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GREENWICH, Conn. - QXO, Inc. (NYSE:QXO), North America's largest publicly traded distributor of roofing and building products, announced Tuesday it has launched a refinancing of its Term Loan B, while reporting preliminary third-quarter results showing a net loss of $139 million. With a market capitalization of $12.22 billion, InvestingPro analysis suggests the company is currently trading below its Fair Value, despite showing high volatility with a beta of 2.2.
The company reported preliminary Q3 net sales of $2.73 billion and Adjusted EBITDA of $302 million for the quarter ended September 30, 2025. QXO also reported Adjusted Net Income attributable to common stockholders of $121 million and Adjusted Diluted EPS of $0.14.
The refinancing is subject to market and other conditions, with no assurances it will be completed on the contemplated terms, according to the company's press release statement. QXO expects its total net debt to remain consistent following the refinancing if completed.
As of September 30, QXO held $2.3 billion in cash and cash equivalents, with debt of $3.1 billion, excluding finance lease obligations. InvestingPro data reveals a healthy current ratio of 3.0, indicating strong liquidity, while maintaining what analysts consider a moderate debt level relative to equity at 0.46.
The company noted that the preliminary financial results are unaudited and subject to change pending finalization of quarter-end financial procedures. QXO plans to file its quarterly report on Form 10-Q for the period on November 6, 2025.
QXO calculates its non-GAAP financial measures by excluding various items from GAAP results, including depreciation, amortization, interest expense, stock-based compensation, and restructuring costs. The company's Q3 adjustments included $40 million in depreciation, $118 million in amortization, $38 million in net interest expense, and $51 million in inventory fair value adjustments.
QXO describes itself as targeting $50 billion in annual revenues within the next decade through acquisitions and organic growth in the building products distribution industry. InvestingPro analysts project significant revenue growth of 122.56% for fiscal year 2025, with 12 additional exclusive ProTips available to subscribers regarding the company's growth prospects and financial health.
In other recent news, QXO Inc. reported impressive second-quarter earnings, with an adjusted earnings per share of $0.11, surpassing analyst expectations of $0.04. The company's revenue also exceeded projections, reaching $1.91 billion compared to the anticipated $1.88 billion. Raymond James initiated coverage of QXO with an Outperform rating, highlighting the company's acquisition of Beacon Roofing Supply as a key factor in its growth strategy. The firm aims to double Beacon's EBITDA over the next five years. Morgan Stanley also initiated coverage with an Overweight rating and a price target of $35, citing QXO's potential to consolidate within the U.S. industrial distribution sector. KeyBanc began coverage with an Overweight rating, pointing to QXO's growth potential and margin expansion under a proven management team. Meanwhile, Truist Securities adjusted its price target for QXO to $28, maintaining a Buy rating despite noting recent weaknesses in roofing volumes. These developments reflect a mix of positive earnings results and strategic growth plans for QXO.
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