Q2 2025 GMS Inc Earnings Call Transcript
Key Points
- GMS Inc (GMS) reported a 3.5% year-over-year increase in net sales to $1.47 billion, driven by recent acquisitions and volume growth in Ceilings, Steel Framing, and Complementary Products.
- The company expanded its platform with the opening of new locations and the acquisition of R.S. Elliott in Florida, enhancing service levels in existing markets.
- GMS Inc (GMS) achieved approximately half of the $30 million annualized cost savings from its cost reduction initiatives in the second quarter.
- Complementary Products sales grew 9% year-over-year, marking the 18th consecutive quarter of growth for this category.
- The company maintained a strong balance sheet with $83.9 million in cash and $458.6 million of available liquidity under revolving credit facilities.
- Net income for the quarter decreased by 33.9% to $53.5 million compared to the previous year.
- Organic sales declined by 4.6% due to hurricanes and softening demand, particularly in multifamily and commercial markets.
- Gross margin decreased by 90 basis points year-over-year to 31.4%, impacted by cost-price dynamics and a mix shift from commercial to single-family deliveries.
- Adjusted EBITDA decreased by 9.2% year-over-year to $152.2 million, with an EBITDA margin of 10.3% compared to 11.8% a year ago.
- The company experienced operational inefficiencies and lost purchasing leverage due to the impact of two major hurricanes, negatively affecting sales and EBITDA.
Greetings. Welcome to GMS Inc. Second Quarter 2025 Earnings Conference Call. (Operator Instructions) As a reminder, this call is being recorded. It is now my pleasure to introduce Carey Phelps, Vice President of Investor Relations. Thank you. You may begin.
Thank you, Sherry. Good morning, and thank you for joining us for the GMS earnings conference call for the second quarter of fiscal 2025. I'm joined today by John Turner, President, and Chief Executive Officer; and Scott Deakin, Senior Vice President, and Chief Financial Officer. In addition to the press release we issued this morning, you can find a set of PowerPoint slides to accompany this call in the Investors section of our website at www.gms.com.
On slide 2, on today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are
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