GMS(GMS) - 2025 Q4 - Annual Results

Financial Performance - Net sales for Q4 fiscal 2025 were $1,333.8 million, a decrease of 5.6% year-over-year, with organic net sales down 9.7%[4] - Net income for Q4 fiscal 2025 was $26.1 million, a decline of 53.7% from $56.4 million, resulting in a net income margin of 2.0% compared to 4.0%[4] - Adjusted EBITDA for Q4 fiscal 2025 was $109.8 million, down 25.1% from $146.6 million, with an adjusted EBITDA margin of 8.2%[4] - For the full year fiscal 2025, net sales were $5,513.7 million, a slight increase of 0.2%, while organic net sales decreased by 5.8%[6] - Net income for the year ended April 30, 2025, was $115,469 thousand, a significant decrease of 58.2% from $276,079 thousand in 2024[30] - Total net sales for the year ended April 30, 2025, were $5,513.7 million, a marginal increase of 0.2% compared to $5,501.9 million in 2024[34] - Adjusted EBITDA for the last twelve months ended April 30, 2025, was $500,922,000, down 18.5% from $615,454,000 in 2024[53] Cash Flow and Debt - The company generated free cash flow of $183.4 million in Q4 fiscal 2025, compared to $186.7 million in Q4 fiscal 2024[14] - Cash provided by operating activities for the year ended April 30, 2025, was $383,574 thousand, a decrease of 11.5% from $433,249 thousand in 2024[30] - The company reported a total of $1,206,445 thousand in long-term debt as of April 30, 2025, down from $1,229,726 thousand in 2024, reflecting a decrease of 1.9%[28] - Total debt as of April 30, 2025, was $1,264,346,000, slightly decreased from $1,280,575,000 in 2024[53] - As of April 30, 2025, net debt leverage was 2.4 times Pro Forma Adjusted EBITDA, up from 1.7 times a year ago[13] - The net debt to pro forma adjusted EBITDA ratio increased to 2.4x from 1.7x in the previous year[53] Shareholder Actions - GMS repurchased 348,599 shares for $26.4 million at an average cost of $75.60 per share during Q4 fiscal 2025[4] - The company repurchased common stock totaling $165,502 thousand during the year ended April 30, 2025[30] Strategic Initiatives - The company implemented an estimated $25 million in annualized cost reductions in Q4 fiscal 2025, totaling $55 million for the full year[4][6] - GMS completed three strategic acquisitions and opened four greenfield locations during fiscal 2025, enhancing its market presence[6] Market Trends and Outlook - The company expressed cautious optimism for fiscal 2026, anticipating pent-up demand as macroeconomic conditions improve[5] Sales Performance by Segment - Wallboard sales accounted for 39.5% of total net sales in the three months ended April 30, 2025, compared to 41.5% in the same period of 2024[32] - Organic sales for Wallboard decreased by 12.5% to $512.8 million in Q2 2025, while Ceilings increased by 2.9% to $194.3 million[34] - The company reported a 14.1% increase in Ceilings sales for the year ended April 30, 2025, reaching $793.3 million[34] - Steel framing sales decreased by 10.8% to $796.2 million for the year ended April 30, 2025[34] - The company experienced a 4.6% increase in sales of Complementary products for the year ended April 30, 2025, totaling $1,725.9 million[34] Other Financial Metrics - Gross profit for the year ended April 30, 2025, was $1,722,024 thousand, down from $1,775,101 thousand in 2024, reflecting a decrease of 3.0%[26] - Operating income for the three months ended April 30, 2025, was $59,575 thousand, a decline of 40.5% compared to $100,077 thousand in the same period of 2024[26] - The company’s interest expense for the three months ended April 30, 2025, was $20.1 million, compared to $19.0 million in the same period of 2024[39] - The effective tax rate for the period was 26.0%, consistent with the previous year[49] - Adjusted net income per diluted share for the year ended April 30, 2025, was $6.18, down from $8.61 in 2024, reflecting a 28.2% decline[49] - Cash and cash equivalents decreased significantly to $55,599,000 from $166,148,000 in the previous year[53] - The company reported an impairment of goodwill amounting to $42,454,000 for the last twelve months[53] - Contributions from acquisitions for the last twelve months were $6,983,000, down from $24,213,000 in 2024[53] - The company made EBITDA adjustments totaling $74,318,000 for the last twelve months, compared to $32,144,000 in 2024[53]