QXO (QXO) Acquisition presentation summary

Strategic rationale and market positioning

• Acquisition of TopBuild for $17 billion positions QXO as the second largest publicly traded building products distributor in North America, with over $18 billion in revenue and $2 billion in adjusted EBITDA, targeting $50 billion in revenue long-term.

• The combined company will lead in insulation, roofing, waterproofing, and lumber/building materials, expanding its total addressable market to over $300 billion.

• Diversified across residential, commercial, and industrial end markets, with a balanced mix of repair/remodel and new construction projects.

• The transaction is immediately and materially accretive to earnings per share and enhances QXO's platform for organic and M&A-driven growth.

Financial highlights and transaction details

• Combined 2025 adjusted financials: ~$18.1 billion revenue, ~$2.1 billion adjusted EBITDA, ~12% EBITDA margin, 1,150 branches, and 28,000 employees.

• TopBuild valued at $505 per share, or 14.9x 2025 adjusted EBITDA pre-synergies (11.8x post-synergies); shareholders can elect cash or stock, subject to a 45% cash cap.

• TopBuild shareholders expected to own ~19% of the combined company (assuming 55% stock consideration); one TopBuild nominee to join QXO's board.

• Transaction funded by $7.9 billion in new stock, $1 billion preferred stock, $6 billion new debt, and cash on hand; expected to close in Q3 2026.

Synergies, operational improvements, and growth outlook

• QXO expects ~$300 million in run-rate EBITDA synergies by 2030, driven by procurement, technology, network optimization, and organizational redesign.

• Enhanced customer and supplier relationships through broader product offerings, national scale, and integrated solutions.

• TopBuild's long-term guidance: $9–10 billion revenue and $1.7–2 billion adjusted EBITDA by 2030, with cumulative free cash flow of $4.2–5 billion from 2026–2030.

• The combined platform is positioned for further M&A, leveraging a proven transformation playbook and strong free cash flow generation.