QXO Inc. (NYSE:QXO), fresh off its $11 billion acquisition of Beacon Roofing Supply (NASDAQ:BECN), has unveiled an aggressive long-term growth strategy aimed at transforming the building products distribution sector. At an investor event in New York, Chairman and CEO Brad Jacobs outlined a vision to scale QXO into a $50 billion annual revenue enterprise over the next decade.

The company plans to build on Beacon’s national platform by doubling its EBITDA organically and executing a disciplined acquisition strategy to expand both within and beyond its current verticals. Jacobs, known for successful roll-up strategies at United Rentals and XPO Logistics, aims to apply a proven formula of consolidation, operational efficiency, and technology integration to a highly fragmented $800 billion market.

QXO’s blueprint for growth is built around seven strategic pillars. These include delivering superior shareholder returns, targeting sectors with resilient demand, executing margin-accretive M&A, and optimizing operations through data-driven technology. Jacobs emphasized that the U.S. housing shortfall and federal infrastructure investments offer strong tailwinds for sustained demand.

A key component of the growth plan is to unlock value from Beacon, one of the largest distributors of exterior building products in North America. QXO has already launched nine major internal initiatives to enhance EBITDA, including revamping procurement, improving inventory management, boosting sales productivity, and investing in digital transformation.

Initial results from the integration are promising, with early gains in pricing, sales, and cost efficiencies contributing to improved financial performance. Jacobs noted that Beacon’s track record of weathering economic cycles gives QXO a strong launchpad for expansion.

QXO’s leadership team, many of whom have worked alongside Jacobs in prior ventures, is incentivized through equity-heavy compensation tied to outperforming the S&P 500. The alignment of interests, combined with the company’s strong balance sheet and cash flow generation, is expected to support a sustained M&A push.

In closing, Jacobs reinforced his confidence in QXO’s ability to become a global force in tech-enabled distribution. “We’re building a powerhouse,” he said, “and Beacon is just the beginning.”

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