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GREENWICH, Conn. - QXO, Inc. (NYSE: QXO), a company aspiring to lead the building products distribution industry, has announced its plan to offer $500 million of its common stock. The offering includes an option for underwriters to purchase an additional $75 million of shares. The proceeds are earmarked to partially fund the acquisition of Beacon Roofing Supply, Inc., a deal poised to make QXO the second-largest U.S. distributor of roofing products. With a current market capitalization of $5.8 billion and an "GOOD" overall financial health rating according to InvestingPro, QXO maintains a strong balance sheet with more cash than debt.
The shares will be sold via Morgan Stanley & Co. LLC and Goldman Sachs & Co. LLC, who are acting as the underwriters. Transactions may occur on the New York Stock Exchange, over-the-counter markets, through negotiation or at prices tied to market rates. The offering will be conducted through a prospectus supplement and a registration statement on Form S-3ASR filed with the Securities and Exchange Commission.
QXO’s acquisition of Beacon is a strategic move towards reaching an annual revenue target of $50 billion over the next decade through both organic growth and acquisitions. The transaction is valued at approximately $11 billion and is expected to close the week of April 28, 2025. It should be noted that the stock offering is not contingent upon the completion of the Beacon acquisition. InvestingPro data shows analysts expect QXO’s revenue to grow by nearly 44% in fiscal year 2025, though net income is projected to remain under pressure.
This announcement contains forward-looking statements, including QXO’s expectations and goals regarding the use of the offering’s proceeds and the acquisition’s completion. These statements are subject to various risks and uncertainties, and actual results may differ materially. Factors that could affect outcomes include the risk that the acquisition may not be completed as anticipated or at all, potential litigation, regulatory actions, and the ability to obtain necessary financing.
The press release specifies that this announcement is not an offer to sell or a solicitation of an offer to buy any securities. The offering is subject to market conditions and other factors, with the sale of securities only possible through a prospectus supplement related to the offering.
The information provided is based on a press release statement, and potential investors are advised to consult the prospectus and the companies’ SEC filings for a more detailed understanding of the risks involved. According to InvestingPro analysis, QXO’s stock has shown significant volatility with a beta of 2.13, while trading at a premium revenue multiple despite its current unprofitability. Subscribers can access 8 additional ProTips and comprehensive financial metrics to better evaluate this investment opportunity.
In other recent news, QXO Inc. reported its fourth-quarter 2024 results, which fell short of analyst expectations. The company posted a loss of $0.02 per share, missing the anticipated $0.06 profit, with revenue slightly below forecasts at $14.74 million. Despite this, QXO emphasized its strong balance sheet, boasting over $5 billion in cash and no debt, which supports its acquisition strategy in the building products distribution industry. In a significant move, QXO has extended its tender offer for Beacon Roofing Supply, aiming to acquire the company for approximately $11 billion, positioning itself as the second-largest distributor of roofing products in the U.S. This acquisition, which has received antitrust clearance, is expected to close by the end of April 2025. Additionally, QXO has appointed Val Liborski as its new chief technology officer, bringing extensive experience from his previous roles at Yahoo, HelloFresh, and Amazon. The company also announced a change in its independent auditor, selecting Deloitte & Touche LLP for the fiscal year ending December 31, 2025. These developments reflect QXO’s strategic focus on growth and leadership within the industry.
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