Core & Main(US:CNM)2025-09-09 11:30Financial 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]