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NEW YORK - GMS Inc . (NYSE:GMS) reported mixed fourth quarter fiscal 2025 results on Wednesday, with earnings beating expectations but revenue falling short of estimates. GMS shares were trading 0.10% higher in premarket trading.
The specialty building products distributor posted adjusted earnings per share of $1.29, surpassing the analyst consensus of $1.11. However, revenue of $1.33 billion missed Wall Street’s forecast of $1.43 billion.
Net sales decreased 5.6% YoY, or 4.1% on a same day basis, which the company attributed to softer end market conditions. This was partially offset by resilient pricing in wallboard, ceilings and complementary products.
"We reported solid results for our fourth quarter and full year fiscal 2025 despite deterioration in end market conditions as we moved through the year," said John C. Turner, Jr., President and CEO of GMS. "The ongoing challenging interest rate environment and general market uncertainty continues to be a headwind for the business, contributing to reduced levels of activity in each of our major end markets."
Adjusted EBITDA fell to $109.8 million from $146.6 million a year ago, while adjusted EBITDA margin contracted to 8.2% from 10.4%.
For the full fiscal year 2025, GMS reported net sales of $5.51 billion, up 0.2% YoY. Adjusted earnings per share for the year came in at $6.18, down from $8.61 in fiscal 2024.
The company generated free cash flow of $183.4 million in Q4 and $336.1 million for the full year. GMS ended the quarter with a net debt leverage ratio of 2.4 times Pro Forma Adjusted EBITDA.
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