Gms Inc · Q1 2023 earnings

Briefing

Achieved record levels of net sales, net income and Adjusted EBITDA.

GMS Inc. reported a strong first quarter for fiscal year 2023, achieving record levels of net sales, net income, and Adjusted EBITDA. Net sales increased by 30.5% to $1.36 billion, driven by inflationary pricing, active residential construction, volume growth in Wallboard, Ceilings, and Complementary Products, an improving commercial landscape, and the acquisition of AMES Taping Tools. Net income increased by 46.2% to $89.5 million, or $2.07 per diluted share, and Adjusted EBITDA increased by 36.6% to $175.0 million.

• Record levels of quarterly net sales, net income and Adjusted EBITDA were achieved.
• Volumes were up in Wallboard, Ceilings and Complementary Products.
• Commercial Wallboard volumes saw their first quarterly year-over-year increase since before the pandemic.
• Inflationary pricing environment, strong residential construction activity and an improving commercial landscape drove performance.

Headline financials

Revenue & EPS history

While builders are reporting an affordability-driven moderation in single-family housing demand, construction activity in this sector remained robust during the first quarter and into our second quarter as the industry works through a sizable backlog of homes started but not yet completed. While single family homebuilding will likely soften, the degree, timing and duration is yet to be determined. However, commercial construction is improving and multi-family construction remains strong. We are confident we are well-positioned to adjust as needed to meet demand in all three end markets.