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GMS Reports Q1 Earnings and Sales Decline
ByAinvest
Thursday, Aug 28, 2025 6:35 am ET1min read
GMS Inc., a specialty building products distributor, reported a decline in adjusted earnings and sales for Q1. The company operates a network of over 300 distribution centers across the US and Canada, offering wallboard, ceilings, steel framing, and complementary construction products. Despite the decline, GMS remains a leading provider of automatic taping and finishing tools and related products to the drywall finishing industry.
GMS Inc. (NYSE:GMS), a leading specialty building products distributor, released its first-quarter fiscal 2026 results on Thursday, July 1, 2025. The company reported adjusted earnings per share of $1.76, surpassing the anticipated $1.72, but saw a modest decline in revenue. Shares of GMS fell slightly by 0.06% following the earnings release.The company's revenue reached $1.41 billion, slightly above the consensus of $1.4 billion, but down 2.4% from $1.45 billion in the same quarter a year ago. The revenue decrease was primarily driven by a 5.4% year-over-year drop in wallboard sales to $556.4 million and a 6.3% decline in steel framing sales to $196.6 million. Ceiling products, however, climbed 6.6% year-over-year to $220.9 million.
Adjusted EBITDA totaled $135.5 million, with a margin of 9.6%, compared to 10.1% in Q1 2025. On a per-day basis, organic sales fell 4.9%, reflecting persistent challenges in the construction materials sector. GMS closed the quarter with $39.9 million in cash and $1.31 billion in total debt, resulting in a net debt to Pro Forma Adjusted EBITDA ratio of 2.6x, up from 2.1x in the prior-year period.
GMS Inc. operates a network of over 300 distribution centers across the US and Canada, offering a range of products including wallboard, ceilings, steel framing, and complementary construction products. The company remains a leading provider of automatic taping and finishing tools and related products to the drywall finishing industry.
[1] https://investorshub.advfn.com/market-news/article/15386/gms-reports-q1-results-in-line-with-forecasts-amid-slight-revenue-drop
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