Talking about The Home Depot and GMS Deal

Some of the buzz circulating during trade shows in late 2025 was about the acquisition of Gypsum Management and Supply Inc. (GMS) by SRS Distribution Inc., a specialty trade distribution subsidiary of The Home Depot. All of the entities in the construction industry, including us, remain curious about how this acquisition will impact what matters most to contractors—product quality, availability and price.

Here is what The Home Depot announced in September 2025, from Ted Decker, chair, president and CEO of The Home Depot,

“The addition of GMS further enhances SRS's position as a leading multi-category building materials distributor, bringing differentiated capabilities, product categories and customer relationships that are highly complementary to SRS’s business today. We want to serve the Pro across their entire project, and the combination of SRS and GMS will enable cross-selling synergies, strengthen our capabilities, and bring even more opportunities to grow with this important customer.”

The Home Depot acquired SRS, a major supplier of roofing, landscaping and pool-related products to professional customers, in 2024. This latest acquisition appears to be part of a strategy to increase business with professional contractors (Pros), promising to “serve the residential and commercial Pro more holistically, including with more fulfillment and service options, that will enable Pros to more quickly and seamlessly complete their projects.”

This was not the only option for GMS. Billionaire and entrepreneur Brad Jacobs offered an all-cash bid under his company QXO (a building product distributor) for GMS at about $5 billion. GMS’s board accepted SRS’s $5.5-billion proposal in part, it is believed, because of The Home Depot’s established professional supply network.

Analysts are studying the reasons behind the acquisition and what comes next. Some note consumers are not spending like they once were on do-it-yourself projects, so The Home Depot’s profits are not hitting the target. A third quarter report showed adjusted diluted earnings per share for the third quarter of fiscal 2025 were $3.74, compared with adjusted diluted earnings per share of $3.78 in the same period of fiscal 2024.

"Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories. Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize. We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand," Decker said in a statement. "Our teams are continuing to execute at a high level and we believe we are growing our market share. I would like to thank our associates for their continued hard work and dedication."

The Home Depot, therefore, is pulling in drywallers, framers, painters, electricians, roofers and other professionals to make up for a decrease in homeowner-direct purchases. Controlling this aspect of distribution and the supply chain is expected to be profitable for the company.

For additional insight, check out a recent episode of the Best of Success Podcast Show from Roofing Contractor magazine. RC Publisher Jill Bloom spoke with Dan Tinker, president and CEO of SRS Distribution, and JT Turner, president and CEO of GMS, to discuss this hot industry news. This podcast gives perspective to the analysis with a focus on growth, innovation and customer loyalty.