GMS Inc.(NYSE: GMS) Reports Fourth Quarter and Fiscal Year 2025 Results

## (NYSE: GMS) (Q4 & Full Year 2025)

GMS Inc., a leading North American specialty building products distributor, released its financial results for the fourth quarter and fiscal year 2025 that ended on April 30, 2025.

### Fourth Quarter Fiscal 2025 Highlights:
– **Net Sales**:
– Net sales were $1,333.8 million, a **decrease of 5.6%**, with organic net sales decreasing by **9.7%** compared to the same period in fiscal 2024.
– **Net Income**:
– Net income was $26.1 million, marking a **decline of 53.7%** from $56.4 million in the fourth quarter of fiscal 2024.
– **Adjusted EBITDA**:
– Adjusted EBITDA was $109.8 million, a decrease from $146.6 million in the same quarter a year ago, resulting in an **8.2% margin**.
– **Cash Flow**:
– Cash provided by operating activities was $196.8 million, a slight decrease from $204.2 million in the fourth quarter of fiscal 2024.
– **Debt and Share Repurchases**:
– Net debt leverage was **2.4 times Pro Forma Adjusted EBITDA**, up from 1.7 times a year ago.
– **Cost Reductions**:
– The company implemented an additional estimated **$25 million in annualized cost reductions** through technology and efficiency optimization.

### Full Year Fiscal 2025 Highlights:
– **Net Sales**:
– Net sales totaled $5,513.7 million, marking a slight increase of **0.2%**, with organic net sales decreasing by **5.8%** compared to the previous fiscal year.
– **Net Income**:
– Net income dropped by **58.2%** to $115.5 million, which also included a **$42.5 million non-cash goodwill impairment charge** during the Company’s third quarter of fiscal 2025.
– **Adjusted EBITDA**:
– Adjusted EBITDA decreased by **18.6%** to $500.9 million, with a margin of **9.1%** compared to 11.2% in fiscal 2024.
– **Cash Flow**:
– Cash provided by operating activities was $383.6 million, compared to $433.2 million in the previous fiscal year.
– **Share Repurchases and Acquisitions**:
– The company repurchased 1.9 million shares of common stock for $164.1 million during the fiscal year.
– **Cost Reductions and Expansion**:
– The Company implemented a total of **$55 million in estimated annualized cost reductions** and completed three strategic acquisitions and opened four greenfield yard locations during the year.

### Future Outlook:
– GMS remains cautiously optimistic about the upcoming fiscal year, anticipating an improvement in market demand as macro-environment conditions enhance.
– The company believes it is well-positioned to seize opportunities post-market recovery as a leaner and more efficient organization.

### Financial Measure Highlights:
– **Adjusted EBITDA**:
– Q4 2025: $109.8 million (8.2% margin) vs. $146.6 million in Q4 2024 (10.4% margin).
– Full Year 2025: $500.9 million (9.1% margin) vs. $615.5 million in 2024 (11.2% margin).
– **Net Income**:
– Q4 2025: Decreased by 53.7% to $26.1 million vs. $56.4 million in Q4 2024.
– Full Year 2025: Dropped by 58.2% to $115.5 million compared to $276.1 million in 2024.

For a more detailed breakdown of net sales, organic sales, expenses, and financial metrics, refer to the provided tables within the report.

For further analysis and details on GMS Inc.’s financial performance, the company will host a conference call and webcast on June 18, 2025, at 8:30 a.m. Eastern Time.

### Income Statement

**GMS Inc.**
**Condensed Consolidated Statements of Operations (Unaudited)**
**In Thousands**