QXO (+) : Hosted Meeting Highlights; Reiterate Outperform

Research evidence excerpt

QXO (+) : Hosted Meeting Highlights; Reiterate Outperform

EQUITIES

BUSINESS SERVICES

QXO OUTPERFORMPRICE* USD16.7  TARGET PRICE USD30 (UPSIDE 80%)

FLASH NOTE

Hosted Meeting Highlights; Reiterate Outperform

26 MAY 2026 Securities Research Report Production time: 11:55* (London time)

Research Analyst & Publishing Entities

Seth Weber BNP Paribas Securities Corp (1) +1 (934) 444-8613 seth.weber@us.bnpparibas.com

What happened?

We hosted multiple days of investor meetings with QXO last week, with key topics including the pending TopBuild

acquisition, implementing CEO Brad Jacobs’ playbook to optimize the three acquisitions undertaken over the last

yr/leverage the scale of what will be the second largest publicly traded building products distributor, the current macro,

and capital allocation, including the message that there is no plan/desire for an equity raise.

TopBuild (BLD) brings a lot to the table. Along w/ high margins (2026E EBITDA ~18%) and FCF (60%+ conversion),

BLD’s Installation Services biz (~55% of revs) puts it on the customer jobsite, which will become a source of important

data/intel for QXO. The combination will also add considerable procurement synergies (common major suppliers across

insulation and roofing products include Owens Corning and Saint-Gobain), along with significant cross-selling

opportunities, including with Kodiak’s lumber exposure. TopBuild also enhances QXO’s commercial/industrial end-

market exposure, including with large-scale buildings such as airports, stadiums, and data centers. On the flipside,

QXO sees an opportunity to enhance BLD’s warehouse management systems and pricing.

Technology-led roadmap. In a sector where investment has lagged, QXO sees technology/data as underpinning the