GXO Logistics delivered a strong 2025, posting record quarterly and annual revenue results, reaching all-time high adjusted EBITDA and booking in excess of $1 billion in new business for the third straight year. Despite those milestones, CEO Patrick Kelleher is already focused on the companys next phase of expansion and efficiency gains for 2026.
Setting the 2026 target
The company has issued guidance for organic revenue growth of 4-5% in 2026. Kelleher characterized last years 3.9% organic growth as a starting point rather than an endpoint and said GXO intends to push growth back toward "mid-teens." That path, he said, will rely on productivity gains, better execution across the business and additional benefits from recent acquisitions, most prominently the £762 million Wincanton purchase completed in March 2024.
Operational improvements are already producing measurable results: GXO has secured $774 million of expected incremental new business revenue for 2026, a roughly 20% increase versus the same point last year. Kelleher pointed to significant contract wins recorded in the fourth quarter across life sciences, aerospace and defense, and global apparel as evidence that the sales pipeline is strengthening.
North America front and center
Geographically, Kelleher identified North America - and particularly the U.S. - as the primary lever for near-term growth. He acknowledged that GXO has underperformed in the U.S. in recent years and emphasized managements determination to reverse that trend. During the companys post-earnings conference call, he said, "The U.S. is our largest and most immediate growth lever."
AI strategy - internal capability plus external partners
Technology investment sits at the heart of GXOs plan. The company is building a two-fold AI strategy: develop a leading internal team to advance its proprietary warehouse operating system, GXO IQ, while also integrating third-party solutions where appropriate. GXO IQ, already deployed at some of the company's largest sites, uses AI to enhance labor planning, inventory distribution and workflow management.
Kelleher expects that combining an industry-leading in-house platform with best-in-class partner technologies will preserve GXOs edge against competitors. He also described a push into what he terms "Physical AI" - including humanoids and robots - and labeled this investment as "a game changer for our industry." For 2026, the company plans to direct substantial investment into those physical automation capabilities.
Market opportunity and outsourcing potential
Kelleher estimates that only about 30% of contract logistics is currently outsourced. That underpenetration, he argues, combined with cost and efficiency improvements driven by AI and automation, creates a strong opportunity set for third-party logistics providers. As GXO's solutions become more effective and cost-competitive, clients may find it less appealing to build and operate their own logistics networks, potentially translating into greater addressable market and share gains for GXO.
Defense and government push
On February 9th, GXO announced the creation of a Defense Advisory Board to support its expansion into aerospace and defense logistics. Kelleher said the company is actively pursuing U.S. government business and that the board - which includes four senior military and business advisors - will help GXO compete for federal and defense contracts. The strategy is already generating results, with GXO having secured several aerospace and defense contracts with major industry players, including Boeing and BAE Systems.
M&A will continue
GXO has been an active acquirer in recent years, including the October 2023 takeover of PFSWeb and the March 2024 Wincanton transaction. When asked about further acquisitions, Kelleher was direct: "We will do M&A." He said no specific deals were imminent but that the company intends to target M&A in North America during 2026, with expansion into other geographies planned for 2027.
Company direction and sale speculation
Kelleher opened the company's post-earnings conference call by saying, "GXO is accelerating, deliberately and from a position of strength." He repeatedly underscored managements confidence in the business and its capacity to deliver value for shareholders. Asked about a 2024 rumor concerning a possible sale of the company, he responded plainly: "I don't want to sell." He added that the board shares his position.
What investors can do next
For readers evaluating whether GXO represents an attractive investment today, the companys recent performance, 2026 guidance, technology investments and stated M&A appetite will likely be central considerations. Investors seeking an objective valuation snapshot can also use model-driven tools to compare GXOs current price to a range of industry valuation outcomes. One such tool referenced by market participants is a Fair Value calculator that aggregates multiple valuation models to indicate potential undervaluation or overvaluation.
Note: The article retains quotes and factual details provided during GXOs post-earnings commentary and follow-up discussion with the companys CEO. No new financial figures or events have been added beyond the information reported by the company.