Home Depot completes $5.1B GMS acquisition; earnings fall 4% as ROIC drops 560bp to 25.7%

Filed March 18, 2026 · Period ending February 1, 2026 · Compared to 10-K Mar 21, 2025 · ~2 min read

Key Changes

• high

  SRS acquired GMS (drywall, ceilings, steel framing) for $5.1B in Sep 2025, expanding from 780 to 1,250+ locations and adding interior building products as a fourth line of business.

  Business: SRS acquisition of GMS verify on EDGAR →
• high

  Net earnings fell $600M to $14.2B (EPS $14.23, down 4.6%) while operating margin compressed from 13.5% to 12.7%; ROIC dropped 560bp to 25.7% on higher debt and paused buybacks.

  MD&A: Net earnings and ROIC verify on EDGAR →
• high

  Operating cash flow declined $3.5B (18%) to $16.3B on working capital headwinds, partially offset by OBBBA tax legislation allowing 100% expensing of qualified property.

  MD&A: Operating cash flow and OBBBA verify on EDGAR →