The company's CEO, Patrick Kelleher, emphasized North America as a top priority for organic growth, with the region expected to become substantially bigger. Kelleher sees North America as a $250 billion contract logistics market, growing significantly in the coming years. This optimism is driven by reshoring, nearshoring, and trade realignment, which are creating opportunities for outsourced logistics providers like GXO.
GXO operates 67 free trade zones and bonded facilities globally, rethinking its North American footprint to support these trends. The company is also investing in automation and robotics, with more than 20,000 robots deployed globally and a production-ready demonstration of humanoid robots expected this year in California. Humanoids are being hailed as game-changer technology for the supply chain industry, promising significant productivity gains.
Despite near-term EPS pressure tied to growth investments, Kelleher said GXO expects margin expansion of roughly 200 basis points in 2026. The company is targeting improved free cash flow conversion while continuing to invest in automation, digital marketing, and operational execution. This focus on profitability will be crucial as the industry continues to evolve.
GXO is simultaneously paying down debt — currently around 2.5x leverage with a goal of closer to 2x by year-end — creating flexibility for potential M&A in North America and targeted strategic sectors. As reshoring, nearshoring, and trade realignment reshape freight flows, Kelleher said volatility favors GXO's outsourced model.
When customers change, we play a big role in helping our customers think through and make those changes,
As the supply chain industry continues to evolve, companies like GXO are positioning themselves for growth through automation and digitalization.
