Company: QXO-PB
Filing Date: 2025-04-18
Form Type: 424B5
Source: 0001140361-25-014598
Chunk: 54

Company: QXO, Inc.
Filing Date: 2025-04-18
Form: 424B5
Chunk 54
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 to yield annualized cost savings of $45 million, approximately $30 million of which will be realized in 2025; |

| • | a $25.3 million increase in warehouse operating costs, primarily due to higher rent expense across Beacon’s existing locations coupled with greenfields opened during the year, which contributed $10.2 million to the increase; and |

| • | a $10.3 million increase in general and administrative expenses, primarily due to an increase in acquisition-related costs of $5.1 million, costs attributable to greenfields of $2.7 million, and higher professional fees. |

Total SG&A expense as a percent of net sales was higher in 2024 when compared to 2023 primarily as a result of the above factors. The impact of recent greenfields that have not yet fully matured and acquired branches that are not yet fully synergized also negatively affected Beacon’s operating leverage. Depreciation Expense Depreciation expense was $109.9 million in 2024, compared to $91.2 million in 2023. The comparative increase was primarily due to an increase in property and equipment as a result of new and acquired branches in 2024. Amortization Expense Amortization expense was $91.9 million in 2024, compared to $85.0 million in 2023. The comparative increase was primarily due to amortization expense associated with new intangible assets as a result of recent acquisitions.

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TABLE OF CONTENTS

Interest Expense, Financing Costs and Other Interest expense, financing costs and other expense was $177.3 million in 2024, compared to $126.1 million in 2023. The comparative increase was primarily due to higher average debt balances in 2024 as a result of the 2030 Notes issued in July 2023, the refinancing of Beacon's existing term loan facility (the “2028 Term Loan”) in March 2024, and an increase in Beacon's existing asset-based revolving credit facility to build inventory, support the acquisition activity during 2024, and repurchase stock through Beacon's accelerated share repurchase program. Loss on Debt Extinguishment Loss on debt extinguishment was $2.4 million in 2024 due to the refinancing of the 2028 Term Loan and includes the write-off of previously capitalized debt issuance costs as well as certain third-party professional fees. Income Taxes Income tax provision (benefit) was $124.0 million in 2024, compared