Core & Main(CNM) - 2026 Q1 - Quarterly Results

Financial Performance - Net sales increased by 9.8% to $1,911 million compared to $1,741 million in the prior year[6] - Gross profit rose by 9.0% to $510 million, with a gross profit margin of 26.7%[6] - Net income increased by 4.0% to $105 million, with diluted earnings per share rising by 6.1% to $0.52[6] - Adjusted EBITDA increased by 3.2% to $224 million, reflecting higher gross profit partially offset by increased SG&A expenses[13] - Net sales for the three months ended May 4, 2025, reached $1,911 million, a 9.8% increase from $1,741 million in the same period last year[29] - Gross profit increased to $510 million, up from $468 million, reflecting a gross margin improvement[29] - Net income attributable to Core & Main, Inc. was $100 million, compared to $95 million, representing a 5.3% year-over-year growth[29] - Adjusted EBITDA for the three months ended May 4, 2025, was $224 million, an increase from $217 million in the prior year[40] - Operating income for the quarter was $171 million, slightly up from $168 million in the same quarter last year[29] - Basic earnings per share (EPS) increased to $0.53 from $0.49, while diluted EPS rose to $0.52 from $0.49[29] Expenses and Cash Flow - SG&A expenses rose by 14.0% to $293 million, representing 15.3% of net sales[9] - Operating cash flow was $77 million, slightly down from $78 million in the prior year[14] - The company incurred capital expenditures of $13 million during the quarter, compared to $7 million in the same period last year[33] Debt and Assets - Net debt decreased to $2,276 million from $2,419 million year-over-year[15] - The company reported a net debt of $2,276 million as of May 4, 2025, down from $2,419 million a year earlier[42] - Total current assets increased to $2,444 million, compared to $2,025 million at the end of the previous quarter[31] - Cash and cash equivalents remained stable at $8 million, consistent with the previous quarter[31] Outlook and Strategic Focus - The company reaffirmed its full-year outlook for net sales between $7,600 million and $7,800 million, with expected net sales growth of 2% to 5%[21] - Adjusted EBITDA for the full year is projected to be between $950 million and $1,000 million, with an adjusted EBITDA margin of 12.5% to 12.8%[21] - The company continues to focus on addressing aging water infrastructure needs across the U.S. and adapting to macroeconomic changes[5]