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GMS Reports First Quarter Fiscal 2026 Results
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TUCKER, Ga.--(BUSINESS WIRE)--Aug 28, 2025-- GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, today reported financial results for the fiscal first quarter ended July 31, 2025. GMS Inc. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except per share data) ​ Three Months Ended July 31, ​ 2025 2024 Net sales $ 1,414,332 $ 1,448,456 Cost of sales (exclusive of depreciation and amortization shown separately below) 977,807 996,893 Gross profit 436,525 451,563 Operating expenses: Selling, general and administrative 314,379 315,152 Depreciation and amortization 40,919 38,032 Total operating expenses 355,298 353,184 Operating income 81,227 98,379 Other (expense) income: Interest expense (21,068 ) (22,213 ) Other income, net 906 2,028 Total other expense, net (20,162 ) (20,185 ) Income before taxes 61,065 78,194 Provision for income taxes 17,505 20,946 Net income $ 43,560 $ 57,248 Weighted average common shares outstanding: Basic 38,064 39,542 Diluted 38,629 40,226 Net income per common share: Basic $ 1.14 $ 1.45 Diluted $ 1.13 $ 1.42 GMS Inc. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except per share data) ​ July 31, 2025 April 30, 2025 Assets Current assets: ​ Cash and cash equivalents $ 39,931 $ 55,599 Trade accounts and notes receivable, net of allowances of $13,333 and $12,947, respectively 879,287 835,888 Inventories, net 583,801 586,191 Prepaid expenses and other current assets 36,110 42,438 Total current assets 1,539,129 1,520,116 Property and equipment, net of accumulated depreciation of $383,375 and $369,343, respectively 531,047 524,008 Operating lease right-of-use assets 328,972 325,977 Goodwill 882,502 881,334 Intangible assets, net 516,945 536,716 Deferred income taxes 26,588 24,568 Other assets 19,899 18,548 Total assets $ 3,845,082 $ 3,831,267 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 396,249 $ 431,494 Accrued compensation and employee benefits 87,461 126,442 Other accrued expenses and current liabilities 133,347 127,396 Current portion of long-term debt 57,740 57,901 Current portion of operating lease liabilities 53,717 54,325 Total current liabilities 728,514 797,558 Non-current liabilities: Long-term debt, less current portion 1,255,900 1,206,445 Long-term operating lease liabilities 288,464 279,373 Deferred income taxes, net 76,035 76,483 Other liabilities 44,347 51,228 Total liabilities 2,393,260 2,411,087 Commitments and contingencies Stockholders' equity: Common stock, par value $0.01 per share, 500,000 shares authorized; 38,068 and 38,164 shares issued and outstanding as of July 31, 2025 and April 30, 2025, respectively 381 381 Preferred stock, par value $0.01 per share, 50,000 shares authorized; 0 shares issued and outstanding as of July 31, 2025 and April 30, 2025 — — Additional paid-in capital 184,712 189,216 Retained earnings 1,316,076 1,272,516 Accumulated other comprehensive loss (49,347 ) (41,933 ) Total stockholders' equity 1,451,822 1,420,180 Total liabilities and stockholders' equity $ 3,845,082 $ 3,831,267 GMS Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Three Months Ended July 31, ​ 2025 2024 Cash flows from operating activities: ​ Net income $ 43,560 $ 57,248 Adjustments to reconcile net income to net cash used in operating activities: ​ ​ Depreciation and amortization 40,919 38,032 Write-off and amortization of debt discount and debt issuance costs 649 448 Equity-based compensation 4,697 4,343 Loss on disposal of assets, net 4 858 Deferred income taxes (2,650 ) (1,681 ) Other items, net 1,631 2,288 Changes in assets and liabilities net of effects of acquisitions: ​ ​ Trade accounts and notes receivable (43,108 ) (36,373 ) Inventories 3,089 (20,640 ) Prepaid expenses and other assets 2,694 (3,320 ) Accounts payable (35,320 ) (10,644 ) Accrued compensation and employee benefits (39,005 ) (66,124 ) Other accrued expenses and liabilities (8,104 ) 12,626 Cash used in operating activities (30,944 ) (22,939 ) Cash flows from investing activities: Purchases of property and equipment (8,446 ) (8,976 ) Proceeds from sale of business and sale of assets 1,267 1,218 Acquisition of businesses, net of cash acquired (1,444 ) (118,461 ) Cash used in investing activities (8,623 ) (126,219 ) Cash flows from financing activities: Repayments on revolving credit facility (462,165 ) (378,641 ) Borrowings from revolving credit facility 508,253 468,864 Payments of principal on long-term debt (1,247 ) (1,247 ) Payments of principal on finance lease obligations (12,686 ) (10,839 ) Repurchases of common stock (12,852 ) (46,609 ) Proceeds from exercises of stock options 809 555 Proceeds from issuance of stock pursuant to employee stock purchase plan 3,795 3,207 Cash provided by financing activities 23,907 35,290 Effect of exchange rates on cash and cash equivalents (8 ) 892 Decrease in cash and cash equivalents (15,668 ) (112,976 ) Cash and cash equivalents, beginning of period 55,599 166,148 Cash and cash equivalents, end of period $ 39,931 $ 53,172 Supplemental cash flow disclosures: Cash paid for income taxes $ 6,448 $ 2,881 Cash paid for interest 23,646 26,730 GMS Inc. Net Sales by Product Group (Unaudited) (dollars in thousands) ​ Three Months Ended ​ July 31, 2025 % of Total July 31, 2024 % of Total ​ Wallboard $ 556,393 39.3 % $ 587,929 40.6 % Ceilings 220,929 15.6 % 207,156 14.3 % Steel framing 196,553 13.9 % 209,858 14.5 % Complementary products 440,457 31.1 % 443,513 30.6 % Total net sales $ 1,414,332 $ 1,448,456 GMS Inc. Net Sales and Organic Sales by Product Group (Unaudited) (dollars in millions) ​ Net Sales Organic Sales ​ Three Months Ended July 31, Three Months Ended July 31, ​ 2025 2024 Change 2025 2024 Change Wallboard $ 556.4 $ 587.9 (5.4 )% $ 547.7 $ 587.9 (6.8 )% Ceilings 220.9 207.2 6.6 % 219.7 207.2 6.1 % Steel framing 196.5 209.9 (6.3 )% 192.6 209.9 (8.2 )% Complementary products 440.5 443.5 (0.7 )% 417.6 443.5 (5.8 )% Total net sales $ 1,414.3 $ 1,448.5 (2.4 )% $ 1,377.6 $ 1,448.5 (4.9 )% GMS Inc. Per Day Net Sales and Per Day Organic Sales by Product Group (Unaudited) (dollars in millions) ​ Per Day Net Sales Per Day Organic Sales ​ Three Months Ended July 31, Three Months Ended July 31, ​ 2025 2024 Change 2025 2024 Change Wallboard $ 8.7 $ 9.2 (5.4 )% $ 8.6 $ 9.2 (6.8 )% Ceilings 3.5 3.2 6.6 % 3.4 3.2 6.1 % Steel framing 3.1 3.3 (6.3 )% 3.0 3.3 (8.2 )% Complementary products 6.9 6.9 (0.7 )% 6.5 6.9 (5.8 )% Total net sales $ 22.2 $ 22.6 (2.4 )% $ 21.5 $ 22.6 (4.9 )% ​ Per Day Growth(a) Per Day Organic Growth(a) Three Months Ended July 31, 2025 Three Months Ended July 31, 2025 ​ Volume Price/Mix/Fx Volume Price/Mix/Fx Wallboard (5.7 )% 0.3 % (7.0 )% 0.2 % Ceilings (4.2 )% 10.8 % (5.0 )% 11.1 % Steel framing (5.4 )% (0.9 )% (8.8 )% 0.6 % ________________________________________ (a) Given the wide breadth of offerings and units of measure in Complementary Products, detailed price vs volume reporting is not available at a consolidated level.