Gms Inc · Q2 2025 earnings

Briefing

GMS reported financial results, showing resilience in wallboard pricing offset by softening end market demand and hurricane-related impacts.

GMS reported net sales of $1.5 billion, net income of $53.5 million, and Adjusted EBITDA of $152.2 million for the second quarter of fiscal 2025. The results reflect the team’s continued ability to effectively navigate a challenging and dynamic operating environment.

• Net sales increased by 3.5% to $1.5 billion, driven by recent acquisitions.
• Organic net sales declined by 4.6% due to softened demand and hurricane-related impacts.
• Gross profit increased to $461.1 million, but gross margin decreased to 31.4%.
• Adjusted EBITDA decreased by 9.2% to $152.2 million, with a margin of 10.3%.

Headline financials

Revenue & EPS history

Despite near-term challenges, which are expected to continue into the new calendar year, our resilient team and business model are expected to again deliver solid levels of free cash flow as we progress through choppy market conditions. We expect to continue to invest in our business such that when longer-term rates retreat or become the new normal, we are positioned well to capitalize on the likely subsequent improvement in construction activity.