Specialty building products distributor Gypsum Management & Supply (GMS) reported its 2025 fiscal second quarter results on Dec. 5.

The Tucker, GA-based company posted 2Q sales of $1.5 billion for the quarter that spanned August-October, up 2.5% year-over-year as recent acquisitions helped drive growth in Ceilings, Steel Framing and Complementary Products.

Gross profit increased by $2.5 million year-over-year to $461.1 million, while gross margin of 31.4% was down 90 basis points from 2Q24 (32.3%).

The company’s 2Q organic net sales were down 4.6%, impacted by hurricane related problems, specifically pertaining to the reduced demand for single-family Wallboard. Hurricanes Helene and Milton reduced 2Q organic sales by an estimated $20 million. Baird’s Equity Research – Industrial Distribution unit estimates that organic sales would have been closer to -3.2% absent those hurricane impacts.

GMS’s 2Q adjusted EBITDA of $152.2 million decreased 9.2% year-over-year. Adjusted EBITDA margin was 10.3%, a decrease compared to 2Q24’s 11.8%.

By products category during 2Q:

• Wallboard sales of $582.1 million decreased 0.5% (-5.2% on an organic basis).
• Ceilings sales of $204.4 million increased 16.6% (+1.6% on an organic basis).
• Steel framing sales of $217.4 million decreased 6.3% (-11.4% on an organic basis).
• Complementary products sales of $466.8 million increased 9.0% (-1.4% on an organic basis).

“In spite of softening end markets overall, we saw pockets of relative strength in activity in certain commercial sectors, including data centers, public and private education, healthcare and projects backed by government incentive programs, such as the CHIPS and Inflation Reduction Acts,” GMS President and CEO John Tucker said in the company’s financial release. “Single-family construction was relatively flat year-over-year. Stubbornly high mortgage rates and generally tight financing availability, however, continued to weaken the broader construction environment for each of our end markets, particularly for multi-family.”

GMS was No. 9 on MDM’s 2024 Top Distributors List for Building Materials/Construction.