Gxo Logistics will provide logistics services to the UK’s National Health Service through a $2.5 billion agreement signed with NHS Supply Chain. Announced on 6 May 2025 and described as a “landmark” deal, the contract could pave the way for similar agreements across Europe and the United States, where demand for advanced healthcare logistics solutions is growing rapidly.
Under the agreement, Gxo will manage eight NHS Supply Chain distribution centres and operate a dedicated fleet of over 300 vehicles, with the aim of ensuring end-to-end logistics across the UK’s healthcare system. The model developed by Gxo is tailored to meet the specific needs of healthcare logistics, providing real-time inventory visibility, precise order management, and careful handling of hundreds of thousands of clinically sensitive and high-value items.
Gxo’s solutions encompass hospital supplies, medical devices, and equipment for community healthcare and home deliveries, addressing the growing need for decentralised care. According to CEO Malcolm Wilson, the agreement with NHS Supply Chain represents the most significant contract ever signed by the group.
The logistics multinational recently launched a multi-year agreement with Siemens Healthineers in the United States to expand its advanced storage network, including the opening of two new strategic logistics centres. In Europe, Gxo has also signed two new contracts with major healthcare brands.
Demonstrating both the company’s momentum and the strength of its expansion strategy, Gxo Logistics reported first-quarter 2025 results showing a 21% year-on-year increase in revenue, reaching $3 billion. Organic growth stood at 3% amid continued global economic uncertainty. The sales pipeline reached a three-year high of $2.5 billion, excluding Wincanton, while new business signed in the quarter totalled $228 million.
Gxo has already secured over $700 million in incremental revenue for the current year, with an additional $300 million expected in 2026. Despite a net loss of $95 million in the quarter, operational performance remained strong, with adjusted EBITDA of $163 million and full-year guidance reaffirmed: organic revenue growth between 3% and 6%, adjusted EBITDA between $840 million and $860 million, and adjusted earnings per share between $2.40 and $2.60. The company also projects free cash flow conversion of 25% to 35% of EBITDA. As of 31 March 2025, Gxo held $288 million in cash, against a net debt of $2.4 billion.
