GXO Logistics (GXO) Q1 2026 earnings summary

Executive summary

• Revenue reached $3.3 billion in Q1 2026, up 11% year-over-year, with organic revenue growth of 4.1% and adjusted EBITDA of $200 million, up 23%, and adjusted diluted EPS up 72% to $0.50.

• Net income was $5 million, reversing a net loss of $95 million in the prior year quarter.

• Record sales pipeline of $2.7 billion, with 40% of wins in strategic growth verticals such as aerospace, defense, technology, and life sciences.

• Strategic priorities include sharpening commercial execution, strengthening operational discipline, and leading in AI and automation, with accelerated rollout of AI-powered platforms.

• Integration of Wincanton progressing, with $60 million in run-rate cost synergies targeted by year-end 2026 and a $21 million impairment recorded for related contract adjustments.

Financial highlights

• Adjusted EBITDA margin improved to 6.1%, up 60 basis points year-over-year; adjusted EBITA margin rose to 3.5% from 2.8%.

• Net income was $5 million; adjusted net income attributable to GXO was $58 million, up 70.6% year-over-year.

• Operating cash flow was $31 million; free cash flow was an outflow of $31 million, reflecting typical seasonality.

• Cash and cash equivalents at quarter-end were $794 million, with total liquidity of $1.6 billion and net debt of $2.3 billion.

• $227 million in annualized new business wins signed in Q1 2026.

Outlook and guidance

• Full-year 2026 organic revenue growth maintained at 4–5%.

• Adjusted EBITDA guidance raised to $935–$975 million; adjusted diluted EPS raised to $2.90–$3.20, up 22% at midpoint.

• Free cash flow conversion maintained at 30–40%.

• Organic growth expected to accelerate in the back half of 2026 and into 2027, supported by strong pipeline and new business wins.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operating cash flows, and available credit.