US LBM Cements Western Grip with XO Windows Acquisition

PHOENIX, AZ – January 20, 2026 – In a significant strategic move solidifying its presence in the American West, national building materials distributor US LBM announced today its acquisition of XO Windows, LLC. The deal brings one of Arizona’s largest regional suppliers of windows and doors into the fold of the nation’s largest privately owned distributor, signaling a major investment in the booming construction markets of the Southwest and Northwest.

XO Windows, founded in 2008, has established itself as a critical supplier for residential and commercial builders across the high-growth metropolitan areas of Phoenix, Tucson, and Las Vegas-Henderson. The acquisition provides US LBM with an expanded portfolio of high-demand products, including a wide range of vinyl, aluminum, and specialty-shape windows, as well as various door systems, many of which are noted for exceeding Energy Star efficiency requirements.

A Strategic Bet on Booming Markets

The timing and location of the acquisition underscore a targeted strategy to capitalize on regions bucking national trends. While the national homebuilder confidence, measured by the NAHB/Wells Fargo Housing Market Index, sat at a pessimistic 37.0 in January 2026, the markets XO Windows serves are displaying remarkable resilience and growth. Phoenix, in particular, is in the midst of a historic multifamily construction boom and is forecast for a significant commercial construction recovery in 2026, fueled by robust job creation and population growth that have made it a top U.S. market to watch.

“I'm confident this partnership will strengthen our ability to serve two of the strongest metro areas for new home construction in the country,” said US LBM President and CEO L.T. Gibson in the company's official announcement. This sentiment is backed by market data showing sustained demand across Arizona and Nevada. Phoenix anticipates thousands of new rental units coming online through 2026, while its commercial sector is being propelled by corporate relocations and its emergence as a high-tech manufacturing hub. Similarly, Las Vegas is projected to see its new-home market rebound in 2026, driven by continued interstate migration and economic diversification into sectors like clean technology and healthcare.

By acquiring a major player in these specific locales, US LBM is making a calculated move to insulate itself from broader market volatility and double down on proven growth centers. The addition of XO Windows provides not just products, but a deeply embedded distribution network and customer base in areas where new construction is a near-constant.

Integrating a Regional Powerhouse

Rather than operating XO Windows as a standalone subsidiary, US LBM is integrating its operations directly into its existing regional structure, a move designed to maximize synergy and efficiency. The company’s Phoenix and Tucson operations will be folded into US LBM's Arizona Building Supply (AZBS) division, which is helmed by Market President Mike Dykstra. Meanwhile, the Henderson, Nevada location will join the Desert Companies division, led by President Terry Ono.

This integration strategy allows US LBM to leverage its national scale for purchasing and logistics while retaining the local market expertise and relationships that made XO Windows successful. The press release highlighted this aspect, with regional vice presidents Steve Short and Scott Richter jointly stating, “XO Windows has a strong leadership team and a high-performing, well-organized operation. They are becoming a strong partner for locations across our western regions and for all of us at US LBM.”

For local builders and contractors in Arizona and Nevada, the transition means their trusted regional supplier is now backed by the formidable resources of a national powerhouse. This could translate to a wider product selection, more stable supply chains, and potentially more competitive pricing, as US LBM can leverage its vast purchasing power. The focus remains on maintaining the local go-to-market strategy that has been a cornerstone of US LBM's success during its nationwide expansion.

The Consolidation Game in Building Materials

This acquisition is not an isolated event but rather the latest chapter in a long-running trend of consolidation within the specialty building materials industry. As the construction sector navigates fluctuating interest rates, supply chain disruptions, and labor shortages, scale has become a crucial competitive advantage. Large distributors like US LBM are actively pursuing M&A strategies to streamline operations, expand their geographic footprint, and enhance their product offerings in one fell swoop.

By absorbing strong regional players like XO Windows, national distributors can quickly gain market share and operational efficiencies that would take years to build organically. The model combines the operational advantages of a national platform—such as centralized IT, finance, and procurement—with the customer-facing nimbleness of local brands that understand their specific markets. US LBM's comprehensive portfolio already includes everything from millwork and roofing to cabinetry and engineered components, and the addition of a specialized window and door expert in XO Windows further strengthens its position as a full-line distributor.

This ongoing consolidation reshapes the competitive landscape, putting pressure on smaller, independent suppliers who may struggle to compete on price and product availability. For builders and developers, it can lead to more streamlined procurement processes with one-stop-shop suppliers, but it also reduces the number of distributors in the market. The acquisition of XO Windows by US LBM is a clear indicator that in the high-stakes world of building materials, size and strategic positioning are paramount for long-term growth and stability in a dynamic economic climate.