Core & Main(CNM) - 2025 Q4 - Annual Results

Financial Performance - Net sales for the fourth quarter increased 17.9% to $1,698 million compared to $1,440 million in the prior year[6] - Gross profit for the fourth quarter increased 17.4% to $451 million, with a gross profit margin of 26.6%[8] - Net income for the fourth quarter decreased 11.8% to $67 million, primarily due to increased interest and income tax expenses[11] - Fiscal 2024 net sales increased 11.0% to $7,441 million compared to $6,702 million in fiscal 2023[14] - Adjusted EBITDA for fiscal 2024 increased 2.2% to $930 million compared to $910 million in fiscal 2023[20] - Net income attributable to Core & Main, Inc. for the fiscal year ended February 2, 2025, was $411 million, a 10.8% increase from $371 million in the previous year[41] - Net income attributable to Core & Main, Inc. for the three months ended February 2, 2025, was $64 million, compared to $63 million for the same period in the previous year[52] - Adjusted EBITDA for the fiscal year ended February 2, 2025, was $930 million, an increase from $910 million in the prior fiscal year[52] Expenses and Costs - SG&A expenses for fiscal 2024 increased 15.8% to $1,078 million, driven by acquisitions and inflation[16] - The company paid $197 million in interest for the fiscal year ended February 2, 2025, compared to $105 million the previous year, indicating higher borrowing costs[45] - The company incurred interest expense of $36 million for the three months ended February 2, 2025, compared to $22 million for the same period in the previous year[52] - Depreciation and amortization for the fiscal year ended February 2, 2025, was $186 million, compared to $149 million in the prior fiscal year[52] - The company reported a provision for income taxes of $21 million for the three months ended February 2, 2025, compared to $18 million for the same period in the previous year[52] - Acquisition expenses for the fiscal year ended February 2, 2025, totaled $11 million, up from $6 million in the prior fiscal year[52] Acquisitions and Growth Strategy - The company completed ten acquisitions to expand its geographic presence and product lines[5] - Acquisitions of businesses net of cash acquired totaled $741 million for the fiscal year ended February 2, 2025, compared to $231 million in the previous year, reflecting aggressive growth strategy[45] Debt and Assets - Net debt increased to $2,275 million as of February 2, 2025, due to higher borrowings for acquisitions and share repurchases[22] - Long-term debt rose to $2,237 million as of February 2, 2025, up from $1,863 million the previous year, indicating increased leverage[43] - Total assets increased to $5,870 million as of February 2, 2025, compared to $5,069 million as of January 28, 2024[43] - Net Debt as of February 2, 2025, was $2,275 million, up from $1,892 million as of January 28, 2024[54] Future Guidance - Fiscal 2025 guidance includes net sales of $7,600 to $7,800 million, reflecting a growth of 2% to 5%[28] - Anticipated adjusted EBITDA for fiscal 2025 is projected to be between $950 million and $1,000 million[28] Operational Efficiency - Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales, reflecting the company's operational efficiency[48] - EBITDA for the three months ended February 2, 2025, was $173 million, compared to $154 million for the same period in the previous year[52] Cash Flow - The company reported net cash provided by operating activities of $621 million for the fiscal year ended February 2, 2025, down from $1,069 million the previous year[45] - Cash and cash equivalents at the end of the period were $8 million, up from $1 million at the beginning of the period[45] Variability in Financial Results - The company expects variability in excluded items may have a significant impact on future GAAP financial results[50]