GXO Logistics completed a €500 million senior unsecured bond offering on November 24 2025, marking the company’s first issuance in the European market as an investment‑grade issuer. The notes carry a 3.750 % coupon, pay interest annually beginning November 24 2026, and mature on November 24 2030.
The proceeds will be used to refinance a series of upcoming debt maturities and to strengthen the balance sheet. With a current ratio of 0.71, GXO’s short‑term obligations exceed its liquid assets, making the refinancing a strategic move to improve liquidity and reduce leverage. The €500 million raised also provides a lower‑cost source of capital that can be deployed toward automation investments and the integration of recent acquisitions.
In the third quarter of 2025, GXO reported revenue of $3.40 billion, up 8 % year‑over‑year from $3.20 billion in Q3 2024. Adjusted earnings per share rose to $0.79, beating consensus estimates of $0.78 by $0.01. The revenue growth was driven by strong demand in core logistics services, while the EPS beat reflected disciplined cost management and a favorable mix of high‑margin contracts.
Operating margins slipped slightly, with net profit margin falling to 0.7 % in the last 12 months ending September 30 2025 from 1.0 % the previous year. The compression was largely due to higher operating expenses associated with automation projects and modest increases in freight rates, offset by gains in high‑margin e‑commerce fulfillment services.
CFO Baris Oran said, “By securing €500 million on competitive terms and using the proceeds to refinance upcoming maturities, we are strengthening our balance sheet and positioning GXO for long‑term growth.” The bond issuance signals confidence from European investors and underscores GXO’s ability to access capital markets at attractive rates.
The transaction enhances GXO’s financial flexibility, extending its debt maturity profile and providing a stable funding base for future expansion. As the company continues to invest in automation and integrate acquisitions, the new capital structure will support its strategy to capture growth in e‑commerce and supply‑chain services across the globe.
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