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Apr 30
GMS Q4 2025 Earnings Report
GMS reported a significant drop in profit and revenue for Q4 2025 amid challenging end market conditions.
Key Takeaways
GMS delivered lower revenue and net income for Q4 2025 due to weaker end market demand and pricing pressure, especially in steel framing. However, the company maintained resilient pricing in other segments and achieved strong cash flow performance.
Net sales for Q4 FY25 decreased by 5.6% to $1.33 billion.
Net income for Q4 FY25 decreased by 53.7% to $26.1 million.
Adjusted EBITDA for Q4 FY25 decreased to $109.8 million with a margin of 8.2%.
The company generated strong free cash flow of $183.4 million in Q4 FY25.
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 expressed cautious optimism entering FY 2026, expecting a potential recovery as macroeconomic conditions improve.
Positive Outlook
- Resilient pricing in most product categories outside Steel Framing
- Ceilings and Complementary Products showed volume growth
- Post-Covid record free cash flow conversion for the quarter
- Solid liquidity with $631M available on revolver
- Strategic acquisitions and greenfield expansion continue
Challenges Ahead
- Steel price deflation reduced Q4 revenue by $22M
- Gross margin declined 70 bps due to lower vendor incentive income
- SG&A leverage deteriorated due to lower sales absorption
- Net income dropped over 50% year-over-year
- Organic net sales declined nearly 10%
Revenue & Expenses
Visualization of income flow from segment revenue to net income