GXO Logistics, Inc. Q1 FY2026 earnings call

Patrick Kelleher welcomed Mark Suchinski as Chief Financial Officer. First quarter revenue was $3.3 billion, up 11%, adjusted EBITDA $200 million, up 23%, adjusted diluted EPS up 72%. Strategic priorities include sharpening commercial execution, strengthening operational discipline, and leading in AI and next - generation automation. Commercially, diversifying into strategic growth verticals with increased pipeline and win rates. Operationally, implementing GXO way framework. Technologically, making progress on automation and AI strategies like scaling GXOIQ platform.

In the first quarter, GXO delivered revenue of $3.3 billion, up 11% year - over - year. Adjusted EBITDA was $200 million, up 23%. Adjusted diluted EPS increased 72% to 50 cents. Organic revenue growth was 4% with every region contributing. New business wins of $227 million were added, with strategic growth verticals like aerospace and defense, technology showing momentum, and $870 million of expected incremental new business revenue secured for 2026.

GXO is maintaining organic revenue growth of 4% to 5%, raising adjusted EBITDA to a range of $935 million to $975 million, raising adjusted diluted earnings per share to a range of $2.90 to $3.20, up 22% at the midpoint, and maintaining free cash flow conversion of 30% to 40%.

Factors such as fluctuations in foreign exchange rates, changes in global economic conditions, consumer demand and spending, labor market and global supply chain constraints, inflationary pressures, etc. could cause actual results to differ materially from projections.

Q: Stephanie Moore from Jefferies asked about Amazon's expanded supply chain services and GXO's competitive moat.

A: Patrick Kelleher said Amazon's announcement validated the opportunity for GXO. GXO provides custom solutions, differs in control, offers flexible tech stack, and has capabilities beyond retail.

Q: Chris Weatherby from Wells Fargo asked about second - quarter organic revenue trends and incremental revenue wins for 2027.

A: Mark Suchinski said second quarter expected to be similar to first quarter, organic growth to accelerate in back half of year. Christine Kabaki said feel good about record pipeline and accelerating growth into 2027.

Q: Ari Rosa from Citi asked about reasons for customers leaving GXO and Amazon's presence in the space.

A: Patrick Kelleher said churn rate less than 5%, customers leaving typically due to supply chain restructuring. Amazon's presence in selling into existing infrastructure is different from GXO's bespoke solutions.

Q: Bruce Chan from Stiefel asked about demand in various geographies and end markets.

A: Mark Suchinski said guidance reflects organic growth of 4% - 5%, assuming breakeven on volume from existing customers. Christine Kabaki said consumer strong with low single - digit volume changes, B2B volume up but smaller percentage.