Good morning. The branch you buy from has not changed its sign. Who owns it has.
Top story — Four supply categories, one owner
QXO reported second-quarter net sales of $3.25 billion, against $1.91 billion a year earlier. The comparison flatters: the prior-year quarter included Beacon Roofing Supply only from 29 April 2025, and this quarter added $595 million from Kodiak Building Partners, bought on 1 April 2026 (QXO, Inc., second quarter 2026 results, 13 August 2026).
The mix is the point. Residential roofing products were $1.27 billion in the quarter and non-residential roofing $736 million. Complementary building products, everything that is not roofing, were $1.23 billion, against $426 million a year earlier (QXO).
The company now describes itself as North America’s largest distributor and installer of insulation, the second-largest distributor of roofing products, the second-largest publicly traded distributor of lumber and building materials, and the largest distributor of waterproofing products. It completed the TopBuild acquisition on 1 July 2026 (QXO).
Quick hits
Margins moved the wrong way. Adjusted gross margin was 24.7%, down from 25.3%, and adjusted EBITDA margin was 8.4% against 10.7% a year earlier (QXO).
Read the wording. Chairman and CEO Brad Jacobs said the results “reflect current market conditions and the progress we are making across the company” (QXO).
This is not finished. QXO says it is targeting $50 billion in annual revenue within the decade and aims to more than double EBITDA by 2030 (QXO).
The Tip — Get a second branch onto your quote sheet
Consolidation does not raise your prices overnight. It changes who has room to move on them. When roofing, insulation and lumber sit under one owner, the discount you negotiated by playing one branch against another may now be a negotiation with the same company.
Before your next big order, price one full job through a genuinely independent supplier and keep the quote. You may not switch. But knowing the number, and letting your rep know you have it, is the cheapest leverage available to you. Rebate programs are usually the first thing to change after an acquisition, so read the next one you are sent.
Tool watch — [Not sponsored]
Pull your last twelve months of purchases by supplier and check what share of it sits with a single parent company. Most contractors believe they have three suppliers. After the last two years of deals, a good number of them have one.
That’s the callout. See you next time.
The Callout — the business brief for the trades. We label every commercial placement: [Sponsor], [Affiliate], or [Not sponsored]. Today’s Tool watch is our own honest read — no one paid for it. 231J Ramparts Road, Te Anau 9600, New Zealand · Unsubscribe anytime.
Sources: QXO, Inc. — Second Quarter 2026 Results, 13 August 2026, filed with the U.S. Securities and Exchange Commission.