Latest news with #LVRO
Business Insider
15-07-2025
- Business
- Business Insider
Lavoro receives noncompliance notification from Nasdaq
Lavoro (LVRO) announced that, as expected, it received a notice of non-compliance from Nasdaq on July 10. The notice indicated that the company was not in compliance with Nasdaq Listing Rule 5250(c)(2) as a result of the delayed filing of its Form 6-K reporting interim financial information for the six-month period ended December 31, 2024. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Yahoo
19-06-2025
- Business
- Yahoo
GMS Inc (GMS) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic Gains
Full Year Net Sales: $5.5 billion, up marginally compared to the prior year. Organic Sales: $5.2 billion, down 5.4% on a same-day basis compared to the prior year. Full Year Net Income: $115.5 million, inclusive of a $42.5 million noncash goodwill impairment charge. Adjusted EBITDA: $500.9 million. Free Cash Flow: $336.1 million, or 67% of adjusted EBITDA. Fourth Quarter Net Sales: $1.3 billion. Fourth Quarter Organic Sales Decline: 8.3% per day. Fourth Quarter Net Income: $26.1 million. Fourth Quarter Adjusted EBITDA: $109.8 million. Cash from Operating Activities (Q4): $196.8 million. Fourth Quarter Free Cash Flow: $183.4 million, or 167% of adjusted EBITDA. Cost Savings Program: $55 million in annualized cost savings during fiscal 2025. Net Debt Reduction: More than 10% during the quarter. Leverage Ratio: 2.4 times adjusted EBITDA. Share Repurchase: 348,600 shares for $26.4 million during the quarter. Warning! GuruFocus has detected 4 Warning Signs with LVRO. Release Date: June 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GMS Inc (NYSE:GMS) reported net sales of $5.5 billion for the full year, driven by positive contributions from recent acquisitions. The company achieved a record quarterly free cash flow conversion, with $183.4 million or 167% of adjusted EBITDA generated during the fourth quarter. Ceilings and Complementary Products saw volume improvement during the quarter, with Ceilings benefiting from strategic focus on Architectural Specialties projects. GMS Inc (NYSE:GMS) implemented a significant cost savings program, achieving $55 million in annualized cost savings during fiscal 2025. The company reduced net debt by more than 10% during the quarter, maintaining a target debt leverage range of 1.5 to 2.5 times. Organic sales for the year were down 5.4% on a same-day basis compared to the prior year. Net income for the full year was impacted by a $42.5 million noncash goodwill impairment charge recorded in the third quarter. The company faced ongoing macroeconomic challenges, with organic sales declining 8.3% per day in the fourth quarter. Wallboard sales were down 10.1% year-over-year, with single-family volumes in the US down 1.9% per day. Commercial activity was negatively impacted by high interest rates and economic uncertainty, contributing to soft starts and mixed results. Q: JT, you mentioned that sequential organic trends would be seasonally better next quarter. Could you explain why you feel that way? A: John Turner, President and CEO, explained that the improvement is primarily in the single-family market, where they have gained some share with larger customers. He noted that recent commentary from major builders like Lennar and Horton suggests the market is not as dire as it might seem, and GMS is experiencing normal seasonality with some improvement in single-family. Q: Can you discuss the technology and efficiency optimization efforts and the $25 million in annualized savings? Are there additional digital benefits beyond what you've already outlined? A: John Turner highlighted that GMS has continued to invest in digital efforts, including customer portals and e-commerce, which have contributed to cost savings. They are also exploring AI applications for order entry automation. Scott Deakin, CFO, added that the common ERP platform across the US footprint enhances the effectiveness of these technologies. Q: Regarding the single-family market, how do you view the share gains and the pressure from builders for concessions? A: John Turner stated that GMS is leveraging its scale to assist builder partners, maintaining strong relationships throughout the supply chain. He noted that GMS has gained share recently and has regional strength due to strategic greenfield activities and acquisitions, such as RS Elliot in Florida. Q: How do you view the margin dynamics and the 10% to 12% EBITDA margin target? How much is dependent on market outcomes versus internal improvements? A: John Turner explained that while market recovery is necessary for volume growth, internal improvements such as cost structure optimization and product mix enhancements contribute significantly. He estimated that about half of the margin improvement would come from market recovery and half from internal efficiencies. Q: What is your visibility into the single-family market, and how do you see start activity flowing into shipments? A: John Turner mentioned that GMS typically sees a three to six-month lead time from starts to shipments, with visibility primarily for the upcoming quarter. He expressed optimism that the market would bottom out and improve by the next spring selling season, given the historical cycle of home starts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
