GMS Inc. reports Q1 EPS $1.93, consensus $2.14

Reports Q1 revenue $1.4B, consensus $1.48B. “During our Q1 of FY25, the GMS team delivered net sales of $1.4B, , net income of $57.2M and Adjusted EBITDA of $145.9M amid what has quickly become a more challenging market environment,” said John Turner, Jr., CEO. “We realized volume growth and improved or resilient pricing in most of our major product lines. Nevertheless, steel price deflation partially offset these results, and economic tightening resulted in weaker than expected activity levels across all of our end markets for the quarter, notably in commercial and multi-family, particularly in July….We believe the market pressures we faced this quarter will likely persist over the next several quarters, at least until the expected reduction in interest rates can positively impact demand for our products. As such, we are taking decisive action at this time to implement a $25M annualized cost reduction program, made possible by prior investments in technology and efficiency optimization. In spite of near-term headwinds, we remain confident in our model, the resilience of pricing for our major product categories outside of Steel, and our ability to execute and capture the evident growth opportunities ahead, particularly with an improved interest rate environment…”