Earnings Report
QXO Posts Q1 Loss Amid Beacon Acquisition
New kid on the block eyes long-term growth in roofing and building products distribution
Despite experiencing short-term losses in the first quarter, QXO’s strategy and substantial cash reserves indicate a long-term transformation throughout the building products supply chain.
— Bryan Gottlieb/Roofing Contractor | Elements: Adobe Stock
QXO (NYSE: QXO) reported a net loss of $0.03 per share for the first quarter of 2025 as the company integrates its recent $11 billion acquisition of Beacon.
The acquisition, finalized at the end of April, positions QXO as the largest publicly traded distributor of roofing, waterproofing, and complementary building products in the United States.
Financial Overview
For the quarter ended March 31, 2025, QXO reported total revenue of $13.5 million, a 6.4% decrease from $14.4 million in the same period last year.
Software product revenue remained relatively flat at $3.5 million, while service and other revenue declined 8.8% to $10.0 million.
Despite the revenue dip, QXO posted a net income of $8.8 million, bolstered by $56.6 million in interest income. However, adjusted EBITDA — a non-GAAP measure — was negative $8.9M, compared to $0.5 million in the prior-year quarter.
The decline in adjusted EBITDA was attributed to higher employee-related costs associated with onboarding a new senior management team to execute QXO’s expansive growth plan.
Strategic Acquisition
The completion of the Beacon acquisition marks a months-long effort by QXO. Chairman and CEO Brad Jacobs stated, “With our $11 billion acquisition of Beacon completed, we’re off to a good start toward becoming the leading tech-enabled company in the $800 billion building products distribution industry. Now it’s time to apply our proven playbook to make an already great business even better.”
The acquisition was financed through cash on hand and secured financing commitments from major financial institutions, including Goldman Sachs, Morgan Stanley, Citi, Crédit Agricole, Wells Fargo, and Mizuho.
QXO had approximately $5.1 billion in cash and no debt as of December 31, 2024.
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Outlook and Implications
QXO aims to become a tech-forward leader in the building products distribution industry, targeting $50 billion in annual revenues within the next decade through accretive acquisitions and organic growth.
The company plans to leverage Beacon’s extensive branch network and customer base to drive this growth.
For roofing contractors and building suppliers, QXO’s strategic moves signal a shift toward greater technology integration in distribution processes.
The company’s focus on becoming a tech-enabled leader suggests potential enhancements in supply chain efficiency, inventory management and customer service.
While QXO faces short-term financial challenges amid its aggressive expansion strategy, analysts agree that its substantial cash reserves and strategic acquisitions position it for significant growth in the building products distribution industry.
For more information, visit qxo.com.
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Bryan Gottlieb is the online editor at Engineering News-Record (ENR).
Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction, and community issues. He has worked at Adweek, managed a community newsroom in Santa Monica, Calif., and reported on finance, law, and real estate for the San Diego Daily Transcript. He later served as editor-in-chief of the Detroit Metro Times and was managing editor at Roofing Contractor, where he helped shape national industry coverage.
Gottlieb covers breaking news, large-scale infrastructure projects, new products and business.
email gottliebb@enr.com | office: (248) 786-1591
