In the fiscal year 2024, GMS reported a significant increase in net sales, reaching $5.5 billion compared to the previous fiscal year's $5.3 billion. This growth in net sales was accompanied by a notable rise in adjusted EBITDA, which reached $615 million in fiscal year 2024, up from $588 million in the previous period.
The company also emphasized its successful diversification and expansion in complementary products, with these products accounting for 30% of net sales in fiscal year 2024, up from 20% in fiscal year 2014. This expansion was driven by strategic acquisitions, including those in the New York City, Greater Toronto, and Florida markets.
Despite these achievements, the company faced challenges in the first quarter of fiscal year 2025. While experiencing a 2.8% increase in net sales, reaching $1.4 billion, the company encountered softening demand in the multi-family and commercial end markets. Additionally, the gross margin decreased by 80 basis points, and net income declined to $57.2 million from $86.8 million in the same period last year.
However, GMS remains focused on its strategic growth priorities, aiming to improve productivity and profitability. The company continues to pursue opportunities for expansion, with a solid pipeline of potential mergers and acquisitions in both core and complementary product lines.
In terms of financial stability, GMS has maintained an attractive capital structure, with substantial liquidity, including $53.2 million in cash on hand and $565.3 million available under its revolving credit facility. Additionally, the company has repurchased shares and implemented a $25 million annualized cost reduction program.
The market has reacted to these announcements by moving the company's shares -3.5% to a price of $83.76. For the full picture, make sure to review GMS's 8-K report.
