Apollo Global Management, through its affiliates, increased its investment in Greenwich‑based building‑supplies distributor QXO, Inc. from $1.2 billion to $3 billion by issuing $1.8 billion in convertible perpetual preferred stock on January 12 2026. The new capital infusion expands Apollo’s ownership stake and provides QXO with liquidity to pursue its acquisition‑driven growth plan.
QXO’s financial profile shows a company in transition. Over the past three years, revenue growth has fallen 83.9%, and the firm reports negative operating and net margins of –4.48% and –3.82%, respectively. Its balance sheet remains solid, with a current ratio of 3.06 and a debt‑to‑equity ratio of 0.40, but an Altman Z‑Score of 2.02 signals potential financial stress. The infusion is intended to shore up working capital and fund the next wave of acquisitions as QXO targets $50 billion in annual revenue within a decade.
The investment aligns with QXO’s strategy of consolidating the fragmented building‑products distribution market. The company plans to use the new capital to acquire complementary distributors, integrate technology platforms, and scale operations. Apollo’s confidence in this model is underscored by its prior $1.2 billion investment, which helped QXO reach a 52‑week high earlier in the week. The $3 billion stake positions Apollo as a key partner in QXO’s expansion, while QXO gains a financial backer capable of supporting large‑scale deals.
Brad Jacobs, QXO’s CEO, emphasized that the capital will accelerate the company’s “growth‑by‑acquisition” strategy. He noted that the firm is focused on integrating acquisitions, upgrading technology, and managing costs to double EBITDA within three to five years. Jacobs highlighted that the new funding will allow QXO to pursue larger deals and invest in operational efficiencies that are critical to achieving its long‑term revenue target.
The announcement was well received by investors, reflecting confidence in QXO’s ability to execute its consolidation strategy. Analysts noted that the infusion validates the company’s aggressive growth plan and provides the financial flexibility needed to pursue high‑value acquisitions in a highly fragmented market. Apollo’s assets under management of approximately $908 billion further underscore the strategic fit between the investor’s capital resources and QXO’s expansion ambitions.
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