) $95  $82  $215  $225 
             
    Adjusted basic EPS (3) $0.80  $0.69  $1.80  $1.89 
    Adjusted diluted EPS (3) $0.79  $0.69  $1.80  $1.88 
             
    Weighted-average common shares outstanding        
    Basic  119,461   118,941   119,387   118,883 
    Diluted  119,793   119,645   119,718   119,430 
                     

    (1) The income tax rate applied to items is based on the GAAP annual effective tax rate.
    (2) Discrete tax benefit from intangible assets and the release of valuation allowances.
    (3) See the “Non-GAAP Financial Measures” section of this press release.

    GXO Logistics, Inc.
    Other Reconciliations
    (Unaudited)
     
    Reconciliation of Cash Flow from Operations to Free Cash Flow:
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (In millions) 2024 2023 2024 2023
    Cash flow from operations (1) $198  $243  $363  $343 
    Capital expenditures  (94)  (55)  (255)  (205)
    Proceeds from sale of property and equipment  6   3   16   13 
    Free cash flow (2) $110  $191  $124  $151 
                     

    (1) Net cash provided by operating activities.
    (2) See the “Non-GAAP Financial Measures” section of this press release.

    Reconciliation of Revenue to Organic Revenue:
      Three Months Ended
    September 30,
     Nine Months Ended
    September 30,
    (In millions) 2024 2023 2024 2023
    Revenue $3,157  $2,471  $8,459  $7,188 
    Revenue from acquired business (1)  (591)     (1,050)   
    Revenue from disposed business (1)     (3)  (1)  (10)
    Foreign exchange rates  (35)     (85)   
    Organic revenue (2) $2,531  $2,468  $7,323  $7,178 
             
    Revenue growth (3)  27.8%    17.7%  
    Organic revenue growth (2)(4)  2.6%    2.0%  
                 

    (1) The Company excludes revenue from acquired and disposed businesses for periods that are not comparable.
    (2) See the “Non-GAAP Financial Measures” section of this press release.
    (3) Revenue growth is calculated as the change in the period-over-period revenue divided by the prior period, expressed as a percentage.
    (4) Organic revenue growth is calculated as the change in the period-over-period organic revenue divided by the prior period, expressed as a percentage.

    GXO Logistics, Inc.
    Liquidity Reconciliations
    (Unaudited)
     
    Reconciliation of Total Debt and Net Debt:
    (In millions) September 30, 2024
    Current debt $223 
    Long-term debt  2,556 
    Total debt (1) $2,779 
    Less: Cash and cash equivalents (excluding restricted cash)  (548)
    Net debt (2) $2,231 
         

    (1) Includes finance leases and other debt of $316 million as of September 30, 2024.
    (2) See the “Non-GAAP Financial Measures” section of this press release.

    Reconciliation of Total debt to Net income Ratio:
    (In millions) September 30, 2024
    Total debt $2,779
    Trailing twelve months net income $111
    Debt to net income ratio 25.0x


    Reconciliation of Net Leverage Ratio:
    (In millions) September 30, 2024
    Net debt $2,231
    Trailing twelve months adjusted EBITDA (1) $757
    Net leverage ratio (1) 2.9x

    (1) See the “Non-GAAP Financial Measures” section of this press release.

    GXO Logistics, Inc.
    Return on Invested Capital
    (Unaudited)
     
    Adjusted EBITA, net of income taxes paid:
      Nine Months Ended
    September 30,
     Year Ended
    December 31, 2023

     Trailing Twelve 
    Months Ended
    September 30, 2024
    (In millions) 2024 2023  
    Adjusted EBITA (1) $339  $334  $451  $456 
    Less: Cash paid for income taxes  (26)  (57)  (84)  (53)
    Adjusted EBITA, net of income taxes paid (1) $313  $277  $367  $403 
                     

    (1) See the “Non-GAAP Financial Measures” section of this press release.

    Return on Invested Capital (ROIC):
      September 30,  
    (In millions)  2024   2023  Average
    Selected Assets:      
    Accounts receivable, net $1,968  $1,661  $1,815 
    Other current assets  443   332   388 
    Property and equipment, net  1,161   923   1,042 
    Selected Liabilities:      
    Accounts payable  (748)  (597)  (673)
    Accrued expenses  (1,411)  (975)  (1,193)
    Other current liabilities  (369)  (275)  (322)
    Invested capital $1,044  $1,069  $1,057 
           
    Trailing twelve months net income to average invested capital      10.5%
    Operating return on invested capital (1)(2)      38.1%
             


    (1)See the “Non-GAAP Financial Measures” section of this press release.
    (2)The ratio of operating return on invested capital is calculated as trailing twelve months adjusted EBITA, net of income taxes paid, divided by the average invested capital.

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