Net sales for the second quarter of fiscal 2025 reached $1.5 billion, marking a 3.5% increase compared to the prior year, primarily driven by recent acquisitions. However, organic net sales experienced a decline of 4.6% due to softened demand in multi-family and commercial end markets, alongside impacts from Hurricanes Helene and Milton. These storms reduced total net sales by an estimated $20 million during the quarter.
Profitability metrics showed pressure, with gross profit increasing marginally by $2.5 million to $461.1 million, but gross margin contracted by 90 basis points to 31.4%. Net income decreased by 33.9% to $53.5 million, resulting in diluted earnings per share of $1.35. Adjusted EBITDA also declined by 9.2% to $152.2 million, with the Adjusted EBITDA margin falling to 10.3%.
Despite the challenging environment, GMS generated $115.6 million in cash from operating activities and $101.5 million in free cash flow. The company repurchased 593,168 shares for $52.3 million and renewed its share repurchase authorization for up to $250 million on December 2, 2024. GMS also expanded its platform by acquiring R. S. Elliott Specialty Supply on August 26, 2024, and establishing one new greenfield location in Summerville, SC, with two more opened subsequent to quarter end.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.