QXO Surges 18.15% on $1.145B Private Placement Fueling M&A Push

The share price rose to its highest level so far this month, with an intraday gain of 7.01%.

Analysts at William Blair and Truist have revised QXO’s earnings forecasts downward, citing weaker-than-expected performance in roofing and building products. William Blair cut its Q4 2025 EBITDA estimate to $152 million from $203 million, while Truist reduced its price target to $26 from $28. Despite these downgrades, both firms retain positive ratings, emphasizing that a potential large M&A deal could stabilize investor confidence. The departure of QXO’s CEO is seen as a catalyst for accelerated strategic overhauls, with leadership transitions often expediting acquisition timelines.

Recent capital-raising activity underscores QXO’s M&A-focused strategy. A $1.145 billion private placement led by Apollo Global Management and Franklin Advisers funded acquisition-driven expansion, lifting the stock to $23.30—a 18.15% one-day return. The move aligns with analyst expectations of a transformative deal to offset short-term operational challenges, including weak R&R market demand and pricing pressures. While QXO’s P/S ratio of 3.4x matches industry averages, its net loss of $278.9 million against $4.66 billion in revenue highlights reliance on M&A for profitability.

Weather-dependent demand and economic uncertainty further complicate near-term growth, though long-term tech-enabled integration remains a key differentiator.