Slide 1: Investor Overview March 2025
Investor Overview March 2025
Slide 2: Safe Harbor and Basis of Presentation
2 Safe Harbor and B asis of Presentation Forward - Looking Statement Safe Harbor — This presentation includes “forward - looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can generally identify forward - looking statements by the Company’s use of for
Slide 3: GMS at a Glance
3 54 yrs 300+ Distribution yards GMS at a Glance 7,000+ GMS Team Members & nearly 100 Tool Sales, Rentals & Service Centers Leading Brands 60+ GMS NYSE Ticker Symbol Founded in 1971 LTM Q3 FY25 Net Sales $ 5.6 B
Slide 4: Diversified and Balanced End Market Exposure
4 Diversified and Balanced End Market Exposure Diversified exposure across commercial and residential new and repair and remodel construction markets continues to be an advantage Residential • Single - Family New • Multi - Family New • Repair & Remodel ~45% through the cycle Commercial • New Constru
Slide 5: Providing Value to Contractors and Builders
5 Providing Value to Contractors and Builders GMS provides a complementary and complete product offering with value - added service delivery to the contractor s who install wallboard, ceilings, steel framing and ancillary products needed to complete the job 1 Complementary products consists of Tools
Slide 6: Continued Focus on the Execution of Our Strategy
6 Continued Focus on the Execution of Our Strategy Strategic Pillars • Taking near - term actions to further align and rationalize our operations with today’s market realities • Solid balance sheet with no near - term maturities • Significant levels of free cash flow generation • Disciplined capital
Slide 7: Continuing to Diversify and Profitably Expand Offerings
7 20% 19% 16% 45% 30% 13% 16% 41% Continuing to Diversify and Profitably Expand Offerings Successfully Growing Complementary Products Complementary Products 2014 Net Sales: $1.4B NET SALES BREAKDOWN (FISCAL 2014) 2024 Net Sales: $5.5B NET SALES BREAKDOWN (FISCAL 2023) Complementary Products Ceilings
Slide 8: Consistent Execution in M&A Driven Platform Expansion
8 Consistent Execution in M&A Driven Platform Expansion ~$630MM 1 ~$400MM 1 37% 63% Core Complementary 10 Deals 6 Deals x December 1, 2021 , scaled core products expansion into southern California and entry into Las Vegas whitespace x April 3 , 2023, core expansion throughout the greater Chicago are
Slide 9: GMS – Solid Track Record of Profitability and Cash Flow
9 GMS – Solid Track Record of Profitability and Cash Flow *For a reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin or Free Cash Flow to the most directly comparable GAAP metri cs, see Appendix $3,299 $4,635 $5,329 $5,502 $5,593 9.7% 12.2% 12.5% 11.2% 9.6% FY-21 FY-22 FY-23 FY-24 LTM-Q325 Net
Slide 10: Well Positioned to Deliver Long Term Value
10 Well Positioned to Deliver Long Term Value
Slide 11: Financial Update Q3 FY2025
11 Financial Update Q3 FY2025
Slide 12: Q3 Fiscal 2025 At a Glance
12 Q3 Fiscal 2025 At a Glance Comparisons are to Q 3 FY2 4 unless noted otherwise • 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 • Economic uncertainty, general affordability concern
Slide 13: Sales Highlights – Q3 FY25
13 Sales Highlights – Q3 FY25 U.S. Per Day Residential Sales Q325 Net Sales $ 1.3 B Per Day Net Sales 2.1% U.S. Per Day Commercial Sales 7.8% 2.7% 0.2% • Demand deteriorated during the last half of the quarter across all end markets • Adverse winter weather and holiday timing negatively impacted sal
Slide 14: Weak Demand & Price/Cost Dynamics Impact Profitability
14 Weak Demand & Price/Cost Dynamics Impact Profitability 1 For a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to the most directly comparable GAAP metrics, see Appendix . 2 The most comparable GAAP metric for Adjusted EBITDA margin is Net Income Margin. However, due to the fact that
Slide 15: Attractive Capital Structure Supports Strategic Priorities
15 Attractive Capital Structure Supports Strategic Priorities • Repurchased 445K shares for $39.3 million during Q325 • $218.4 million repurchase authorization remaining at January 31, 2025 1.5x 1.7x 2.1x 2.3x 2.4x 1/31/2024 04/30/2024 7/31/2024 10/31/2024 1/31/2025 $14 $56 $50 $417 $35 $847 FY25 FY
Slide 16: End Market & Product-Level Expectations
16 End Market & Product - Level Expectations Q4 FY25 YOY Per Day Price/Mix Expectations Q4 FY25 YOY Per Day Volume Expectations Product Category Total (Incl. acquisitions) Organic Down high single digits •Single - family: Down ~35% •Multi - family: Down ~20% •Commercial: Flat to up slightly Down low
Slide 17: Consolidated Expectations Q4 FY25
17 Consolidated Expectations Q4 FY25 Expectation Metric for Q4 FY25 Down high single digits YOY in total, Down low double digits organically Net Sales ~ 31.2% Gross Margin $20 million - $22 million GAAP Net Income $100 million - $110 million Adjusted EBITDA 1 ~ 8.0% Adjusted EBITDA Margin 1 Full Yea
Slide 18: Appendix
18 Appendix
Slide 19: Summary Quarterly Financials
19 Summary Quarterly Financials Commentary A. Net reduction in branches is a result of the divestiture of Leading Edge Insulation (LEI) and branch closures in the Northeast, offset by two additional Greenfield openings (In millions) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 (Unaudited) Wallboard Volum
Slide 20: Quarterly Cash Flows
20 Quarterly Cash Flows (1) Free cash flow is a non - GAAP financial measure defined as net cash provided by (used in) operations less capital expenditures. D ifferences may occur due to rounding. ($ in millions) (Unaudited) 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 2Q25 3Q25 Net income (loss) $ 86.8 $ 81.0 $ 5
Slide 21: Q3 2025 Net Sales
21 Q3 2025 Net Sales 1. Organic net sales growth calculation excludes net sales of acquired businesses until first anniversary of acquisition date an d i mpact of foreign currency translation. ($ in millions) (Unaudited) FY25 FY24 Reported Organic (1) Organic (1) 1,174.0$ 1,258.3$ Acquisitions 95.8
Slide 22: Quarterly Net Income (Loss) to Adjusted EBITDA Reconciliation
22 Quarterly Net Income (Loss) to Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of
Slide 23: Net Income (Loss) to Pro Forma Adjusted EBITDA Reconciliation
23 Net Income (Loss) to Pro Forma Adjusted EBITDA Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of
Slide 24: Income (Loss) Before Taxes to Adjusted Net Income Reconciliation
24 Income (Loss) Before Taxes to Adjusted Net Income Reconciliation Commentary A. Represents all non - cash amortization resulting from business combinations. To make the financial presentation more consistent with other public building products companies, beginning in the first quarter 2025 we are
Slide 25: Reported SG&A to Adjusted SG&A Reconciliation
25 Reported SG&A to Adjusted SG&A Reconciliation Commentary A. Represents changes in the fair value of stock appreciation rights B. Represents changes in the fair value of noncontrolling interests C. Represents non - cash equity - based compensation expense related to the issuance of share - based a
Slide 26: Leverage Summary
26 Leverage Summary (1) Net of unamortized discount of $2.3mm, $2.0mm, $1.9mm, $1.8mm and $1.7mm as of January 31, 2024, April 31, 2024, July 31, 202 4, October 31, 2024 and January 31, 2025, respectively. (2) Net of deferred financing costs of $3.8mm, $4.4mm, $4.3mm, $4.0mm and $3.8mm as of January
Slide 27: Net Income to Adjusted EBITDA Outlook Reconciliation
27 Net Income to Adjusted EBITDA Outlook Reconciliation Q4 FY25 Net Income $20 - $22 Interest expense, net 21.4 - 23.6 Provision for income taxes 6.9 - 7.6 Depreciation and amortization expense 38.3 - 42.2 Other Adjustments 13.4 - 14.7 Adjusted EBITDA $100 - $110