GXO Isn’t Sweating Amazon. Here’s Why.
GXO, a contract logistics provider, raised its full-year adjusted earnings guidance after its Q1 earnings report showed 4.1% organic revenue growth and 10.8% overall revenue increase to $3.3 billion. GXO CEO Patrick Kelleher believes the company is well-positioned to compete against Amazon's logistics services due to its custom solutions and long-term customer relationships.
GXO, a contract logistics provider, has raised its full-year adjusted earnings guidance following a strong Q1 earnings report. The company's organic revenue grew 4.1% and overall revenue jumped 10.8% to $3.3 billion. Amazon recently announced it is opening its end-to-end supply chain services to all businesses, causing logistics stocks to plummet, with GXO shares dropping over 17%. However, GXO CEO Patrick Kelleher views Amazon's move as validation for the contract logistics industry, which he believes is a $500 billion market with 70% remaining insourced. GXO focuses on custom, bespoke solutions for its customers, with an average contract length of five years. The company's GXO Direct shared fulfillment and multi-tenant warehousing offering is positioned to compete against Amazon's Fulfillment by Amazon service, with sales growing 5% in Q1 2025.
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