GMS Inc. is a North American distributor of building materials, focusing on wallboard, ceilings, steel framing, and related products, serving residential and commercial contractors through an extensive network of distribution centers.

# GMS Inc. Company Summary

### Business Overview
- **Operations**: GMS Inc. is a distributor of building materials, primarily focusing on wallboard, ceilings, steel framing, and other complementary construction products.
- **Distribution Network**:
  - Over **320 distribution centers** across the United States and Canada.
  - Nearly **100 tool sales, rental, and service centers**.
  - One tool assembly facility located in Suwanee, Georgia.
- **Product Offerings**: 
  - Wallboard (used for interior/exterior walls and ceilings)
  - Ceilings (suspended mineral fiber, soft fiber, metallic systems)
  - Steel framing (tracks, studs, other steel components)
  - Complementary products including tools, fasteners, insulation, EIFS (Exterior Insulation and Finishing Systems), siding, lumber, joint compounds, safety equipment, and exterior cladding.

### Customer Base
- Serves **residential and commercial contractors**.
- Customer size varies from **small contractors** to **large, multi-regional builders**.
- Provides critical services such as **delivery logistics**, technical installation support, and trade credit.
- **Diversified customer base** with no single customer accounting for more than **10% of net sales**.

### Employees
- Around **7,113 active employees** as of April 30, 2025.
- Approximately **8% of the workforce is unionized**, mainly in distribution facilities.

### Revenue & Profit
- **Fiscal 2025 Revenue**: **$5.513 billion**.
  - Slight increase of **0.2%** from prior year.
- **Net Income (Fiscal 2025)**: **$115.5 million**.
  - Down **58.2%** from the previous year, primarily due to a **$42.5 million impairment of goodwill** related to the Ames reporting unit.
- **Gross Profit**: **$1.722 billion**, with a gross margin of **31.2%**.
- **Adjusted EBITDA** for 2025: **$500.9 million**, which is **18.6% lower** than the previous year, representing a margin of **9.1%**.

### Growth & Strategy
- Focused on **expanding core product lines** (wallboard, ceilings, steel framing) both organically and through acquisitions.
- Intends to **grow complementary product segments** such as tools, insulation, EIFS, and exterior cladding.
- Pursues **geographic expansion** via **greenfield openings** and **strategic acquisitions**.
- Implemented **cost reduction programs** resulting in anticipated **$55 million annual savings**.
- Made **multiple acquisitions** in fiscal 2025, including Howard & Sons (California), Yvon (Canada), and R.S. Elliott (Florida).
- Continues to **expand into new markets** and **optimize logistics and procurement**.

### Additional Details
- **Stock Market**: Traded on NYSE under the symbol **GMS**.
- **Market Capitalization** (as of October 31, 2024): **$3.471 billion**.
- **Outstanding Shares** (as of May 31, 2025): **38,059,080 shares**.
- **Dividend Policy**: No dividends paid during fiscal 2023-2025; plans to reinvest earnings for growth, debt repayment, and share repurchases.
- **Recent Fiscal Year Performance**:
  - Slight growth in sales but significant decrease in net income largely due to impairments and cost pressures.
  - Focus on integration of recent acquisitions and cost efficiencies.
- **Market Drivers**:
  - Commercial construction, institutional projects, and residential new construction and R&R.
  - Market affected by economic conditions, interest rates, construction cycles, and supply chain factors.

GMS Inc. is a leading North American distributor of specialty building products for the commercial and residential construction markets, operating over 400 locations across the U.S. and Canada.

# GMS Inc. Overview

## Company Description
GMS Inc. is a leading North American distributor of specialty building products, primarily operating in the commercial and residential construction markets. Founded in 1971, the company has grown exponentially, currently operating over **400 locations** across **47 U.S. states** and **six Canadian provinces**. GMS distributes a broad range of products, including:

- **Wallboard**
- **Ceilings**
- **Steel framing**
- **Complementary construction products** such as tools and fasteners, insulation, EIFS, and stucco.

The company's business model combines a national distribution strategy with a local focus, enabling it to deliver high levels of customer service while benefiting from economies of scale.

## Key Metrics
- **Employees**: As of April 30, 2024, GMS employed **7,624 active team members**.
- **Revenue**: For the fiscal year ended April 30, 2024, GMS generated **$5.50 billion** in net sales.
- **Net Income**: The company's net income for the same period was **$276.1 million**, a **17.1% decrease** from the previous year, primarily impacted by challenges in the steel pricing environment and increased operational costs associated with the shift towards commercial and multi-family construction markets.

## Customer Base
GMS serves a diverse customer portfolio, including:
- **Professional contractors** and **homebuilders**, ranging from small local businesses to large, national contractors.
- Their ten largest customers collectively accounted for **less than 10%** of GMS's total net sales in fiscal 2024, illustrating a broad customer base that mitigates dependency on a few key clients.

## Growth Strategy
- **Acquisitions**: GMS continues to pursue an aggressive growth strategy through strategic acquisitions, having completed **three acquisitions** in fiscal 2024 alone.
- **Expansion**: The company aims to expand both its geographic footprint and product offerings, opening **five new distribution centers** and three new tool sales, rental, and service centers in fiscal 2024.

## Financial Overview
- **Market Capitalization**: Based on the closing price of the common stock, GMS's market value was approximately **$2.33 billion** as of October 31, 2023.
- **Stock Performance**: The company has shown strong stock performance, with a comparative growth in cumulative total return against major indices over the years.

GMS Inc.'s robust operational strategy, diversified product offerings, and commitment to customer service continue to position it favorably within the construction industry.

GMS Inc.

10-K / June 18, 2025

10-K / June 20, 2024

10-K / June 18, 2025

GMS Inc. Company Summary

Business Overview

Customer Base

Employees

Revenue & Profit

Growth & Strategy

Additional Details