Key facts
- QXO aims for $50 billion in annual revenue within the next several years, per chairman and CEO Brad Jacobs.
- QXO reported $4.9 billion in combined revenue last quarter.
- Companywide pricing rose 2.2% year over year in preliminary third-quarter 2026 results.
- Daily sales were up 5.4% year over year by the end of October, QXO reported.
- Roofing and Waterproofing grew daily sales 9.1%, which Jacobs credited to better deliveries and inventory management.
- QXO has about $12 billion in combined spending, including about $11 billion on products and materials.
QXO, a building products distributor, is counting on homebuilders as a launchpad for growth as it targets $50 billion in annual revenue within the next several years. Chairman and CEO Brad Jacobs said on a November 9 conference call that the company wants to supply builders with far more than lumber and trusses, and that it has overhauled sales incentives, technology and pricing to become a primary supplier to production and custom builders. QXO reports full third-quarter 2026 earnings after the market closes on November 12.
The push follows its acquisitions of TopBuild and Kodiak Building Partners in 2026 and Beacon Roofing Supply in April 2025. QXO said the deals gave it exposure to insulation, roofing materials, waterproofing, lumber, siding, drywall, installation services and tools. The company generates roughly 50% of its revenue from residential construction.
QXO reported preliminary third-quarter 2026 results earlier in the week showing organic revenue per day improved for a second consecutive quarter. Companywide pricing rose 2.2% year over year, with nine of 11 business areas posting positive pricing, and daily sales were up 5.4% year over year by the end of October. Roofing and Waterproofing grew daily sales 9.1%, which Jacobs credited to better on-time deliveries, invoice accuracy and inventory management. Insulation performed strongly, largely because of data center demand.
Jacobs said QXO plans to cross-sell more to homebuilders, an important and growing customer segment. "Our strong relationships with production homebuilders are typically rooted in our truss and wall panel capabilities, as well as insulation, where we solve some of their greatest needs," he said. The $17 billion TopBuild deal gave QXO an installation business present at roughly 22,000 job sites every day, and the $2.25 billion Kodiak deal added lumber, engineered wood, doors, windows, trusses and gypsum products. QXO is changing its sales compensation structure to reward employees for selling a broader range of products.
Jacobs named five other areas where the company expects to improve margins and market share: stronger supplier relationships, additional acquisitions, pricing improvements, smarter use of private-label products and technological improvements. QXO has about $12 billion in combined spending, including about $11 billion in direct spending on products and materials, and about $7.6 billion of that is with suppliers serving at least two of its legacy businesses. Jacobs said QXO wants deep relationships with a smaller number of strategic supplier partners.
On acquisitions, Jacobs said QXO is eyeing smaller, highly accretive deals but did not identify targets. On November 12 the company named Dev Ahuja its next CFO, effective in January, succeeding Ihsan Essaid, who will become Vice Chairman. QXO launched its private-label brand TRI-BUILT in 2024 and is now trying to grow the brand's sales.