GXO Logistics, Inc. today announced results for the fourth quarter and full year 2022.
Fourth Quarter 2022 Results
Revenue increased to $2.5 billion, compared with $2.3 billion for the fourth quarter 2021. Net income attributable to GXO was $46 million, compared with $56 million for the fourth quarter 2021. Diluted earnings per share was $0.39, compared with $0.48 for the fourth quarter 2021.
Adjusted net income attributable to GXO increased to $99 million, compared with $84 million for the fourth quarter 2021. Adjusted diluted earnings per share increased to $0.83, compared with $0.73 for the fourth quarter 2021.
Adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”) increased to $205 million from $167 million in the fourth quarter 2021.
GXO generated $226 million of cash flow from operations, compared with $204 million for the fourth quarter 2021. In the fourth quarter 2022, GXO generated $141 million of free cash flow, compared to $137 million for the fourth quarter 2021.
During the fourth quarter 2022, GXO won new customer contracts expected to contribute $182 million in annualized revenue.
Full Year 2022 Results
Revenue increased to $9.0 billion, compared with $7.9 billion for 2021. Net income attributable to GXO increased to $197 million, compared with $153 million for 2021, and pro forma net income to GXO of $162 million for 2021. 2021 net income reflected a $42 million one-time tax benefit related to the spin. Diluted earnings per share increased to $1.67, compared with $1.32 for 2021.
Adjusted net income attributable to GXO increased to $335 million, compared with $242 million for 2021. Adjusted diluted earnings per share increased to $2.85, compared with $2.09 for 2021.
Adjusted EBITDA increased to $728 million from $611 million for 2021, and pro forma adjusted EBITDA of $633 million for 2021.
GXO generated $542 million of cash flow from operations, compared with $455 million for 2021. In the 2022, GXO generated $240 million of free cash flow1, compared to $216 million for 2021.
The new customer contracts GXO won through the fourth quarter 2022 are expected to contribute $661 million in incremental revenue in 2023.
Cash Balances, Outstanding Debt and Leverage Ratio
As of December 31, 2022, cash and cash equivalents and debt outstanding were $495 million and $1,806 million, respectively. For the year ended December 31, 2022, debt to net income attributable to GXO ratio was 9.2x, and net debt to adjusted EBITDA ratio (net leverage ratio) was 1.8x.
“We are pleased to have delivered another quarter of outstanding financial and operating results, as we executed a successful peak season for our customers. In the fourth quarter, we delivered $2.5 billion of revenue, $46 million of net income and stellar contract wins. We achieved strong year-over-year adjusted EBITDA growth, which at 23 percent was three times our organic revenue growth. For the full year, our revenue and organic revenue growth reached an all-time record and we are pleased to start 2023 with sizable opportunities in our pipeline across all verticals and geographies, I want to thank all of my GXO team members for delivering a standout year, our first as a standalone company.“
Malcolm Wilson, Chief Executive Officer of GXO.
