Executive Summary

Record revenue of $3.395B (+8% y/y) and adjusted EBITDA of $251M (+13% y/y); adjusted EPS was $0.79. GXO modestly beat S&P Global consensus on revenue and EPS and exceeded EBITDA expectations, driven by productivity gains and faster-than-planned maturation of automated startups .
Guidance reaffirmed: FY25 organic growth 3.5–6.5%, adjusted EBITDA $865–$885M, adjusted EPS $2.43–$2.63, FCF conversion 25–35% .
Strategic momentum: $280M of Q3 wins (+24% y/y), robust $2.3B pipeline, large NHS Supply Chain contract ramping, and Wincanton integration progressing with $60M run-rate cost synergies by end-2026 .
CEO transition narrative: new CEO Patrick Kelleher sharpened focus on North America and higher-margin verticals (aerospace/defense, industrial, life sciences, data centers) and operational discipline (COO role, GXO IQ AI modules) to expand margins in 2026 .

What Went Well and What Went Wrong

What Went Well
- “Record quarterly revenue of $3.4 billion… Adjusted EBITDA grew 13%… New business wins of $280 million were up 24% y/y” .
- Margin expansion: adjusted EBITDA margin rose 100 bps q/q and 30 bps y/y, driven by site-level productivity and accelerated maturation of automated startups .
- Strategic wins and pipeline expansion: NHS go-live in early October; three new contracts with a leading hyperscaler; expanded partnership with NetApp; $700M of incremental 2026 revenue already secured .
What Went Wrong
- Peak-season volume trends “not strong, but not weak,” with softer volumes expected to continue into Q4, implying a more muted y/y margin performance on harder comps .
- FX headwinds: CFO flagged recent marginal FX weakening; guidance confidence maintained but near-term dynamics noted .
- Wincanton integration delays diluted margins to date; synergy capture shifts margin uplift to 2026, with run-rate $60M cost synergies by end-2026 .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Billions)	$3.157	$3.299	$3.395
Diluted EPS (GAAP, $)	$0.28	$0.23	$0.51
Adjusted Diluted EPS ($)	$0.79	$0.57	$0.79
Adjusted EBITDA ($USD Millions)	$223	$212	$251
Adjusted EBITDA Margin (%)	7.1%	6.4%	7.4%
Free Cash Flow ($USD Millions)	$110	-$43	$187

Segment revenue (industry) – Q3 y/y:

Industry ($USD Millions)	Q3 2024	Q3 2025
Omnichannel Retail	$1,479	$1,645
Technology & Consumer Electronics	$392	$420
Industrial & Manufacturing	$376	$386
Food & Beverage	$344	$371
Consumer Packaged Goods	$311	$324
Other	$255	$249
Total	$3,157	$3,395

Regional revenue – Q3 y/y:

Geography ($USD Millions)	Q3 2024	Q3 2025
United Kingdom	$1,525	$1,628
United States	$771	$801
Netherlands	$242	$275
France	$195	$210
Spain	$147	$170
Italy	$98	$103
Other	$179	$208
Total	$3,157	$3,395

Consensus vs actual (S&P Global):

Metric (Q3 2025)	Consensus	Actual
Revenue ($USD Billions)	$3.3866*	$3.395
Primary EPS ($)	$0.7834*	$0.79
EBITDA ($USD Millions)	$244.1*	$251

Values marked with * retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic Revenue Growth (%)	FY 2025	3.5–6.5%	3.5–6.5%	Maintained
Adjusted EBITDA ($USD Millions)	FY 2025	$865–$885	$865–$885	Maintained
Adjusted Diluted EPS ($)	FY 2025	$2.43–$2.63	$2.43–$2.63	Maintained
Adjusted EBITDA to FCF Conversion (%)	FY 2025	25–35%	25–35%	Maintained

Management reaffirmed full-year guidance, citing strong operating performance, NHS ramp, and robust sales pipeline while acknowledging softer volumes and recent FX weakness into Q4 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
AI/Technology Initiatives	Launched “GXO IQ” with Google Cloud; automation/AI leadership; pipeline tailwinds from tech/AI infrastructure	8 AI modules deployed; platform scaling; focus on tech that maximizes ROI; AI for warehouse productivity and overhead efficiency	Strengthening
North America Growth Focus	Strong volumes in North America across aerospace/tech; rebalanced sales org; prudent approach to organic growth	New President of Americas/APAC; reallocate resources to sales/solutions/digital marketing; push into higher-margin sectors	Accelerating
Wincanton Integration & Synergies	Regulatory approval; $60M cost synergies by 2026; revenue synergies expected; initial integration kickoff	Business units integrated; first combined-team win; margin dilution to be corrected in 2026	On Track
Life Sciences (NHS)	Landmark $2.5B, 10-year NHS Supply Chain deal signed; start-up planned	NHS went live flawlessly in early October; strong pipeline; incremental 2026 revenue visibility	Scaling
Data Centers/Hyperscalers	Highlighted $28B tech TAM; growing role in AI/cloud logistics	Secured 3 contracts with a leading hyperscaler; expanding with NetApp; pipeline tripled q/q	Rapid Growth
Margins/Productivity	Q2: +90 bps q/q margin via productivity/startups; SG&A leverage	Q3: +100 bps q/q; continued site-level productivity; automated startups matured faster than expected	Improving
Tariffs/Macro	Calmer environment; retention improving; shifting manufacturing away from China	Tariffs/trade uncertainty not materially impacting business; long-term contracts dampen volatility	Stable

Management Commentary

CEO: “GXO drove record quarterly revenue of $3.4 billion… Adjusted EBITDA grew 13%… new business wins of $280 million were up 24% y/y” .
CFO: “Margins expanded by 100 basis points sequentially and were up 30 basis points y/y… driven by site-level productivity and sizable automated startups… matured faster than expected” .
CSO: “We secured three new contracts with a leading hyperscaler and expanded our strategic partnership with NetApp… pipeline in technology tripled q/q” .
CEO on strategy: “We hold less than 3% of global TAM… clear opportunities to accelerate in North America… focus on aerospace/defense, industrial, life sciences, data centers” .
CEO on operations: “Introduced the Chief Operating Officer role… scale best practices and drive margin expansion… operational discipline will accelerate profitable growth” .

Q&A Highlights

Q4 outlook: Softer volume trends expected to continue, with NHS ramp and new wins contributing; “fully expect to be within full-year guidance range” .
Margin expansion drivers: Higher-margin vertical mix, best-practice sharing, labor productivity via technology/AI, cost discipline, and Wincanton synergies materializing in 2026 .
North America mix shift: Growth emphasis beyond consumer into aerospace/defense, industrial, life sciences, and data centers; leadership appointment to sharpen execution .
AI and GXO IQ: Eight modules deployed; platform aims to accelerate startup reliability and overhead efficiency; co-development with strategic partners .
Macro/tariffs: No material business impact; resilience from long-term contracts and diversified footprint; GXO benefits when customers reconfigure supply chains .

Estimates Context

Q3 2025 results modestly exceeded consensus: revenue $3.395B vs $3.3866B*, adjusted EPS $0.79 vs $0.7834*, and adjusted EBITDA $251M vs $244.1* .
Q2 2025 and Q1 2025 were also above EPS consensus ($0.57 vs $0.5571*; $0.29 vs $0.2532*), with revenue ahead in both periods ($3.299B vs $3.0998B*; $2.977B vs $2.9313B*) .
Values retrieved from S&P Global.

Key Takeaways for Investors

Mild beat and guidance reaffirmation signal operational resilience and execution into year-end despite softer volumes; margin cadence likely more muted y/y in Q4 on tough comps .
2026 margin expansion potential: synergy capture ($60M run-rate by end-2026), higher-margin vertical mix, and scaled best practices/AI productivity initiatives .
Pipeline strength and new logo momentum (hyperscaler wins, NHS ramp) underpin mid-term organic growth visibility; ~$700M incremental 2026 revenue secured .
North America strategy reset with new regional leadership may accelerate growth in targeted verticals, increasingly diversifying mix beyond consumer .
FX remains a near-term watch item; management flagged recent marginal weakening but maintained confidence in FY guidance .
Tactical lens: Expect investor focus on Q4 peak dynamics, NHS ramp pace, and evidence of productivity-driven margin gains; medium-term re-rating hinges on sustained organic acceleration and execution of synergy roadmap .

Additional Q3 2025 Press Releases

Dolce&Gabbana Beauty partnership renewal: Dedicated Italy warehouse and expanded value-added services underscore GXO’s luxury/beauty logistics capabilities .

GXO Logistics, Inc. (GXO)·Q3 2025 Earnings Summary