Gxo Logistics, Inc. · NYSE:GXO
Gxo Logistics — Q1 2024 Earnings Presentation
24 slides from Gxo Logistics's earnings presentation, May 8, 2024
Slide 1: First quarter 2024 results
May 7, 2024 First quarter 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 Non-GAAP Valuation Measure: Adjusted EBITDAR is a valuation measure that is not specified in GAAP. Adjusted EBITDAR excludes rent expense fro
Slide 3: Presenters
Presenters Malcolm Wilson Baris Oran Richard Cawston Kristine Kubacki Chief Executive Officer Chief Financial Officer Chief Revenue Officer Chief Strategy Officer © GXO Logistics, Inc. 3
Slide 4: Highlights
Highlights 1Q 2024 Signed new business Pipeline has increased Revenue $2.5 billion wins of more than to $2.2 billion as of 1Q $250 million(3) 2024(3) annualized revenue Revenue growth 6% in 1Q 2024, +55% YoY Operating return on invested capital of $676 million of new 33% in 1Q 2024(1) Organic revenu
Slide 5: 1Q 2024 profitability
1Q 2024 profitability Net income Adjusted diluted EPS(1) Adjusted EBITDA(1) $26M $158M $154M $0.49 $0.45 $(36M) 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 (1) Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related information. © GXO Logistics, Inc. 5
Slide 6: 1Q 2024 revenue growth
1Q 2024 revenue growth (In millions USD) ~2% ~1% ~3% FX $2,456 Organic1 Net M&A $2,323 1Q 2023 Revenue Organic growth Net M&A FX 1Q 2024 Revenue Revenue grew 6% year over year in 1Q, of which 1% was organic. (1) Refer to the ‘Non-GAAP Financial Measures’ section on slide 2 and Appendix for related i
Slide 7: Strong cash flow and investment grade balance sheet
Strong cash flow and investment grade balance sheet 1Q 2024 cash flow 1Q 2024 balance sheet Cash flow from operations Total debt(1) 1Q 2023: Mostly fixed-rate borrowings $50 million $39 million $1,637 million Free cash flow(2) No debt maturities in the next 12 1Q 2023: Net debt(2) $(17) million $(43
Slide 8: 2024 wins and extensions
2024 wins and extensions © GXO Logistics, Inc. 8
Slide 9: New contract wins and outsourcing underpin 2024 and 2025 growth
New contract wins and outsourcing underpin 2024 and 2025 growth Expected incremental revenues 1Q 2024 contract wins by source won through 1Q 2024 22% Won from $676M(1) signed competitors for 2024 Sites transferred from other 3PLs 25% Outsourcing Additional $243M(2) 53% Sites previously signed for 20
Slide 10: FY 2024 guidance
FY 2024 guidance (1,2) Prior Standalone Standalone + Wincanton Organic revenue growth(3) 2% – 5% 2% – 5% 2% – 5% $760 – $790 $760 – $790 $805 – $835 Adjusted EBITDA(3,5) million million million Adjusted EBITDA(3) 30% – 40% 30 – 40% 30 – 40% to free cash flow conversion Adjusted diluted EPS(3) $2.70
Slide 11: 2027 targets
(1) 2027 targets Revenue $15.5-16.0 billion(3) Adjusted EBITDA $1.25-1.30 billion(3,4) Organic revenue CAGR(2) ~10%(4) Adjusted EBITDA CAGR(2) ~15%(4) Adjusted diluted EPS CAGR(2) >15%(4) FCF conversion >30%(4) Operating ROIC >30%(4) (1) As updated on April 24, 2024 (2) CAGR calculated from 31 Decem
Slide 12: 2024-2027 adjusted EBITDA bridge
2024-2027 adjusted EBITDA bridge(1,2) 1400 $120-$130M $1.25B-$1.30B 1200 $110-$130M $195-$215M 1000 ~$45M $805-$835M 800 $760-$790M 600 400 200 0 GXO standalone 2024 Wincanton 2024 impact New 2024 Core growth Automation, adaptive Wincanton including New 2027 technology & synergies productivity (1) B
Slide 13: Accelerating automation and tech leadership
Accelerating automation and tech leadership >10,000 ~40% AI deployed 39 automated units of automation of revenue coming in workforce management, implementations in 1Q in operation from automated sites(1) pick path productivity, and proactive replenishment in 1Q Leading the industry in deployment of
Slide 14: Wincanton acquisition
Wincanton acquisition Select brand Select partners brand partners The acquisition of Wincanton expands GXO’s presence in the European Aerospace and Industrials markets. 2023 revenue: 2023 operational footprint: Expected 2024 adjusted EBITDA contribution: £1.5 billion(1) 16.4 million square feet(1) $
Slide 15: 2023 ESG highlights
2023 ESG highlights Environmental goals Reduce our environmental impact: Reducing environmental impact 80% global operations using LED lighting by 2025 • Expanded LED lighting to 78% of leased and owned 80% global landfill diversion rate by 2025 50% renewably sourced energy by 2030 operations as of
Slide 16: GXO investment highlights
GXO investment highlights 1 2 Secular tailwinds: Long-term contractual outsourcing, automation, e- relationships with commerce blue-chip customers 3 4 Critical scale in a Leadership in warehouse fast-growing market robotics and AI 5 6 Resilient financial profile World-class with high operating ROIC
Slide 17: Appendix
Appendix
Slide 18: Reconciliation of net income (loss) to adjusted EBITDA and margins
GXO Logistics, Inc. Reconciliation of net income (loss) to adjusted EBITDA and adjusted EBITDA margins (unaudited) Year ended Trailing twelve Three months ended March 31, December 31, months ended (In millions USD) 2024 2023 2023 March 31, 2024 Net income (loss) attributable to GXO $ (37) $ 25 $ 229
Slide 19: Reconciliation of net income (loss) to adjusted EBITA and margins
GXO Logistics, Inc. Reconciliation of net income (loss) to adjusted EBITDA and adjusted EBITDA margins (unaudited) Year ended Three months ended March 31, December 31, Trailing twelve months ended (In millions USD) 2024 2023 2023 March 31, 2024 Net income (loss) attributable to GXO $ (37) $ 25 $ 229
Slide 20: Reconciliation of net income (loss) to adjusted net income and EPS
GXO Logistics, Inc. Reconciliation of net income (loss) to adjusted net income and adjusted earnings per share (unaudited) Three months ended March 31, (In millions USD, shares in thousands, except per share amounts) 2024 2023 Net income (loss) $ (36) $ 26 Net income attributable to NCI (1) (1) Net
Slide 21: Other reconciliations: free cash flow
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of cash flows from operations to free cash flow: Three months ended March 31, (In millions USD) 2024 2023 Cash flows from operations $ 50 $ 39 Capital expenditures (73) (91) Proceeds from sale of property and equipment 6 9 Net capi
Slide 22: Other reconciliations: organic revenue
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of revenue to organic revenue: Three months ended March 31, (In millions USD) 2024 2023 Revenue $ 2,456 $ 2,323 Revenue from acquired business(1) (63) — Revenue from disposed business(1) (1) (4) Foreign exchange rates (50) — Organi
Slide 23: Liquidity reconciliations
GXO Logistics, Inc. Liquidity reconciliations (unaudited) Reconciliation of total debt and net debt: (In millions USD) March 31, 2024 Current debt $ 126 Long-term debt 1,511 Total debt $ 1,637 Plus: Bank overdrafts 2 Less: Cash and cash equivalents (423) Net debt(1) $ 1,216 Reconciliation of total d
Slide 24: Return on invested capital
GXO Logistics, Inc. Return on invested capital (unaudited) Adjusted EBITA, net of income taxes paid: Three months ended Trailing twelve March 31, Year ended Months ended December 31, March 31, (In millions USD) 2024 2023 2023 2024 Adjusted EBITA(1) $ 81 $ 92 $ 451 $ 440 Less: Cash paid for income ta