Company: QXO-PB
Filing Date: 2025-04-18
Form Type: 424B5
Source: 0001140361-25-014566
Chunk: 52

Company: QXO, Inc.
Filing Date: 2025-04-18
Form: 424B5
Chunk 52
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.5 |     | 7.4%  |
| Acquired                     |     |                    75.8 |     |        — |     |   75.8 |     | n/m   |
| Total SG&A                   |     |                $1,637.6 |     | $1,454.3 |     | $183.3 |     | 12.6% |
| Total SG&A as % of net sales |     |                   16.8% |     |    15.9% |     |        |     |       |

| (1) | Existing SG&A expense includes all direct and incremental costs incurred in connection with Beacon’s acquisition activity (“acquisition costs”) regardless of whether the acquired branch was classified as Existing or Acquired as of December 31, 2024 as well as all restructuring costs. Acquisition costs and restructuring costs included in Existing SG&A expense were $26.6 million and $7.4 million for 2024 and 2023, respectively. Excluding the impact of the acquisition costs and restructuring costs, Existing SG&A expense increased 3.8%, or $54.3 million from 2023 to 2024. |

| (2) | Greenfield branches incur limited operating costs prior to their open date for things such as lease costs and other costs incurred in getting the branch ready to open. Amounts reported for 2023 represent operating costs incurred in 2023 for greenfields opened in 2024. |

SG&A expense increased 12.6%, or $183.3 million, to $1.64 billion in 2024, up from $1.45 billion in 2023. The increase in SG&A expense was primarily driven by acquisitions, greenfields, as well as an increase in one-time acquisition integration costs and restructuring costs. The increase in organic SG&A expense was mainly influenced by the following factors:

| • | a $61.1 million increase in payroll and employee benefit costs, primarily due to inflationary wage increases and higher average headcount in 2024 largely driven by greenfields, which contributed $16.5 million to the increase. To a lesser extent, the increase in payroll and employee benefit costs was due to one-time severance and employee benefit costs for employees impacted by Beacon’s operating cost reduction initiative. At the end of the third quarter of 2024, in response to market conditions, Beacon reduced its headcount. These actions are expected to yield annualized cost savings