GMS Inc. has reported its first quarter fiscal 2026 results, with net sales totaling $1.41 billion, down from $1.45 billion in the same period last year. The company's operating income was $81.23 million, a decrease from $98.38 million in the previous year.
The breakdown of net sales by product group shows a decline in wallboard, steel framing, and complementary products, with only ceilings experiencing a 6.6% increase in sales compared to the prior year period.
Adjusted EBITDA for the quarter was $135.49 million, down from $145.88 million in the same period last year. Additionally, the adjusted EBITDA margin was 9.6%, a decrease from 10.1% in the previous year.
The company reported a net income of $43.56 million, down from $57.25 million in the same period last year. The basic net income per share was $1.14, a decrease from $1.45 in the previous year.
GMS Inc. also disclosed that it used $30.94 million in operating activities during the quarter, and its free cash flow was negative $39.39 million.
The company's selling, general and administrative expense was $314.38 million, with an adjusted SG&A margin of 21.4%, up from $307.72 million and 21.2% in the same period last year.
The reconciliation of income before taxes to adjusted net income showed that the adjusted net income for the quarter was $68.05 million, down from $77.56 million in the same period last year. The adjusted net income per share was $1.79, a decrease from $1.96 in the previous year.
For the last twelve months ended July 31, 2025, GMS Inc. reported a net income of $101.78 million, down from $246.50 million in the prior year. The adjusted EBITDA for the same period was $490.53 million, a decrease from $588.04 million in the previous year.
The company's cash and cash equivalents decreased from $53.17 million to $39.93 million, while its total debt stood at $1.31 billion.
The market has reacted to these announcements by moving the company's shares 0.01% to a price of $109.845. For the full picture, make sure to review GMS's 8-K report.
