Company: QXO-PB
Filing Date: 2025-04-16
Form Type: 424B5
Source: 0001140361-25-014221
Chunk: 62

Company: QXO, Inc.
Filing Date: 2025-04-16
Form: 424B5
Chunk 62
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 for over 95 years and as of December 31, 2024, operated 586 branches throughout all 50 states in the U.S. and seven provinces in Canada. Beacon offers an extensive range of high-quality professional grade exterior products comprising over 135,000 SKUs, and it serves approximately 110,000 residential and non-residential customers who trust Beacon to help them save time, improve efficiency, and enhance productivity.

Beacon differentiates itself in the industry by providing its customers with seamless execution, service differentiation, and a solutions-based approach that allows Beacon to meet each of its individual customer’s specific needs. Beacon also works closely with its suppliers, who rely on it to position their products advantageously in the market, supporting advances in products and services that ultimately benefit its customers.

#### Beacon’s Industry
Specialty distributors of roofing and complementary building products serve the critical role of facilitating supply chain relationships between a small number of manufacturers and thousands of local, regional, and national contractors. The distributor is a value-added partner who can advise contractors on job-specific residential or commercial product bundles and provide last-mile delivery and logistics services. Distributors may also extend trade credit and use digital platforms to aid customers in optimizing their businesses.

Market Size

Based on management’s estimates, Beacon believes the roofing distribution market in the U.S. and Canada represents more than $35 billion in annual sales with roughly 70% of the market in residential roofing and 30% in non-residential roofing. Additionally, Beacon believes the distribution market for complementary building products, including siding, waterproofing, plywood/OSB, and windows and doors, represents more than $25 billion in annual sales with roughly 70% of the market in residential roofing and 30% in non-residential roofing. Beacon believes its position in a collective addressable market of over $60 billion provides ample opportunity for growth both organically as well as through continued consolidation of the fragmented portion of the market. During the year ended December 31, 2024, residential sales represented less than 50% of Beacon’s total net sales with the remainder attributable to its non-residential and complementary lines of business.

Demand Drivers

Beacon believes a significant driver of roofing demand is re-roofing activity (estimated at 80%) with the remaining demand tied to new construction. Re-roofing projects are typically related to required and necessary maintenance and repairs and are therefore less likely to be postponed during periods of recession or slower economic growth. As a result, demand for roofing products historically has been less volatile