QXO fundamentals
Tracking the macro drivers behind roofing distribution: residential turnover and affordability, repair and replacement demand, and the new construction pipeline
Updated 6 days ago.
Residential Turnover
Best simple proxy for housing turnover — more turnover usually leads to more repair, renovation, and reroof activity.
4.1kK units
Trend YoY growth is -6.6%, slowing by 99 bps/year over the last 10Y. Deviations have remained above trend for 26 consecutive periods. Latest: -1.4%, 5.1 pp above trend, a 0.47σ deviation. At current levels, YoY would rise to +1.2% by May '26 as comparisons ease.
Level
YoY %
y = 3.4% − 99 bps/yr · t
Deviation from trend
Inventory is a leading indicator for transaction recovery — more supply usually supports future turnover.
3.80Months
Trend YoY growth is +0.5%, accelerating by 11 bps/year over the last 10Y. Latest: +0.2%, 30 bps below trend, a 0.62σ deviation. At current levels, YoY would fall to -0.8% by May '26 as comparisons tighten.
Level
Change (pp)
y = −0.6% + 11 bps/yr · t
Deviation from trend
Affordability
Main affordability variable affecting home sales and housing turnover.
6.2%
Trend YoY growth is +0.4%, accelerating by 3.9 pp/year over the last 25Y. Deviations have remained below trend for 69 consecutive periods. Latest: -0.6%, 1.0 pp below trend, a 2.0σ deviation. The latest YoY reading is boosted by 75 bps due to an easy comparison base from Apr '25.
Level
YoY Change (bps)
y = −0.6% + 4 bps/yr · t
Deviation from trend
Higher home equity usually supports homeowner repair and upgrade spending.
327.3Index
Trend YoY growth is +5.5%, accelerating by 5 bps/year over the last 25Y. Deviations have remained below trend for 20 consecutive periods. Latest: +0.7%, 4.9 pp below trend, a 0.91σ deviation. The latest YoY reading is boosted by 1.5 pp due to an easy comparison base from Feb '25. At current levels, YoY would fall to -1.2% by May '26 as comparisons tighten.
Level
YoY %
y = 4.2% + 5 bps/yr · t
Deviation from trend
Repair & Replacement Demand
Monthly count of hail, thunderstorm wind, high wind, and tornado events from NOAA — a major direct driver of reroof demand.
1.4kEvents
Trend YoY growth is 1.2x, accelerating by 16 bps/year over the last 25Y. Latest: 1.3x, 11.6 pp above trend, a 0.19σ deviation. The latest YoY reading is depressed by 104.1 pp due to an tough comparison base from Dec '24.
Level
YoY %
y = 17.8% + 16 bps/yr · t
Deviation from trend
Helps separate pricing and mix changes from true unit-volume changes and informs margin context.
353.3PPI
Trend YoY growth is +4.2%, slowing by 11 bps/year over the last 25Y. Deviations have remained below trend for 29 consecutive periods. Latest: -0.6%, 4.7 pp below trend, a 0.88σ deviation. The latest YoY reading is boosted by 4.8 pp due to an easy comparison base from Mar '25. At current levels, YoY would fall to -3.8% by May '26 as comparisons tighten.
Level
YoY %
y = 6.9% − 11 bps/yr · t
Deviation from trend
New Construction Pipeline
Best broad leading indicator for new residential construction demand.
876.0K units
Trend YoY growth is +4.6%, accelerating by 30 bps/year over the last 25Y. Deviations have remained below trend for 22 consecutive periods. Latest: -11.3%, 16.0 pp below trend, a 1.0σ deviation. The latest YoY reading is boosted by 9.2 pp due to an easy comparison base from Jan '25.
Level
YoY %
y = −2.9% + 30 bps/yr · t
Deviation from trend
Captures commercial construction demand relevant to commercial roofing and related products.
$728.2B
Trend YoY growth is +9.1%, accelerating by 34 bps/year over the last 25Y. Deviations have remained below trend for 24 consecutive periods. Latest: -3.0%, 12.1 pp below trend, a 1.0σ deviation. The latest YoY reading is boosted by 11.9 pp due to an easy comparison base from Jan '25.
Level
YoY %
y = 0.6% + 34 bps/yr · t
Deviation from trend
Key Insight
QXO's core demand driver — residential housing turnover — remains locked in a structural freeze, and the data increasingly suggests that the hoped-for normalization is not coming anytime soon.
QXO fundamentals
Tracking the macro drivers behind roofing distribution: residential turnover and affordability, repair and replacement demand, and the new construction pipeline
Updated 6 days ago.
Residential Turnover
Best simple proxy for housing turnover — more turnover usually leads to more repair, renovation, and reroof activity.
4.1kK units
Trend YoY growth is -6.6%, slowing by 99 bps/year over the last 10Y. Deviations have remained above trend for 26 consecutive periods. Latest: -1.4%, 5.1 pp above trend, a 0.47σ deviation. At current levels, YoY would rise to +1.2% by May '26 as comparisons ease.
Level
YoY %
y = 3.4% − 99 bps/yr · t
Deviation from trend
Inventory is a leading indicator for transaction recovery — more supply usually supports future turnover.
3.80Months
Trend YoY growth is +0.5%, accelerating by 11 bps/year over the last 10Y. Latest: +0.2%, 30 bps below trend, a 0.62σ deviation. At current levels, YoY would fall to -0.8% by May '26 as comparisons tighten.
Level
Change (pp)
y = −0.6% + 11 bps/yr · t
Deviation from trend
Affordability
Main affordability variable affecting home sales and housing turnover.
6.2%
Trend YoY growth is +0.4%, accelerating by 3.9 pp/year over the last 25Y. Deviations have remained below trend for 69 consecutive periods. Latest: -0.6%, 1.0 pp below trend, a 2.0σ deviation. The latest YoY reading is boosted by 75 bps due to an easy comparison base from Apr '25.
Level
YoY Change (bps)
y = −0.6% + 4 bps/yr · t
Deviation from trend
Higher home equity usually supports homeowner repair and upgrade spending.
327.3Index
Trend YoY growth is +5.5%, accelerating by 5 bps/year over the last 25Y. Deviations have remained below trend for 20 consecutive periods. Latest: +0.7%, 4.9 pp below trend, a 0.91σ deviation. The latest YoY reading is boosted by 1.5 pp due to an easy comparison base from Feb '25. At current levels, YoY would fall to -1.2% by May '26 as comparisons tighten.
Level
YoY %
y = 4.2% + 5 bps/yr · t
Deviation from trend
Repair & Replacement Demand
Monthly count of hail, thunderstorm wind, high wind, and tornado events from NOAA — a major direct driver of reroof demand.
1.4kEvents
Trend YoY growth is 1.2x, accelerating by 16 bps/year over the last 25Y. Latest: 1.3x, 11.6 pp above trend, a 0.19σ deviation. The latest YoY reading is depressed by 104.1 pp due to an tough comparison base from Dec '24.
Level
YoY %
y = 17.8% + 16 bps/yr · t
Deviation from trend
Helps separate pricing and mix changes from true unit-volume changes and informs margin context.
353.3PPI
Trend YoY growth is +4.2%, slowing by 11 bps/year over the last 25Y. Deviations have remained below trend for 29 consecutive periods. Latest: -0.6%, 4.7 pp below trend, a 0.88σ deviation. The latest YoY reading is boosted by 4.8 pp due to an easy comparison base from Mar '25. At current levels, YoY would fall to -3.8% by May '26 as comparisons tighten.
Level
YoY %
y = 6.9% − 11 bps/yr · t
Deviation from trend
New Construction Pipeline
Best broad leading indicator for new residential construction demand.
876.0K units
Trend YoY growth is +4.6%, accelerating by 30 bps/year over the last 25Y. Deviations have remained below trend for 22 consecutive periods. Latest: -11.3%, 16.0 pp below trend, a 1.0σ deviation. The latest YoY reading is boosted by 9.2 pp due to an easy comparison base from Jan '25.
Level
YoY %
y = −2.9% + 30 bps/yr · t
Deviation from trend
Captures commercial construction demand relevant to commercial roofing and related products.
$728.2B
Trend YoY growth is +9.1%, accelerating by 34 bps/year over the last 25Y. Deviations have remained below trend for 24 consecutive periods. Latest: -3.0%, 12.1 pp below trend, a 1.0σ deviation. The latest YoY reading is boosted by 11.9 pp due to an easy comparison base from Jan '25.
Level
YoY %
y = 0.6% + 34 bps/yr · t
Deviation from trend