•
Jul 31, 2024

GMS Q1 2025 Earnings Report

GMS reported volume gains and resilient wallboard pricing amidst softening end market demands and continued steel price deflation.

Key Takeaways

GMS Inc. reported a 2.8% increase in net sales, reaching $1.4 billion, with net income decreasing by 34.1% to $57.2 million. Adjusted EBITDA decreased 15.8% to $145.9 million. The company realized volume growth and improved pricing in most major product lines, offset by steel price deflation and weaker activity levels across end markets.

Net sales increased by 2.8% to $1.4 billion, driven by acquisitions and resilient pricing, offset by steel price deflation.

Net income decreased by 34.1% to $57.2 million, or $1.42 per diluted share.

Adjusted EBITDA decreased by 15.8% to $145.9 million.

The company is implementing a $25 million annualized cost reduction program.

Total Revenue
$1.45B
Previous year: $1.41B
+2.7%
EPS
$1.93
Previous year: $2.4
-19.6%
Gross Margin
31.2%
Previous year: 32%
-2.5%
Adjusted EBITDA
$146M
Previous year: $173M
-15.8%
SG&A Expense
315,200,000%
Gross Profit
$452M
Previous year: $451M
+0.2%
Cash and Equivalents
$53.2M
Previous year: $81.4M
-34.6%
Free Cash Flow
-$31.9M
Previous year: -$6.9M
+362.3%
Total Assets
$3.89B
Previous year: $3.3B
+18.0%

GMS

GMS

Forward Guidance

Market pressures are expected to persist over the next several quarters, at least until the expected reduction in interest rates can positively impact demand for our products.