QXO, Inc. has recently released its investor presentation for June 2025, outlining its plans and performance. The company aims to become the tech-enabled leader in the $800 billion building products distribution industry and generate outsized value for shareholders, targeting $50 billion in annual revenue within the next decade through accretive acquisitions and organic growth.
The presentation highlights several key points. QXO is the largest publicly traded distributor of roofing, waterproofing, and complementary building products in the United States. The company plans to address the large, highly fragmented industry by acquiring businesses at attractive valuations, driving above-market organic revenue growth, significantly expanding EBITDA margin, leveraging game-changing technology opportunities, and generating free cash to replenish acquisition capacity.
The building products distribution industry is immense, with a total addressable market of approximately $800 billion and supported by attractive long-term demand drivers. The industry is highly fragmented, with about 7,000 distributors across North America. Strong demand drivers include a shortage of approximately 4 million homes in the U.S., significantly aged housing stock requiring repair and remodeling, and over $2 trillion in infrastructure spend needed in North America over the next two decades.
QXO's management team, led by Chairman and CEO Brad Jacobs, boasts a strong track record in driving transformations. Jacobs, who founded and led three highly successful consolidators, has raised approximately $50 billion in institutional capital and has a track record of successful transformations.
Beacon, a leader in attractive verticals, is primed for transformation. It has a diversified net sales mix, with approximately 20% in commercial roofing and 30% in residential roofing. In FY24, Beacon reported $9.8 billion in net sales, with over 8,000 employees, approximately 600 branches, 135,000 SKUs, and about 1.4 million annual customer deliveries.
The presentation also contains cautionary statements regarding forward-looking statements, highlighting the inherent risks and uncertainties involved in achieving the outlined goals and projections.
The market has reacted to these announcements by moving the company's shares -0.41% to a price of $21.72. Check out the company's full 8-K submission here.
