QXO: BLD Closes, a Transformative Add at a Fair Price

Research evidence excerpt

QXO: BLD Closes, a Transformative Add at a Fair Price

RBC Capital Markets, LLC

Mike Dahl (Analyst)

(212) 618-3251, michael.dahl@rbccm.com

Christopher Kalata, CFA (AVP)

(212) 428-3057, christopher.kalata@rbccm.com

Stephen Mea (Senior Associate)

(212) 548-3111, stephen.mea@rbccm.com

July 1, 2026

QXO, Inc. Outperform

NYSE: QXO; USD 17.28RESEARCH BLD Closes, a Transformative Add at a Fair Price Price Target USD 27.00 ↓ 28.00

Our view: We are rolling out our PF model, reflecting the completed BLD Scenario Analysis* acquisition with a haircut to NT Kodiak ests. We view BLD as a compelling

'third leg' for QXO, providing a quality FCF engine with meaningful TAM Downside Current Price Upside

expansion and diversification benefits across products and end mkts. Scenario Price Target Scenario

We expect QXO to enter a NT M&A digestion and deleveraging period 7.00 17.28 27.00 44.00

(potentially accelerated by a sale of Progressive), though we expect 59% 56% 155%

QXO's accretive M&A engine to continue alongside ramping op initiatives/ *Implied Total ReturnsEQUITY synergies supporting LT value creation. Remain OP with our PT now $27. Key Statistics

Shares O/S (MM): 1,614.0 Market Cap (MM): 27,890

Dividend: 0.00 Yield: 0.0%

Key points: Avg. Daily Volume: 18,242,434

• BLD - transformational purchase at a fair price: In our view, TopBuild is

a strategically compelling acquisition, particularly when considering the RBC Estimates

ultimate purchase price (accounting for the lower share price vs. deal FY Dec 2025A 2026E 2027E EBITDA, Adj 647.9 1,346.0 2,248.7

announcement), which adds a high quality platform with organic and Prev. 910.5 1,485.6

inorganic growth opps., strong margins, FCF, and solid leadership. BLD EPS, Adj Diluted 0.30 0.40 0.76