Gxo Logistics, Inc. · NYSE:GXO
Gxo Logistics — Q2 2024 Earnings Presentation
21 slides from Gxo Logistics's earnings presentation, Aug 6, 2024
Slide 1: 2Q 2024 results
August 6, 2024 2Q 2024 results © GXO Logistics, Inc.
Slide 2: Disclaimer
Disclaimer Non-GAAP Financial Measures: As required by the rules of the Securities and Exchange Commission (“SEC”), we provide reconciliations of the non-GAAP financial measures contained in this presentation to the most directly comparable measure under GAAP, which are set forth in the financial ta
Slide 3: Presenters
Presenters Malcolm Wilson Baris Oran Kristine Kubacki Chief Executive Officer Chief Financial Officer Chief Strategy Officer © GXO Logistics, Inc. 3
Slide 4: GXO is building the supply chain of the future
GXO is building the supply chain of the future. We design and operate the most technologically advanced logistics solutions in the world. © ©GXO GXOLogistics, Logistics,Inc. Inc. 4
Slide 5: Our value creation framework
Our value creation framework Outsized growth driven 1 by secular tailwinds 4 Customer-centric culture 2 Global scale 5 Effective capital allocation Leadership in technology Compelling financial profile 3 and automation 6 and long-term growth algorithm © ©GXO GXOLogistics, Logistics,Inc. Inc. 5
Slide 6: 2Q 2024 executive summary
2Q 2024 executive summary Delivered record revenue and accelerated organic growth sequentially Completed Wincanton acquisition Grew business in German market Increased AI deployments planned for FY 2024 by 10x year over year Reaffirmed full-year guidance and confidence in 2027 targets © GXO Logistic
Slide 7: 2Q 2024 financial highlights
2Q 2024 financial highlights Key highlights Organic Revenue $2.8 billion up 19% revenue(1) up 2% • Signed new business wins of approximately $270 million(2) in Adjusted annualized revenue during 2Q 2024 Net income $39 million EBITDA(1) $187 million • Pipeline has increased to $2.3 billion as of 2Q 2
Slide 8: 2Q 2024 revenue growth
2Q 2024 revenue growth (In millions USD) 17% 0% Net M&A FX $2,846 2% $2,394 Organic(1) 2Q 2023 Revenue Organic growth Net M&A FX 2Q 2024 Revenue Year-over-year revenue growth in 2Q was 19%, of which 2% was organic(1). © GXO Logistics, Inc. (1) Refer to the ‘Non-GAAP Financial Measures’ section on sl
Slide 9: Recent wins and expansions
Recent wins and expansions © GXO Logistics, Inc. 9
Slide 10: New contract wins and outsourcing underpin long-term growth
New contract wins and outsourcing underpin long-term growth Expected incremental revenue contributions 2Q 2024 contract wins by source from contracts won through 2Q 2024 $796M(1) signed 21% for 2024 Won from competitors Sites transferred from other 3PLs $306M(2) 47% Outsourcing signed for 2025 Sites
Slide 11: Strong cash flow and investment grade balance sheet
Strong cash flow and investment grade balance sheet 1H 2024 cash flow and returns 2Q 2024 balance sheet Cash flows from operations 1H 2023: Total debt(1) $165 million $100 million $2,770 million Mostly fixed-rate borrowings Free cash flow(2) 1H 2023: Net debt(1,2) $14 million $(40) million $2,304 mi
Slide 12: Reaffirmed FY 2024 guidance
Reaffirmed FY 2024 guidance 2024 guidance(1) Organic revenue growth(2) 2% – 5% Adjusted EBITDA(2) $805 – $835 million Adjusted EBITDA(2) to free cash flow conversion 30% – 40% Adjusted diluted EPS(2) $2.73 – $2.93 Adjusted EBITDAR(3) $1.95 – $2.0 billion Guidance assumptions: • Forecasted quarterly
Slide 13: The GXO investment case
The GXO investment case Compelling financial Effective capital The GXO Difference profile allocation framework • Tech and automation leadership + + = • Invest in innovation and organic • Global scale • Structural organic growth growth • Resilient margins • Trusted expertise • Investment grade balanc
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of net income to adjusted EBITDA and adjusted EBITDA margins
GXO Logistics, Inc. Reconciliation of net income to adjusted EBITDA and adjusted EBITDA margins (unaudited) Year ended Trailing twelve Three months ended June 30, Six months ended June 30, December 31, months ended (In millions USD) 2024 2023 2024 2023 2023 June 30, 2024 Net income attributable to G
Slide 16: Reconciliation of net income to adjusted EBITA and adjusted EBITA margins
GXO Logistics, Inc. Reconciliation of net income to adjusted EBITA and adjusted EBITA margins (unaudited) Year ended Trailing twelve Three months ended June 30, Six months ended June 30, December 31, months ended (In millions USD) 2024 2023 2024 2023 2023 June 30, 2024 Net income attributable to GXO
Slide 17: Reconciliation of net income to adjusted net income and adjusted EPS
GXO Logistics, Inc. Reconciliation of net income to adjusted net income and adjusted earnings per share (unaudited) Three months ended June 30, Six months ended June 30, (In millions USD, shares in thousands, except per share amounts) 2024 2023 2024 2023 Net income $ 39 $ 66 $ 3 $ 92 Net income attr
Slide 18: Other reconciliations
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of cash flows from operations to free cash flow: Three months ended June 30, Six months ended June 30, (In millions USD) 2024 2023 2024 2023 Cash flows from operations(1) $ 115 $ 61 $ 165 $ 100 Capital expenditures (88) (59) (161)
Slide 19: Other reconciliations
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of revenue to organic revenue: Three months ended June 30, Six months ended June 30, (In millions USD) 2024 2023 2024 2023 Revenue $ 2,846 $ 2,394 $ 5,302 $ 4,717 Revenue from acquired business(1) (396) — (459) — Revenue from dispo
Slide 20: Liquidity reconciliations
GXO Logistics, Inc. Liquidity reconciliations (unaudited) Reconciliation of total debt and net debt: (In millions USD) June 30, 2024 Current debt $ 219 Long-term debt 2,551 Total debt(1) $ 2,770 Plus: Bank overdrafts 3 Less: Cash and cash equivalents (469) Net debt(2) $ 2,304 Reconciliation of total
Slide 21: Return on invested capital
GXO Logistics, Inc. Return on invested capital (unaudited) Adjusted EBITA, net of income taxes paid: Trailing twelve Six months ended June 30, Year ended months ended December 31, June 30, (In millions USD) 2024 2023 2023 2024 Adjusted EBITA(1) $ 191 $ 217 $ 451 $ 425 Less: Cash paid for income taxe