QXO Insulation, LLC

CIK:0001633931|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Net sales	$ 1,445,860	$ 1,233,278
Cost of sales	1,045,607	881,805
Gross profit	400,253	351,473
Selling, general, and administrative expense	225,210	173,984
Operating profit	175,043	177,489
Other income (expense), net:
Interest expense	(36,623)	(16,602)
Other, net	1,327	5,086
Other expense, net	(35,296)	(11,516)
Income before income taxes	139,747	165,973
Income tax expense	(34,934)	(42,588)
Net income	$ 104,813	$ 123,385
Net income per common share:
Basic	$ 3.75	$ 4.25
Diluted	$ 3.73	$ 4.23
Weighted average shares outstanding:
Basic	27,976,514	29,028,234
Diluted	28,130,208	29,174,892

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Cash Flows Provided by (Used in) Operating Activities:
Net income	$ 104,813	$ 123,385
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	56,295	35,791
Share-based compensation	4,629	5,042
Loss on sale of assets	327	829
Amortization of debt issuance costs	1,216	720
Provision for bad debt expense	3,412	3,666
Provision for inventory obsolescence	2,284	2,820
Impairment losses		9,868
Deferred income taxes, net	(20)	(1,822)
Change in certain assets and liabilities, net of effects of businesses acquired:
Receivables, net	(38,542)	(1,118)
Inventories	(18,336)	(2,215)
Prepaid expenses and other current assets	8,198	9,646
Accounts payable	31,464	(32,342)
Accrued liabilities	4,739	(1,050)
Other, net	257	(631)
Net cash provided by operating activities	160,736	152,589
Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment	(13,999)	(13,395)
Acquisition of businesses, net of cash acquired	(27,888)	294
Proceeds from sale of assets	394	248
Net cash used in investing activities	(41,493)	(12,853)
Cash Flows Provided by (Used in) Financing Activities:
Repayment of long-term debt	(15,625)	(11,250)
Proceeds from revolving credit facility	65,000
Repayment of revolving credit facility	(65,000)
Principal payments on finance lease obligations	(1,861)
Taxes withheld and paid on employees' equity awards	(18,293)	(4,466)
Exercise of stock options	1,394
Repurchase of shares of common stock		(215,628)
Net cash used in financing activities	(34,385)	(231,344)
Cash and Cash Equivalents
Impact of exchange rate changes on cash	(753)	101
Net increase (decrease) in cash and cash equivalents	84,105	(91,507)
Cash and cash equivalents - Beginning of period	184,742	400,318
Cash and cash equivalents - End of period	268,847	308,811
Supplemental disclosure of noncash activities:
Leased assets obtained in exchange for new operating lease liabilities	12,987	17,547
Leased assets obtained in exchange for new finance lease liabilities	1,831
Accruals for property and equipment	$ 685	444
Excise taxes capitalized to treasury stock		$ 2,156

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 268,847	$ 184,742
Receivables, net of an allowance for credit losses of $29,680 at March 31, 2026, and $29,081 at December 31, 2025	930,521	894,408
Inventories	515,143	505,167
Prepaid expenses and other current assets	42,148	50,478
Total current assets	1,756,659	1,634,795
Right of use assets	261,536	271,396
Property and equipment, net	286,525	291,556
Goodwill	3,070,940	3,045,227
Other intangible assets, net	1,325,038	1,351,612
Other assets	10,465	10,726
Total assets	6,711,163	6,605,312
Current liabilities:
Accounts payable	471,217	440,214
Current portion of long-term debt	62,500	62,500
Accrued liabilities	251,991	249,361
Short-term operating lease liabilities	87,302	86,170
Short-term finance lease liabilities	6,611	6,571
Total current liabilities	879,621	844,816
Long-term debt	2,769,888	2,784,197
Deferred tax liabilities, net	395,765	387,594
Long-term portion of insurance reserves	58,645	58,681
Long-term operating lease liabilities	190,086	200,729
Long-term finance lease liabilities	11,014	11,020
Other liabilities	1,782	2,115
Total liabilities	4,306,801	4,289,152
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized; 0 shares issued and outstanding
Common stock, $0.01 par value: 250,000,000 shares authorized; 39,747,055 shares issued and 28,139,211 outstanding at March 31, 2026, and 39,643,887 shares issued and 28,069,250 outstanding at December 31, 2025	397	396
Treasury stock, 11,607,844 shares at March 31, 2026, and 11,574,637 shares at December 31, 2025, at cost	(2,142,193)	(2,124,964)
Additional paid-in capital	950,262	945,303
Retained earnings	3,620,061	3,515,248
Accumulated other comprehensive loss	(24,165)	(19,823)
Total equity	2,404,362	2,316,160
Total liabilities and equity	$ 6,711,163	$ 6,605,312