Specialty building products distributor Gypsum Management & Supply (GMS) reported its 2025 third quarter financial results on March 6.

The Tucker, GA-based company posted 3Q sales of $1.3 billion for the quarter that spanned November-January, up 0.2% year-over-year as recent acquisitions helped drive growth in Ceilings mix.

Gross profit decreased by $21.6 million year-over-year to $393.1 million, while gross margin of 31.2% was down 180 basis-points from 3Q24.

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The company’s 3Q organic net sales were down 6.7%, impacted by demand contraction across multi-family, commercial and single-family markets amid broader uncertainty. Additionally, unfavorable winter weather conditions were also a factor.

GMS’s 3Q adjusted EBITDA OF $93 million decreased 27.3% year-over-year. Adjusted EBITDA margin was 7.4% compared to 3Q24’s 10.2%.

By products category during 3Q:

• Wallboard sales of $501.7 million decreased 3.6% (-7.4% on an organic basis)
• Ceiling sales of $180.7 million increased 16.0% (+4.4% on an organic basis)
• Steel framing sales of $179.7 million decreased 11.6% (-19.9% on an organic basis)
• Complementary products sales of $398.6 million increased 5.3% (_4.3% on an organic basis)

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“Our results in the quarter reflect the impact of soft end market demand and steel pricing, both of which deteriorated meaningfully during the last half of the quarter, ultimately driving both lower than expected sales and gross margin compression, despite experiencing price and mix improvement in Wallboard and Ceilings,” GMS President and CEO John Turner Jr. said in the company’s financial release. “Economic uncertainty, general affordability and tight lending conditions, combined with adverse winter weather disruptions, all contributed to reduced levels of activity in each of our end markets.”

GMS was No. 9 on MDM’s 2024 Top Distributors List for Building Materials/Construction.