GMS(GMS) - 2026 Q1 - Quarterly Report

FORM 10-Q Filing Information Registrant Details GMS Inc. filed its Form 10-Q for Q1 2025, incorporated in Delaware, with common stock traded on the NYSE - GMS Inc. is a large accelerated filer, indicating it meets specific market capitalization and reporting requirements[4] Title of each class | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | :------------------ | :---------------- | :---------------------------------------- | | Common Stock, par value $0.01 per share | GMS | New York Stock Exchange | - The registrant had 38.2 million shares of common stock outstanding as of August 25, 2025[4] Cautionary Note Regarding Forward-Looking Statements Nature of Forward-Looking Statements Forward-looking statements are based on current expectations and projections, subject to risks and uncertainties - Forward-looking statements are identified by terms such as 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'might,' 'plan,' 'potential,' 'predict,' 'seek,' or 'should,' or their negatives[10] - Statements about future financial performance, growth, economic conditions, markets, and the construction industries are considered forward-looking[10] Key Risk Factors Key risk factors include the pending merger, economic conditions, cyclical markets, competition, supply chain, and cybersecurity risks - Potential impact of the proposed merger on relationships with suppliers, customers, and employees, and the inability to pursue alternative business opportunities[11][12] - Uncertainties regarding the timing and completion of the merger, including potential termination fees[11][12] - General business, financial market, and economic conditions, such as inflation, interest rates, geopolitical conflicts, and economic downturns[11][12] - Dependency on cyclical commercial and residential construction markets, including R&R, and impacts from declines or delays in activity[11][12] - Competition, industry consolidation, and general labor shortages[11][12] - Fluctuations in product prices and mix, and the ability to manage price increases, inventories, and margins[11][12] - Ability to successfully implement growth strategy, including acquisitions and new branch openings[11][12] - Product shortages, supply chain disruptions, and potential loss of key supplier relationships[11][12] - Ability to manage operating costs and achieve benefits from cost reduction initiatives[11][12] - Potential loss of significant customers or reduction in purchase volumes[11][12] - Ability to identify and maintain attractive locations and renew leases on favorable terms[11][12] - Significant fluctuations in fuel costs or supply shortages[11][12] - Natural or man-made disruptions to facilities or equipment[11][12] - Risks of Canadian operations, including currency rate fluctuations[11][12] - Exposure to product liability, various claims, and litigation[11][12] - Impact of political, legal, and regulatory environments, including tariffs[11][12] - Restrictions in debt agreements limiting certain activities[11][12] - Current level of indebtedness and ability to incur additional debt[11][12] - Ability to attract and retain key employees[11][12] - Cybersecurity breaches and IT system disruptions[11][12] - Imposition of new tariffs and other trade barriers[11][12] PART I – Financial Information Item 1. Financial Statements This section presents GMS Inc.'s unaudited condensed consolidated financial statements, including Balance Sheets, Statements of Operations, Stockholders' Equity, and Cash Flows Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Balance Sheets (in thousands) | Metric | July 31, 2025 | April 30, 2025 | | :----------------------------------- | :------------ | :------------- | | Cash and cash equivalents | $39,931 | $55,599 | | Total current assets | $1,539,129 | $1,520,116 | | Total assets | $3,845,082 | $3,831,267 | | Total current liabilities | $728,514 | $797,558 | | Total liabilities | $2,393,260 | $2,411,087 | | Total stockholders' equity | $1,451,822 | $1,420,180 | - Total assets increased by $13.8 million (0.36%) from April 30, 2025, to July 31, 2025[17] - Total liabilities decreased by $17.8 million (0.74%) over the same period[17] - Total stockholders' equity increased by $31.6 million (2.22%) from April 30, 2025, to July 31, 2025[17] Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) Condensed Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data) | Metric | Three Months Ended July 31, 2025 | Three Months Ended July 31, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net sales | $1,414,332 | $1,448,456 | | Gross profit | $436,525 | $451,563 | | Operating income | $81,227 | $98,379 | | Net income | $43,560 | $57,248 | | Basic net income per common share | $1.14 | $1.45 | | Diluted net income per common share | $1.13 | $1.42 | | Comprehensive income | $36,146 | $48,951 | - Net sales decreased by $34.1 million (2.4%) YoY[18] - Gross profit decreased by $15.0 million (3.3%) YoY[18] - Operating income decreased by $17.1 million (17.4%) YoY[18] - Net income decreased by $13.7 million (23.9%) YoY[18] - Diluted EPS decreased from $1.42 to $1.13 (20.4%) YoY[18] Condensed Consolidated Statements of Stockholders' Equity (Unaudited) Changes in Stockholders' Equity (in thousands) | Metric | As of April 30, 2025 | As of July 31, 2025 | | :----------------------------------- | :------------------- | :------------------ | | Total Stockholders' Equity | $1,420,180 | $1,451,822 | | Net income | — | $43,560 | | Other comprehensive loss, net of tax | — | $(7,414) | | Repurchase and retirement of common stock | — | $(12,852) | | Equity-based compensation | — | $3,744 | | Exercise of stock options | — | $809 | | Issuance of common stock (ESPP) | — | $3,795 | - Total stockholders' equity increased by $31.6 million from April 30, 2025, to July 31, 2025[21] - The increase was primarily driven by net income ($43.6 million) and equity-based compensation/ESPP ($7.5 million), partially offset by share repurchases ($12.9 million) and other comprehensive loss ($7.4 million)[21] [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=10&type=section&id=Condensed%20Consolidated%20Statements%2