GMS Inc. Q1 2025 Earnings: Sales Down 2.6%, Net Income Falls to $43.56M.

GMS Inc. reported Q1 FY25 sales of $1.414bln, down from $1.448bln YoY, and net income of $43.56mln, down from $57.25mln YoY. Basic EPS from continuing operations was $1.14, down from $1.45 YoY, and diluted EPS was $1.13, down from $1.42 YoY.

Title: GMS Inc. Reports Mixed Q1 FY25 Financial Results

GMS Inc. (NYSE: GMS), a leading North American specialty building products distributor, reported its first-quarter (Q1) fiscal 2025 financial results. The company reported net sales of $1.414 billion, a decrease of 2.4% year-over-year (YoY) from $1.448 billion in Q1 FY24. Net income for the quarter was $43.56 million, down from $57.25 million in the same period last year. Basic earnings per share (EPS) from continuing operations fell to $1.14 from $1.45 YoY, while diluted EPS decreased to $1.13 from $1.42 YoY [1].

The company's operating income for Q1 FY25 was $81.23 million, down from $98.38 million in Q1 FY24. Operating expenses, including selling, general, and administrative costs, totaled $355.29 million, a slight increase from $353.18 million in the prior year. Adjusted EBITDA for the quarter was $135.49 million, a decrease of 12.5% YoY from $145.88 million in Q1 FY24. The adjusted EBITDA margin declined to 9.6% from 10.1% in the prior year [1].

GMS Inc. reported a cash flow from operating activities of $43.56 million, down from $57.24 million in Q1 FY24. Free cash flow, calculated as net cash provided by operations less capital expenditures, was $39.39 million, a decrease of $8.52 million from the prior year. The company's total assets stood at $3.845 billion as of July 31, 2025, a slight increase from $3.831 billion at the end of April 2025. Liabilities and stockholders' equity totaled $3.845 billion, unchanged from the prior year [1].

The company's net sales by product group showed mixed results. Wallboard sales decreased by 5.4% YoY to $556.4 million, while ceilings sales increased by 6.6% YoY to $220.9 million. Steel framing sales decreased by 6.3% YoY to $196.5 million, and complementary products sales decreased by 0.7% YoY to $440.5 million. The company's adjusted EBITDA margin for the quarter was 9.6%, down from 10.1% in the prior year [1].

GMS Inc. reported a net income per share of $1.14 for basic EPS and $1.13 for diluted EPS, down from $1.45 and $1.42, respectively, in the same period last year. The company's stock appreciation expense, redeemable noncontrolling interests, and equity-based compensation expense contributed to the decline in net income and adjusted EBITDA [1].

In conclusion, GMS Inc. reported mixed financial results for Q1 FY25, with net sales and net income both decreasing from the prior year. The company's adjusted EBITDA margin declined, and free cash flow decreased. However, the company's cash and cash equivalents position remained strong, with $39.93 billion as of July 31, 2025. Investors will be watching the company's ability to maintain its financial performance and adapt to market conditions in the coming quarters [1].

References

[1] https://www.stocktitan.net/news/GMS/gms-reports-first-quarter-fiscal-2026-ourgwy1p0slv.html