Cramer Says Housing Slump Hits QXO Harder Than Toll Brothers

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3▲0 ▼2Impact / 5
Summary · why it matters

Jim Cramer said the housing slowdown is weighing more heavily on QXO than on Toll Brothers, pointing to weaker demand for building products at QXO versus Toll Brothers' smaller reliance on mortgage financing. On Mad Money, Cramer described QXO as an amalgamation of Beacon Roofing Supply, Kodiak Building Partners and TopBuild, and noted the company reported $3.25 billion in second-quarter revenue, including $595 million from Kodiak, with a net loss of $55 million and adjusted EBITDA of $272 million at an 8.4% margin, down from 10.7% a year earlier. QXO also recorded a $42 million operating loss and $38 million in net interest expense in the second quarter, while long-term debt rose to $6.03 billion by June 30 from $3.06 billion at the end of 2025. Toll Brothers, by contrast, saw third-quarter home sales revenue fall about 8% year-over-year to $2.65 billion, deliveries decline 10% to 2,662 homes, and net income drop 24% to $280.1 million, with adjusted home sales gross margin contracting 190 basis points to 25.6%. Cramer noted that about 25% of Toll Brothers buyers pay cash, adding that Toll is the rich man's home builder so its customers have less sensitivity to mortgage rates.

Impact on assets 3

Consumer Discretionary▼ · 2 stocks
Toll Brothers Inc
TOL
▼ NegativeDemandrelevance

Toll Brothers' Q3 home sales revenue fell ~8% and deliveries dropped 10% as housing demand weakened.

Climate Adaptation & Water▼ · 1 stocks
QXO, Inc.
QXO
▼ NegativeDemandrelevance

Cramer says the housing slowdown is hitting QXO harder via weaker demand for its building products, alongside its Q2 net loss and margin contraction.

Off-coverage companies 1

TopBuild CorpPrivate± Mixed
relevance

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