Gypsum Management & Supply (GMS) reported record full-year levels of net sales, net income, adjusted EBITDA, and cash flow generation for the fiscal 2023 year. According to president and CEO John Turner, the company’s scale and balanced mix of products and customers enabled GMS to capitalize on strong demand in the multifamily residential segment and continue to grow in the commercial sector.

“These demand tailwinds, coupled with favorable pricing in wallboard, ceilings, and complementary products, contributed to our record results despite significantly lower steel prices and soft single-family residential activity in the back half of our fiscal year,” Turner said in a prepared statement. "Plus, our team closed out the year with our ninth straight quarter of year-over-year in adjusted EBITDA despite having one less selling day in the quarter.”

During the fiscal fourth quarter for GMS, ended April 30, sales increased 1.2% year-over-year to $1.3 billion while net income decreased 1.2% year-over-year to $76.5 million. GMS attributed the increase in sales to strong levels of multifamily construction, continued recovery in commercial construction, and resilient pricing in wallboard, ceilings, and complementary products.

Wallboard sales increased 10.9% year-over-year in the fiscal fourth quarter to $544.7 million, ceilings sales increased 4.2% to $155.1 million, and complementary product sales increased 2.3% to $380.5 million. Steel framing sales in the quarter decreased 19.2% year-over-year to $223.8 million.

The distributor reported gross profit increased 2.8% year-over-year to $424.5 million and a 50 basis point improvement in gross margin to 32.5%. The company attributed the improvement to the successful pass through of product price inflation, favorable product mix, and improving wallboard demand.

For the full fiscal 2023, sales increased 15.0% to $5.3 billion while net income increased 21.8% compared to 2022 to $273.4 million.

Adjusted EBITDA for the fourth quarter was $154.3 million with an adjusted EBITDA margin of 11.8%, compared to $154.2 million and a margin of 12.0% in the fourth quarter of 2022. For the full fiscal year, adjusted EBITDA increased $98.8 million to $665.7 million and margin improved 30 basis points to 12.5%.

GMS completed four acquisitions in fiscal 2023—including two in the fourth quarter—opened six greenfield yards—one in the fourth quarter—and 11 AMES stores—including two in the fourth quarter.

“We focused on ensuring product availability and delivering exceptional customer service in our efforts to grow our share in our core products, and we took steps to further expand our complementary products,” Turner said.

Looking ahead, Turner said GMS’s scale, breadth of product offerings, and commitment to service well-positions the company “to navigate the current slowdown in single-family activity and the resultant shift in demand toward multifamily and commercial projects.”

“Moreover, given the limited inventory of existing homes and the structural need for residential housing, we are also encouraged by recent improvement in starts activity and builder sentiment as we look later into our year,” said Turner.

GMS operates a network of approximately 300 distribution centers with product offerings of wallboard, ceilings, steel framing, and complementary construction products. The company also operates approximately 100 tool sales, rental, and service centers across the United States.