Company: QXO-PB
Filing Date: 2025-02-10
Form Type: DFAN14A
Source: 0001140361-25-003664
Chunk: 2

Company: QXO, Inc.
Filing Date: 2025-02-10
Form: DFAN14A
Chunk 2
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2 and 2024.From 2019 through LTM September 2024, Beacon’s 7.7% revenue CAGR is the lowest of its peer group and well below the peer median of 12.1% 3. Despite setting unambitious “Ambition 2025” targets, consensus analysts’ estimates indicate that Beacon will:

| • | Miss its 2025 Gross Margin target by 130 basis points; |

| • | Miss its 2025 EBITDA Margin target by 114 basis points; and |

| • | Deliver EBITDA margins 20bps lower in 2025 than when the “Ambition 2025” plan was introduced4. |

Furthermore, Beacon’s claims of superior stock performance are easily debunked. Over the past five years, Beacon’s total shareholder return has trailed its Building Products Proxy Peers by 86% and trailed those peers by 140% since CEO Julian Francis took over as CEO in August 2019 5.

| 3. | QXO’s Offer Represents a 3.0x Premium to Beacon’s Historical Multiple |

Beacon’s lackluster operational performance and relative share price underperformance are reflected in its enterprise value to next-twelve-months EBITDA multiple, which has remained rangebound at an average of 8.1x over the past three years. Meanwhile, its valuation gap relative to its Building Products Proxy Peers widenedby 1.3x 6over the same period. 3Reported revenues for Beacon and Building Products Proxy Peers 4Based on median 2025E Wall Street research estimates, sourced from Capital IQ as of February 7, 2025 5Market data as of November 15, 2024. Total shareholder return reflects stock price performance adjusted for cash dividends paid, stock splits, rights offerings and spin-offs during the period 6As per Capital IQ as of November 15, 2024 Since Beacon has not closed the valuation multiple gap despite implementing “Ambition 2025,” reporting supposedly strong results and stock markets nearing all-time highs, we urge shareholders to decide if the current management and Board are the right team to create value for shareholders. QXO’s proposal provides a 3.0x premium to Beacon’s average historical next-twelve-months EBITDA multiple 7, providing substantial immediate cash-certain value to shareholders.

| 4. | If Beacon is Truly Confident in its Future, it Should Release its Projections Today