Executive Summary

Q3 delivered an EPS beat versus S&P Global consensus on adjusted diluted EPS, while revenue was essentially in line/slightly below; margins improved versus Q2 amid continued Beacon integration progress *. Management emphasized market outperformance and reiterated a long-term plan to organically grow legacy Beacon EBITDA above $2B and reach $50B revenue within a decade .
Non‑GAAP improvements were driven by pricing and procurement initiatives and scale from Beacon; GAAP loss persisted due to amortization and a large tax provision tied to adjustments, partially offset by stronger adjusted profitability .
Balance sheet remained liquid post term-loan refinancing with ~$2.3B cash and ~$3.1B long-term debt; total net debt expected to remain consistent following the refinancing .
Catalysts: evidence of execution on Beacon optimization, incremental margin progress QoQ, and demonstrated EPS beat vs consensus*; watch for continued transformation actions and any acquisition pipeline updates in Q4 *.

What Went Well and What Went Wrong

What Went Well

Management emphasized “excellent progress optimizing Beacon,” outperformance versus the market, and confidence in organically growing legacy Beacon EBITDA above $2B, underpinned by a robust acquisition pipeline .
Adjusted EBITDA and margin improved QoQ, reflecting transformation actions (pricing, procurement, logistics) and deeper Beacon integration .
Segment mix shows diversified growth across residential, non-residential, and complementary building products, supporting scale benefits and margin trajectory .

What Went Wrong

GAAP net loss continued, driven by amortization and a significant tax provision, despite stronger adjusted profitability .
Inventory fair value adjustments associated with Beacon acquisition continued to weigh on GAAP gross margin comparability in 2025; these are expected to be fully recognized in 2025 .
SG&A remains heavy amid transformation and integration costs; management flagged non-GAAP adjustments (restructuring, transaction, transformation costs) as excluding items not representative of underlying operations .

Financial Results

Consolidated Performance (YoY and QoQ)

Metric	Q3 2024	Q2 2025	Q3 2025
Net Sales ($USD Billions)	$0.013	$1.906	$2.728
Gross Margin %	42.0%	21.1%	23.3%
Adjusted Gross Margin %	42.0%	25.3%	25.2%
Net (Loss) Income ($USD Millions)	$17.2	$(58.5)	$(139.4)
Net Margin %	131.3%	(3.1)%	(5.1)%
Adjusted EBITDA ($USD Millions)	$(11.4)	$204.6	$301.9
Adjusted EBITDA Margin %	(87.0)%	10.7%	11.1%
Adjusted Net Income ($USD Millions)	N/M	$109.2	$166.2
GAAP Basic & Diluted EPS ($)	N/M	$(0.15)	$(0.24)
Adjusted Diluted EPS ($)	N/M	$0.11	$0.14

Consensus Estimates vs Actuals (S&P Global)

Metric	Q2 2025	Q3 2025
Primary EPS (Estimate* vs Actual)	0.0406* vs 0.11	0.1325* vs 0.14
Revenue ($USD Billions, Estimate* vs Actual)	$1.874* vs $1.906	$2.736* vs $2.728
# EPS Estimates	6*	4*
# Revenue Estimates	8*	3*

Values marked with * retrieved from S&P Global.

Segment Net Sales and Mix

Segment	Q2 2025 Net Sales ($MM)	Q2 Mix %	Q3 2025 Net Sales ($MM)	Q3 Mix %
Residential Roofing	$929.8	48.7%	$1,351.7	49.6%
Non-Residential Roofing	$535.5	28.1%	$734.0	26.9%
Complementary Building Products	$426.1	22.4%	$628.5	23.0%
Software Products & Services	$15.0	0.8%	$14.1	0.5%
Total	$1,906.4	100.0%	$2,728.3	100.0%

KPIs and Balance Sheet Snapshot

KPI	Q2 2025	Q3 2025
Cash & Cash Equivalents ($USD Billions)	$2.279	$2.307
Long‑Term Debt, Net ($USD Billions)	$3.052	$3.053
Adjusted EBITDA Margin %	10.7%	11.1%
Gross Margin %	21.1%	23.3%
Adjusted Gross Margin %	25.3%	25.2%
Weighted‑Avg Diluted Shares (MM)	564.7	715.3 (GAAP) / 875.3 (Adjusted Diluted)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Legacy Beacon EBITDA (organic target)	Long‑term	“At least double legacy Beacon EBITDA organically”	“Organically grow legacy Beacon’s EBITDA to more than $2 billion”	Clarified (quantified)
Net Debt Post-Refinancing	Near‑term	N/A	“Total net debt is expected to remain consistent following the refinancing”	Maintained
Revenue, Margins, OpEx, OI&E, Tax Rate	FY/Q4	Not provided	Not provided	N/A

Earnings Call Themes & Trends

Note: We searched for an earnings call transcript for Q3 2025 and did not find one in the document catalog for the relevant date range [List search returned none].

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Beacon Integration & Optimization	Management onboarding; focused on building tech-enabled leader; adjusted EBITDA negative due to higher employee costs	Integration progressing well; broad transformation across pricing, procurement, sales, org, logistics; confidence to at least double legacy Beacon EBITDA organically	“Excellent progress optimizing Beacon,” outperformed market; reaffirmed organic legacy Beacon EBITDA >$2B	Strengthening execution narrative
Pricing/Procurement/Logistics	Limited detail	Explicit focus areas highlighted for transformation	Implicit driver of margin improvements; continued optimization	Ongoing initiatives
Acquisition Pipeline	Aspirational growth; acquisition strategy	“Strong momentum” in pipeline	“Very robust acquisition pipeline”	Building pipeline
Technology Initiatives	Tech-enabled leader positioning	Continued positioning; CIO/CTO hires in Q2 timeframe (press releases)	Tech-enabled leadership reiterated	Consistent emphasis
Macro/Market	N/A	Q2 seasonal drivers in roofing; transformation underway	“Outperformed the market this quarter”	Positive relative performance
Regulatory/Legal Risks	Standard cautionary language	Standard cautionary language incl. AI/IT risks	Similar cautionary statements	Stable risk disclosure

Management Commentary

“We’re making excellent progress optimizing Beacon and continue to find new avenues for growth. We outperformed the market this quarter and are firmly on track to organically grow legacy Beacon’s EBITDA to more than $2 billion. This momentum, combined with a very robust acquisition pipeline, primes us to reach $50 billion in annual revenue within a decade.” — Brad Jacobs, Chairman & CEO .
Q2: “The integration of Beacon is progressing well… launched a broad transformation initiative, focusing on pricing, procurement, sales, organizational structure, logistics… confident we will at least double legacy Beacon EBITDA organically.” — Brad Jacobs .

Q&A Highlights

No Q3 2025 earnings call transcript was available in the catalog; therefore, Q&A highlights and any guidance clarifications from the call could not be assessed [List search returned none].

Estimates Context

Q3 2025: Adjusted diluted EPS modestly beat consensus (0.14 vs 0.1325*); revenue was effectively in line/slightly below ($2.728B vs $2.736B*) *.
Q2 2025: Adjusted diluted EPS beat (0.11 vs 0.0406*); revenue exceeded consensus ($1.906B vs $1.874B*) *.
Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

Execution on Beacon optimization is translating into sequential margin improvement and an EPS beat vs consensus*, supporting the transformation thesis *.
Continued non‑GAAP adjustments and a sizable tax provision obscure GAAP profitability; investors should focus on adjusted metrics trajectory while monitoring the pace of normalization of inventory fair value impacts through YE25 .
Segment diversity across residential, non-residential, and complementary products underpins scale advantages; residential remains the largest revenue driver .
Liquidity and balance sheet flexibility look solid post-refinancing; management expects net debt to remain consistent, reducing near-term balance sheet volatility risk .
With a robust acquisition pipeline and tech-enabled transformation, incremental operating leverage remains the near-term narrative; monitor pricing/procurement execution for further margin gains .
Absence of a Q3 call transcript limits color on near-term demand cadence; watch for Q4 updates and 10‑Q detail to refine estimate trajectories [List search returned none].
Long-term targets (legacy Beacon EBITDA >$2B; $50B revenue within a decade) anchor medium-term thesis; delivery milestones and integration KPIs will be key stock drivers .

QXO, Inc. (QXO)·Q3 2025 Earnings Summary