GXO Logistics reported stronger-than-expected first-quarter earnings Tuesday, pushed by development in aerospace, protection and know-how logistics contracts, whereas executives pushed again in opposition to issues that Amazon’s newly expanded provide chain providers may threaten the corporate’s enterprise mannequin.
The contract logistics supplier reported first-quarter income of $3.3 billion, up 10.8% 12 months over 12 months, whereas adjusted EBITDA elevated 23% to $200 million. Adjusted diluted earnings per share rose 72% to 50 cents.
GXO additionally raised its full-year steerage for adjusted EBITDA to a variety of $935 million to $975 million and boosted adjusted diluted EPS steerage to between $2.90 and $3.20.
CEO Patrick Kelleher mentioned GXO’s pipeline reached a report $2.7 billion in the course of the quarter as the corporate expanded deeper into higher-margin verticals reminiscent of aerospace and protection, industrials, life sciences and information middle infrastructure.
“2026 is off to a powerful begin,” Kelleher mentioned within the earnings name on Wednesday. “Within the first quarter, we delivered robust income development and profitability, underscoring the power and predictability of our enterprise mannequin.”
Greenwich, Connecticut-based GXO Logistics (NYSE: GXO) is among the largest pure-play contract logistics suppliers on the earth. It has greater than 970 amenities totaling roughly 200 million sq. toes, with a worldwide workforce of greater than 130,000 individuals.
GXO generated $227 million in new enterprise wins in the course of the quarter, with roughly 40% tied to strategic development sectors together with aerospace and protection, know-how, industrial and life sciences.
Executives repeatedly emphasised GXO’s increasing function in AI infrastructure and information middle logistics in the course of the earnings name.
“Within the first quarter, we added $227 million in new enterprise wins throughout key verticals, together with notable contracts in aerospace and protection, a number of know-how wins, together with additional development in AI cloud infrastructure with hyperscalers,” Kelleher mentioned in the course of the name.
Kelleher mentioned the corporate’s gross sales pipeline is now on the highest stage in GXO’s historical past, with greater than $500 million tied to strategic development verticals.
“Our whole pipeline now stands on the highest stage in GXO’s historical past,” Kelleher mentioned. “And within the quarter, 40% of wins have been in our strategic development verticals, aerospace and protection, industrial, life sciences, and know-how, significantly information facilities.”
A serious focus in the course of the earnings name centered on Amazon’s current growth into broader third-party provide chain and warehousing providers, which analysts questioned as a possible aggressive risk to conventional contract logistics suppliers.
Kelleher dismissed these issues, saying Amazon’s transfer validates the long-term outsourcing alternative in logistics quite than undermining GXO’s enterprise.
“I’ve been on this business for 32 years, and I actually seen Amazon’s announcement this week as a incredible validation of the chance that’s in entrance of GXO and of the contract logistics business,” Kelleher mentioned.
Kelleher famous that roughly 70% of the worldwide contract logistics market stays insourced, representing a significant long-term development alternative for third-party suppliers.
“Amazon is promoting entry to its provide chain, whereas GXO, we construct customized options for our prospects, and that distinction means the whole lot to our blue-chip prospects,” Kelleher mentioned. “We’re not a one-size-fits-all supplier. What we do is bespoke, operationally advanced, and relationship-driven.”
Kelleher additionally mentioned that many enterprise prospects could be reluctant to offer Amazon with deeper visibility into their provide chain operations and information.
“For enterprise prospects, defending their information is a prime precedence,” Kelleher mentioned. “Many firms are going to be reluctant to offer a competitor deeper visibility into their stock, demand patterns, gross sales channels, financials.”
Executives acknowledged GXO does compete immediately with Amazon in shared-use e-commerce success by way of GXO Direct, which Kelleher mentioned represents lower than 6% of whole firm income.
“The realm of the enterprise the place I do see us competing with Amazon going ahead, and we’ve got been up to now for some time, is with Amazon’s FBA product, which is similar to our GXO direct product providing,” Kelleher mentioned.
Nonetheless, Kelleher mentioned GXO differentiates itself by way of high-touch logistics providers tailor-made to premium manufacturers.
“I feel the place we do competitively differentiate as GXO direct is that we’re servicing high-value manufacturers that leverage our value-added providers in packaging, etching, and actually white-glove kind providers for these very high-end manufacturers,” he mentioned.
Past e-commerce, GXO executives mentioned the corporate continues to profit from accelerating demand tied to industrial reshoring, protection provide chains and AI infrastructure growth.
The corporate launched a Protection Advisory Board within the U.S. in the course of the quarter and established the Taurus Protection Provide Chain Alliance within the U.Okay. following its acquisition of Wincanton.
GXO additionally continued scaling its GXO IQ warehouse platform, an AI-powered system designed to enhance warehouse startup effectivity, automation deployment and productiveness. The corporate mentioned it expects GXO IQ to be deployed at greater than 50 websites by year-end.
“Our first mover benefit is actual and we’re constructing on it,” Kelleher mentioned relating to the corporate’s automation and robotics technique.
Executives mentioned GXO expects natural income development to speed up in the course of the second half of 2026 as newly signed contracts ramp into manufacturing and implementation phases.
GXO ended the quarter with $794 million in money and $1.6 billion in whole liquidity whereas sustaining leverage at 2.5 instances adjusted EBITDA.
GXOLogisticsQ1 2026YoY ChangeWhole IncomeAdjusted EBITDAWeb EarningsAdjusted EPS
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