GMS (GMS) Q4 2024 earnings summary

Executive summary

• Achieved record full-year net sales of $5.5 billion, up 3.2% year-over-year, driven by volume growth across all major product categories and resilient wallboard pricing despite steel price deflation.

• Fourth quarter net sales reached $1.41 billion, up 8.4% year-over-year, with organic sales up 4.0%.

• Net income for Q4 was $56.4 million, down 25.4% year-over-year, with a net income margin of 4.0%.

• Adjusted EBITDA for Q4 was $146.6 million, margin 10.4%, and strong cash flow from operations at $204.2 million.

• Growth supported by volume increases, resilient pricing, and contributions from acquisitions.

Financial highlights

• Full-year net income was $276.1 million, down 17.1%; diluted EPS $6.75, down from $7.82.

• Adjusted EBITDA for the year was $615.5 million, margin 11.2%; Q4 adjusted EBITDA $146.6 million, margin 10.4%.

• Gross profit for Q4 was $451.2 million, up 6.3% year-over-year; gross margin declined to 31.9% due to steel price deflation.

• Free cash flow for the year was $376.0 million; Q4 free cash flow was $186.7 million.

• Repurchased 1.7 million shares for $115.6 million in FY24; $16 million in Q4, with $200.5 million remaining authorization.

Outlook and guidance

• Q1 FY25 net sales expected to grow mid-single digits year-over-year; gross margin projected at ~31.5%.

• Q1 FY25 net income guidance: $77–$79 million; adjusted EBITDA: $160–$165 million.

• Full-year FY25 interest expense expected at $72–$74 million; capex $50–$55 million; free cash flow 55–60% of adjusted EBITDA.

• Wallboard and ceilings volumes expected up low-to-mid single digits and low-to-mid teens, respectively; steel framing and complementary products up low-to-mid single digits.

• Anticipates improvement in single-family end market, offsetting expected declines in multi-family and commercial demand.