Latest news with #GMSInc
Bloomberg
5 hours ago
- Business
- Bloomberg
QXO Won't Raise Its Offer for GMS After Report of Home Depot Bid
QXO Inc. won't raise its $5 billion offer for building products distributor GMS Inc. after Home Depot Inc. reportedly made its own bid. A spokesman for QXO said Friday that $5 billion is the company's full offer. The Wall Street Journal reported Thursday that Home Depot had submitted a bid for an undetermined sum. Representatives for Home Depot and GMS declined to comment.
Yahoo
10 hours ago
- Business
- Yahoo
GMS says board will review QXO takeover proposal of $95.20 per share
GMS Inc. (GMS) confirmed that it has received an 'unsolicited' proposal from QXO, Inc. (QXO) to acquire all outstanding shares of GMS for $95.20 per share in cash. 'Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, the GMS Board of Directors will carefully review and evaluate the unsolicited proposal to determine the course of action that it believes is in the best interests of the Company and all GMS shareholders,' the company said in a statement. GMS does not intend to comment further on QXO's proposal until the board has completed its review. GMS shareholders do not need to take any action at this time. Jefferies is acting as the company's financial advisor. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See Insiders' Hot Stocks on TipRanks >> Read More on GMS: Disclaimer & DisclosureReport an Issue GMS Inc. Reports Resilient Performance Amid Market Challenges GMS Inc. Earnings Call: Mixed Sentiment Amid Challenges Closing Bell Movers: GMS up 15% on takeover proposal from QXO QXO proposes to acquire GMS Inc. for $95.20 per share in cash GMS Inc. jumps 21% to $98 per share after takeover proposal from QXO Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Bloomberg
a day ago
- Business
- Bloomberg
Home Depot Seeks to Buy GMS in Challenge to QXO Bid, WSJ Says
Home Depot Inc. has made an offer for GMS Inc., potentially setting off a bidding war with QXO Inc. which this week made a $5 billion offer for the building-products distributor, the Wall Street Journal reported Thursday. The offer from Home Depot, the world's largest home-improvement retailer, is for an undetermined sum, the Journal said, citing people with knowledge of the matter.
Business Wire
a day ago
- Business
- Business Wire
GMS Inc. Confirms Receipt of Unsolicited Proposal from QXO, Inc.
TUCKER, Ga.--(BUSINESS WIRE)--GMS Inc. (NYSE: GMS) (the 'Company'), a leading North American specialty building products distributor, confirmed that it has received an unsolicited proposal from QXO, Inc. ('QXO') to acquire all outstanding shares of GMS for $95.20 per share in cash. Consistent with its fiduciary duties and in consultation with its independent legal and financial advisors, the GMS Board of Directors will carefully review and evaluate the unsolicited proposal to determine the course of action that it believes is in the best interests of the Company and all GMS shareholders. GMS does not intend to comment further on QXO's unsolicited proposal until the Board has completed its review. GMS shareholders do not need to take any action at this time. Jefferies LLC is acting as financial advisor and Alston & Bird LLP is acting as legal advisor to the Company. About GMS Inc. Founded in 1971, GMS operates a network of more than 320 distribution centers with extensive product offerings of wallboard, ceilings, steel framing and complementary construction products. In addition, GMS operates nearly 100 tool sales, rental and service centers, providing a comprehensive selection of building products and solutions for its residential and commercial contractor customer base across the United States and Canada. The Company's operating model combines the benefits of a national platform and strategy with a local go-to-market focus, enabling GMS to generate significant economies of scale while maintaining high levels of customer service. FORWARD-LOOKING STATEMENTS This release includes 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward-looking statements by the Company's use of forward-looking terminology such as 'anticipate,' 'believe,' 'confident,' 'continue,' 'could,' 'estimate,' 'expect,' 'intend,' 'may,' 'might,' 'plan,' 'potential,' 'predict,' 'seek,' or 'should,' or the negative thereof or other variations thereon or comparable terminology. The Company has based forward-looking statements on its current expectations, assumptions, estimates and projections. While the Company believes these expectations, assumptions, estimates, and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond its control, including economic issues, geopolitical issues, and future public health issues, that may affect the Company's business. Forward-looking statements involve risks and uncertainties, including, but not limited to, those described in the 'Risk Factors' section in the Company's most recent Annual Report on Form 10-K, and in its other periodic reports filed with the SEC. In addition, the statements in this release are made as of the date of this release. The Company undertakes no obligation to update any of the forward-looking statements made herein, whether as a result of new information, future events, changes in expectation or otherwise. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to the date of this release.
Yahoo
2 days ago
- Business
- Yahoo
GMS Inc (GMS) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Gains
Full Year Net Sales: $5.5 billion, up marginally compared to the prior year. Organic Sales: $5.2 billion, down 5.4% on a same-day basis compared to the prior year. Full Year Net Income: $115.5 million, inclusive of a $42.5 million noncash goodwill impairment charge. Adjusted EBITDA: $500.9 million. Free Cash Flow: $336.1 million, or 67% of adjusted EBITDA. Fourth Quarter Net Sales: $1.3 billion. Fourth Quarter Organic Sales Decline: 8.3% per day. Fourth Quarter Net Income: $26.1 million. Fourth Quarter Adjusted EBITDA: $109.8 million. Cash from Operating Activities (Q4): $196.8 million. Fourth Quarter Free Cash Flow: $183.4 million, or 167% of adjusted EBITDA. Cost Savings Program: $55 million in annualized cost savings during fiscal 2025. Net Debt Reduction: More than 10% during the quarter. Leverage Ratio: 2.4 times adjusted EBITDA. Share Repurchase: 348,600 shares for $26.4 million during the quarter. Warning! GuruFocus has detected 4 Warning Signs with LVRO. Release Date: June 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GMS Inc (NYSE:GMS) reported net sales of $5.5 billion for the full year, driven by positive contributions from recent acquisitions. The company achieved a record quarterly free cash flow conversion, with $183.4 million or 167% of adjusted EBITDA generated during the fourth quarter. Ceilings and Complementary Products saw volume improvement during the quarter, with Ceilings benefiting from strategic focus on Architectural Specialties projects. GMS Inc (NYSE:GMS) implemented a significant cost savings program, achieving $55 million in annualized cost savings during fiscal 2025. The company reduced net debt by more than 10% during the quarter, maintaining a target debt leverage range of 1.5 to 2.5 times. Organic sales for the year were down 5.4% on a same-day basis compared to the prior year. Net income for the full year was impacted by a $42.5 million noncash goodwill impairment charge recorded in the third quarter. The company faced ongoing macroeconomic challenges, with organic sales declining 8.3% per day in the fourth quarter. Wallboard sales were down 10.1% year-over-year, with single-family volumes in the US down 1.9% per day. Commercial activity was negatively impacted by high interest rates and economic uncertainty, contributing to soft starts and mixed results. Q: JT, you mentioned that sequential organic trends would be seasonally better next quarter. Could you explain why you feel that way? A: John Turner, President and CEO, explained that the improvement is primarily in the single-family market, where they have gained some share with larger customers. He noted that recent commentary from major builders like Lennar and Horton suggests the market is not as dire as it might seem, and GMS is experiencing normal seasonality with some improvement in single-family. Q: Can you discuss the technology and efficiency optimization efforts and the $25 million in annualized savings? Are there additional digital benefits beyond what you've already outlined? A: John Turner highlighted that GMS has continued to invest in digital efforts, including customer portals and e-commerce, which have contributed to cost savings. They are also exploring AI applications for order entry automation. Scott Deakin, CFO, added that the common ERP platform across the US footprint enhances the effectiveness of these technologies. Q: Regarding the single-family market, how do you view the share gains and the pressure from builders for concessions? A: John Turner stated that GMS is leveraging its scale to assist builder partners, maintaining strong relationships throughout the supply chain. He noted that GMS has gained share recently and has regional strength due to strategic greenfield activities and acquisitions, such as RS Elliot in Florida. Q: How do you view the margin dynamics and the 10% to 12% EBITDA margin target? How much is dependent on market outcomes versus internal improvements? A: John Turner explained that while market recovery is necessary for volume growth, internal improvements such as cost structure optimization and product mix enhancements contribute significantly. He estimated that about half of the margin improvement would come from market recovery and half from internal efficiencies. Q: What is your visibility into the single-family market, and how do you see start activity flowing into shipments? A: John Turner mentioned that GMS typically sees a three to six-month lead time from starts to shipments, with visibility primarily for the upcoming quarter. He expressed optimism that the market would bottom out and improve by the next spring selling season, given the historical cycle of home starts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
