Gypsum industry news

US: GMS recorded first-quarter sales of US$1.4bn in the 2025 financial year, which began on 1 April 2024. This corresponds to a 3% year-on-year rise from first-quarter 2024 financial year levels. Group adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 16% to US$146m. During the reporting period, GMS increased its gypsum wallboard sales by 3%, to US$588m. It reported an overall rise in sales volumes, buoyed by 4% growth in single-family residential construction, offsetting declines in multi-family residential and commercial construction. President and CEO John Turner nonetheless announced a new US$25m/yr costs reduction programme, due to on-going ‘market pressures.’

Turner said "We continued to focus on the execution of our strategic pillars and adapting to shifting end-market demand, and are managing costs more firmly across the business. We believe the market pressures we faced this quarter will likely persist over the next several quarters, at least until the expected reduction in interest rates can positively impact demand for our products.”

Latvia, Lithuania & Estonia: Germany-based Knauf’s Baltic business generated a turnover of €108m in the Baltic region in 2023, up by 4% year-on-year. The company’s regional profit grew by 34% to €19.5m. Baltic Business Daily has reported that Knauf’s Baltic sales volumes declined, amid a contraction in the local building market, with new building permits down by 30% year-on-year in the first half of the year. Knauf raised its regional investments to €5.8m, while its personnel costs rose by 3% year-on-year. Nonetheless, the company’s energy costs fell by 19%, and its raw materials costs fell by 7%.

Saudi Arabia: National Gypsum Company’s sales amounted to US$13.8m in 2023, down by 5.5% year-on-year from US$14.6m in 2022. Reuters has reported that the company’s cost of sales dropped by 8% year-on-year. Nonetheless, it recorded a net profit of US$1.36m, against a US$1.71m loss in 2022.

Belgium: Etex reported sales of €3.81bn in 2023, up by 2.5% from 2022 levels. The company's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) rose by 10% to €712m. It also raised its capital expenditure for the year, to €371m. Etex says that it was Europe’s leading gypsum recycling performer, with a recycling rate of 8.6% of all gypsum used. The group is ‘actively preparing’ to help rebuild Ukraine as soon as conditions permit.

CEO Bernard Delvaux said “Even more so than 2022, 2023 was a challenging year marked by volatility, uncertainty and severe drops in demand across the world, as we observed the continued impacts of increased energy prices and interest rates. Combined with tougher financing possibilities by banks, all these circumstances meant that both renovation and new construction levels dropped globally. Devaluation of some foreign currencies and hyperinflation accounting also had significant effects on our results. Despite all these challenges, I am extremely proud to share that Etex navigated these difficult waters very well and delivered yet again another record year. This includes our highest ever revenue and REBITDA, among others. This strong performance stems from our anticipation in making strategic decisions and changes at global, regional and local levels, ensuring continued proximity with our customers. This is also a result of even tighter cost monitoring in 2023, without ever losing sight of our long-term ambitions and continuing to improve our strong industrial footprint.”

Saudi Arabia: National Gypsum Company expects its cost of sales to rise by 11% following a hike in fuel prices by Saudi Aramco from 1 January 2024. In an exchange filing, the company said that the increase will show in its results from the first quarter of 2024.

Belarus: The Ministry of Antimonopoly Regulation and Trade has set new lower natural gas prices for industrial plants. Operators will pay US$0.15/m³, down by 2% year-on-year. Prime Press News has reported that the rate will be applied retroactively from 1 January 2024.

Spain: The government has established a Euro450m funding line for gas-intensive industries that struggled with high gas prices during 2022. The Boletín Oficial del Estado newspaper has reported that the gypsum industry is among those included. Companies can draw on up to Euro4m in relief. For those which recorded a drop of 30% or greater in earnings before interest, taxation, depreciation and amortisation, relief of up to Euro25m is available.

New Zealand: Gypsum wallboard producer and construction firm Fletcher Building has reported a 20% year-on-year drop in domestic housing demand during the first quarter of 2023. The Australian newspaper has reported that the company attributed the decline to ‘soaring’ interest rates in the country. It now expects to sell 800 residential units in 2023, 20% below its previous expectation of 1000 units. Fletcher Building said that building materials costs rose by 5 – 10% between 2020 and 2022, due to ‘higher input and commodity costs’ in production.

CEO Ross Taylor said that Fletcher Building faces labour shortages in its civil construction business, but maintained a strong order pipeline. Taylor said “It won’t drive an uptick in volumes but it will underpin the volumes in the next three to four years.”

Belgium: Etex's sales were Euro3.74bn in 2022, up by 25% year-on-year from 2021 levels. Its building performance division, which includes gypsum wallboard, recorded revenues of Euro2.43m, 65% of the group total. Etex said that the division’s market positions and results 'evolved positively,' and 'demonstrated leadership' in the face of raw materials price rises. The group's recurring earnings before interest, taxation, depreciation and amortisation (REBITDA) totalled Euro645m, up by 13%.

During the year, Etex's Romania-based subsidiary Siniat commissioned its new Euro1m gypsum drying and micronisation plant at its Aghiresu gypsum wallboard plant in Cluj. The market yielded turnover growth of 17% year-on-year for Siniat, to Euro72.5m

Etex recycled 54% more gypsum than in 2018 across its operations, making it 'the most advanced gypsum recycler in Europe,' according to the company. Its absolute CO₂ emissions fell by 20% over the same period.

UK: Langley Holdings, owner of Claudius Peters, recorded consolidated sales of Euro1.17bn during 2022, up by 40% year-on-year from Euro815m in 2021. The group ended the year with an order backlog worth Euro900m. Its Other Industrials division, which includes Germany-based Claudius Peters, recorded sales of Euro277m, up by 11% from Euro250m. Langley Holdings said that, due to the length of its lead times, Claudius Peters’ profitability was especially impacted by costs rises in its delivery on existing contracts in 2022.

Chair Anthony Langley said “Hopefully management will make progress with tangible improvements to the plant machinery business: restructuring is not the preferred option, but, either way, I do expect a better result this year.”