GXO Logistics Shares Increase in Premarket as Group Reportedly Considers Takeover Interest

Shares of GXO Logistics experienced a rise of over 5% during premarket trading on Thursday, following reports that the logistics services provider is considering a potential sale due to takeover interest.

GXO, which is a spin-off of trucking company XPO, is currently consulting with a financial advisor to evaluate acquisition offers, including those from competing logistics firms. However, the company has not yet made a definitive decision regarding a sale, and discussions may not lead to any transaction.

With a market capitalization surpassing $6 billion, GXO provides supply chain management solutions and offers services such as AI-powered robotics and warehousing. The company employs more than 130,000 individuals across over 970 facilities and serves a diverse client base that includes well-known brands such as Apple, Coca-Cola, Intel, Nestle, L’Oreal, and Nike.

Since its spin-off in 2021, GXO’s share price has declined by more than 20%, primarily attributed to reduced customer demand in the UK and Europe. This drop in stock value may have made the company more appealing as a target for acquisition.

Despite these challenges, GXO has shown improved performance in recent quarters, reporting a 19% increase in revenue to $2.85 billion in its most recent earnings report in August. The company has maintained its full-year 2024 guidance, forecasting organic revenue growth of 2% to 5% and adjusted core income between $805 million and $835 million, with CEO Malcolm Wilson highlighting a “strengthening consumer demand” in the UK and Europe.

During this period, GXO secured approximately $270 million in new business wins, and Wilson noted an increase in contract lengths as clients seek to outsource to reliable partners.