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Jan 31, 2024

GMS Q3 2024 Earnings Report

Reported solid demand in multi-family and commercial end markets, coupled with an improving single-family backdrop.

Key Takeaways

GMS Inc. reported a 1.9% increase in net sales to $1.3 billion for Q3 2024 compared to the prior year quarter. Volume increases in all major product categories and contributions from recent acquisitions drove the growth, which was partially offset by steel price deflation. Net income decreased by 19.9% to $51.9 million, or $1.28 per diluted share, while Adjusted EBITDA decreased by 9.1% to $128.0 million.

Net sales increased by 1.9% year-over-year to $1.3 billion.

Gross profit increased by 3.1% to $414.7 million, with a gross margin of 33.0%.

Net income decreased by 19.9% to $51.9 million, or $1.28 per diluted share.

Adjusted EBITDA decreased by 9.1% to $128.0 million.

Total Revenue
$1.26B
Previous year: $1.24B
+1.9%
EPS
$1.6
Previous year: $1.85
-13.5%
Gross Margin
33%
Previous year: 32.6%
+1.2%
Adjusted EBITDA
$128M
Previous year: $141M
-9.1%
SG&A Expense
295,700,000%
Gross Profit
$415M
Previous year: $402M
+3.1%
Cash and Equivalents
$88.3M
Previous year: $187M
-52.7%
Free Cash Flow
$94.1M
Previous year: $123M
-23.2%
Total Assets
$3.27B
Previous year: $3.23B
+1.2%

GMS

GMS

Forward Guidance

The company expects multifamily backlog to continue to support year-over-year growth and commercial activity to remain solid in most verticals for fiscal Q4. Single-family is also expected to show year-over-year growth for the fourth quarter as lower interest rates have resulted in higher activity levels.

Positive Outlook

  • Multifamily backlog to support year-over-year growth.
  • Commercial activity expected to remain solid in most verticals.
  • Single-family expected to show year-over-year growth.
  • Lower interest rates driving higher activity levels.
  • Well positioned to deliver a strong close to fiscal year.