QXO (QXO) Earnings Date & Reports
QXO Inc is a publicly traded distributor of building products in North America... Show more
QXO is expected to report earnings to fall 186.25% to 10 cents per share on August 11
QXO, Inc. (QXO) Q1 2026 Earnings Recap: Misses on EPS and Revenue Amid Acquisition Push
Key Takeaways
- QXO reported Q1 2026 net sales of $1.73 billion, slightly below consensus estimates of $1.76 billion but up dramatically from $13.5 million in Q1 2025 due to acquisitions.
- Adjusted diluted loss per share was $(0.12), wider than the expected $(0.09) loss; GAAP diluted EPS was $(0.35).
- Gross profit reached $409.3 million, reflecting growth in residential (46.2%) and non-residential roofing products; adjusted EBITDA was $1.2 million.
- Net loss totaled $227.1 million, pressured by high operating expenses of $661.2 million including amortization from deals.
- Recent $2.25 billion Kodiak acquisition closed post-quarter; $17 billion TopBuild deal expected in Q3 2026 to boost scale.
- Shares fell 3.8% on May 12 but rose 1% after hours, signaling mixed investor reaction.
Earnings Context and Why It Matters
QXO, Inc., the largest publicly traded distributor of roofing, waterproofing, and complementary building products in North America, released its first quarter 2026 results on May 12, 2026. This report is pivotal as it marks the company's first full quarter post its transformative Beacon Roofing Supply acquisition, highlighting integration progress amid a soft building products market. Investors are focused on execution in a fragmented $800 billion industry where QXO targets $50 billion in annual revenue within a decade through M&A and organic growth. Prior quarters showed scaling revenues but persistent losses from acquisition costs, making this a key test of operational leverage and path to profitability.
For the first quarter ended March 31, 2026, QXO posted net sales of $1,730.2 million, up over 12,700% from $13.5 million in the prior-year period but missing consensus estimates of $1.76 billion. The growth stemmed from the Beacon integration, with sales split across residential roofing products ($799.1 million or 46.2%), non-residential roofing ($463.6 million or 26.8%), complementary products ($452.9 million or 26.2%), and legacy software ($14.6 million or 0.8%). Gross profit rose to $409.3 million from $5.4 million year-over-year.
Operating expenses surged to $661.2 million, driven by selling, general, and administrative costs ($497.0 million), depreciation ($47.3 million), and amortization ($116.9 million) tied to acquisitions. This led to a GAAP net loss of $227.1 million, or $(0.35) diluted EPS, versus net income of $8.8 million or $(0.03) in Q1 2025. Adjusted diluted loss per share was $(0.12), missing expectations of $(0.09), while adjusted EBITDA improved to $1.2 million from $(9.0) million. No formal guidance was issued, but management reaffirmed long-term goals.
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Market Reaction and Investor Sentiment
QXO shares closed down 3.8% at $17.74 on May 12, 2026, reflecting disappointment over the EPS and revenue misses amid industry softness. After-hours trading saw a modest 1% rebound, as investors weighed operational updates and M&A momentum positively against near-term losses. Sentiment remains cautious but optimistic on the long-term vision, with analysts maintaining buy ratings and price targets around $30-$32, citing acquisition synergies despite short-term pressures.
Forward Outlook and Key Factors to Monitor
Following Q1 results, QXO's trajectory hinges on recent acquisitions. The $2.25 billion Kodiak Building Partners deal closed on April 1, 2026, expected to be highly accretive and expand the addressable market. The pending $17 billion TopBuild acquisition, announced April 18, targets Q3 2026 closure, positioning QXO as North America's second-largest player and supporting the $50 billion revenue goal in a decade.
Investors should track integration milestones across Beacon, Kodiak, and potentially TopBuild, including cross-selling, private label growth, and technology upgrades for customer experience. Adjusted EBITDA margins (0.1% in Q1) will signal operational leverage amid investments in sales, procurement, and logistics. CEO Brad Jacobs noted opportunities exceeding initial expectations, targeting doubled legacy Beacon EBITDA organically.
Broader dynamics include seasonal roofing demand, housing starts, commodity costs, and industry softness. With $749 million raised via equity in January 2026 and commitments for more financing, capital allocation for tuck-in M&A remains key. Consensus implies full-year 2026 revenue near $11.4-$11.8 billion, with improving profitability as synergies materialize.
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a company that engages in the acquisition and build-out of technology and software companies
Industry ElectronicsDistributors