GXO Logistics aims for North American growth in 2026, leveraging reshoring, tariffs, and automation to enhance margins, as reported by American Shipper.
Connecticut-based GXO Logistics is positioning North America as its central growth engine in 2026, betting on reshoring, tariff-driven supply chain redesign, and accelerating automation to fuel margin expansion, reported American Shipper.
The contract logistics provider posted fourth-quarter 2025 adjusted earnings of 87 cents per share on US$3.5 billion in revenue, beating Wall Street expectations. CEO Patrick Kelleher stated that investments in automation and growth are designed to expand margins and strengthen operations in the US, Canada, and Mexico.
Kelleher noted that trade volatility and tariff shifts are boosting demand for outsourced logistics. He mentioned that supply chain redesign is creating new opportunities, with North America representing a US$250 billion market for contract logistics. GXO operates more than 970 facilities worldwide, including 67 free trade zones and bonded sites.
Aerospace, defense, industrial technology, and life sciences were highlighted as verticals with above-GDP growth potential. GXO is also rethinking its North American footprint to support reshoring and nearshoring along US-Mexico trade corridors.
Automation remains central to the company's margin strategy. GXO has deployed more than 20,000 robots globally and is piloting humanoid robots in California. Its GXO IQ data and AI platform is being rolled out across 1,200 operations to improve labor planning and productivity.
The company expects margin expansion of about 200 basis points in 2026, alongside improved free cash flow conversion. GXO is also reducing leverage from 2.5x to closer to 2x by year-end, creating flexibility for potential acquisitions in North America. Mr. Kelleher stated that volatility in trade flows favors GXO's outsourced model.
