Executive Summary
GMS Inc reported a solid finish to fiscal 2024 with Q4 net sales of approximately $1.413 billion, net income of $56.4 million and adjusted EBITDA of $146.6 million. Full-year 2024 results reflected a record level of activity across the company’s major product categories, supported by resilient pricing in wallboard and ongoing demand in multifamily and commercial construction, offsetting a softer single-family backdrop. Management highlighted that the year supported by balanced end markets produced $5.5 billion of net sales and $5.3 billion of organic sales, underscoring the breadth of GMS’s platform across wallboard, ceilings, steel framing and complementary products. The company generated robust cash flow, with $204.2 million from operating activities in Q4 and $433.2 million for the full year, yielding free cash flow of $376 million for FY2024 (61.1% of adjusted EBITDA).
Key Performance Indicators
QoQ: 15.65% | YoY:-10.61%
Key Insights
Revenue: Q4 revenue of $1.413B, up 8.4% YoY (6.7% on a per-day basis). Gross profit: $415.6M; gross margin 31.9%, down 60 bps YoY due to steel deflation; excluding Kamco purchase accounting, gross margin would have ~32.0%. SG&A: $315.5M (SG&A as % of net sales 22.3%, up 80 bps). Adjusted SG&A: 21.8% of net sales (up 90 bps). EBITDA: $146.6M; EBITDA margin 10.4% (vs 11.8% YoY). Net income: $56.4M; diluted EPS $1.39. Operating income: $101.8M; EBIT margin ~7.2%. ...
Financial Highlights
Revenue: Q4 revenue of $1.413B, up 8.4% YoY (6.7% on a per-day basis). Gross profit: $415.6M; gross margin 31.9%, down 60 bps YoY due to steel deflation; excluding Kamco purchase accounting, gross margin would have ~32.0%. SG&A: $315.5M (SG&A as % of net sales 22.3%, up 80 bps). Adjusted SG&A: 21.8% of net sales (up 90 bps). EBITDA: $146.6M; EBITDA margin 10.4% (vs 11.8% YoY). Net income: $56.4M; diluted EPS $1.39. Operating income: $101.8M; EBIT margin ~7.2%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.41B |
8.35% |
12.29% |
| Gross Profit |
415.60M |
-2.09% |
8.82% |
| Operating Income |
101.80M |
-10.61% |
15.65% |
| Net Income |
56.39M |
-25.41% |
8.64% |
| EPS |
1.42 |
-22.40% |
9.23% |
Key Financial Ratios
operatingProfitMargin
7.2%
operatingCashFlowPerShare
$5.13
freeCashFlowPerShare
$4.69
Management Commentary
Key management insights from the QQ4 2024 earnings call include: (1) Strategy and M&A momentum: 'M&A has been and continues to be a key strategic driver of our growth' and 'we expanded our share of U.S. wallboard sales by close to 80 basis points' with steel share up about 130 bps; (2) End-market commentary and pricing: 'wallboard pricing is expected to remain roughly flat year-over-year for us for the next several quarters' and management anticipates some price realization beginning in July as the lag to announced price increases unfolds; (3) Operational initiatives: progress on the Yard of the Future, digitization (70% of customers created online accounts; payments via integrated portal approaching 20% monthly); and entity/data consolidations targeted by calendar 2025; (4) Near-term outlook and guidance: Q1 FY2025 net sales expected to grow mid-single digits with Q1 gross margins around 31.5% and Adjusted EBITDA of $160–$165 million; SG&A leverage anticipated in Q2 as steel pricing dynamics moderate.
“Volume growth across all four of our major product categories for the year, as well as resilient pricing in wallboard and continued inflation in ceilings and complementary products, helped drive a record $5.5 billion in net sales and $5.3 billion in organic sales for the full year fiscal 2024. … we closed out fiscal 2024 with another solid level of performance, including generating net sales of $1.4 billion, net income of $56.4 million, and adjusted EBITDA of $146.6 million.”
— John Turner
“Wallboard pricing is expected to remain roughly flat year-over-year for us for the next several quarters.”
— John Turner
Forward Guidance
Management guided for FY2025 with continued mixed end-market dynamics. Wallboard volumes are expected to grow, led by single-family in the near term (mid-single-digit growth in Q1 and high-single-digit growth over the balance of the year, driven by single-family), while multifamily is projected to flat to up slightly in Q1 and then soften in the back half. Commercial wallboard volumes are seen up in the low-single digits in Q1 before flattening and potentially declining later in the year. Net sales are expected to be up mid-single digits in Q1, with similar growth in Q2 and through the year, but tempered by steel pricing deflation relative to delivery activity. Gross margins are expected to be ~31.5% in Q1 before returning to around 32% for the remainder of FY2025. SG&A is anticipated to delever in Q1 due to steel price dynamics but should improve in Q2 as volumes shift toward residential wallboard. Adjusted EBITDA in Q1 is guided to $160–$165 million, with EBITDA margins expected to be broadly flat year-over-year in Q2 and to improve meaningfully later in the year as volume and price realization benefits accrue. Key risk factors include ongoing steel pricing volatility, the pace of wallboard price realization, mortgage rate trajectories impacting single-family demand, and the cadence of integration benefits from acquisitions (Kamco, AMW, Yvon). Investors should monitor: wallboard price realization timing (through July and beyond), the trajectory of steel pricing and supplier pricing actions, macro housing starts (especially single-family), and the progress and profitability of Canadian expansion (Yvon closing).