QXO, Inc., a rapidly growing company in the building products distribution industry, recently completed one of its biggest acquisitions yet. In July 2026, QXO acquired TopBuild Corp. for $17 billion. As a result of the transaction, QXO is now the second largest publicly traded building products distributor in North America.

The TopBuild acquisition is strategic for QXO for a variety of reasons. Based in Daytona Beach, Florida, TopBuild is a leader in insulation installation and specialty distribution in North America. It also has a footprint in data center projects and other key growth areas. In 2025, TopBuild reported approximately $6.2 billion in net sales.

Based in Greenwich, Connecticut, QXO’s business installs and distributes a number of building materials, including roofing, insulation, waterproofing, and lumber. The company is predominantly focused on the North American market. Most of the company’s products are made and sold in the United States, reducing the potential impact from tariffs.

QXO has been on an acquisition spree in the past year. In April 2025, the company completed its first major acquisition of Beacon Roofing Supply for approximately $11 billion. This was followed by the acquisition of Kodiak Building Partners in April 2026. Large companies in the industry have a number of advantages over smaller competitors, including the ability to scale investments in technology and infrastructure.

The $17 billion acquisition consideration for TopBuild was paid with a combination of cash and stock. For each share of TopBuild common stock held before the merger closing, stockholders received either $505 in cash or 20.2 shares of QXO common stock. As a result of the TopBuild acquisition, the combined company will have over $18 billion of revenue.

The building products distribution industry faces a number of positive headwinds. The increase in new construction of data centers, residential housing, and large commercial projects is driving demand for building materials. In addition, many existing homes in North America are in need of major home improvements and repairs. Severe weather events, such as heightened storm activity, is another variable that has contributed to demand for roofing supplies and other materials.

Other industry competitors also understand the benefits of scale and consolidation. Home Depot, the world’s largest home improvement retailer and a QXO competitor, has pursued a number of acquisitions in recent years. For example, Home Depot acquired SRS Distribution for $18.25 billion in 2024. This acquisition helped solidify Home Depot’s position in the landscaping, pool contractor, and roofing sectors.

Brad Jacobs, the CEO of QXO, is a serial entrepreneur. Prior to creating QXO, Mr. Jacobs founded and led United Waste (solid waste company), United Rentals (equipment rental company), and XPO (logistics company). These companies are leading players in their respective industries. Mr. Jacobs’ track record has been helpful in steering QXO’s growth story as well as for raising capital from investors.

Technology has been an important component behind the company’s success. Many players in the industry, especially smaller competitors, lack the advanced technological capabilities and digitization for streamlining operations. Similar to traditional retail operations, technology improves efficiencies for inventory management, pricing, customer service, and various other aspects of the business.