Specialty building products distributor Gypsum Management (GMS) reported its 2025 fourth quarter and full-year financial results on June 18, showing a decline in organic sales in both the company’s 4Q and full-year results.

4Q Results

The Tucker, GA-based company ported 4Q sales of $1.3 billion for the quarter that spanned February-April, down 5.6% year-over-year primarily due to softer end market conditions, partially offset by its pricing in Wallboard, Ceilings and Complementary Products.

Gross profit of $416.2 million decreased by $35 million or 7.7%, while gross margin of 31.2% was down 70 basis-points year-over-year. The company said gross margin contracted across most of its major products lines year-over-year, primarily driven by lower vendor incentive income given reduced sales volumes.

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The company’s 4Q organic net sales were down 8.3% year-over-year. While adjusted EBITDA of 8.2% decreased 220 bps compared to 10.4% in 4Q24.

By product category during 4Q:

• Wallboard sales of $526.6 million decreased 10.1% (-12.5% on an organic basis)
• Ceiling sales of $201 million increased 6.4% (+2.9% on an organic basis)
• Steel framing sales of $189.2 million decreased 14.2% (-17.9% on an organic basis)
• Complementary products sales of $416.9 million decreased 0.2% (-7.3% on an organic basis)

“The ongoing challenging interest rate environment and general market uncertainty continues to be a headwind for the business, contributing to reduced levels of activity in each of our major end markets,” GMS President and CEO John Turner Jr. said in the company’s financial release. “Despite these pressures, we reported $1.33 billion in net sales for the fourth quarter and achieved volume growth for the quarter in Ceilings and Complementary Products, with resilient or expanded pricing in all major product categories except for Steel Framing.”

Full-Year Results

GMS posted full-year sales of $5.5 billion, up 0.2% year-over-year while organic net sales declined 5.8% year-over-year.

Gross profit of $1.72 billion decreased by $53 million year-over-year, while adjusted EBITDA of $500.9 million decreased $114.5 million or 18.6%. Adjusted EBITDA margin was 9.1% compared to 2024’s 11.2%.

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By products category during 2025:

• Wallboard sales of $2.19 billion decreased 2.9% year-over-year (-5.4% on an organic basis)
• Ceilings sales of $793.3 million increased 14.1% year-over-year (+3.8% on an organic basis)
• Steel framing sales of $796.2 million decreased 10.8% year-over-year (-15.4% on an organic basis)
• Complementary products sales of $1.7 billion increased 4.6% year-over-year (-5.2% on an organic basis)

Turner added: “As we begin fiscal 2026, we are cautiously optimistic that we are nearing the bottom of this cycle and believe pent-up demand will materialize as the macro-environment improves. Once this market demand returns, we will be well positioned to capture the opportunity as a leaner and more efficient organization.”

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