QXO, Inc.

Fourth-quarter 2024 net sales were over $2.4 billion, up 4.5% year over year, or nearly 3% on a per-day basis after adjusting for one extra day. Q4 adjusted EBITDA was $223 million, gross margin was 25.7% and unchanged year over year, and operating cash flow was $360 million. For the full year, net sales increased more than 7% to nearly $9.8 billion, adjusted EBITDA exceeded $930 million, and operating cash flow was nearly $420 million. Looking to 2025, Beacon expects total sales growth in the mid-single-digit range, adjusted EBITDA of $950 million to $1.03 billion, operating cash flow of $500 million to $600 million, and 15 to 20 new greenfield locations. For Q1, management expects total sales per day to be down 3% to 5% year over year and gross margin to be in line with the prior-year quarter.

Julian Francis framed 2024 as proof that Beacon’s Ambition 2025 plan is working, emphasizing record quarterly and annual results despite tough weather, weak housing activity, and other market headwinds. He highlighted multiple growth engines — greenfields, acquisitions, digital, private label, and commercial acceleration — and said the company has built an operating model that can create value in different market conditions. His tone was confident but cautious on near-term demand, describing 2025 as mixed and weather- and rate-sensitive, while still calling the outlook for Beacon “bright.”

Prith Gandhi focused on the mechanics behind the quarter: Q4 sales over $2.4 billion, 4.5% reported growth, about 5% acquisition contribution, and gross margin of 25.7%. He said adjusted operating expense was $434 million, up about $25 million year over year, with about $31 million of the increase tied to acquired and greenfield branches and about $6 million offset by lower costs in the existing business. He also highlighted $360 million of Q4 operating cash flow, nearly $420 million for 2024, net debt leverage of 2.8x, more than $1.1 billion of liquidity, and roughly $127 million of capex; he noted $45 million of annualized cost savings from September actions, with about $30 million to be realized in 2025.

Analysts pressed management on the weak start to 2025, the shape of organic price/volume, and whether SG&A can move back toward 17% of sales. Beacon said January was down low-teens, February was tracking similarly until recent improvement, and March was expected to be flat year over year; for the full year, it cited about 2% M&A carryover, 1% pricing carryover, and low-single-digit above-market growth as part of the sales guide. On expenses, management said 2025 will include about $60 million of added expense from acquisitions and greenfields, but existing business should still see leverage. Analysts also asked about residential pricing, nonresidential repair vs. new construction, and the bottom-quintile branch initiative; management said the April residential increase is included but full-year price/cost is expected to be neutral, and the bottom-quintile program contributed $20 million in 2024 and $78 million over three years.