GXO logged a record third quarter and signaled it’s leaning into a bigger North American footprint, a combination that could add steady freight to warehouse-adjacent trucking lanes as peak season winds down. The contract logistics provider reported Q3 revenue of $3.4 billion, up 8% year over year, with adjusted EBITDA rising 13% to $251 million. Net income reached $60 million, while operating cash flow and free cash flow came in at $232 million and $187 million respectively, pointing to improved cash generation heading into 2026.
Management tied the growth plan directly to North America. New CEO Patrick Kelleher said customer interest in U.S. Foreign Trade Zones has accelerated as new tariffs make FTZ-enabled tariff deferral more attractive. GXO is evaluating how to add FTZ capacity and also flagged M&A as a lever to build its North American presence, particularly in aerospace, defense and industrial accounts — sectors that tend to yield complex, higher-value warehousing and transport needs.
Commercial momentum is carrying into next year: GXO booked $280 million in new business during the quarter and ended with a $2.3 billion sales pipeline. Year-to-date wins already translate into roughly $690 million of incremental 2026 revenue, giving the company a visible ramp of start-ups that typically translate into more steady inbound drayage, middle‑mile replenishment and outbound parcel/final‑mile moves once facilities stabilize.
On the integration front, GXO said the Wincanton deal is progressing and remains on track to deliver about $60 million of run‑rate cost synergies by the end of 2026 — a margin tailwind that can support pricing in competitive bids without starving operations. Shares slipped about 5% after the print, a reminder that investors want proof the 2026 buildout converts to earnings even as growth accelerates.
Why this matters for trucking: when a major contract logistics player bulks up in North America, it tends to concentrate flows around key import gateways and inland hubs. More FTZ-enabled sites would keep imports parked closer to ports and rail ramps longer, adding dray and cross‑dock touches before cargo moves deeper into the network. GXO’s ongoing surge in e‑fulfillment and returns work typically increases high‑frequency middle‑mile moves into parcel integrators and regional final‑mile carriers, and the company’s push into aerospace and defense could introduce heavier, higher‑compliance loads that favor dedicated capacity. For carriers, 2026 looks less about spot surges and more about contracted, repeatable volumes tied to new facility start‑ups.
What to watch next: the cadence of Q4/Q1 site launches and whether GXO’s FTZ expansion coalesces around West Coast or Gulf port nodes; any U.S. acquisitions that add network density near population centers; and how quickly new vertical wins mature from start‑up drag to steady-state freight that locks in routing guides and medium‑term contract rates.
Sources: FreightWaves, Wall Street Journal, Investing.com, Furniture Today, TradingView News
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