# GXO Logistics Inc. (GXO) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/GXO/thesis · /stocks/GXO/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: GXO
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### Income Statement Summary (GAAP)

| Metric (USD millions) | FY2021 | FY2022 | FY2023 |
|----------------------|--------|--------|--------|
| **Revenue** | $7,940 | $8,953 | $9,814 |
| Cost of Transportation | — | — | — |
| Direct Operating Costs | ~$7,100 | ~$8,010 | ~$8,750 |
| **Gross Profit** | ~$840 | ~$943 | ~$1,064 |
| **Gross Margin** | ~10.6% | ~10.5% | ~10.8% |
| SG&A | ~$500 | ~$570 | ~$620 |
| Depreciation & Amortization | ~$430 | ~$460 | ~$490 |
| Restructuring / Transaction Costs | ~$60 | ~$90 | ~$50 |
| **EBIT (Operating Income, GAAP)** | ~$200 | ~$230 | ~$270 |
| **EBIT Margin** | ~2.5% | ~2.6% | ~2.8% |
| Interest Expense, net | ~$75 | ~$120 | ~$140 |
| Other income (expense) | ~$10 | ~($10) | ~($5) |
| **Pre-Tax Income** | ~$135 | ~$100 | ~$125 |
| Income Tax Expense | ~$55 | ~$55 | ~$65 |
| Minority Interest / NCI | ~$5 | ~$5 | ~$5 |
| **Net Income (GAAP)** | ~$75 | ~$40 | ~$55 |
| **GAAP EPS (Diluted)** | ~$0.64 | ~$0.34 | ~$0.47 |

*Note: Figures are approximate, derived from GXO's public disclosures. GXO's income statement does not separately disclose a traditional "gross profit" line — cost structure is presented differently. These estimates derive gross profit as Revenue minus direct operating expense (labor, occupancy, equipment).*

#### Adjusted (Non-GAAP) Metrics — Management's Primary View

GXO management and investors focus on Adjusted EBITDA and Adjusted EPS, which exclude transaction costs, restructuring, and amortization of acquisition-related intangibles.

| Metric (USD millions) | FY2021 | FY2022 | FY2023 |
|----------------------|--------|--------|--------|
| **Revenue** | $7,940 | $8,953 | $9,814 |
| **Adjusted EBITDA** | ~$590 | ~$685 | ~$745 |
| **Adjusted EBITDA Margin** | ~7.4% | ~7.7% | ~7.6% |
| D&A (excl. acquired intangibles amort.) | ~$360 | ~$380 | ~$390 |
| **Adjusted EBIT** | ~$230 | ~$305 | ~$355 |
| **Adjusted EBIT Margin** | ~2.9% | ~3.4% | ~3.6% |
| Interest Expense, net | ~$75 | ~$120 | ~$140 |
| **Adjusted Pre-Tax Income** | ~$155 | ~$185 | ~$215 |
| Adjusted Tax (~27-28%) | ~$42 | ~$50 | ~$58 |
| **Adjusted Net Income** | ~$113 | ~$135 | ~$157 |
| **Adjusted EPS (Diluted)** | ~$0.96 | ~$1.16 | ~$1.35 |

#### Margin Trend Analysis

##### Why GAAP Margins Are Low

GXO's GAAP margins appear compressed relative to adjusted due to:
1. **Amortization of acquired intangibles**: Clipper Logistics and other acquisitions created significant intangible assets (customer relationships, technology) that amortize over 5-15 years. This is a large non-cash charge (~$75-100M/year) excluded from adjusted metrics.
2. **Restructuring**: Integration of Clipper required restructuring charges (~$50-90M/year during 2022-2023).
3. **Transaction costs**: M&A legal, advisory, and financing fees.
4. **Spin-off costs (2021)**: One-time costs associated with becoming an independent public company.

##### Adjusted EBITDA Margin Walk (FY2022 → FY2023)

| Driver | Basis Points Impact |
|--------|---------------------|
| Clipper integration costs rolling off | +30-40 bps |
| Organic volume growth leverage | +20-30 bps |
| Automation productivity gains | +15-25 bps |
| Wage inflation / labor pressure | -30-50 bps |
| FX translation effect (USD strength) | -10-20 bps |
| PFS acquisition integration | -10-20 bps |
| **Net change** | **~-10 to 0 bps** |

Adjusted EBITDA margin was roughly flat FY2022-FY2023 at ~7.5-7.7%, reflecting offsetting dynamics. Management's medium-term target is 8%+ EBITDA margin as automation scales and integration costs decline.

#### Revenue Growth Decomposition

| Component | FY2022 (vs. 2021) | FY2023 (vs. 2022) |
|-----------|------------------|------------------|
| Organic growth | ~+8-9% | ~+5-6% |
| M&A contribution | ~+5-6% (Clipper) | ~+1-2% (PFS) |
| FX impact | ~+1-2% | ~-2-3% |
| **Total reported growth** | **~+12.8%** | **~+9.6%** |

#### Key Financial Ratios (FY2023)

| Ratio | Value | Note |
|-------|-------|------|
| Adjusted EBITDA Margin | ~7.6% | Management focus metric |
| GAAP Net Margin | ~0.6% | Depressed by amortization |
| Revenue per Employee | ~$75K | 130,000+ employees |
| Asset Turnover (Revenue/Assets) | ~1.5x | Asset-light model |
| Leverage (Net Debt/Adj. EBITDA) | ~2.7x | Elevated post-Clipper |
| Interest Coverage (Adj. EBITDA/Interest) | ~5.3x | Adequate |
| Adj. EPS Growth (FY22→23) | ~+16% | Strong |

#### Free Cash Flow

| Metric (USD millions) | FY2021 | FY2022 | FY2023 |
|----------------------|--------|--------|--------|
| Adjusted EBITDA | ~$590 | ~$685 | ~$745 |
| Capital Expenditures | ~($430) | ~($480) | ~($500) |
| Capex as % of Revenue | ~5.4% | ~5.4% | ~5.1% |
| Working Capital Change | ~($50) | ~($30) | ~$20 |
| Cash Taxes | ~($55) | ~($60) | ~($70) |
| **Levered Free Cash Flow** | ~$55 | ~$115 | ~$195 |
| FCF Conversion (FCF/Adj. EBITDA) | ~9% | ~17% | ~26% |

FCF conversion is improving as the heavy capex phase of Clipper integration and automation investments moderates. Management targets 30-40% FCF conversion medium-term.

#### Balance Sheet Highlights (End FY2023)

| Item | Amount |
|------|--------|
| Cash & equivalents | ~$230M |
| Total debt (gross) | ~$2.3B |
| Net debt | ~$2.0-2.1B |
| Net Debt / Adj. EBITDA | ~2.7x |
| Goodwill + Intangibles | ~$5.5B |
| Total assets | ~$10.5B |
| Total equity | ~$3.5B |

#### EPS Bridge: GAAP to Adjusted

The divergence between GAAP EPS (~$0.47 in FY2023) and Adjusted EPS (~$1.35 in FY2023) primarily reflects:
- Acquisition-related amortization: ~$0.55-0.65/share (non-cash, largest reconciling item)
- Restructuring charges: ~$0.15-0.20/share
- Other transaction/non-recurring items: ~$0.05-0.10/share

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/GXO/fundamental

## Navigation

- Overview: /stocks/GXO
- Financials (this page): /stocks/GXO/financials
- Thesis: /stocks/GXO/thesis
- Investment Memo: /stocks/GXO/memo
- Coverage universe: /stocks