Gypsum Management & Supply delivered record levels of net sales in the full fiscal year and volume growth across all major product categories. During the fiscal year, the company did experience significant steel price deflation beyond expectations, though.

“Solid levels of multifamily construction remained in backlog and commercial project activity continued through the end of our fiscal year,” John Turner, president and CEO of GMS, said. “Plus, single-family year-over-year wallboard volume growth for the fourth quarter turned positive for the first time since the fall of 2022. We believe this indicates the start of a mild recovery in an end market that, with considerable pent-up demand, remains poised for a more robust recovery with expected eventual relief in mortgage rates.”

In the fiscal fourth quarter, ended April 30, net sales increased 8.4% to $1.4 billion as volume growth offset steel price deflation. Commercial, single-family, and multifamily showed improvement in demand compared to the fourth quarter of 2023, according to GMS. Steel price deflation, which reduced net sales by an estimated $29 million, helped offset volume growth in the quarter. For the full fiscal year, net sales increased 3.2% to $5.5 billion.

The distributor reported gross profit of $451.2 million in the fourth quarter, a 6.3% improvement on a year over year basis. The positive change in gross profit can be attributed to GMS’s recent acquisitions and the improved volume in the quarter. Gross margin decreased 60 basis points to 31.9%, primarily due to the impact of steel price deflation.

GMS posted net income of $56.4 million in the quarter, a decrease of 35.4% from $75.6 million in the prior year period. For the full year, net income decreased 17.1% to $276.1 million. Adjusted EBITDA in the fourth quarter was $146.6 million, down from $154.3 million; for the full year, adjusted EBITDA decreased $50.2 million to $615.5 million.

“As we move into fiscal 2025, we believe we are well prepared for what we expect to be continued changes in end market dynamics, as an improving single-family end market should help offset declining multifamily and, likely, commercial demand as we move throughout the year,” Turner said.