By Denny Jacob

Building-products distributor GMS saw sales grow in its latest quarter as contributions from recent acquisitions helped deflect challenges tied to recent weather events and a broader slowdown in construction activity.

The Tucker, Ga., company recorded net income of $53.5 million, or $1.35 a share, for the second quarter of fiscal 2025 ended Oct. 31, down from about $81 million, or $1.97 a share, a year earlier.

Stripping out one-time items, earnings came in at $2.02 a share. Analysts polled by FactSet had expected $2.19 a share.

Sales edged up to $1.47 billion from $1.42 billion. Analysts polled by FactSet had expected $1.46 billion.

GMS attributed the sales growth to contributions from recent acquisitions, which helped drive volume growth in ceilings, steel framing and complementary products.

"Partially offsetting this growth were soft multi-family activity and softening commercial shipments," said Chief Executive John C. Turner Jr.

He added that hurricane-related slowdowns affected a key region, with a particular effect on demand for wallboard. Hurricanes Helene and Milton reduced total sales by about $20 million.

"Stubbornly high mortgage rates and generally tight financing availability, however, continued to weaken the broader construction environment for each of our end markets, particularly for multi-family," said Turner.

GMS' board on Monday approved a renewal of its share-repurchase program that authorized the company to buy back up to $250 million of its outstanding common stock. This authorization replaces its prior authorization of $250 million, which commenced in October 2023 and had nearly $95 million of authorization remaining as of Nov. 30.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

December 05, 2024 06:28 ET (11:28 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.