GXO Logistics signs multi-year supply chain deal with Sky Italia

Published 15/07/2025, 12:08
GXO Logistics signs multi-year supply chain deal with Sky Italia

MILAN - GXO Logistics, Inc. (NYSE:GXO), a $6 billion market cap logistics provider currently trading near its 52-week high of $63.33, has secured a multi-year agreement with Sky Italia to manage the media company’s supply chain operations, according to a press release issued Tuesday. According to InvestingPro data, GXO has demonstrated strong momentum with a 16% price return over the past six months.

Under the agreement, GXO will manage Sky’s supply chain from its warehouse in Colleferro, where Sky’s decoders, routers, Smart TVs, and merchandising products will be stored. The 30,000-square-meter facility includes 7,000 square meters dedicated to storing over 1 million Sky products. This expansion aligns with GXO’s robust revenue growth of 23.4% over the last twelve months, with total revenue reaching $12.2 billion.

The Colleferro warehouse, which GXO has operated since 2010, offers a scalable multi-user solution to support Sky’s business fluctuations during peak periods. The facility features enhanced security measures for high-value products, LED lighting, and battery-powered trolleys to reduce environmental impact.

Beyond standard logistics operations, GXO employees will perform value-added services including inbound quality control of both hardware and software. The company has established dedicated computer stations for testing products before shipment to customers.

"We chose GXO for its focus on innovation and continuous improvement," said Luigi Manzoli, Supply Chain Director of Sky. "We were looking for a site that was central to the Italian perimeter and scalable."

GXO has an existing three-year relationship with Sky UK in the United Kingdom and Ireland, where it operates a repair center for Sky Glass televisions. The company reports that this partnership has resulted in over 43,000 televisions being repaired and refurbished.

GXO Logistics describes itself as the world’s largest pure-play contract logistics provider, with more than 150,000 team members across over 1,000 facilities globally. The company maintains a healthy gross profit margin of 15.3% and has received positive analyst sentiment, with 10 analysts recently revising their earnings estimates upward. For deeper insights into GXO’s financial health and growth prospects, including additional ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, GXO Logistics has announced several key developments that are capturing the attention of investors. The company has received regulatory approval for its acquisition of Wincanton, a move that has been positively received by analysts such as UBS, which reiterated a Buy rating and maintained a $50.00 price target. In addition, Citi increased its price target to $56.00, citing the removal of uncertainties following the CEO appointment and acquisition approval. GXO has also raised its 2025 adjusted earnings per share guidance to $2.43-$2.63, surpassing prior estimates, while adjusted EBITDA targets have been increased to $860-$880 million.

Truist Securities upgraded GXO’s stock from Hold to Buy, setting a new price target of $62 due to increased confidence in the company’s margin visibility and successful integration of Wincanton. GXO has appointed Patrick Kelleher as the new CEO, effective August 19, 2025, following Malcolm Wilson’s planned retirement. Kelleher, with 33 years of experience, is expected to bring valuable expertise to the role. Additionally, GXO has launched an enhanced logistics solution for midsize firms in the U.S., integrating services from the acquisition of PFSweb with GXO Direct, aimed at improving logistics and fulfillment services for growing businesses. These developments reflect GXO’s strategic efforts to strengthen its market position and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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