GMS Inc. (NYSE:GMS) Q1 2024 Earnings Call Transcript

Chris Kalata: Got it. Helpful. And then, I guess, maybe could you just walk us through the latest — your latest thoughts on commercial, given some of the regional bank stress and commercial real estate stress that we’re hearing about? What are your conversations with customers like today? And what does that suggest in terms of the more medium-term outlook there?

John Turner: We’re still bidding good activity on the bid side. As I walked through in the script, a lot of, I’ll call it, anecdotal evidence around the numbers of projects and types of projects that are in the pipeline. I do think that it’s inevitable that it has to soften somewhat with both high rates and the banking risk. The notable exception to any strength at all remains office, down — activity down quite a bit. All that being said, the Architectural Billings Index came out of 50 again, it’s flat with actually the big driver on the downside being multi-family, which is not a surprise considering how active that market has been. And then the put-in-place numbers from the Census Bureau, I think they’re out tomorrow for July.

I think they’re out tomorrow. So we don’t have them yet for July only through June. But again, all of the parts of the business outside of office that we participate in had been growing nicely from a put-in-place construction perspective. So if that trend continues, we should be able to continue to do this mid to low single digits growth in commercial.

Chris Kalata: Got it. Appreciate all the color

Operator: Thank you. We reached the end of our question-and-answer session. And ladies and gentlemen, that does conclude today’s teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.

John Turner: Thanks, Kevin.

Operator: Thank you, sir. Thank you, everyone. Take care.

John Turner: Thanks. Bye-bye.