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Jul 31
GMS Q1 2026 Earnings Report
GMS delivered Q1 2026 results in line with expectations, despite a modest revenue decline.
Key Takeaways
GMS reported $1.41B in revenue and $43.6M in net income for Q1 2026. While Wallboard and Steel Framing sales declined, growth in Ceilings helped offset weakness. Adjusted EBITDA margin held steady at 9.6%.
Net sales declined 2.4% YoY to $1.41B
Adjusted EBITDA reached $135.5M with a 9.6% margin
Adjusted EPS was $1.76, exceeding GAAP EPS of $1.13
Free cash flow was negative at -$39.4M due to working capital and capex
GMS
GMS
GMS Revenue by Segment
Revenue by Segment
Wallboard Revenue
CapyFin.comCeilings Revenue
CapyFin.comSteel Framing Revenue
CapyFin.comComplementary Products Revenue
CapyFin.com Forward Guidance
GMS anticipates stable demand in key product categories and continued margin discipline, supported by strategic pricing and operational efficiencies.
Positive Outlook
- Ceilings category showed 6.6% YoY growth
- SG&A held flat YoY despite inflationary pressure
- Adjusted EBITDA margin remained strong at 9.6%
- Improved leverage profile supports financial flexibility
- Integration of recent acquisitions progressing as planned
Challenges Ahead
- Net sales declined 2.4% YoY
- Free cash flow was negative in the quarter
- Wallboard and Steel Framing volumes declined
- Adjusted EBITDA fell from prior-year quarter
- Net income dropped by $13.7M YoY
Revenue & Expenses
Visualization of income flow from segment revenue to net income