Set to be acquired by The Home Depot for $4.3 billion by the end of this year, specialty building products distributor Gypsum Management Supply (GMS) reported its 2026 first quarter financial results on Aug. 28, showing continued declines in sales, profits and margin year-over-year during the May-July period.

The Tucker, GA-based company reported 1Q sales of $1.4 billion for the quarter that ended July 31, down 2.4% year-over-year (-5.6% in 4Q), with organic sales down 4.9% (-8.3% in 4Q).

Gross profit of $436.5 million decreased by 3.4% year-over-year, while gross margin of 30.9% (31.2% in 4Q) declined by 30 basis points and operating profit of $81.2 million declined 17.4%.

GMS’ 1Q adjusted EBITDA of $135 million on a 9.6% margin was likewise down from the $146 million/10.1% margin of a year earlier.

The company’s 1Q net profit of $44 million sank 23.9% year-over-year.

Premium: Home Depot Shares the Why Behind GMS Purchase (Aug. 20)

By product category during 1Q:

• Wallboard sales of $556.4 million decreased 5.4% year-over-year (-6.8% organic)
• Ceiling sales of $220.9 million increased 6.6% year-over-year (+6.6% organic)
• Steel framing sales of $196.5 million decreased 6.3% year-over-year (-8.2% organic)
• Complementary products sales of $440.5 million decreased 0.7% year-over-year (-4.9% organic)

GMS was ranked No. 9 on MDM’s 2025 Top Distributors List for Building Materials/Construction.