GMS Inc (NYSE:GMS) shares surged 9.23% in pre-market trading on Wednesday following the release of its fourth-quarter fiscal 2025 earnings report, which exceeded analysts' expectations despite challenging market conditions.

The interior-construction products distributor reported adjusted earnings per share of $1.29, significantly beating the FactSet consensus estimate of $1.11. While this represents a 33.16% decrease from the same period last year, it demonstrates the company's resilience in a tough economic environment. GMS also outperformed on the top line, with quarterly sales of $1.33 billion surpassing the expected $1.30 billion, though this marks a 5.66% decrease year-over-year.

John Turner Jr., Chief Executive of GMS, acknowledged the challenges posed by high interest rates and general market uncertainty, which have dampened activity across the company's major end markets. However, he expressed cautious optimism about the future, stating, "As we begin fiscal 2026, we are cautiously optimistic that we are nearing the bottom of this cycle and believe pent-up demand will materialize as the macro environment improves." The company's strong performance, coupled with its implementation of an additional $25 million in annualized cost reductions during Q4, suggests that GMS is well-positioned to capitalize on any market recovery.