5 Insightful Analyst Questions From GXO Logistics's Q2 Earnings Call

GXO’s second quarter was marked by strong operational execution, with management highlighting robust new business wins, especially in omnichannel retail, technology, and e-commerce. The company saw notable momentum in North America, driven by aerospace and technology infrastructure clients, as well as improved consumer vertical performance. CEO Malcolm Wilson attributed the positive quarter to “record revenue of $3.3 billion and $212 million of adjusted EBITDA, up 13% year-over-year,” along with successful automation initiatives and improved productivity.

Is now the time to buy GXO? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From GXO Logistics’s Q2 Earnings Call

• Stephanie Lynn Benjamin Moore (Jefferies) asked about the drivers behind accelerating organic growth and geographic trends. CEO Malcolm Wilson detailed stronger volumes in North America and improvements in the UK, with technology and aerospace clients outperforming expectations.
• Christian F. Wetherbee (Wells Fargo) inquired about the sustainability of organic growth rates and the impact of Wincanton. Wilson emphasized Wincanton’s contribution to revenue and cost synergies, plus a revamped sales organization, while CFO Baris Oran stated capital allocation would prioritize organic growth over buybacks.
• Ravi Shanker (Morgan Stanley) questioned the rationale behind raising guidance twice and whether improvements were structural or cyclical. Oran linked margin gains to internal efficiency efforts and site-level productivity, not just macro recovery, and Kubacki highlighted the expanding industrial and aerospace pipeline.
• Scott Andrew Schneeberger (Oppenheimer & Company) asked about the mix of new activity versus outsourcing and the outlook for reverse logistics. Wilson cited e-commerce as the primary driver, with reverse logistics now a larger part of the pipeline, and Kubacki described AI as a differentiator in this high-margin business.
• Ariel Luis Rosa (Citi) sought clarification on reduced capital expenditures and the impact on growth. Oran explained that lower CapEx resulted from customer choices to fund their own investments, stating it does not affect future growth as project returns remain robust.

Catalysts in Upcoming Quarters

In the coming quarters, our team will monitor (1) the pace and success of Wincanton’s integration and realization of targeted synergies, (2) the impact of GXO IQ and automation investments on both new business wins and operational margins, and (3) sustained momentum in e-commerce, reverse logistics, and health care verticals. The trajectory of customer retention rates and pipeline conversion will also be important for gauging future growth.

GXO Logistics currently trades at $50.15, up from $49.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

The Best Stocks for High-Quality Investors

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.