GXO Logistics sees Q1 revenue $2.5B, consensus $2.37B

Expects: Net loss of approximately $36 million, primarily driven by a $63 million expense associated with legacy litigation; Adjusted earnings before interest, taxes, depreciation and amortization of approximately $154 million; Cash and cash equivalents of approximately $423 million; Long-term debt, including current debt of $26 million, of approximately $1,637 million; and New business wins in the quarter of approximately $250 million, including new business with Boeing, Guess, Michelin and WH Smith. Malcolm Wilson, CEO of GXO, said, “Our solid preliminary first quarter results reflect the improving trend we noted earlier this year, and we anticipate continued sequential organic growth throughout 2024. As a result, we are reiterating our full-year 2024 guidance. Our pace of new business wins is accelerating, with a 55% increase year over year in first quarter wins. We continue to see a strong outsourcing trend, with more than half of our wins in the quarter coming from customers outsourcing to GXO or partnering with GXO for the first time, and our pipeline has increased to $2.2 billion as of the end of the quarter. Customers are continuing to turn to GXO to improve service, drive efficiencies, and lower costs throughout their supply chains. We’re also taking this opportunity to update the long-term guidance provided at our Investor Day in January 2023. Our revised targets reflect our performance in 2023 and guidance for 2024, which assumes the gradual recovery of consumer demand for physical goods. Additionally, following the recent approval by Wincanton shareholders of our planned acquisition, the expected impact of this transaction is also embedded in our new 2027 plan. Looking ahead, we’re enhancing our position to capture more of the growing outsourcing opportunity. We are investing in our sales organization and strategically increasing the number of higher-margin, longer-duration automation contracts across our global footprint. We are also diversifying our business across geographies, including Germany, and verticals, particularly in beauty and luxury markets worldwide, as well as industrials and aerospace in Europe. These actions, coupled with the normalizing of consumer goods spending, underpin our confidence in our long-term growth framework to drive significant shareholder value over the long term.”