The following is a summary of the GMS Inc. (GMS) Q2 2025 Earnings Call Transcript:

Financial Performance:

• GMS Inc. reported Q2 net sales of $1.47 billion, a 3.5% increase primarily from recent acquisitions.

• Net income for the quarter was $53.5 million, down from $81 million a year ago.

• -Adjusted EBITDA was $152.2 million, compared to $167.6 million in the prior-year quarter, with a margin of 10.3%.

• -Gross margin for Q2 was 31.4%, a decline of 90 basis points from the previous year.

Business Progress:

• -GMS has expanded through acquisitions, notably the purchase of R.S. Elliott, specializing in exterior products, adding to its U.S. market presence.

• -Continued focus on growing Complementary Products, which have seen an 18th consecutive quarter of growth.

• -Implemented cost savings initiatives expected to yield approximately $30 million in annualized savings.

Opportunities:

• -GMS sees opportunities in single-family and multifamily markets, bolstered by demographic trends and government incentives.

• -Expansion in data centers and other government-backed projects offers potential revenue streams in the commercial sector.

Risks:

• -The multifamily and commercial markets are challenged by high interest rates and subdued lending, impacting volumes.

• -Hurricanes Helene and Milton had a negative impact estimated at about $20 million in net sales.

• -Steel price fluctuations and economic conditions continue to pressure the business environment.

More details: GMS Inc IR

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