[Cautionary Note Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) Forward-looking statements in this report are subject to risks and uncertainties that could cause actual results to differ materially - The report contains forward-looking statements regarding future operations, financial position, business strategy, and plans, identifiable by terms like "believes," "expects," "may," and "will," which are subject to known and unknown risks and uncertainties that could cause actual results to differ materially[9](index=9&type=chunk)[10](index=10&type=chunk)[11](index=11&type=chunk) - Key risk factors include declines in construction markets, slowdowns in municipal spending, price fluctuations in product costs, inventory management issues, acquisition risks, competitive markets, and the ability to retain key personnel[11](index=11&type=chunk)[13](index=13&type=chunk) Part I - Financial Information [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) Presents Core & Main, Inc.'s unaudited condensed consolidated financial statements, covering balance sheets, operations, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20August%203%2C%202025%20and%20February%202%2C%202025%20%28unaudited%29) Condensed Consolidated Balance Sheets (Amounts in millions) | Metric | August 3, 2025 | February 2, 2025 | Change | | :----------------------------------- | :------------- | :--------------- | :----- | | Total current assets | $2,510 | $2,025 | +$485 | | Total assets | $6,306 | $5,870 | +$436 | | Total current liabilities | $1,117 | $866 | +$251 | | Total liabilities | $4,344 | $4,096 | +$248 | | Total stockholders' equity | $1,962 | $1,774 | +$188 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20month%20periods%20ended%20August%203%2C%202025%20and%20July%2028%2C%202024%20%28unaudited%29) Condensed Consolidated Statements of Operations (Amounts in millions, except per share data) | Metric | Three Months Ended Aug 3, 2025 | Three Months Ended Jul 28, 2024 | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net sales | $2,093 | $1,964 | $4,004 | $3,705 | | Gross profit | $560 | $518 | $1,070 | $986 | | Operating income | $213 | $204 | $384 | $372 | | Net income | $141 | $126 | $246 | $227 | | Net income attributable to Core & Main, Inc. | $134 | $119 | $234 | $214 | | Basic EPS | $0.71 | $0.62 | $1.23 | $1.11 | | Diluted EPS | $0.70 | $0.61 | $1.22 | $1.11 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20three%20and%20six%20month%20periods%20ended%20August%203%2C%202025%20and%20July%2028%2C%202024%20%28unaudited%29) Condensed Consolidated Statements of Comprehensive Income (Amounts in millions) | Metric | Three Months Ended Aug 3, 2025 | Three Months Ended Jul 28, 2024 | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net income | $141 | $126 | $246 | $227 | | Total comprehensive income | $133 | $93 | $217 | $212 | | Total comprehensive income attributable to Core & Main, Inc. | $126 | $88 | $206 | $200 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20three%20and%20six%20month%20periods%20ended%20August%203%2C%202025%20and%20July%2028%2C%202024%20%28unaudited%29) Changes in Stockholders' Equity (Amounts in millions) | Metric | Balances at Feb 2, 2025 | Balances at Aug 3, 2025 | | :----------------------------------- | :---------------------- | :---------------------- | | Total Stockholders' Equity | $1,774 | $1,962 | | Net income (attributable to Core & Main, Inc.) | $100 (for 3 months ended May 4, 2025) + $134 (for 3 months ended Aug 3, 2025) | $234 | | Equity-based compensation | $5 (for 3 months ended May 4, 2025) + $5 (for 3 months ended Aug 3, 2025) | $10 | | Repurchase and Retirement of equity interests | $(39) (for 3 months ended May 4, 2025) + $(8) (for 3 months ended Aug 3, 2025) | $(47) | - The company repurchased **959,103 shares** of Class A common stock for **$47 million** during the six months ended August 3, 2025, with **$277 million** remaining authorized under the program[33](index=33&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20month%20periods%20ended%20August%203%2C%202025%20and%20July%2028%2C%202024%20%28unaudited%29) Condensed Consolidated Statements of Cash Flows (Amounts in millions) | Metric | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | Change | | :----------------------------------- | :--------------------------- | :--------------------------- | :----- | | Net cash provided by operating activities | $111 | $126 | $(15) | | Net cash used in investing activities | $(28) | $(618) | +$590 | | Net cash (used in) provided by financing activities | $(66) | $504 | $(570) | | Increase in cash and cash equivalents | $17 | $12 | +$5 | | Cash and cash equivalents at end of period | $25 | $13 | +$12 | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) - The financial statements are unaudited and include all normal recurring adjustments necessary for a fair statement of the Company's results, but interim results may not be indicative of full-year performance[35](index=35&type=chunk) [1) Basis of Presentation & Description of Business](index=11&type=section&id=1%29%20BASIS%20OF%20PRESENTATION%20%26%20DESCRIPTION%20OF%20BUSINESS) - The Company is a leading specialty distributor dedicated to advancing reliable infrastructure with local service, nationwide, focusing on water, wastewater, storm drainage, and fire protection products and services[31](index=31&type=chunk) - Core & Main is a holding company that indirectly owns Core & Main LP, the operating entity, through its interest in Core & Main Holdings, LP[32](index=32&type=chunk)[34](index=34&type=chunk) - The Company's board authorized a **$500 million** share repurchase program on June 12, 2024. For the six months ended August 3, 2025, **959,103 shares** were repurchased for **$47 million**, with **$277 million** remaining available[33](index=33&type=chunk) - The Company operates as a single operating and reportable segment, with performance measured by net sales and net income at the consolidated level[36](index=36&type=chunk) [2) Recent Accounting Pronouncements](index=12&type=section&id=2%29%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) - ASU 2023-09 (Income Tax Disclosures) is effective for annual periods beginning after December 15, 2024, and is expected to result in additional disclosures but no material financial impact[40](index=40&type=chunk) - ASU 2024-03 (Disaggregation of Income Statement Expenses) is effective for annual periods beginning after December 15, 2026, and is being evaluated for its impact on consolidated financial statements[41](index=41&type=chunk) [3) Revenue](index=13&type=section&id=3%29%20REVENUE) Net Sales by Product Category (Amounts in millions) | Product Category | Three Months Ended Aug 3, 2025 | Three Months Ended Jul 28, 2024 | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | | :----------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Pipes, valves & fittings | $1,430 | $1,329 | $2,727 | $2,498 | | Storm drainage products | $335 | $306 | $630 | $559 | | Fire protection products | $155 | $143 | $307 | $310 | | Meter products | $173 | $186 | $340 | $338 | | Total net sales | $2,093 | $1,964 | $4,004 | $3,705 | [4) Acquisitions](index=13&type=section&id=4%29%20ACQUISITIONS) - The Company completed no acquisitions in the six months ended August 3, 2025. In the prior year (six months ended July 28, 2024), it made several acquisitions with an aggregate value of **$623 million**, including Dana Kepner, ACF West, EGW Utilities, GSC, and Eastern Supply[43](index=43&type=chunk)[44](index=44&type=chunk) - The Fiscal 2024 Acquisitions resulted in **$285 million** in goodwill and **$233 million** in intangible assets (primarily customer relationships)[46](index=46&type=chunk) - Pro forma net sales for the six months ended July 28, 2024, including the Dana Kepner acquisition as if it occurred on January 30, 2023, would have been **$3,734 million**, with net income of **$228 million**[53](index=53&type=chunk) [5) Goodwill and Intangible Assets](index=17&type=section&id=5%29%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Intangible Assets, Net (Amounts in millions) | Intangible Asset | August 3, 2025 | February 2, 2025 | | :----------------------- | :------------- | :--------------- | | Customer relationships | $834 | $907 | | Internal use software | $29 | $23 | | Other intangible assets | $4 | $5 | | Total | $867 | $935 | Amortization Expense (Amounts in millions) | Period | August 3, 2025 | July 28, 2024 | | :----------------------- | :------------- | :------------ | | Three Months Ended | $37 | $38 | | Six Months Ended | $74 | $73 | - Estimated aggregate amortization expense for intangible assets is **$74 million** for the remainder of fiscal 2025, **$138 million** for fiscal 2026, **$129 million** for fiscal 2027, **$120 million** for fiscal 2028, and **$106 million** for fiscal 2029[56](index=56&type=chunk) [6) Debt](index=18&type=section&id=6%29%20DEBT) Debt Obligations (Amounts in millions) | Debt Type | August 3, 2025 (Principal) | February 2, 2025 (Principal) | Weighted Average Interest Rate (Aug 3, 2025) | Maturity Date | | :----------------------------------- | :------------------------- | :--------------------------- | :----------------------------------- | :------------ | | Current maturities of long-term debt | $24 | $24 | N/A | N/A | | Senior ABL Credit Facility | $100 | $93 | 5.58% | Feb 9, 2029 | | 2028 Senior Term Loan | $1,226 | $1,233 | 6.27% | Jul 27, 2028 | | 2031 Senior Term Loan | $928 | $933 | 6.27% | Feb 9, 2031 | | Total Debt (Principal) | $2,278 | $2,283 | N/A | N/A | - The Company uses interest rate swaps to mitigate exposure to variable interest rates, effectively converting **$700 million** of variable rate debt to a fixed rate of **2.693%** until July 27, 2026, and another **$750 million** (increasing to **$1,500 million**) to a fixed rate of **5.913%** until July 27, 2028[63](index=63&type=chunk)[64](index=64&type=chunk) - The Company was in compliance with all debt covenants as of August 3, 2025[61](index=61&type=chunk) [7) Income Taxes](index=20&type=section&id=7%29%20INCOME%20TAXES) Effective Tax Rate | Period | August 3, 2025 | July 28, 2024 | | :----------------------- | :------------- | :------------ | | Three Months Ended | 22.5% | 25.0% | | Six Months Ended | 23.8% | 24.8% | - The decrease in the effective tax rate for both periods was primarily due to certain tax windfall benefits from equity award exercises[68](index=68&type=chunk) - The Company has Tax Receivable Agreements requiring payments of **85%** of realized tax benefits, with expected payments of **$41 million** within the next 12 months[69](index=69&type=chunk)[70](index=70&type=chunk) [8) Supplemental Financial Statement Information](index=20&type=section&id=8%29%20SUPPLEMENTAL%20FINANCIAL%20STATEMENT%20INFORMATION) Receivables (Amounts in millions) | Receivable Type | August 3, 2025 | February 2, 2025 | | :----------------------- | :------------- | :--------------- | | Trade receivables, net | $1,282 | $986 | | Supplier rebate receivables | $75 | $80 | | Total Receivables, net | $1,357 | $1,066 | Accrued Compensation and Benefits (Amounts in millions) | Accrued Item | August 3, 2025 | February 2, 2025 | | :----------------------- | :------------- | :--------------- | | Accrued bonuses and commissions | $63 | $91 | | Other compensation and benefits | $31 | $32 | | Total Accrued Compensation and Benefits | $94 | $123 | Depreciation Expense (Amounts in millions) | Period | August 3, 2025 | July 28, 2024 | | :----------------------- | :------------- | :------------ | | Three Months Ended | $9 | $9 | | Six Months Ended | $18 | $17 | [9) Non-Controlling Interests](index=21&type=section&id=9%29%20NON-CONTROLLING%20INTERESTS) - Non-controlling interests represented **3.5%** of Holdings as of August 3, 2025, down from **3.9%** as of February 2, 2025[76](index=76&type=chunk) [10) Basic and Diluted Earnings Per Share](index=22&type=section&id=10%29%20BASIC%20AND%20DILUTED%20EARNINGS%20PER%20SHARE) - Basic EPS is calculated by dividing net income attributable to Core & Main by the weighted average Class A common stock outstanding. Diluted EPS includes the dilutive impact of potential Class A shares from Partnership Interests exchange and outstanding awards[79](index=79&type=chunk)[80](index=80&type=chunk) Basic and Diluted EPS (Amounts in millions, except per share data) | Metric | Three Months Ended Aug 3, 2025 | Three Months Ended Jul 28, 2024 | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net income available to Class A common stock | $134 | $119 | $234 | $214 | | Basic EPS | $0.71 | $0.62 | $1.23 | $1.11 | | Diluted EPS | $0.70 | $0.61 | $1.22 | $1.11 | | Weighted average shares outstanding - basic | 189,904,002 | 192,797,961 | 189,855,388 | 192,495,255 | | Weighted average shares outstanding - diluted | 198,302,610 | 202,667,354 | 198,503,146 | 202,640,993 | [11) Related Parties](index=22&type=section&id=11%29%20RELATED%20PARTIES) - The Company has Tax Receivable Agreements and an Exchange Agreement with related parties, with no significant changes reported[82](index=82&type=chunk) [12) Subsequent Events](index=22&type=section&id=12%29%20SUBSEQUENT%20EVENTS) - Management has evaluated events or transactions that may have occurred and identified no subsequent events meriting recognition or disclosure[83](index=83&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial condition, operations, key factors, and results for the three and six months ended August 3, 2025, including liquidity and non-GAAP measures [Overview](index=23&type=section&id=Overview) - Core & Main is a leading specialty distributor of water, wastewater, storm drainage, and fire protection products, serving municipal, non-residential, and residential end markets through over **370 branches** across **49 U.S. states**[85](index=85&type=chunk) - The Company's fiscal year is a 52- or 53-week period ending on the Sunday nearest to January 31st, with the current fiscal year (fiscal 2025) comprising **52 weeks**[87](index=87&type=chunk) [Key Factors Affecting Our Business](index=23&type=section&id=Key%20Factors%20Affecting%20Our%20Business) - Demand for products is tied to municipal (**42%**), non-residential (**38%**), and residential (**20%**) construction markets, which are subject to cyclical pressures[88](index=88&type=chunk) - The Infrastructure Investment and Jobs Act (IIJA) includes **$55 billion** for water infrastructure, which is expected to benefit the business, although a temporary funding pause was issued in January 2025[89](index=89&type=chunk) - Operating results are impacted by seasonality, with net sales typically lower in the first and fourth fiscal quarters due to colder weather and shorter daylight hours[90](index=90&type=chunk) - Financial performance is affected by price fluctuations in product costs and the ability to pass these changes to customers. Over three-quarters of products are manufactured domestically, limiting tariff exposure[91](index=91&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - The Company is exposed to interest rate risk on variable-rate debt (**$2,278 million** outstanding as of August 3, 2025) but mitigates this through interest rate swaps[95](index=95&type=chunk) - The Company opportunistically pursues strategic acquisitions, completing several in fiscal 2024 with an aggregate value of **$769 million**, focusing on expanding product lines and geographic reach[96](index=96&type=chunk)[97](index=97&type=chunk) [Key Business Metrics](index=25&type=section&id=Key%20Business%20Metrics) - Net sales are generated from selling water, wastewater, storm drainage, and fire protection products and services to over **60,000 customers**, categorized into pipes, valves & fittings, storm drainage, fire protection, and meter products[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - Gross profit is the difference between net sale price and product cost (including material, labor, overhead, and depreciation), influenced by the timing of supplier cost changes and customer pricing[101](index=101&type=chunk) - Operating expenses primarily consist of selling, general, and administrative costs, including personnel, rent, insurance, utilities, professional fees, and freight[102](index=102&type=chunk) - Adjusted EBITDA and Adjusted Diluted Earnings Per Share are non-GAAP measures used to assess operating results and business effectiveness, excluding items like equity-based compensation and acquisition expenses[105](index=105&type=chunk)[107](index=107&type=chunk)[152](index=152&type=chunk)[154](index=154&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) [Three Months Ended August 3, 2025 Compared with Three Months Ended July 28, 2024](index=27&type=section&id=Three%20Months%20Ended%20August%203%2C%202025%20Compared%20with%20Three%20Months%20Ended%20July%2028%2C%202024) Financial Performance (Three Months Ended) | Metric | Aug 3, 2025 | Jul 28, 2024 | Change ($) | Change (%) | | :----------------------------------- | :---------- | :----------- | :--------- | :--------- | | Net sales | $2,093 | $1,964 | +$129 | +6.6% | | Gross profit | $560 | $518 | +$42 | +8.1% | | Gross profit as % of net sales | 26.8% | 26.4% | +0.4 pp | N/A | | SG&A expenses | $302 | $268 | +$34 | +12.7% | | Operating income | $213 | $204 | +$9 | +4.4% | | Interest expense | $31 | $36 | $(5) | -13.9% | | Provision for income taxes | $41 | $42 | $(1) | -2.4% | | Effective tax rate | 22.5% | 25.0% | -2.5 pp | N/A | | Net income | $141 | $126 | +$15 | +11.9% | | Net income attributable to Core & Main, Inc. | $134 | $119 | +$15 | +12.6% | | Basic EPS | $0.71 | $0.62 | +$0.09 | +14.5% | | Diluted EPS | $0.70 | $0.61 | +$0.09 | +14.8% | | Adjusted EBITDA | $266 | $257 | +$9 | +3.5% | | Adjusted Diluted EPS | $0.87 | $0.77 | +$0.10 | +13.0% | - Net sales growth was driven by higher volumes and acquisitions, though meter products declined due to project delays[109](index=109&type=chunk) - SG&A expenses increased due to higher personnel expenses, variable compensation, employee benefits, and distribution-related costs[112](index=112&type=chunk) - EPS increases were also supported by lower Class A share counts due to share repurchases[119](index=119&type=chunk)[121](index=121&type=chunk) [Six Months Ended August 3, 2025 Compared with Six Months Ended July 28, 2024](index=29&type=section&id=Six%20Months%20Ended%20August%203%2C%202025%20Compared%20with%20Six%20Months%20Ended%20July%2028%2C%202024) Financial Performance (Six Months Ended) | Metric | Aug 3, 2025 | Jul 28, 2024 | Change ($) | Change (%) | | :----------------------------------- | :---------- | :----------- | :--------- | :--------- | | Net sales | $4,004 | $3,705 | +$299 | +8.1% | | Gross profit | $1,070 | $986 | +$84 | +8.5% | | Gross profit as % of net sales | 26.7% | 26.6% | +0.1 pp | N/A | | SG&A expenses | $595 | $525 | +$70 | +13.3% | | Operating income | $384 | $372 | +$12 | +3.2% | | Interest expense | $61 | $70 | $(9) | -12.9% | | Provision for income taxes | $77 | $75 | +$2 | +2.7% | | Effective tax rate | 23.8% | 24.8% | -1.0 pp | N/A | | Net income | $246 | $227 | +$19 | +8.4% | | Net income attributable to Core & Main, Inc. | $234 | $214 | +$20 | +9.3% | | Basic EPS | $1.23 | $1.11 | +$0.12 | +10.8% | | Diluted EPS | $1.22 | $1.11 | +$0.11 | +9.9% | | Adjusted EBITDA | $490 | $474 | +$16 | +3.4% | | Adjusted Diluted EPS | $1.55 | $1.42 | +$0.13 | +9.2% | - Net sales increased due to higher volumes and acquisitions, with fire protection products seeing a decline in selling prices partially offset by acquisitions[123](index=123&type=chunk) - Gross profit percentage improved slightly due to margin initiatives and accretive acquisitions, despite higher average inventory costs[125](index=125&type=chunk) - Net income attributable to Core & Main, Inc. increased due to higher net income and a decreased allocation to non-controlling interest holders[132](index=132&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) - The Company's liquidity is primarily financed through operating cash flows, credit facilities, equity/debt issuances, and working capital management. Key requirements include working capital, capital expenditures, acquisitions, debt servicing, Tax Receivable Agreement payments, and share repurchases[136](index=136&type=chunk) - As of August 3, 2025, cash and cash equivalents totaled **$25 million**, with **$100 million** outstanding on the Senior ABL Credit Facility, which has a borrowing capacity of up to **$1,250 million**[137](index=137&type=chunk)[138](index=138&type=chunk) - Net cash provided by operating activities decreased by **$15 million** to **$111 million** for the six months ended August 3, 2025, primarily due to higher working capital investment[146](index=146&type=chunk) - Net cash used in investing activities decreased by **$590 million** to **$28 million**, mainly due to **$596 million** in cash outflows for acquisitions during fiscal 2024[147](index=147&type=chunk) - Net cash used in financing activities was **$66 million**, a **$570 million** change from the prior year, driven by decreased net borrowings and debt issuance costs, increased share repurchases, and higher Tax Receivable Agreement payments[148](index=148&type=chunk) - The Company expects current liquidity sources to be sufficient for the next 12 months, but future acquisitions may require additional equity or debt[142](index=142&type=chunk) - The Company had **$1,024 million** in purchase obligations, primarily for inventory, as of August 3, 2025, generally cancellable but with no intent to cancel[150](index=150&type=chunk) [Non-GAAP Financial Measures](index=33&type=section&id=Non-GAAP%20Financial%20Measures) - EBITDA, Adjusted EBITDA, and Adjusted Diluted Earnings Per Share are non-GAAP measures used to assess operating results and effectiveness, providing supplemental performance information not considered GAAP measures[151](index=151&type=chunk)[155](index=155&type=chunk) - Adjusted EBITDA is defined as net income adjusted for non-controlling interests, D&A, income taxes, interest expense, loss on debt modification, equity-based compensation, and acquisition-related expenses[152](index=152&type=chunk) - Adjusted Diluted EPS is diluted EPS adjusted for amortization of intangible assets, loss on debt modification, equity-based compensation, acquisition expenses, and their tax impacts[154](index=154&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Amounts in millions) | Metric | Three Months Ended Aug 3, 2025 | Three Months Ended Jul 28, 2024 | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Net income attributable to Core & Main, Inc. | $134 | $119 | $234 | $214 | | Net income | $141 | $126 | $246 | $227 | | Depreciation and amortization | $46 | $47 | $93 | $91 | | Provision for income taxes | $41 | $42 | $77 | $75 | | Interest expense | $31 | $36 | $61 | $70 | | EBITDA | $259 | $251 | $477 | $463 | | Equity-based compensation | $5 | $4 | $10 | $7 | | Acquisition expenses | $2 | $2 | $3 | $4 | | Adjusted EBITDA | $266 | $257 | $490 | $474 | Reconciliation of Diluted EPS to Adjusted Diluted EPS | Metric | Three Months Ended Aug 3, 2025 | Three Months Ended Jul 28, 2024 | Six Months Ended Aug 3, 2025 | Six Months Ended Jul 28, 2024 | | :----------------------------------- | :----------------------------- | :----------------------------- | :--------------------------- | :--------------------------- | | Diluted earnings per share | $0.70 | $0.61 | $1.22 | $1.11 | | Amortization of intangible assets | $0.19 | $0.19 | $0.37 | $0.36 | | Equity-based compensation | $0.03 | $0.02 | $0.05 | $0.03 | | Acquisition expenses | $0.01 | $0.01 | $0.02 | $0.02 | | Income tax impact of adjustments | $(0.06) | $(0.06) | $(0.11) | $(0.10) | | Adjusted Diluted Earnings Per Share | $0.87 | $0.77 | $1.55 | $1.42 | [Recently Issued and Adopted Accounting Pronouncements and Accounting Pronouncements Issued But Not Yet Adopted](index=35&type=section&id=Recently%20Issued%20and%20Adopted%20Accounting%20Pronouncements%20and%20Accounting%20Pronouncements%20Issued%20But%20Not%20Yet%20Adopted) - Refer to Note 2 of the financial statements for details on recent accounting pronouncements[159](index=159&type=chunk) [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - No significant changes to critical accounting policies and estimates have materially impacted the unaudited condensed consolidated financial statements during the three and six months ended August 3, 2025[160](index=160&type=chunk) [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company had no off-balance sheet arrangements as of August 3, 2025[161](index=161&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Details the Company's exposure to market risks, including interest rate, credit, price, and foreign currency, and outlines management strategies - The Company is exposed to market risks from fluctuations in interest rates, foreign currency exchange rates, and product prices[162](index=162&type=chunk) [Interest Rate Risk](index=36&type=section&id=Interest%20Rate%20Risk) - The Company is exposed to interest rate fluctuations on its **$2,278 million** variable-rate debt (Senior Term Loan and Senior ABL Credit Facility). A one percentage point change in interest rates would result in an approximately **$22 million** change in annual interest expense on the Senior Term Loan Credit Facility[163](index=163&type=chunk) [Credit Risk](index=36&type=section&id=Credit%20Risk) - Credit risk on accounts receivable is mitigated by a large, diverse customer base, with the **50 largest customers** accounting for only **12%** of net sales in fiscal 2024[164](index=164&type=chunk) [Price Risk](index=36&type=section&id=Price%20Risk) - The Company faces price fluctuations in product procurement costs, which can impact gross profit margins. It aims to mitigate this through strategic inventory investments, inventory management, and gross margin initiatives[165](index=165&type=chunk) [Foreign Currency Risk](index=36&type=section&id=Foreign%20Currency%20Risk) - Foreign currency operations are not material, and a hypothetical **10%** change in the U.S. dollar's value would not materially impact net earnings[166](index=166&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Discusses the effectiveness of the Company's disclosure controls and internal control over financial reporting, including management's evaluation and quarterly changes [Evaluation of Disclosure Controls and Procedures](index=37&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of August 3, 2025[167](index=167&type=chunk) [Changes in Internal Control over Financial Reporting](index=37&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the fiscal quarter[168](index=168&type=chunk) [Limitations on Effectiveness of Controls and Procedures](index=37&type=section&id=Limitations%20on%20Effectiveness%20of%20Controls%20and%20Procedures) - Management acknowledges that control systems provide only reasonable, not absolute, assurance and may not prevent or detect all errors or fraud due to inherent limitations like human judgment, resource constraints, and potential for circumvention[169](index=169&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The Company is not party to material legal proceedings but faces incidental litigation, including product liability and asbestos-related matters - The Company is not currently involved in material legal proceedings but faces inherent risks of product liability, construction defect, and warranty claims, including ongoing asbestos-related litigation[171](index=171&type=chunk)[172](index=172&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Fiscal 2024 Annual Report on Form 10-K - No material changes have occurred in the risk factors since the Fiscal 2024 Annual Report on Form 10-K[173](index=173&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports on the Company's equity security transactions, detailing issuer purchases of Class A common stock for the three months ended August 3, 2025 [Sales of Unregistered Securities](index=38&type=section&id=Sales%20of%20Unregistered%20Securities) - No unregistered sales of equity securities were reported[174](index=174&type=chunk) [Use of Proceeds from Public Offering of Common Stock](index=38&type=section&id=Use%20of%20Proceeds%20from%20Public%20Offering%20of%20Common%20Stock) - No use of proceeds from public offerings of common stock was reported[175](index=175&type=chunk) [Issuer Purchases of Equity Securities](index=38&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) Issuer Purchases of Class A Common Stock (Three Months Ended August 3, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Value Remaining Under Program (millions) | | :----------------------- | :----------------------------- | :--------------------------- | :----------------------------------------------- | | May 5 - May 31 | 3,350 | $51.50 | $285 | | June 1 - June 30 | 13,126 | $56.95 | $285 | | July 1 - August 3 | 126,704 | $61.61 | $277 | | Total | 143,180 | $60.95 | $277 | - The repurchases include **121,835 shares** for **$61.55 per share** through open market transactions under the Repurchase Program during the three months ended August 3, 2025[177](index=177&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities - No defaults upon senior securities were reported[178](index=178&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[179](index=179&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Discloses new Rule 10b5-1(c) trading arrangements adopted by directors and officers during the quarter ended August 3, 2025 [Director and Officer Trading Arrangements](index=39&type=section&id=Director%20and%20Officer%20Trading%20Arrangements) - Several directors and officers, including Stephen O. LeClair (Executive Chair), Mark G. Whittenburg (General Counsel), Bradford A. Cowles (President), and Dennis G. Gipson (Director), adopted new Rule 10b5-1(c) trading arrangements for Class A common stock sales between October 2025 and April 2026[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk)[183](index=183&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including executive agreements, certifications, and XBRL documents - Exhibits include an Executive Transition Agreement, certifications by the Principal Executive Officer and Principal Financial Officer (pursuant to Sarbanes-Oxley Act Sections 302 and 906), and Inline XBRL documents[185](index=185&type=chunk) [Signatures](index=41&type=section&id=Signatures) - The report was signed on **September 9, 2025**, by Mark R. Witkowski, Chief Executive Officer and Director, and Robyn L. Bradbury, Chief Financial Officer[188](index=188&type=chunk)[189](index=189&type=chunk)

Financial Performance - Net sales increased 6.6% to $2,093 million in Q2 2025 compared to $1,964 million in Q2 2024[6] - Gross profit rose 8.1% to $560 million, with a gross profit margin of 26.8%[6] - Net income increased 11.9% to $141 million, driven by higher operating income and lower interest expense[11] - Adjusted EBITDA grew 3.5% to $266 million, reflecting higher gross profit partially offset by increased SG&A expenses[13] - Operating income for the three months ended August 3, 2025, was $213 million, up from $204 million in the prior year, representing a 4.4% increase[39] - Net income attributable to Core & Main, Inc. for the three months ended August 3, 2025, was $134 million, compared to $119 million for the same period last year, an increase of 12.6%[39] - Adjusted Diluted Earnings Per Share for the three months ended August 3, 2025, was $0.87, compared to $0.77 for the same period in 2024, reflecting a 12.99% increase[51] - Net income attributable to Core & Main, Inc. for the six months ended August 3, 2025, was $234 million, up from $214 million for the same period in 2024, representing a 9.34% increase[49] - Diluted earnings per share for the six months ended August 3, 2025, was $1.22, compared to $1.11 for the same period in 2024, reflecting a 9.91% increase[51] Expenses and Guidance - SG&A expenses increased 12.7% to $302 million, representing 14.4% of net sales[9] - The company lowered its full-year net sales guidance to $7,600 to $7,700 million and Adjusted EBITDA to $920 to $940 million[5] - Acquisition expenses for the three months ended August 3, 2025, were $2 million, consistent with the same period in 2024[50] - The company expects variability in acquisition expenses to have a potentially significant impact on future GAAP financial results[48] Cash Flow and Debt - Operating cash flow is projected to be between $550 to $610 million for the full year[30] - Net cash provided by operating activities was $111 million for the six months ended August 3, 2025[23] - Net cash provided by operating activities for the six months ended August 3, 2025, was $111 million, compared to $126 million for the same period last year[43] - Net Debt decreased to $2,253 million as of August 3, 2025, down from $2,439 million a year earlier[24] - Total Debt as of August 3, 2025, was $2,278 million, down from $2,452 million as of July 28, 2024, showing a reduction of 7.09%[53] - Net Debt decreased to $2,253 million as of August 3, 2025, from $2,439 million as of July 28, 2024, a decline of 7.63%[53] Assets and Liabilities - Total assets as of August 3, 2025, were $6,306 million, an increase from $5,870 million as of February 2, 2025, reflecting a growth of 7.4%[41] - Cash and cash equivalents increased to $25 million as of August 3, 2025, from $8 million at the beginning of the period[41] - Total liabilities as of August 3, 2025, were $4,344 million, an increase from $4,096 million as of February 2, 2025, indicating a rise of 6.1%[41] Inventory and Acquisitions - The company reported a decrease in inventories by $152 million for the six months ended August 3, 2025, compared to a decrease of $105 million in the prior year[43] - Two new locations were opened in Kansas City, Kansas, and Columbus, Wisconsin, and an acquisition of Canada Waterworks was completed[4]

Core Insights - Core & Main, Inc. is a leading distributor in the water, wastewater, storm drainage, and fire protection products sector in the U.S. [1] - The company is expected to report quarterly earnings on September 9, 2025, with an estimated EPS of $0.77 and projected revenue of approximately $2.12 billion [1][2] Financial Performance - Analysts anticipate an increase in EPS to $0.77, up from $0.61 in the same period last year, and revenue growth from $1.96 billion to $2.12 billion [2] - Financial metrics indicate a P/E ratio of approximately 30.56, a price-to-sales ratio of about 1.67, and a debt-to-equity ratio of 1.45, suggesting a higher level of debt compared to equity [5][6] Recent Developments - The recent acquisition of Canada Waterworks is expected to positively impact future performance and aligns with the company's strategy to expand market presence [3][6] - Following the acquisition announcement, the company's shares increased by 2%, closing at $65.85, reflecting investor confidence [3] Analyst Ratings - JP Morgan's Stephen Tusa has maintained an Overweight rating on the stock and raised the price target from $56 to $64, despite challenges in market volumes [4] - Volume expectations for the latter half of 2025 remain subdued, but the overall market situation is not worse than anticipated [4]

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Group 1 - Core & Main (CNM) stock closed at $61.85, up 2.25% from the previous session, outperforming the S&P 500's gain of 0.54% [1] - Prior to the recent trading day, CNM shares had increased by 7.73%, surpassing the Industrial Products sector's gain of 5.35% and the S&P 500's gain of 4.2% [1] Group 2 - Upcoming EPS for Core & Main is projected at $0.78, reflecting a 27.87% increase year-over-year, with revenue expected to be $2.11 billion, indicating a 7.54% increase [2] - For the entire fiscal year, earnings are estimated at $2.46 per share and revenue at $7.75 billion, showing increases of 15.49% and 4.11% respectively from the previous year [3] Group 3 - Core & Main currently has a Forward P/E ratio of 24.64, which is higher than the industry average of 17.61 [6] - The company's PEG ratio stands at 1.79, compared to the industry average of 1.61 [7] Group 4 - The Manufacturing - Tools & Related Products industry, which includes Core & Main, ranks in the top 26% of all industries according to the Zacks Industry Rank [8]

Industry Overview - The Zacks Manufacturing-Tools & Related Products industry includes companies that develop and distribute various tools and technology solutions, serving multiple sectors such as industrial, commercial, oil & gas, and automotive [3] - The industry is currently facing challenges due to a slowdown in the manufacturing sector, with the Manufacturing Purchasing Manager's Index at 49% in June, indicating contraction [4] - The New Orders Index has also been in contraction for five consecutive months, registering 46.4% in June [4] Current Challenges - The industry is experiencing input cost inflation and supply-chain issues, which are negatively impacting profitability and margins [5] - The Supplier Deliveries Index indicates slower deliveries for the seventh consecutive month, further complicating the operational landscape [5] - A shortage of skilled labor in the United States is also a significant challenge for the industry [1] Strategic Responses - Companies in the industry are focusing on cost-control measures and investments in product development to remain competitive [2] - Initiatives include streamlining operational structures, optimizing supply networks, and implementing effective pricing policies to manage costs [5] - Continuous innovation and product upgrades are seen as essential for long-term growth, although they may lead to highly leveraged balance sheets [6] Performance Metrics - The Zacks Manufacturing-Tools & Related Products industry currently holds a Zacks Industry Rank of 163, placing it in the bottom 34% of 246 Zacks industries, indicating weak prospects [7][8] - The industry's earnings estimates for 2025 have decreased by 7.3% over the past year, reflecting analysts' diminishing confidence in earnings growth potential [9] - Over the past year, the industry has underperformed compared to the sector and the S&P 500, growing only 7.7% versus 14.8% and 12.4% respectively [11] Valuation Insights - The industry is currently trading at a forward P/E ratio of 17.92X, which is below the S&P 500's 22.75X and the sector's 20.09X [14] - Historical trading ranges for the industry have been between 11.65X and 22.13X over the past five years, with a median of 18.55X [14] Notable Companies - **Stanley Black & Decker, Inc. (SWK)**: Focused on tools and engineered fastening systems, the company has shown solid momentum in its Tools & Outdoor segment, particularly in its DEWALT business. It has reported better-than-expected results in the last four quarters, with an average earnings surprise of 18.4% [19][20] - **Core & Main, Inc. (CNM)**: Provides water and fire protection products, benefiting from increased demand and recent acquisitions. Its fiscal 2026 earnings estimates have been revised upward by 1.2% in the past 60 days [23][24] - **Kennametal Inc. (KMT)**: Specializes in high-speed metal cutting tools and has seen improved supply chain conditions and increased OEM build rates in aerospace markets. The company has consistently surpassed earnings estimates, with an average surprise of 27% [26][27]

Financial Performance - Core & Main reported quarterly earnings of $0.52 per share, matching the Zacks Consensus Estimate, and an increase from $0.49 per share a year ago [1] - The company posted revenues of $1.91 billion for the quarter ended April 2025, exceeding the Zacks Consensus Estimate by 4.29%, compared to $1.74 billion in the same quarter last year [2] - Over the last four quarters, Core & Main has surpassed consensus revenue estimates three times [2] Stock Performance - Core & Main shares have increased approximately 16.5% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.75 on revenues of $2.11 billion, and for the current fiscal year, it is $2.43 on revenues of $7.71 billion [7] - The trend of estimate revisions for Core & Main is mixed, which may change following the recent earnings report [6] Industry Context - Core & Main operates within the Manufacturing - Tools & Related Products industry, which is currently ranked in the bottom 11% of over 250 Zacks industries [8] - Historical data indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company reported first quarter net sales of $1,900,000,000, marking a 10% increase year-over-year, with adjusted EBITDA rising 3% to $224,000,000, both representing all-time highs for the first quarter [5][20][24] - Gross margins improved sequentially to 26.7% from 26.6% in the previous quarter, although down from 26.9% year-over-year [21][24] - Diluted earnings per share increased approximately 6% to $0.52 due to higher net income and a lower share count following share repurchases [23][24] Business Line Data and Key Metrics Changes - The company achieved mid single-digit organic sales growth, with notable performance in meters (10% growth) and double-digit growth in treatment plant and fusible high-density polyethylene offerings [9][20] - Storm drainage products outperformed with a 17% growth, driven by road and bridge projects and increased distribution opportunities [71] Market Data and Key Metrics Changes - The municipal construction market remains stable, supported by funding from the Infrastructure Investment and Jobs Act, with a growing pipeline of projects [6][94] - Residential lot development showed resilience, but signs of softening were noted due to economic conditions and affordability pressures [7][62] Company Strategy and Development Direction - The company is focused on expanding its presence through both organic growth and acquisitions, with a healthy acquisition pipeline and plans to open 5 to 10 new greenfield locations in 2025 [12][87] - The strategic plan emphasizes local service, product line expansion, and leveraging market intelligence to drive growth [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the near and long-term outlook for municipal construction, despite short-term uncertainties in residential development [8][27] - The company reaffirmed its full-year guidance for net sales between $7,600,000,000 and $7,800,000, with adjusted EBITDA expected between $950,000,000 and $1,000,000, reflecting stable demand and project activity [25][26] Other Important Information - The company has been actively managing its supply chain to mitigate impacts from tariffs and trade restrictions, with minimal direct effects noted so far [11][21] - The company continues to invest in employee training and development, which has been recognized in industry awards [17] Q&A Session Summary Question: Insights on SG&A productivity for the year - Management indicated that SG&A expenses increased 14% due to acquisitions and inflation, but productivity gains were noted, with expectations for improved rates in the second quarter [30][33] Question: Top-line guidance and market conservatism - Management expects the market to be roughly flat for the full year, with stronger performance in the first half and potential challenges in the back half due to economic uncertainties [36][37] Question: Pricing dynamics and commodity impacts - Pricing improved sequentially, with expectations for flat pricing for the year, despite some inflationary pressures on certain product categories [44][46] Question: Residential construction market outlook - Management noted a potential slowdown in residential development, with bidding activity scaling down, but emphasized that this segment represents only about 20% of the business [62][63] Question: Employee retention and poaching concerns - Management reported high employee retention rates and viewed occasional poaching as an opportunity to attract talent [102][103] Question: Cost-out initiatives and SG&A alignment - Management is focusing on aligning resources to areas of growth, with some cost-out initiatives underway, but no substantial quantification provided [104][106]

Financial Data and Key Metrics Changes - The company reported record net sales of $1.9 billion for Q1 2025, representing a 10% increase year-over-year [20] - Adjusted EBITDA for the quarter was $224 million, a 3% increase from the previous year [23] - Gross margins improved sequentially to 26.7% from 26.6% in the prior quarter, although down from 26.9% year-over-year [21][22] - Diluted earnings per share increased approximately 6% to $0.52 due to higher net income and a lower share count following share repurchases [23] Business Line Data and Key Metrics Changes - The company achieved mid-single-digit organic sales growth, with a 10% increase in meters and double-digit growth in treatment plant and fusible high-density polyethylene offerings [9][20] - Storm drainage products saw a 17% growth, driven by road and bridge projects and increased infrastructure funding [72][74] Market Data and Key Metrics Changes - The company noted steady growth in municipal construction activity, supported by funding from the Infrastructure Investment and Jobs Act [6] - Residential lot development showed resilience, although there are signs of softening due to economic conditions and affordability pressures [7][64] - Non-residential markets remained stable, with strong sales in data center construction and institutional buildings, while commercial buildings and manufacturing showed softer activity [8] Company Strategy and Development Direction - The company is focused on expanding its geographic footprint through both greenfield openings and acquisitions, with plans to open 5 to 10 new greenfields in 2025 [90] - The strategic plan emphasizes local service and performance-based culture to drive organic growth [13] - The company aims to achieve 2 to 4 points of above-market volume growth by expanding presence in underpenetrated geographies and driving product line expansion [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals of the U.S. housing market, despite short-term uncertainties [7] - The company reaffirmed its full-year guidance for net sales between $7.6 billion and $7.8 billion and adjusted EBITDA of $950 million to $1 billion [25] - Management highlighted the potential impact of tariffs, inflation, and interest rates on customer sentiment and demand in the latter half of the year [26] Other Important Information - The company deployed approximately $58 million in capital during the first quarter, focusing on organic investments, share repurchases, and debt service [11] - The acquisition pipeline remains healthy, with ongoing evaluations of various opportunities [12] Q&A Session Summary Question: Thoughts on SG&A productivity for the year - Management indicated expectations for improved SG&A rates in the second quarter, with ongoing M&A synergies expected to materialize over time [34][35] Question: Top-line guidance and market conservatism - Management expects the market to be roughly flat for the full year, with stronger performance in the first half and potential challenges in the second half due to economic uncertainties [40] Question: Pricing situation with commodities versus finished goods - Management noted that pricing has improved sequentially, with expectations for flat pricing for the year, despite some inflationary pressures [46][48] Question: Residential construction market outlook - Management acknowledged a slowdown in residential construction, with expectations for a slight headwind as the year progresses [64] Question: Growth in storm drainage products - Management attributed strong growth in storm drainage to increased infrastructure funding and a shift in product distribution dynamics [74] Question: Employee retention trends - Management reported high employee retention rates, viewing occasional poaching as an opportunity to attract talent [103][104] Question: Cost-out initiatives - Management confirmed ongoing cost-out initiatives but did not provide substantial quantification at this time [106][108]

Financial Performance - Net sales increased by 9% from $1741 million in Q1 2024 to $1911 million in Q1 2025[17] - Gross profit increased by 10% from $468 million in Q1 2024 to $510 million in Q1 2025, with gross profit margin decreasing by 20 bps from 269% to 267%[17] - Net income increased by 3% from $101 million in Q1 2024 to $105 million in Q1 2025, with net income margin decreasing by 30 bps from 58% to 55%[17] - Adjusted EBITDA increased by 4% from $217 million in Q1 2024 to $224 million in Q1 2025, with Adjusted EBITDA margin decreasing by 80 bps from 125% to 117%[17] Capital Allocation and Debt - The company deployed $39 million of capital to repurchase 837k shares[13] - Net debt stood at $2276 million as of May 4, 2025[20] Fiscal Year 2025 Outlook - The company reaffirmed its FY25 outlook, expecting net sales between $76 billion and $78 billion[22] - The company expects Adjusted EBITDA between $950 million and $1 billion, and Adjusted EBITDA margin between 125% and 128%[22] Business Strategy and Growth - The company has completed over 40 acquisitions since 2017, adding approximately $18 billion of annual net sales[14] - The company is targeting organic above-market volume growth of +2-4%[28]