Contract logistics provider GXO Logistics Inc. reported adjusted fourth-quarter earnings of 70 cents per diluted share, just beating consensus estimates of 69 cents per share. The company also guided to a range of $2.70 to $2.90 per share for 2024, up from $2.59 in 2022, and said top-line growth will likely fall around the midpoint of a 2% to 5% range.

The Greenwich, Connecticut-based company (NYSE: GXO) posted fourth-quarter revenue of $2.6 billion, up from $2.5 billion in the 2022 quarter. Operating income rose to $87 million from $74 million, while net income increased to $73 million. Adjusted earnings before interest, taxes, depreciation and amortization fell to $193 million from $205 million.

For the year, revenue rose to $9.8 billion from $9 billion. Operating income rose to $318 million from $242 million, while net income increased to $229 million from $197 million.

The company said it ahd signed contracts in 2023 valued at more than $1 billion in annualized revenue. About 40% of that new business came from businesses looking to outsource their supply chain operations, GXO said.

For 2024, GXO guided to adjusted EBITDA of between $760 million and $790 million.

Company executives said that GXO’s continental Europe business has recovered from a slow 2023 start and is now doing well. GXO is starting to see a turnaround in its North American and U.K. operations coming off a sluggish fourth quarter. Businesses that were paring back inventories in late 2023 are poised to grow their orders this year, though most of the gains could be backloaded in the second half of the year, executives said.

Revenue growth projections for 2024 will likely not be driven by strong pricing trends, executives said. CFO Baris Oran said in a phone interview that lower inflation levels will result in more muted price increases for GXO customers. GXO has seen material declines in labor and equipment cost inflation since 2022, Oran said.

The bulk of 2024 revenue growth will be a second-half story, Oran added. Warehouse automation projects in the pipeline can take almost a year to complete depending on their complexity, and revenue is not generated until the project is live and operational, Oran said. Also, customers ramping up big order flows may start off small before growing into an optimal throughput.