Specialty building products distributor Gypsum Management & Supply (GMS) reported its 2025 fiscal first quarter results on Aug. 29 and announced an acquisition that followed the close of the quarter.

1Q25

The Tucker, GA-based company posted total 1Q sales of $1.4 billion for the quarter that spanned May-July, up 2.9% year-over-year as recent acquisitions helped drive volume growth, offset by year-over-year price deflation in steel framing.

Gross profit increased 0.2% year-over-year to $451.6 million, while gross margin of 31.2% was down 80 basis points from 1Q24 (32.0%).

The company’s 1Q organic net sales were down 2.2% year-over-year, impacted by price deflation in steel framing along with soft Canadian single-family residential activity.

GMS’ 1Q adjusted EBITDA of $145.9 million decreased 15.8% year-over-year. Adjusted EBITDA margin was 10.1%, a decrease compared to 1Q24 of 10.1%.

By products category during 1Q:

• Wallboard sales of $587.9 million increased 2.9% year-over-year (+1.1% organic)
• Ceilings sales of $207.2 million increased 18.2% year-over-year (+5.7% organic)
• Steel framing sales of $209.9 million decreased 11.4% year-over-year (-15.3% organic)
• Complementary products sales of $443.5 million increased 4.1% year-over-year (-2.7% organic)

“In spite of near-term headwinds, we remain confident in our model, the resilience of pricing for our major product categories outside of Steel, and our ability to execute and capture the evident growth opportunities ahead, particularly with an improved interest rate environment,” GMS President and CEP John Tucker, Jr. said in the company’s financial release. “Our substantial scale and breadth across the U.S. and Canada, our solid balance sheet and the expectation for significant free cash flow generation provide exceptional operational stability and a foundation for long-term shareholder value.”

Acquisition

Following the July 31 end of its fiscal 1Q, GMS acquired Orlando, FL-based stucco, exterior insulation and finishing system (EIFS) supplier R.S. Elliot Specialty Supply.

Terms of the transaction were not disclosed.

Founded in 1983, R.S. Elliot supplies customers with stucco, plaster, siding and EIFS within the state of Florida. The company operates from five locations in the state — Orlando, Wildwood, Tampa, West Palm Beach and Jacksonville.

“In addition to our recently closed acquisition of Yvon, we are pleased to announce the acquisition of R.S. Elliott, which is another meaningful transaction in the Complementary Products space,” Tucker added. “With five locations across Florida, R.S. Elliott is a leading distributor of stucco, exterior insulation and finishing systems (“EIFS”) and other exterior finishing and cladding products in that state. This transaction marks an important advancement of our strategy to expand our platform to better serve our customers and grow our Complementary Product offerings, particularly within one of our key focus areas, EIFS and Stucco.”

GMS — No. 9 on MDM’s Top Distributor’s List for Building Materials/Construction — also shared that it completed its previously announced 1Q acquisitions of Howard & Son Building Materials, Inc. and Yvon Building Supply and Affiliates.