Building materials distributor QXO reported its 2025 second quarter financial results on Aug. 14, which included two months of Beacon ownership following its $10.6 billion acquisition finalized at the end of April.

Overall, the figures showed that QXO exceeded Wall Street expectations for all key metrics.

Since the results reflect only a partial quarter of owning legacy Beacon and include significant acquisition-related charges, any year-over-year comparisons don’t have much value. So instead, we’ll focus on how QXO’s 2Q results fared vs. consensus forecasts of securities analysts.

Premium: QXO Details its Vision to Transform Beacon (May 22)

QXO posted 2Q total sales of $1.91 billion, topping $1.87 billion consensus.

Adjusted gross margin of 25.3% beat 24.2% consensus. (Legacy Beacon’s 2Q24 gross margin was 25.6%)

Adjusted EBITDA margin of 10.7% beat 10.3% consensus. (Legacy Beacon’s 2Q24 adjusted EBITDA margin was 10.4%)

QXO took a $58.5 net loss in 2Q due to those aforementioned acquisition costs.

MDM’s 2Q25 MarketPulse Report (store link) 

“The integration of Beacon is progressing well, and we’ve identified opportunities that exceed our initial expectations,” QXO Chairman and CEO Brad Jacobs said in the company’s financial statement. “We’ve made key strategic hires and launched a broad transformation initiative, focusing on pricing, procurement, sales, organizational structure, logistics and other core drivers of performance. We’re confident we will at least double legacy Beacon EBITDA organically. Looking ahead, we see strong momentum in both our acquisition pipeline and organic initiatives, reinforcing our long-term goal of reaching $50 billion in annual revenue within the next decade.”

MDM Podcast: Breaking Down QXO’s Beacon Acquisition and its Impact (May 14)

In mid-June, QXO made a $5 billion offer to acquire drywall products distributor GMS, which ultimately was bought by The Home Depot for $5.5 billion. But that certainly hasn’t dismayed QXO’s appetite.

“We’re off to a strong start in our stated goal of doubling legacy Beacon profit (EBITDA) organically on several fronts,” QXO Communications leader Joe Checkler told MDM Aug. 14. “We see an even bigger opportunity than when we first signed the deal. Our deal pipeline is deeper than it has ever been, positioning us to reach $50 billion in revenue within the next decade through accretive acquisitions and sustained organic growth.”

Financial analysts began coverage of QXO in early June by issuing initial price targets that ranged from $27-44 per share. Several more have published since then, including a $33 target from CITI in mid-July and $30 from Wells Fargo on Aug. 5.

Since the end of 2Q, QXO has appointed a former Walmart executive as its procurement leader, and a former Kraft Heinz exec as chief information officer.

MDM’s 2Q25 M&A Report (store link)