GXO Logistics capped the September quarter with new highs and a clear message to freight partners: its next leg of growth leans heavily into North America. The contract logistics giant posted $3.4 billion in third-quarter revenue, up 8% year over year, with organic growth at 4%. Net income rose to $60 million as adjusted EBITDA climbed to $251 million. New business wins accelerated 24% to $280 million, and free cash flow reached $187 million, giving the company ample fuel to pursue expansion. GXO also maintained its full-year outlook and highlighted a $2.3 billion commercial pipeline.
The U.S. is central to that plan. GXO recorded $801 million of third‑quarter revenue in the United States, up from $771 million a year earlier, underscoring why management is shifting more attention — and likely capital — toward the region. For truckload and LTL carriers, that signals rising volumes tied to GXO’s warehouses and contract transitions in key U.S. nodes, from port‑proximate distribution to inland manufacturing corridors.
One fast-moving piece of the strategy: using Foreign Trade Zones. CEO Patrick Kelleher said new U.S. tariffs are pushing shippers to look at FTZ-designated facilities where duties can be deferred until goods ship to customers. He added GXO is evaluating how to expand its FTZ footprint in the U.S. — a move that could redirect import flows and extend drayage and middle‑mile runs around ports and inland hubs. Notably, he also flagged that inventories have normalized after pre‑tariff stocking, implying steadier replenishment patterns versus the whiplash of prior quarters.
Beyond tariffs, GXO’s sales mix is tilting toward higher‑value industrial freight. Management called out momentum in aerospace and defense, life sciences and data‑center infrastructure — verticals that require tighter compliance, specialized handling and, often, dedicated capacity from carriers. The company said it expanded work with Boeing and signed three new contracts with a leading hyperscaler, while continuing to ramp a major life‑sciences program that launched in early October. For fleets, that points to more project cargo, heavier components, and secure just‑in‑time movements to and from highly automated DCs.
Contract churn is also swinging in GXO’s favor. Fresh disclosures tied to its earnings presentation show nearly a third of wins came from sites moved over from competitors, about a fifth from first‑time outsourcing, and the rest from customer growth. That dynamic matters for trucking: when a site flips providers, inbound and outbound routing guides are frequently rebid, opening lanes for carriers willing to match service expectations in automation‑dense facilities.
Europe still matters — the Wincanton integration is on track — but the near‑term go‑to‑market clearly prioritizes North American share gains. Transport Topics’ readout of management commentary emphasized organic growth across every region and reiterated that Wincanton is being used to unlock industrial and A&D opportunities, even as GXO hunts for more business on this side of the Atlantic. For carriers and final‑mile providers, the near‑term opportunity will sit where GXO plants or scales sites for those sectors.
Wall Street’s immediate reaction was muted — shares slipped despite the record print — but the logistics implications are more significant than a day’s tape. If FTZ expansion proceeds, expect deeper import staging near ports and in inland FTZs, longer dwell times inside value‑add DCs, and steadier pull‑through to regional linehaul. And as GXO adds industrial and defense programs, carriers with safety, security and quality credentials stand to gain first call on premium, time‑definite freight.
Sources: FreightWaves, GXO Logistics (GlobeNewswire), The Wall Street Journal, Transport Topics, Investing.com
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