Slide 1: 3Q 2024 results
November 4, 2024 3Q 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: 3Q 2024 executive summary
3Q 2024 executive summary Delivered record revenues and adjusted EBITDA Grew pipeline 30% year over year, excluding Wincanton1 On track to deliver a record level of new business wins in 2024 Drove productivity improvements of 3-4x through pilots of proprietary warehouse AI Reaffirmed full-year 2024
Slide 7: 3Q 2024 financial highlights
3Q 2024 financial highlights Key highlights Organic Revenue $3.2 billion 28% revenue(1) up 3% • Signed new business wins of $226 million(2) in annualized revenue Adjusted during 3Q 2024 Net income $35 million EBITDA(1) $223 million • Sales pipeline has increased to $2.4 billion as of 3Q 2024(2) Oper
Slide 8: 3Q 2024 revenue growth
3Q 2024 revenue growth (In millions USD) 24% 1% Net M&A FX $3,157 28% 3% revenue growth $2,471 Organic(1) 3Q 2023 Revenue Organic growth Net M&A FX 3Q 2024 Revenue Year-over-year revenue growth in 3Q was 28%, of which 3% was organic(1). © GXO Logistics, Inc. (1) Refer to the ‘Non-GAAP Financial Meas
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 YTD 2024 contract wins by source from contracts won through 3Q 2024 $463M(1) signed 29% for 2025 Won from competitors Sites transferred from other 3PLs 31% Outsourcing Sites previously operated by
Slide 11: Strong cash flow and investment grade balance sheet
Strong cash flow and investment grade balance sheet Cash flow and returns 3Q 2024 balance sheet Total debt(1) Operating YTD 2024 YTD 2023 cash flow $363 million $343 million $2,779 million Mostly fixed-rate borrowings Free cash YTD 2024 YTD 2023 Net debt(1,2) flow(2) Liquidity of $1,507 million avai
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 (1) Based on current FX rates (2) Refer to th
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 = • Structural organic growth • Global scale 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) Trailing twelve Three months ended Nine months ended Year ended months ended September 30, September 30, December 31, September 30, (In millions USD) 2024 2023 2024 2023 2023 2024 Net income a
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) Three months ended Nine months ended Year ended Trailing twelve months ended September 30, September 30, December 31, September 30, (In millions USD) 2024 2023 2024 2023 2023 2024 Net income att
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 Nine months ended September 30, September 30, (In millions USD, shares in thousands, except per share amounts) 2024 2023 2024 2023 Net income $ 35 $ 68 $ 38 $ 160 Ne
Slide 18: Other reconciliations: free cash flow and net capex
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of cash flow from operations to free cash flow: Three months ended Nine months ended September 30, September 30, (In millions USD) 2024 2023 2024 2023 Cash flow from operations(1) $ 198 $ 243 $ 363 $ 343 Capital expenditures (94) (
Slide 19: Other reconciliations: organic revenue
GXO Logistics, Inc. Other reconciliations (unaudited) Reconciliation of revenue to organic revenue: Three months ended Nine months ended September 30, September 30, (In millions USD) 2024 2023 2024 2023 Revenue $ 3,157 $ 2,471 $ 8,459 $ 7,188 Revenue from acquired business(1) (591) — (1,050) — Reven
Slide 20: Liquidity reconciliations
GXO Logistics, Inc. Liquidity reconciliations (unaudited) Reconciliation of total debt and net debt: (In millions USD) September 30, 2024 Current debt $ 223 Long-term debt 2,556 Total debt(1) $ 2,779 Less: Cash and cash equivalents (excluding restricted cash) (548) Net debt(2) $ 2,231 Reconciliation
Slide 21: Return on invested capital
GXO Logistics, Inc. Return on invested capital (unaudited) Adjusted EBITA, net of income taxes paid: Nine months ended Trailing twelve September 30, Year ended months ended December 31, September 30, (In millions USD) 2024 2023 2023 2024 Adjusted EBITA(1) $ 339 $ 334 $ 451 $ 456 Less: Cash paid for