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GXO Logistics CEO to retire in 2025, successor search begins

Published 2024-12-03, 04:50 p/m
GXO
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GREENWICH, Conn. - GXO Logistics, Inc. (NYSE:GXO), the world's largest pure-play contract logistics provider, with a market capitalization of $7.2 billion, today announced that its CEO, Malcolm Wilson, has informed the board of his intention to retire in 2025. Wilson will remain at the helm while the company searches for his successor.

Since taking the CEO role in August 2021, Wilson has overseen significant expansions for GXO, growing its workforce to 130,000 and its facility space to over 200 million square feet globally. Under his leadership, the company's revenue surged from $7.9 billion in 2021 to $11 billion as of September 30, 2024, and adjusted EBITDA climbed from $633 million to $757 million in the same period. According to InvestingPro data, the company maintains strong revenue growth with a 14.4% increase in the last twelve months.

GXO's growth trajectory includes the acquisitions of Clipper Logistics and Wincanton, among others. Wilson's tenure has also been marked by a consistent return on invested capital of over 30% annually. These achievements coincide with the company's focus on embracing new technologies, which Wilson cites as central to GXO's industry-leading position. InvestingPro analysis reveals 8 key investment insights about GXO, including its strong recent market performance and profitability status. For detailed analysis, investors can access the comprehensive Pro Research Report, available to InvestingPro subscribers.

Brad Jacobs, chairman of the GXO Board of Directors, commended Wilson's "countless contributions" and the strong foundation he will leave for his successor. The board will oversee the transition to ensure continuity in the company's strategic direction and operations.

GXO, headquartered in Greenwich, Connecticut, specializes in complex logistics solutions for blue-chip companies worldwide, leveraging the boom in e-commerce and automation. The company has received global recognition for innovation and its workplace culture throughout Wilson's tenure.

This announcement is based on a press release statement and contains forward-looking statements regarding the company's leadership transition. The actual outcome could vary based on numerous factors.

In other recent news, GXO Logistics, Inc. reported a record third quarter in 2024, with revenues reaching $3.2 billion, a 28% increase from the previous year. The company's adjusted EBITDA also rose to $223 million, marking a 12% year-over-year growth. GXO successfully secured $226 million in new business and experienced a 30% growth in its sales pipeline, now valued at over $2.4 billion.

The company has made advancements in AI and automation technology, improving operational efficiency. GXO expects organic revenue growth of 2% to 5% for 2024, with an anticipated adjusted EBITDA between $805 million and $835 million. The company's net leverage is targeted to improve to around 2.5-2.6 times by year-end 2024 and 2 times by the end of 2025.

In spite of potential delays in the integration of Wincanton, GXO remains optimistic about its growth prospects in 2025, especially in Continental Europe. The company's strong demand in Europe and improvement in the UK market, along with successful AI application pilots in US warehouses, underscore this optimism. These are recent developments that indicate GXO's robust financial health and strategic growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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