QXO | Massive Tailwinds Powering a 3x+ Building-Supply Play

Jacobs is moving fast. This post breaks down what QXO’s built so far, what it’s worth, and what could derail it.

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The Turnaround Investment Newsletter

Since the start of 2024, my portfolio is up 220.71%.

This year alone, I’m sitting at +73.14% YTD through July.

All earned with setups just like this. Mispriced, unloved, and no one paying attention.

This week’s Portfolio Spotlight covers a name run by one of the best operators in the world. QXO ($QXO).

The setup?

You’re getting a proven operator rolling up acquisitions in the building supply sector running the same playbook that has generated billions in shareholder returns.

If you don’t know the name, or the operator, I’ll walk through it all:

• What they do.

• What Q2 told us.

• Who Brad Jacobs is.

• The macro drivers.

• The risks.

• And why I expect $90+ per share (More than 3x from today’s price of ~$21)

Let’s get into it.

PS. If you are new here read this article to learn my story and what DeepValue Capital is all about.

What does QXO do?

QXO is going after one of the most fragmented, outdated sectors in the U.S. and Europe, building-products distribution. It’s a $800B+ industry with some companies that still rely on fax machines, phone orders, and local relationships.

Their strategy is simple:

1. Buy strong regional distributors.

2. Modernize with tech.

3. Roll them up for scale.

The first aquisition? A big one.

In April 2025, QXO closed its $11B acquisition of Beacon Roofing Supply, instantly becoming one of the largest players in North American roofing and exterior products.

Beacon at a glance:

• $9.8B in 2024 revenue

• 580 branch locations across the U.S. and Canada

• 8,000+ employees

• 80% of revenue from essential remodeling and repair (not new construction)

• 97% of sales U.S.-based, with U.S.-sourced materials, minimizing tariff risk

(Green) US Revenue, (Blue) Canada Revenue

Starting with Beacon, QXO is bringing a modern tech stack to an often pre-digital sector:

• AI-driven pricing and inventory

• Route and delivery optimization

• Warehouse automation

• A new Chief AI Officer and a Silicon Valley office to lead the charge

Brad Jacobs will keep rolling up strong operators, build cost and tech advantages, and set a new standard in the industry. He has done it a few times in his career and I expect nothing different now.

Q2 2025 Earnings