QXO To Acquire Kodiak For $2.25 Billion, Builds Bigger Runway For Earnings

QXO, Inc. (NYSE:QXO) shares edged higher in Wednesday's premarket session after the company announced plans to acquire Kodiak Building Partners for approximately $2.25 billion.

The deal is expected to be meaningfully accretive to 2026 earnings even as broader markets moved lower.

As of September 2025, QXO reported $2.306 billion in cash and equivalents and $3.052 billion in net long-term debt.

Deal Details

The acquisition involves $2.0 billion in cash and 13.2 million shares, with QXO retaining the right to repurchase these shares at $40 each.

The deal is anticipated to close early in the second quarter of 2026, expanding QXO's addressable market to over $200 billion and positioning the company to better serve large homebuilders.

Kodiak generated around $2.4 billion in revenues in 2025, focusing on essential building products such as lumber, windows, and construction supplies.

The integration of Kodiak's offerings is expected to accelerate margin expansion through enhanced procurement and operational efficiencies.

QXO's Acquisition War Chest

The deal announcement follows QXO's expanded acquisition financing. On January 12, the company increased its Apollo Global Management, Inc. (NYSE:APO)-led investment by $1.8 billion, lifting the total commitment to $3 billion from Apollo, Temasek and other investors through convertible perpetual preferred stock.

QXO said the capital is earmarked to fund one or more qualifying acquisitions through July 15, 2026, with a possible 12-month extension if a definitive acquisition agreement is signed before the initial commitment period expires.

Technical Analysis

Currently, QXO is trading 0.4% below its 20-day simple moving average (SMA) and 14.7% above its 100-day SMA, demonstrating longer-term strength. Over the past 12 months, shares have increased by 72.31% and are positioned closer to their 52-week highs than lows.

The RSI is at 53.01, which is considered neutral territory, while the MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.

• Key Resistance: $26.00
• Key Support: $20.50

Earnings & Analyst Outlook

Investors are looking ahead to the next earnings report on March 3, 2026.

• EPS Estimate: 2 cents (Up from Loss of 2 cents YoY)
• Revenue Estimate: $2.19 billion (Up from $14.74 million YoY)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $33.17. Recent analyst moves include:

• Oppenheimer: Outperform (Raises Target to $30.00) (January 16)
• Citigroup: Buy (Lowers Target to $31.00) (January 8)
• Truist Securities: Buy (Lowers Target to $26.00) (December 19, 2025)

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for QXO, highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Strong (Score: 87.69) — Stock is outperforming the broader market.

The Verdict: QXO's Benzinga Edge signal reveals a strong momentum score, indicating that the stock is currently on an upward trajectory. Investors should consider this momentum while monitoring for any potential shifts in market conditions.

QXO Price Action: Qxo shares were up 5.77% at $24.55 during premarket trading on Wednesday, according to Benzinga Pro data.

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