GMS Inc posted a Q1 FY2025 net sales of $1.45 billion, up 2.8% year over year, driven by volume growth across major product categories fueled by recent acquisitions (notably Yvon in Canada and, as announced, RS Elliott). Organic sales declined 2.2% as steel price deflation and soft Canadian single-family residential activity pressured volumes, with a notable shift toward lower-margin wallboard mixes in a challenging end-market environment. Gross margin contracted 80 basis points to 31.2% due to ongoing steel price deflation and price-to-mix effects—particularly from a shift to single-family wallboard deliveries and slower price realization in commercial/multi-family projects. Net income declined 34.1% year over year to $57.2 million, or $1.42 per diluted share, while adjusted net income fell 24.9% to $77.6 million ($1.93 per diluted share). Adjusted EBITDA decreased 15.8% to $145.9 million, with an EBITDA margin of 10.1%. In response to near-term headwinds, management initiated a $25 million annualized cost-reduction program aimed at simplifying operations, centralized procurement, and route optimization to preserve profitability in a softer demand backdrop. Management remains constructive on medium- to long-term demand, emphasizing a balanced mix of commercial and residential exposure, ongoing M&A activity, and productivity gains from technology and scale. The company guided Q2 2025 net sales to increase modestly, with gross margin expected to improve to 31.6–31.8% as wallboard price increases pass through, and adjusted EBITDA of $163–$168 million (approximately 11% EBITDA margin). Near-term risk stems from further steel price volatility, a slower-than-expected housing rebound, and macro headwinds; upside could come from faster-than-expected rate reductions supporting single-family activity and stronger backlog execution.