What Happened?
Shares of contract logistics company GXO (NYSE: GXO) jumped 11.3% in the afternoon session after the company provided impressive preliminary financial forecasts and raised its full-year 2025 guidance for organic revenue growth, adjusted EBITDA, and adjusted diluted EPS. This upward revision reflects better-than-expected performance (volumes and accelerated productivity gains) and anticipated gains from the Wincanton acquisition.
GXO confirmed that the UK Competition and Markets Authority (CMA) cleared its acquisition of Wincanton, a major UK logistics company, subject to the condition of divesting a small number of grocery contracts. This regulatory clearance removes a key hurdle for the acquisition, allowing integration to begin in Q3 2025.
Lastly, the company announced the appointment of seasoned supply chain leader Patrick Kelleher as its new chief executive officer, effective August 19, 2025. Kelleher has 33 years of global supply chain experience, having held senior executive roles at DHL Supply Chain, a division of Deutsche Post DHL Group. Most recently, he served as CEO of DHL North America, where he led significant growth and operational enhancements across the business.
These updates suggest a clearer path for GXO in the eyes of investors, which is spurring buying of the stock. If it's one thing the markets shy from, it's uncertainty.
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What The Market Is Telling Us
GXO Logistics’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for GXO Logistics and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 15.8% on the news that the company reported weak fourth quarter results. Its full-year EPS and EBITDA guidance fell short of Wall Street's estimates. In addition, while GXO Logistics narrowly topped analysts' revenue expectations this quarter, its organic revenue missed. Overall, this was a weaker quarter.
GXO Logistics is up 10.6% since the beginning of the year, but at $47.58 per share, it is still trading 24.5% below its 52-week high of $63.01 from October 2024. Investors who bought $1,000 worth of GXO Logistics’s shares at the IPO in July 2021 would now be looking at an investment worth $874.40.
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