GXO sees stable North American freight demand, cautious on volumes in 2026

GXO Logistics Inc. sees North America arsenic a large accidental for integrated growth, with executives telling analysts that the U.S. marketplace volition beryllium a superior operator of gross and borderline enlargement successful 2026 and beyond.

CEO Patrick Kelleher described North America arsenic “a superior focus,” citing a full addressable marketplace of astir $250 cardinal successful the portion and what helium called “a large instauration of business” crossed consumer, technology, aerospace and concern verticals.

“We are underrepresented successful North America successful opposition to our information successful the U.K. and Europe. We are precise assured that we person upside determination and we’re executing that to that end,” Kelleher said during the company’s fourth-quarter net telephone connected Wednesday.

Greenwich, Connecticut-based GXO Logistics (NYSE: GXO) is 1 of the largest pure-play declaration logistics providers successful the world. It has much than 970 facilities totaling astir 200 cardinal quadrate feet, with a planetary workforce of much than 130,000 people.

GXO reported fourth-quarter results aft the marketplace closed connected Tuesday. Quarterly gross roseate 7.9% to $3.5 billion, up from $3.25 cardinal compared to the aforesaid year-ago period.

Adjusted net per stock was 87 cents successful the 4th quarter, compared 83 cents per share, successful 2024.

The results bushed Wall Street expectations for 4th fourth net of 83 cents per stock and gross of $3.47 billion.

Executives said North American show outpaced parts of Europe successful the 4th quarter.

“In Q4, our trends successful North America and the U.S. were stronger than continental Europe and U.K.,” CFO Baris Oren told analysts. “For 2026, it’s excessively aboriginal to telephone for the full year. We conscionable instrumentality a level fig for prudence … thing much than that.”

GXO is assuming level volumes successful 2026 successful the existing operations crossed its network, a blimpish macro outlook executives said reflects uncertainty astir lawsuit demand. Growth is expected to beryllium driven chiefly by caller concern wins alternatively than a measurement rebound.

The institution exited 2025 with $774 cardinal successful incremental gross already secured for 2026 and a planetary pipeline of $2.5 billion, up from $2.3 cardinal astatine year-end, with peculiar momentum successful strategical verticals specified arsenic aerospace and defense, beingness sciences, and technology, including information halfway infrastructure.

Kelleher said recently appointed North America person Michael Jacobs, who stepped into the relation 3 months ago, is reallocating resources toward solution design, income and integer selling to amended pipeline conversion successful the U.S.