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Apr 30, 2024
GMS Q4 2024 Earnings Report
GMS delivered solid results driven by volume growth across all major product categories.
Key Takeaways
GMS reported an 8.4% increase in net sales for Q4 2024, reaching $1.41 billion, driven by volume growth across all product categories. Despite steel price deflation impacting sales and margins, the company saw positive single-family Wallboard volume growth for the first time since fall 2022. Net income decreased by 25.4% to $56.4 million, while adjusted EBITDA was $146.6 million.
Net sales increased by 8.4% to $1.41 billion, or 6.7% on a same day basis.
Wallboard sales increased 7.6%, ceilings sales increased 21.7%, steel framing sales decreased 1.5%, and complementary product sales increased 9.8%.
Gross profit increased 6.3% to $451.2 million, while gross margin decreased 60 basis points to 31.9%.
Adjusted EBITDA was $146.6 million, with an adjusted EBITDA margin of 10.4%.
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 continued changes in end market dynamics in fiscal 2025, with an improving single-family market partially offsetting declining multi-family and commercial demand. Near-term headwinds are expected in Wallboard and Steel margins, but improvements are expected in the second quarter and solid results for the full fiscal year.
Positive Outlook
- Improving single-family end market expected to partially offset declines in multi-family and commercial demand.
- Benefits expected from previously announced Wallboard pricing actions later in the summer.
- Anticipated improvement in Steel pricing due to recent manufacturer price increases.
- Company prepared to manage shifts in end market demand and price movement.
- Continued focus on providing outstanding service and executing strategic priorities.
Challenges Ahead
- Anticipates some near-term headwinds, particularly in Wallboard and Steel margins.
- Declining multi-family and likely commercial demand expected throughout the year.
- Steel price deflation impacted sales and margins in Q4.
- Increased SG&A expenses related to acquisitions, greenfield openings, and labor costs.
- Expects to see benefits from the implementation of the previously announced pricing actions later this summer.
Revenue & Expenses
Visualization of income flow from segment revenue to net income