GXO Logistics, Inc. Jefferies Global Industrials Conference 2026

Thank you for having us.

Sure. I joined GXO one year ago. Prior to joining, GXO's been on a decelerating path of organic growth. We were mid-teens organic growth when we spun out of XPO in 2021. Forecasting 4% to 5% organic growth this year. It's been a lot of work and effort in the last year to reinvigorate organic growth in the business. I think that evidenced by our Q2 new business signings at $412 million, which I believe is about 35% increase over prior year. I signaled on the call in August that the third quarter would look similar, in terms of new contract signings, in comparison to last year on a percentage basis. We feel good about the trajectory that we're on from an organic growth perspective and reinvigorating that agenda. In Q2, we saw the 3.4% organic growth.

Takes about three to six months to start up a new contract in the contract logistics business. The difference between 3.4% and 4%, which I think everybody was expecting, is $17 million. That represents about a two-week slip in startup timing. Nothing that I was concerned about. I was quite frankly surprised how concerned everybody else was. We reaffirmed run path this year for the achievement of our 4% to 5% organic growth guidance. That still holds. We will share our organic growth trajectory in our investor day, November 16th.

Stephanie, I would just add also is that our incremental revenue for this year at the end of the quarter came up to over $1 billion, and that was a record for us. And it was up about 29% year-on-year. So I think as we look ahead, we already have the visibility secured in that incremental revenue in the second half of this year.

Yeah. So, in terms of customer demand, and we talked about this August 5th, current customer volumes in the aggregate have been relatively flat, plus or minus 1 or 2. Plus or minus 1%, really. We've seen softer volumes on the commerce retail side in Europe, but substantially higher volumes on our B2B industry verticals of aerospace and defense, technology, industrial, and life sciences. Those all really netting out to pretty stable volume and revenue for us. Talked about marginal improvement in pricing in terms of year-on-year pricing improvement, and the balance of the organic growth is really coming from retention of existing business, not losing business, and adding new business in with the new contracts that we're starting.

It is the strategic focus that we put on North America and the strategic B2B verticals I have talked about, really leaning more into the capabilities, competencies that we have in aerospace, defense, life sciences, technology, and our industrial verticals. That is something I feel like we have not done in the past as GXO. 70% of our business today is consumer CPG, retail, e-commerce business. 40% of our new business wins so far this year have been North America. We are less than 30% of our revenue is in North America, so I think that strategy is coming to life. 41 or 42% of our new business wins have been in the B2B verticals. We have talked about where we are putting additional emphasis. I shared in the investor call on August 5th that I am particularly excited about the progress we are making there because we really have not gotten started yet.

Karen Bomber has come on as Chief Commercial Officer in January. We are standing up a digital marketing capability that did not exist in the past. That will be a huge catalyst to building additional pipeline for us. We are adding to our sales teams, particularly on the B2B verticals. Those people are just coming in, coming up to speed. So I really feel like the teams and our people have done a phenomenal job turning focus to the areas that present the greatest growth opportunity, and delivering and converting against that. We see additional coming with the investments that we are making on the growth side.