GXO Logistics Q3 Revenue Hits $3.6B with Record Sales Pipeline

GXO Logistics delivered strong third-quarter performance with revenue reaching $3.59 billion, a 5.7% increase year-over-year, driven by robust demand for outsourced warehousing, distribution, and supply chain services. The company secured $375 million in new business wins, marking the second consecutive quarter of 30%-plus growth in contract wins, while building a record sales pipeline of $3.1 billion that signals sustained appetite for logistics outsourcing across multiple sectors.

While revenue and new contract wins accelerated, GXO's profitability metrics showed pressure, with operating income declining to $96 million from $118 million, and adjusted EBITDA margins contracting from 7.4% to 7.0%. Direct operating expenses grew faster than revenue, rising to $3.06 billion from $2.86 billion, reflecting the cost challenges facing the contract logistics sector as labor and facility expenses remain elevated.

The diversification of new business across strategic growth sectors, particularly aerospace and defense, technology, and life sciences (representing 40% of wins), suggests GXO is successfully positioning itself beyond traditional retail and manufacturing segments. Despite near-term margin pressure, the company reaffirmed full-year guidance for 4% to 5% organic revenue growth and $945 million to $965 million in adjusted EBITDA, indicating management confidence in sustained demand for outsourced logistics solutions.