GMS Inc. (NYSE:GMS) released its first-quarter fiscal 2026 results on Thursday, showing performance consistent with analyst expectations despite a modest decline in revenue.
Shares of the North American specialty building products distributor fell slightly by 0.06% following the earnings release.
The company posted adjusted earnings of $1.76 per share for the quarter ending July 31, 2025, surpassing the anticipated $1.72. Revenue reached $1.41 billion, slightly above the consensus of $1.4 billion, but down 2.4% from $1.45 billion in the same quarter a year ago.
The revenue decrease was largely driven by a 5.4% year-over-year drop in wallboard sales to $556.4 million and a 6.3% decline in steel framing sales to $196.6 million. Ceiling products were a standout, climbing 6.6% year-over-year to $220.9 million.
Adjusted EBITDA totaled $135.5 million, with a margin of 9.6%, compared to 10.1% in Q1 2025. On a per-day basis, organic sales fell 4.9%, reflecting persistent challenges in the construction materials sector.
GMS closed the quarter with $39.9 million in cash and $1.31 billion in total debt, resulting in a net debt to Pro Forma Adjusted EBITDA ratio of 2.6x, up from 2.1x in the prior-year period.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.