In its first earnings period since closing on its acquisition of Beacon Building Products, QXO bested Wall Street projections for revenue and profits per share in the fiscal second quarter.
The tech-forward startup reported second quarter adjusted net profit of $109.2 million, or $0.11 per share, besting analyst profit-per-share projections of $0.04. QXO reported revenue of $1.91 billion in the quarter, besting analyst projections of $1.87 billion.
“The integration of Beacon is progressing well, and we’ve identified opportunities that exceed our initial expectations,” says Brad Jacobs, chairman and CEO of QXO. “We’ve made key strategic hires and launched a broad transformation initiative, focusing on pricing, procurement, sales, organization structure, logistics, and other core drivers of performance.”
QXO has taken steps to rapidly integrate Beacon since closing the deal. On day one, it rebranded all legacy Beacon locations and platforms to QXO, including the e-commerce platform and customer-facing app, while flattening the organization structure to increase speed and accountability.
QXO’s acquisition of Beacon closed on April 29 and its second quarter results only include the legacy Beacon’s operations from April 29 to June 30. Additional financial highlights from the quarterly results include:
- Residential roofing products accounted for 48.7% of total sales. Non-residential roofing products and complementary building products represented 28.1% and 22.4% of sales, respectively.
- Adjusted gross margin of 25.3% in the second quarter.
- Adjusted EBITDA of $204.6 million, besting consensus analysis projections by more than $12 million.
- Adjusted gross profit of $482.0 million.
- The company raised $4.9 billion in debt, and an additional $4.8 billion through a combination of common equity and mandatory convertible preferred share issuances.
“We’re confident we will at least double legacy Beacon EBITDA organically,” Jacobs says. “Looking ahead, we see strong momentum in both our acquisition pipeline and organic initiatives, reinforcing our long-term goal of reaching $50 billion in annual revenue within the next decade.”
