GXO Logistics reported record revenue of $3.50 billion in the fourth quarter of 2025, a 7.9% year‑over‑year increase, and $13.20 billion for the full year, up 12.5% from $11.70 billion in 2024. Adjusted EBITDA rose to $255 million in Q4 and $881 million for the year, reflecting a 13% increase in the quarter and a 7% rise for the year. Net income fell to $43 million from $100 million in Q4 2024, and GAAP diluted earnings per share dropped to $0.28 from $1.12, while adjusted diluted EPS beat consensus at $0.87 versus an estimate of $0.83, a $0.04 or 4.8% beat.
The revenue growth was driven by strong demand across all regions, with organic revenue up 3.5% in Q4 and 3.9% for the year. The company’s core logistics services, particularly in North America and Europe, contributed the largest share of the increase, while the newly acquired Wincanton network in the UK added $200 million in incremental revenue. The company also secured several high‑margin contracts in e‑commerce and cold‑chain logistics, offsetting modest headwinds in the traditional freight segment.
Margin performance showed a slight contraction. Adjusted EBITDA margin fell to 7.3% in Q4 from 7.7% in Q4 2024 and to 6.7% for the year from 7.0% in 2024. The compression was largely due to higher operating costs associated with the Wincanton integration, including restructuring and regulatory expenses, and a modest decline in the mix of high‑margin services. Despite the margin squeeze, the company maintained a strong operating leverage, with revenue growth outpacing the increase in cost base.
Management updated its 2026 guidance, correcting the previously misstated figures. The company now projects adjusted EBITDA of $930 million to $970 million and organic revenue growth of 4% to 5% for the full year, up from the earlier guidance of $865 million to $885 million and 3.5% to 6.5%. The higher guidance reflects confidence in continued demand for GXO’s automation platform, GXO IQ, and the expected acceleration of synergies from the Wincanton acquisition, which is projected to deliver $60 million in run‑rate synergies by the end of 2026.
The Wincanton integration is progressing as planned, with the company reporting that the first phase of system consolidation is complete and that operational efficiencies are already being realized. GXO also highlighted its investment in AI and robotics, noting that the deployment of GXO IQ across its network is expected to reduce labor costs by 10% over the next two years. The company’s CEO, Patrick Kelleher, said, “We delivered record revenue in both the fourth quarter and the full year, with organic growth in every region, affirming the value we are delivering for customers and the resilience of our model.” He added that the company’s focus on technology will continue to drive efficiency and performance in 2026.
Analysts noted that while the earnings beat was modest, the company’s guidance signals strong confidence in its growth trajectory. The market reaction was tempered by concerns over the decline in GAAP net income and margin compression, but the overall sentiment remained positive due to the company’s robust revenue growth, strategic technology investments, and the expected synergies from the Wincanton acquisition.
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