Hardware Retailing The Industry's Source for Insights and Information
QXO reported $4.9 billion in net sales for the third quarter of 2026, reflecting its rapid expansion in building products distribution following the acquisitions of Kodiak Building Partners and TopBuild.
The Greenwich, Connecticut-based company reported a net loss of $123 million for the quarter ended Sept. 30, compared with adjusted net income of $229 million. Adjusted EBITDA totaled $557 million. QXO reported a loss of 17 cents per common share, while adjusted diluted earnings were 13 cents per share.
Third-quarter sales increased from $2.73 billion a year earlier, although acquisitions accounted for much of the growth. Gross margin increased from 23.3% to 28.2%.
The results included $1.64 billion in sales from TopBuild, acquired July 1, and $589 million from Kodiak, acquired April 1. QXO also acquired Beacon Roofing Supply in April 2025.
Brad Jacobs, QXO chairman and CEO, says the company continued to improve its underlying sales performance despite weakness in the construction market.
“Our organic daily revenue trends improved for the second consecutive quarter despite a soft construction market,” Jacobs says. “Companywide pricing increased 2.2% year over year.”
QXO reported 4.2% growth in complementary product sales within its roofing and waterproofing business, while its TRI-BUILT private-label products reached a record 10.6% of sales. Mechanical insulation distribution revenue increased 16%, supported by demand from data center construction.
QXO also announced that its board authorized a $500 million common share repurchase program with no expiration date. Repurchases will be made at management’s discretion, and the authorization does not obligate QXO to purchase any shares.
Expanding Product Offerings and Technology
QXO is working to consolidate purchasing, inventory and customer relationships across its acquired businesses as it seeks to increase sales to existing customers.
Jacobs says QXO serves approximately 194,000 customers across the legacy Beacon, Kodiak and TopBuild operations, but currently supplies only a portion of the products those customers purchase for individual projects.
The company plans to increase sales across product categories by offering customers a broader assortment through fewer suppliers, while improving purchasing terms and applying successful operating practices across its network.
Technology integration is another priority. QXO is connecting sales, inventory and warehouse systems to provide faster quotes, real-time inventory information and improved delivery planning.
The company also plans to use artificial intelligence to help salespeople identify additional sales opportunities and reconnect with inactive customers.
What QXO’s Q3 Report Means for Independent Hardware Retailers and Lumberyards
For independent hardware store owners and lumberyard operators, QXO’s strategy points to intensifying competition for professional contractor business, particularly as large distributors seek to capture more of each customer’s building materials purchases.
Contractors increasingly have access to suppliers investing in faster quoting, coordinated deliveries and technology that simplifies purchasing across multiple product categories. Independent operators may face greater pressure to demonstrate the value of their own inventory availability, specialized product knowledge, customer relationships and jobsite service.
QXO’s ambitions also suggest that consolidation will remain a significant factor in the building products market. The company reiterated its goal of reaching $4 billion in adjusted EBITDA by 2030 from businesses it already owns and $50 billion in annual revenue within the decade through organic growth and additional acquisitions.
