Company: QXO-PB
Filing Date: 2025-04-18
Form Type: 424B5
Source: 0001140361-25-014598
Chunk: 62

Company: QXO, Inc.
Filing Date: 2025-04-18
Form: 424B5
Chunk 62
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 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 than overall demand for construction products.

Beacon’s complementary building products demand comes from both the residential and non-residential sectors. These products allow Beacon to be the supplier of choice to its exteriors-focused customers and possess relatively greater end-market exposure to new construction (estimated at 30%) compared to roofing products (estimated at 20%).

In addition to its domestic operations, Beacon also operates in seven provinces across Canada. These international locations represented approximately 3.0% of Beacon’s total net sales for the year ended December 31, 2024.

Competition

Competition is primarily composed of national, regional, and local specialty roofing distributors and, to a lesser extent, other building supply distributors and big box retailers. Among distributors, Beacon competes against a small number of large distributors and many small, privately-owned distributors. Given significant

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