Portfolio Spotlight ($GXO) | The Robot-Powered Warehousing Machine
A full breakdown of GXO’s business, growth plan, new CEO, and why automation could drive big upside by 2027.
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👉I’m Stepping Out from Behind the Screen
Every Wednesday, I cover one holding in the portfolio laying out the thesis, what I am watching, and valuation. Plus for paid subs at the end a detailed breakdown of portfolio stats.
This week: GXO Logistics ($GXO). They’re stealing share, landing massive deals, and using automation to quietly transform logistics into a compounding machine.
This post covers:
✅ What’s New
✅ What they actually do.
✅ Full up to Date Thesis
✅New CEO Profile
✅What I am Watching
✅Valuation
✅Portfolio Breakdown and Update (NEW NOTE!)
🆕What’s New
If you have been following for a while and know the GXO setup here is a quick summary of recent developments.
Wincanton acquisition got CMA approval with tiny caveat of grocery divestment so integration can move forward.
New CEO Patrick Kelleher will take over in August. He has over 30+ year of direct relevant automation and logistics experience.
Management raised guidance on diluted EPS, adjusted EBITDA, and organic growth.
For any new readers or those wanting a refresher keep going as I break down the FULL setup.
🚚What GXO Does
If you are a long time reader here is a refresher of what GXO does before we dive into the thesis.
GXO Logistics is the world’s largest pure-play contract logistics provider, specializing in managing complex supply chains for global brands.
They are headquartered in the UK, where most of their revenue comes from. Other important geographies are the US, Netherlands, France, Spain, and Italy.
Companies across retail, manufacturing, and e-commerce sectors rely on them to handle critical operations such as warehousing, order fulfillment, reverse logistics, and automation.
They typically sign multi-year, and sometimes decade-long, contracts to outsource this work through GXO. Embedding them deeply in operations across 869 locations, 208 million square feet of warehouse space, and a workforce of ~94,000.
In 2024, they generated $11.7 billion in revenue, broken down as follows:
Omnichannel Retail: $5.4 billion (46.2%)
Technology & Consumer Electronics: $1.5 billion (12.8%)
Industrial & Manufacturing: $1.3 billion (11.1%)
Food & Beverage: $1.3 billion (11.1%)
Consumer Packaged Goods: $1.3 billion (11.1%)
Other: $0.9 billion (7.7%)
But GXO isn’t just moving boxes. It's quietly becoming one of the most advanced operators in global logistics thanks to investments in AI and robotics.
Dexterity: Partnered to deploy AI-powered robotic arms that handle depalletizing, labeling, and repalletizing. These are being tested in high-volume fulfillment settings to increase throughput and reduce labor bottlenecks.
Dexory: Introduced autonomous mobile robots to automate inventory scanning across warehouse shelves. These units scan up to 13 meters high and 10,000 pallet positions per hour. Freeing workers from one of the most repetitive, error-prone tasks in logistics.
Agility Robotics: In 2024, GXO began piloting Digit, a humanoid robot developed by Agility Robotics. Unlike wheeled robots, Digit walks upright and is built to navigate environments designed for people. They are testing Digit for tasks like unloading containers, recycling totes, and moving bins across warehouse zones that aren’t easy to automate with traditional systems.
On the Q1 earnings call, CEO Malcolm Wilson said:
“We’re continuing to lean into automation because we see it as a structural enabler of margin expansion and a key driver of long-term competitive advantage. We’re already deploying robotics and AI across over 50% of our sites globally, and the results are translating into faster throughput, higher accuracy, and lower cost per unit. This isn’t just a pilot phase, this is GXO’s future.”
GXO runs the infrastructure behind modern commerce. And with automation becoming core to how that infrastructure scales, the real story here isn’t what they do today.
It’s where they are going.
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📝The Thesis
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