GXO Logistics reported record second-quarter new business signings of $412 million, a 35% increase year over year, during its presentation at the Jefferies Global Industrials Conference on September 9, 2026. The results underscored the contract logistics provider's momentum heading into an investor day scheduled for November 16.
Full-year incremental revenue secured through the first half reached over $1 billion, up 29%, while the sales pipeline remained at a record $2.7 billion after dipping to $2.3 billion following Q2 signings. Pipeline conversion rates sit at approximately 28%, with turnover running about 1.5 times annually.
Quarterly organic growth came in at 3.4%, slightly below the 4% consensus, representing a variance of roughly $17 million that CEO Patrick Kellerher attributed to timing differences in contract startups, which typically take three to six months to commence.
The company guided for full-year organic growth of 4% to 5%, a significant deceleration from the mid-teens organic growth pace recorded at the time of its spin-out from XPO in 2021. Trailing twelve-month revenue was $13.64 billion, with a market capitalization of $5.36 billion and shares trading near $45.43, roughly 30% below a 52-week high of $66.85.
Margin expansion remains a central theme. Current EBIT margins stand at 3.5%, below the 6% or better levels seen among peers, while gross profit margins average about 15%. Free cash flow conversion has improved from below 30% to the company's 2024 guidance range of 30% to 40%, with a longer-term target above 50%.
Kellerher addressed the role of major technology firms directly. "Amazon's not a competitor to GXO," he said. "We have never, that I'm aware of, lost a piece of new business to Amazon. We've never lost a piece of existing business to Amazon. We don't see Amazon as a competitor in our $2.7 billion pipeline."
The firm is deploying automation aggressively. GXO IQ warehouse integrations are planned for deployment across approximately 60 facilities by year-end, with coverage targeted at all 1,200 sites within two years. The company is also running 45 humanoid robot pilots, with a 46th test underway. Kellerher noted that humanoid industrial costs are currently around $70,000 and expected to fall below $40,000 within two years, while operating costs of about $15 an hour should drop below $10.
Labor consolidation is another priority. The company operates 58 different labor management systems across roughly 60 sites and plans to standardize down to two platforms, expecting productivity gains of 5% to 15%.
Vertically, B2B sectors—including aerospace, defense, technology, industrial, and life sciences—accounted for 41% to 42% of new wins in Q2. E-commerce and consumer packaged goods remain the largest current businesses at 70% of revenue, though they represented 60% of new wins. North America generated less than 30% of revenue but captured 40% of new business wins, while Asia contributed less than 1% of revenue with operations in Thailand, Singapore, and Malaysia and expansion planned for 2027.
Customer retention held at 95%, and customer volume changes were broadly flat, moving within a plus-or-minus 1% to 2% band year over year. Hyperscaler contracts averaged five-year terms with lower capital spending requirements and margins above the company average.
