Portfolio Spotlight ($GXO) | Quietly Signed $2.5B and Automating Globally

The world’s largest pure-play logistics company is scaling robotics across 900 warehouses just as margins bottom and long-term contracts accelerate.

Hello All👋

Welcome to 📉DeepValue Capital📈

Every Wednesday I dive into an update on one of my current holdings to build conviction so you can hold through short term noise. And at the end lay my portfolio bare.

This week I cover GXO Logistics. The largest pure play logistics company in the world that is integrating robotics and AI across warehouses. And executing on the plan they laid out in 2023 for massive growth.

But before we get to that lets see how this strategy has performed.

📈 From January 2024 to April 2025, my portfolio is up 129.23%.

Even better though YTD, after an incredible start to May, I’m up about 67%. All from setups like this. Mispriced, and misunderstood.

TWR of portfolio from 1/1/2024 to 4/30/2025 vs major indexes.

This week’s First Look: GXO Logistics (GXO)

The market thinks it’s boring. I think it’s underappreciated.

Margins are bottoming. Automation is scaling. And the biggest contract in company history was just signed.

This post will walk through:

✅ What GXO Actually Does

✅ The Q1 Results

✅ The Balance Sheet

✅ The 2027 Path

✅ And the Valuation

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🧠 What GXO Actually Does

GXO Logistics is the world’s largest pure-play contract logistics provider, specializing in managing complex supply chains for global brands.

Companies across retail, manufacturing, and e-commerce sectors rely on them to handle critical operations such as warehousing, order fulfillment, reverse logistics, and automation.

By leveraging advanced technology and scale, GXO delivers these services more efficiently and cost-effectively than companies can achieve internally.

In 2024, they generated $11.7 billion in revenue, with its business segmented as follows:

• Omnichannel Retail: $5.4 billion (45.8%)

• Technology & Consumer Electronics: $1.5 billion (13.2%)

• Industrial & Manufacturing: $1.3 billion (11.4%)

• Food & Beverage: $1.3 billion (11.4%)

• Consumer Packaged Goods: $1.3 billion (10.8%)

• Other: $0.9 billion (7.4%)

Revenue

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.

In their Q1 earnings call GXO’s current CEO Malcom 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 invisible 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.