Patrick Creuset

Patrick Creuset asked for a timeline on when GXO expects to see meaningful commercial traction and accelerated organic growth in its U.S. business. He also inquired about the expected timing for GXO's margins to converge with larger European peers and if the rollout of best practices and AI tools contributes to the stronger guided second-half EBITDA. Additionally, he sought clarification on the specific cost buckets GXO IQ's AI capabilities target.

Answer

CEO Patrick Kelleher stated North America is a priority for organic growth, with traction already visible, and 2026 guidance reflecting sales and startup cycles, leading to excitement for 2027. He affirmed a structural margin opportunity, with Wincanton integration synergies ($60M by end of 2026) correcting near-term dilution, aiming for peer-level margins. CFO Baris Oran detailed Wincanton's contribution and integration benefits. CSO Kristine Kubacki highlighted GXO IQ's scaling to 50+ sites in 2026, with initial savings seen in 2025. Patrick Kelleher further explained AI targets overhead efficiency (SG&A, corporate functions) and innovation in customer operations (route planning, forecasting) to reduce costs and improve service.

Patrick Creuset inquired about the timeline for GXO to see meaningful commercial traction and organic growth acceleration in its US business. He also asked when GXO expects to converge towards the margin levels of its larger European peers, and if the rollout of best practices and AI tools contributes to the stronger guided second-half EBITDA performance. Finally, he asked about the specific cost buckets GXO IQ targets.

Answer

Patrick Kelleher (CEO, GXO) stated that traction is already visible in North America, with a strong foundation and a $250 billion market opportunity, and that 2026 guidance reflects the sales and startup cycle, with excitement for 2027. He confirmed a structural margin opportunity, with near-term dilution from Wincanton integration correcting in 2026 ($60 million synergies by year-end). Baris Oran (CFO, GXO) added Wincanton is contributing and integration is progressing. Kristine Kubacki (Chief Strategy Officer, GXO) noted proprietary AI modules deployed for 18 months, with GXO IQ scaling to 50+ sites in 2026. Patrick Kelleher (CEO, GXO) explained GXO IQ targets overhead efficiency in corporate functions and innovation in customer warehouse/transport operations (e.g., dynamic route planning, labor planning via forecasting).