GMS shares dip as Q2 earnings miss outweighs income beat

NEW YORK – GMS Inc . (NYSE:GMS) reported blended second quarter outcomes on Thursday, with earnings falling in need of analyst expectations regardless of a slight income beat. The specialty constructing merchandise distributor’s shares edged down 0.76% in early buying and selling following the discharge.

GMS posted adjusted earnings per share of $2.02 for its fiscal second quarter ended October 31, lacking the consensus estimate of $2.19. Nevertheless, income got here in at $1.47 billion, barely above the $1.46 billion analysts have been anticipating.

The corporate’s high line grew 3.5% year-over-year, pushed by contributions from latest acquisitions. Nevertheless, natural internet gross sales declined 4.6% as demand softened throughout multi-family and business finish markets.

“Costs remained resilient throughout our main product strains, together with for Metal Framing the place, whereas decrease year-over-year, pricing improved sequentially as in contrast with the primary quarter of fiscal 2025 and month-to-month as we moved by the quarter,” mentioned John C. Turner, Jr., President and CEO of GMS.

Adjusted EBITDA fell 9.2% to $152.2 million, with the adjusted EBITDA margin contracting to 10.3% from 11.8% a yr in the past.

The corporate famous that hurricane-related slowdowns considerably impacted one in every of its largest and fastest-growing areas through the quarter, inflicting operational inefficiencies and holding again demand, significantly in Wallboard.

Trying forward, Turner mentioned GMS expects near-term challenges to proceed into the brand new calendar yr, however stays centered on executing its strategic priorities together with platform enlargement and enhancing product choices.

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