NEW YORK - GMS Inc . (NYSE:GMS) reported mixed second quarter results on Thursday, with earnings falling short of analyst expectations despite a slight revenue beat. The specialty building products distributor's shares edged down 0.76% in early trading following the release.
GMS posted adjusted earnings per share of $2.02 for its fiscal second quarter ended October 31, missing the consensus estimate of $2.19. However, revenue came in at $1.47 billion, slightly above the $1.46 billion analysts were expecting.
The company's top line grew 3.5% year-over-year, driven by contributions from recent acquisitions. However, organic net sales declined 4.6% as demand softened across multi-family and commercial end markets.
"Prices remained resilient across our major product lines, including for Steel Framing where, while lower year-over-year, pricing improved sequentially as compared with the first quarter of fiscal 2025 and monthly as we moved through the quarter," said 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 year ago.
The company noted that hurricane-related slowdowns significantly impacted one of its largest and fastest-growing regions during the quarter, causing operational inefficiencies and holding back demand, particularly in Wallboard.
Looking ahead, Turner said GMS expects near-term challenges to continue into the new calendar year, but remains focused on executing its strategic priorities including platform expansion and enhancing product offerings.
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