GMS first quarter results align with expectations as revenue dips

Published 28/08/2025, 11:10
 GMS first quarter results align with expectations as revenue dips

TUCKER, Ga. - On Thursday, GMS Inc. (NYSE:GMS), reported first quarter fiscal 2026 results that matched expectations despite a slight revenue decline.

The leading North American specialty building products distributor’s shares were down 0.06% following the announcement.

The company posted adjusted earnings of $1.76 per share for the quarter ended July 31, 2025, exceeding analyst estimates of $1.72. Revenue came in at $1.41 billion, slightly above the consensus estimate of $1.4 billion but down 2.4% compared to $1.45 billion in the same quarter last year.

The revenue decline was primarily driven by lower wallboard sales, which decreased 5.4% YoY to $556.4 million, and steel framing sales, which fell 6.3% YoY to $196.6 million. However, ceiling product sales provided a bright spot, increasing 6.6% YoY to $220.9 million.

Adjusted EBITDA for the quarter was $135.5 million, representing a margin of 9.6%, compared to 10.1% in the prior-year period. The company’s organic sales declined 4.9% on a per-day basis, reflecting ongoing challenges in the construction materials market.

GMS ended the quarter with $39.9 million in cash and $1.31 billion in total debt, resulting in a net debt to Pro Forma Adjusted EBITDA ratio of 2.6x, up from 2.1x in the comparable period last year.

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