GMS Inc (NYSE:GMS), a leading North American specialty building products distributor,  stock rose 10.61% (As on June 19, 8:00:00 AM UTC-4, Source: Google Finance) after QXO Inc. has proposed a bid to acquire GMS’s all outstanding shares for $95.20 each in cash, with a total transaction value of about $5 billion. This offer represents a 27% premium over GMS’s 60-day volume-weighted average price of $74.82. The acquisition of GMS is supported by its attractive positions in wallboard, ceiling tile and steel framing, extensive distribution network and broad exposure to both residential and commercial end markets. On the other hand, the company has reported mixed result for the fourth quarter of FY25. Net income of $26.1 million decreased 53.7% from $56.4 million. Net income margin was 2.0% compared to 4.0%; Adjusted net income of $50.2 million compared to $81.6 million. Adjusted EBITDA of $109.8 million compared to $146.6 million; Adjusted EBITDA margin was 8.2% compared to 10.4%. Cash provided by operating activities of $196.8 million, compared to $204.2 million. Free cash flow of $183.4 million, compared with $186.7 million. In FY 25, the company has completed three strategic acquisitions and opened four greenfield yard locations.

GMS in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.29, beating the analysts’ estimates for the adjusted earnings per share of $1.11. The company had reported the adjusted revenue decline of 5.6 percent to $1.33 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $1.43 billion. Organic net sales decreased 9.7%. On a per day basis, net sales were down 4.1% and organic net sales decreased 8.3%. The company has 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.

Additionally, the company has repurchased 348,599 shares of common stock for $26.4 million at an average cost per share of $75.60, compared to 174,555 shares of common stock for $16.0 million at an average cost per share of $91.86. Net debt leverage was 2.4 times Pro Forma Adjusted EBITDA as of the end of the fourth quarter of fiscal 2025, consistent with the end of the third quarter of fiscal 2025 and up from 1.7 times Pro Forma Adjusted EBITDA a year ago. Leveraging investments in technology and efficiency optimization, the Company implemented an additional estimated $25 million in annualized cost reductions.