Core & Main Announces Fiscal 2025 Third Quarter Results

Core Points - Core & Main, Inc. reported a net sales increase of $24 million, or 1.2%, to $2,062 million for the third quarter ended November 2, 2025, compared to $2,038 million for the same period in the previous year, primarily driven by acquisitions [7][9] - The company achieved a gross profit increase of $18 million, or 3.3%, to $561 million, with a gross profit margin of 27.2% compared to 26.6% in the prior year [8][9] - Net income rose by $3 million, or 2.1%, to $143 million, while diluted earnings per share increased by 4.3% to $0.72 [12][13] Financial Performance - Net sales for the nine months ended November 2, 2025, increased by $323 million, or 5.6%, to $6,066 million, attributed to higher volumes and acquisitions [16] - Gross profit for the nine months increased by $102 million, or 6.7%, to $1,631 million, with a gross profit margin of 26.9% [17] - Selling, general and administrative (SG&A) expenses for the nine months rose by $91 million, or 11.4%, to $890 million, with SG&A as a percentage of net sales at 14.7% [18] Operational Highlights - The company opened new locations in Houston, Texas, and Denver, Colorado, which are priority markets with attractive growth profiles [4][9] - Core & Main completed the acquisition of Canada Waterworks on September 30, 2025, enhancing its market position [9] - The company implemented $30 million of annualized cost savings while continuing to invest in growth initiatives [5] Cash Flow and Debt Management - Net cash provided by operating activities was $382 million for the nine months ended November 2, 2025, compared to $386 million for the same period in the previous year [24] - As of November 2, 2025, net debt decreased to $2,083 million from $2,420 million as of October 27, 2024, primarily due to lower borrowings on the senior asset-based revolving credit facility [25][49] - The company had no outstanding borrowings on its Senior ABL Credit Facility as of November 2, 2025, allowing for significant borrowing capacity [26] Future Outlook - Core & Main reaffirms its full-year fiscal 2025 outlook, projecting net sales of $7,600 to $7,700 million and adjusted EBITDA of $920 to $940 million [28]