GMS Inc. Reports Q4 FY2025 Earnings

By Hao Liu • Wednesday, June 18 15:22 • Permanent Link

GMS Inc. has released its Q4 FY2025 earnings, highlighting the company's performance and strategic initiatives.

In the full fiscal year 2025, the company reported a slight growth in net sales, with acquisitions contributing to this growth. However, high interest rates and economic uncertainty negatively impacted market sentiment. The company also reported strong cash flow generation, with free cash flow at 67% of adjusted EBITDA for the full year.

In Q4 FY2025, GMS Inc. saw solid results, surpassing forecasts despite ongoing macroeconomic challenges. The company also noted volume improvement in Ceilings and Complementary Products and resilient or higher pricing in Wallboard, Ceilings, and Complementary Products.

GMS Inc. implemented $55 million of annualized cost reductions during FY25, with the full quarterly run rate expected to be realized in Q1 FY26.

Looking at market conditions, GMS Inc. noted stable or rising rents in most multi-family markets, indicating improving optimism. However, the company expects declines in multi-family volumes to end by early calendar 2026.

In terms of sales performance, Ceilings continued to benefit from project mix and saw both volume and price expansion. The company also reported resilient pricing across Wallboard, Ceilings, and Complementary Products.

GMS Inc. took cost reduction actions to help offset general cost inflation. The company also repurchased shares and maintained substantial liquidity, with $55.6 million in cash on hand and $631.3 million available under its revolving credit facility.

Looking ahead to Q1 FY26, GMS Inc. expects a range of metrics to change year-over-year, including net sales, gross margin, GAAP net income, adjusted EBITDA, and adjusted EBITDA margin.

The company's strategy focuses on aligning and rationalizing operations with current market realities, maintaining a strong balance sheet, generating significant levels of free cash flow, and implementing a disciplined capital allocation strategy.

The market has reacted to these announcements by moving the company's shares 10.41% to a price of $80.865. For the full picture, make sure to review GMS's 8-K report.

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