GXO Logistics Inc. is setting its sights on North America for organic growth opportunities, with executives emphasizing the U.S. market as a key driver of revenue and margin expansion in the coming years. CEO Patrick Kelleher highlighted North America as a primary focus, pointing to a total addressable market of approximately $250 billion in the region. He noted that the company is underrepresented in North America compared to its presence in the U.K. and Europe, expressing confidence in the potential for growth in the region.
Based in Greenwich, Connecticut, GXO Logistics is a leading contract logistics provider with a global footprint. The company operates over 970 facilities spanning approximately 200 million square feet and employs more than 130,000 people worldwide. In its recent fourth-quarter earnings report, GXO reported a 7.9% increase in quarterly revenue to $3.5 billion, surpassing Wall Street expectations.
Executives highlighted the outperformance of North America compared to parts of Europe in the fourth quarter, with CFO Baris Oren noting stronger trends in the U.S. market. Looking ahead to 2026, GXO is cautiously optimistic, assuming flat volumes in its existing operations while focusing on new business wins for growth.
The company has already secured $774 million in incremental revenue for 2026, with a global pipeline of $2.5 billion, showing momentum in key verticals such as aerospace and defense, life sciences, and technology. New North America leader Michael Jacobs is spearheading efforts to enhance solution design, sales, and digital marketing to drive pipeline conversion in the U.S.
While some analysts speculate on a potential rebound in U.S. warehouse throughput due to low inventories, GXO remains cautious in its volume outlook for 2026. The company is prioritizing organic expansion and deleveraging, aiming to achieve a net leverage of around two times EBITDA by year-end. GXO’s focus on organic growth and investments in automation, robotics, and AI positions it well to meet evolving customer demands.
As GXO navigates the contract logistics sales cycle, executives anticipate acceleration in U.S. growth in the second half of 2026 and into 2027. The company’s commitment to driving top-line growth through organic expansion reflects its strategic approach to leveraging market opportunities. With a strong emphasis on technological innovation and operational efficiency, GXO is poised to capitalize on the vast potential of the North American market.
For more information, you can read the original article on FreightWaves: GXO sees stable North American freight demand, cautious on volumes in 2026.
