GMS Inc.

on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Carrie Phelps, Vice President, Investor Relations. Thank you. Please go ahead.

Thank you, Donna. Good morning, and thank you for joining us for the GMS Earnings Conference Call for the fourth quarter and full year fiscal 2025. I am joined today by John Turner, President and Chief Executive Officer, and Scott Deacon, Senior Vice President and Chief Financial Officer. In addition to the press release issued this morning, we have posted PowerPoint slides to accompany this call in the investor section of our website at www.gms.com. Now, beginning with slide two. On today's call, management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements address matters that are subject to risk and uncertainty, many of which are beyond our control and may cause actual results to differ from those discussed today. As a reminder, forward-looking statements represent management's current estimates and expectations. The company assumes no obligation to update any forward-looking statements in the future. Listeners are encouraged to review the more detailed discussions related to these forward-looking statements contained in the company's filings with the SEC, including the risk factors section in the company's 10-K and other periodic reports. Today's presentation also includes a discussion of certain non-GAAP measures. The definitions and reconciliations of these non-GAAP measures are provided in the press release and presentation slides. Please note that references on this call to the fourth quarter of BISCOL 2025 relate to the quarter ended April 30th, 2025. Finally, once we begin the question and answer session of the call, in the interest of time, we kindly request that you limit yourself to one question and one follow-up. With that, I'll turn the call over to John Turner, whose discussion will start on slide three. JT?

Thank you, Carrie. Good morning, and thank you all for joining us today. I'll begin by reviewing our full year and fourth quarter performance, which overall, despite a continued challenging macro backdrop, came in at the higher end of the expectations we provided in March. I will then turn the call over to Scott to further review the financial results. before concluding with an overview of our guidance and opening the lineup for Q&A. For the full year, net sales were $5.5 billion, up marginally compared to the prior year, driven by positive contributions from our recent acquisitions, including CAMCO, Yvonne Building Supply, RS Eliot, and Howard & Sons Building Materials. Organic sales for the year were $5.2 billion, down 5.4% on a same-day basis, compared to the prior year. Net income for the full year was $115.5 million, inclusive of the $42.5 million non-cash goodwill impairment charge we recorded in the third quarter. Adjusted EBITDA was $500.9 million, and free cash flow for the year was $336.1 million, or 67% of adjusted EBITDA. Looking at the fourth quarter, which is highlighted on slide four, We delivered solid results, even as we continue to face pressure across the business amid the ongoing macroeconomic challenges impacting our industry. We reported $1.3 billion in net sales. Organic sales declined 8.3% per day, which was slightly better than our expectations. Net income was $26.1 million, and adjusted EBITDA was $109.8 million, coming in at the high end of our outlook. Our cash flow generation continues to demonstrate our operational discipline through this down cycle, with $196.8 million of cash from operating activities and $183.4 million, or 167% of adjusted EBITDA, of free cash flow generated during the quarter. This was the highest level of quarterly free cash flow conversion in our company's history, with the exception of our fiscal fourth quarter of 2020 when COVID first hit, and we moved swiftly and extraordinarily to protect the business. Even against a challenging backdrop, ceilings and complementary products saw volume improvement during the quarter. Ceilings performed particularly well given the continued benefits of the addition of CAMCO, combined with our intentional strategic focus on architectural specialties projects, which have higher average unit pricing. In wallboard, the implementation of calendar 2025 manufacturer price increases came later than originally announced, with only modest pricing actions realized in May. We continue to work diligently with our customers to affect these increases, as we continue to focus on protecting our margins. In steel framing, as our suppliers navigate the latest tariff actions, we have received notices of upcoming manufacturer price increases. Through the end of the fourth quarter, however, steel prices remain pressured. Beyond steel, we anticipate minimal direct impact from tariffs, as most of our products distributed in the U.S. and Canada are sourced domestically. We believe that the primary risk to our business from trade policy is the potential negative effect on broader demand. Looking at our end markets on slide five, we are cautiously optimistic that we are nearing the bottom of the cycle, although the intensity and duration of the downturn will vary by each market. Fourth quarter demand was down across both residential and commercial, as economic uncertainty dominated the headlines. As a result, wallboard industry volumes, as reported by the Gypsum Association, were down 10% in the first calendar quarter. Stubbornly high interest rates and policy uncertainty remain the primary impediments to growth, both residentially and commercially. These factors are causing homebuyers to retreat to the sidelines, multifamily and commercial developers to pause or delay starts, and regional banks to both increase their commercial lending requirements for new projects and lend less overall. For residential, while single-family is experiencing softness, there remains a clear and fundamental need for housing in both the United States and Canada that continues to give us optimism for the eventual recovery of that sector. In the near term, given recent share gains and some regional strength, we expect to slightly outpace normal seasonal trends. Specifically, with wallboard volumes expected to be flat to up slightly for our fiscal first quarter, we expect similar year-over-year growth in single-family volumes throughout the balance of our fiscal year. In multifamily, rents have been stable or have continued to rise in most markets since COVID. Also, developers appear to be modestly optimistic about demand levels as the number of new starts has possibly bottomed and recently begun to increase. Once there is less uncertainty in the broader macro environment, we expect demand to return for this end market, hopefully with year-over-year declines in our sales volumes ending by early calendar 2026. Commercial activity continues to also be negatively impacted by high interest rates, the lack of available financing, and again, general economic uncertainty, contributing to soft starts and mixed results among commercial applications early this calendar year. We expect this dynamic to continue but moderate, with some recovery in our business towards the first half of calendar 2026. This assumes we see rates decrease as expected and generally improved confidence in the direction of the economy. Within commercial, current category strength continues to come from larger projects and those that are not as dependent on private financing, particularly those in public education, healthcare, and technology. Notably, we have a data center backlog that extends well into 2026, and there is no indication of these projects slowing down in the near term. data centers continue to be an excellent offering for us as they utilize both our core and complementary products, often with higher-end specifications, helping to fill the gap left by the ongoing malaise in office activity. As we look ahead, we expect that the near term will remain challenging for our business and the industry as a whole, given the rate environment and macroeconomic dynamics at play. That said, given our focus on our customers and exceptional service, as well as the execution of our four strategic pillars to expand share in our core products, grow our complementary products, expand our platform, and drive improved productivity and profitability, we expect to capitalize on long-term growth opportunities for the company and value creation opportunities for our stakeholders. As we've discussed in previous quarters, we have taken decisive action to further align and rationalize our operations with our volume and the market realities of today. setting us up for more efficient realization of growth through the next cycle. Notably, we've continued to execute on a significant cost savings program, through which we took actions to achieve another $25 million in annualized cost savings in our fiscal fourth quarter, higher than the $20 million we projected earlier. With these actions, we have implemented a total of $55 million of annualized cost savings during fiscal 2025. We also continue to pay down debt and return cash to our shareholders through repurchase activity. We reduce net debt by more than 10% during the quarter, leaving us within our target debt leverage range of one and a half to two and a half times, with high confidence in our ability to continue generating excellent cash flow. With that, I'll turn the call over to Scott.