The Home Depot reported its fourth quarter and full-year financial results on Feb. 25, which showed lower 4Q profit attributed to “pressure from consumer uncertainty and frozen housing conditions.” But beneath the top-line figures that included relatively comparable sales performance at +0.4% year-over-year, the company’s earnings call reiterated something that has become a trend for HD as of late: outperformance in its Pro segment amid a muted housing environment.

Home Depot has heavily leaned into Pro over the past two years, marked by the company’s $18.25 billion acquisitions of roofing and other building materials supplier SRS Distribution in September 2024 (HD’s largest acquisition ever) and $5.5 billion purchase of wallboard products distributor GMS this past summer.

SRS: Share Gains in a Historically Weak Roofing Market

CEO Ted Decker said SRS grew organic sales by a low single-digit percentage in fiscal 2025 and expanded market share despite what he described as pressured industry demand and lack of storms in the back half of the year.

That performance came against a notably weak roofing backdrop. CFO Richard McPhail said industry shingle shipments were down 28% year-over-year in the fourth quarter — the lowest quarterly volume since 2019 — pulling full-year 2025 industry shipments to their lowest annual level since 2019.

SRS posted low single-digit negative comps in Q4 but “by all external measures took share in the quarter,” McPhail said.

Executives acknowledged that SRS invested in price during the quarter to maintain share, which will pressure margins into the first quarter of 2026. Still, Home Depot expects SRS to deliver mid-single-digit organic sales growth in fiscal 2026.

SRS also continued its expansion, completing tuck-in acquisitions and opening greenfield locations across verticals during 2025. Also on Feb. 25, SRS announced the additions of Sider Lumber & Supply on New York’s Long Island and Lincoln, NE-based hardscapes distributor Outdoor Solutions  — netting a combined 31 employees with those two locations.

For 2026, Home Depot plans to open approximately 40 to 50 new SRS locations.

GMS Integration: Margin Impact, Strategic Synergies

Home Depot owned GMS for five months of fiscal 2025 and said the move is already influencing consolidated margins. McPhail said fourth quarter gross margin declined about 20 basis points year-over-year, primarily reflecting a change in mix as a result of the that acquisition.

For 2026, Home Depot expects about a 40-basis-point annual gross margin impact from GMS, with roughly 24 basis points reflected in year-over-year comparisons due to partial-year ownership in 2025.

Strategically, executives emphasized cross-selling opportunities across Home Depot, SRS, GMS and HD Supply — with the latter acquired at the end of 2020 for $9 billion. Pro EVP Mike Rowe said the company is increasingly approaching customers in a combined fashion, particularly in multifamily construction and property management, where accounts may now consolidate spend across the enterprise.

The company is also piloting roofing referral programs between Home Depot and SRS and mapping common customers across sales teams to drive coordinated outreach.

As a result of that cross-sell motion, Decker added that “we’re winning, frankly, tens of thousands of incremental homes through a warm handoff with the other product categories of the team that was introduced.”

He also highlighted commercial roofing opportunities, where SRS capabilities can support Home Depot’s broader commercial relationships.

Core Home Depot Pro: Positive Comps, Digital Gains

Within the core Home Depot business, Pro outperformed DIY in the fourth quarter and posted positive comps, with strength concentrated in Pro-heavy categories such as gypsum, wire, concrete and plumbing.

Executives tied that performance to ongoing investment in Pro-specific capabilities. Decker cited continued maturation of the Pro sales force, improvements in order management and trade credit and progress on delivery reliability.

Further there, the company achieved on-time and complete delivery performance targets for Pros in 2025 and rolled out real-time tracking for big and bulky deliveries, alongside AI tools for project list builders and blueprint takeoffs that allow contractors to auto-generate materials lists.

Overall, HD’s online B2B sales outpaced overall online growth, supported by those new digital tools.

Rowe said a “high percentage” of key Pro capabilities — including trade credit expansion, pricing pilots and order management enhancements — are already in place, with additional buildout planned in 2026.

The Key Takeaway

For distributors competing in roofing, drywall, ceilings and related contractor categories, the message from the call was clear: Home Depot is leaning into Pro, defending share aggressively in soft markets and building a broader distribution footprint designed to compete across jobsite materials and services.