Stock Markets February 11, 2026

QXO to Buy Kodiak Building Partners for $2.25 Billion, Expanding Into Lumber and Interior Categories

Deal combines $2.0 billion cash with 13.2 million shares as QXO widens its footprint across building-products channels

By Hana Yamamoto QXO
QXO to Buy Kodiak Building Partners for $2.25 Billion, Expanding Into Lumber and Interior Categories
QXO

QXO Inc. will acquire Kodiak Building Partners from Court Square Capital Partners for $2.25 billion, a transaction that adds lumber, trusses, gypsum and construction supplies to QXO's product mix. The purchase, structured as $2.0 billion in cash plus 13.2 million QXO shares (which QXO may repurchase at $40), follows QXO's $11 billion acquisition of Beacon Roofing and is expected to be highly accretive to earnings while tripling its addressable market to over $200 billion.

Key Points

  • QXO will acquire Kodiak Building Partners for $2.25 billion - $2.0 billion in cash plus 13.2 million QXO shares, with QXO retaining the right to repurchase the shares at $40.
  • Kodiak reported 2025 revenue of $2.4 billion and EBITDA of $211 million; the deal is expected to be highly accretive and to triple QXO's addressable market to over $200 billion, impacting the building products distribution sector.
  • The acquisition expands QXO into lumber, trusses, gypsum and construction supplies, and adds fabrication, assembly and installation capabilities that create cross-sell opportunities across roofing, siding, decking and interior categories.

QXO Inc. has agreed to acquire Kodiak Building Partners from Court Square Capital Partners for a total consideration of $2.25 billion, the buyer announced Wednesday. The purchase price consists of $2.0 billion in cash and 13.2 million newly issued QXO shares, which QXO retains the right to repurchase at $40 per share.

This deal marks QXO's second major acquisition since completing the transformational $11 billion takeover of Beacon Roofing last year. Management projects the Kodiak transaction will be "highly accretive" to earnings in the current year and materially expand QXO's market reach.

Kodiak reported 2025 revenue of $2.4 billion and EBITDA of $211 million, according to a company spokesperson. The acquisition is expected to triple QXO's current addressable market to more than $200 billion, placing the combined company across every major building-products category.

Strategically, Kodiak brings product lines and capabilities that complement QXO's existing exterior-product strengths while opening strategic entry points into interior categories and services. The deal extends QXO's presence into lumber, trusses, gypsum and a broad set of construction supplies, and it adds fabrication, assembly and installation capabilities that strengthen the company's service offering.

Kodiak holds leading positions in many local markets, frequently occupying the top two spots, particularly across higher-growth Sun Belt and Mountain states. Approximately 40% of Kodiak's 2025 revenues were sourced from Florida and Texas, underscoring regional concentration in growth areas.

QXO sees multiple cross-sell opportunities arising from the combination, including roofing, waterproofing, siding, decking, lumber and component sales. There is also notable vendor overlap: 16 of Kodiak's top 20 suppliers are shared with legacy Beacon, which the buyer suggests may simplify supplier integration and commercial alignment.

Executives at Kodiak welcomed the transaction. Steve Swinney, Co-Founder and Chief Executive Officer of Kodiak, described QXO as "the most exciting company in the industry." One person familiar with the matter noted that, despite the sizable acquisition, QXO retains capacity for additional deals.

QXO's acquisition pipeline remains active, supported in part by recently announced equity financing arrangements with Apollo and Temasek, providing the company with substantial dry powder for further transactions. The buyer has set an aggressive target of reaching $50 billion in annual revenue within the next decade through a combination of acquisitions and organic growth within the roughly $800 billion building products distribution industry.

Brad Jacobs, the operator behind QXO, has a long track record of dealmaking, having completed over 500 M&A transactions and three initial public offerings. The six companies Jacobs has been involved with include United Waste Systems, United Rentals, XPO, GXO Logistics, RXO and now QXO.


Context and implications:

  • The transaction materially broadens QXO's product set and service capabilities, potentially enhancing its distribution and installation offerings across both exterior and interior construction channels.
  • Shared vendor relationships and market-leading local positions suggest opportunities for commercial synergies, although the companies will need to align operations across a larger, more diverse footprint.
  • Available financing from strategic investors supports a sustained acquisition strategy aimed at scaling QXO toward its $50 billion revenue goal.

While management presents the deal as accretive and strategically complementary, the scale of integration and the ambition of QXO's growth plan mean the company will be executing across multiple fronts simultaneously. Observers will watch how the combined business captures cross-sell opportunities and translates vendor overlap into supplier and margin advantages.

Risks

  • Geographic concentration: roughly 40% of Kodiak's 2025 revenues came from Florida and Texas, creating regional exposure in the combined company's revenue base - impacting building-products distribution and construction markets.
  • Supplier and integration complexity: while 16 of Kodiak's top 20 vendors overlap with legacy Beacon, aligning supplier relationships and commercial terms across a larger footprint could create transitional uncertainty - affecting procurement and margin management in distribution.
  • Execution against ambitious growth targets: QXO has set a goal of $50 billion in annual revenue within the next decade, relying on both acquisitions and organic expansion; successfully achieving this target will require sustained deal execution and integration in the building products distribution industry.

More from Stock Markets

S&P 500 Shows Signs of Tightening Range; Strategist Sees Potential for a Big Move Feb 22, 2026 Supreme Court to Clarify Reach of Helms-Burton Act in Multi-Billion Dollar Cuba Claims Feb 22, 2026 Switzerland Pulling Ahead in Early Economic Gains from AI Feb 22, 2026 Nvidia Results and Software Earnings to Test AI-Driven Market Sentiment Feb 22, 2026 Analysts Shift AI Bets: Nvidia, Amazon, Dell, Analog Devices, Shopify See Upgrades and Bullish Casework Feb 22, 2026