Core & Main, Inc. (NYSE: CNM) is a leading specialty distributor focused on advancing reliable infrastructure across the United States. The company provides essential products and solutions for water, wastewater, storm drainage, and fire protection systems, supported by a vast network of over 370 branches and more than 5,000 suppliers. Over 60,000 customers depend on Core & Main for access to its portfolio of over 225,000 products tailored to meet local municipal specifications.

For the fiscal year 2024, which concluded on February 2, 2025, Core & Main reported an 11% increase in net sales, reaching approximately $7.44 billion, primarily driven by acquisitions and market share gains. The company’s gross profit also increased by 8.9% to approximately $1.98 billion, resulting in a gross profit margin of 26.6%. Adjusted EBITDA rose 2.2% to $930 million, while the adjusted EBITDA margin decreased by 110 basis points to 12.5% due to rising selling, general, and administrative (SG&A) expenses which surged 15.8% to nearly $1.08 billion, largely from acquisitions and inflationary impacts.

In the fourth quarter alone, net sales grew 17.9% to $1.70 billion, aided by an additional selling week compared to the same period in 2023, with organic average daily sales volume up in low single digits. Gross profit for the quarter also increased by 17.4% to $451 million; however, the gross margin remained flat at 26.6%. Adjusted EBITDA for Q4 showed a notable increase of 11.9% to $179 million, demonstrating continued operational effectiveness despite a year-over-year net income decrease of 11.8% to $67 million.

Looking forward to fiscal 2025, Core & Main expects net sales in the range of $7.6 billion to $7.8 billion, which translates to year-over-year growth of 2% to 5%, with adjusted EBITDA anticipated between $950 million and $1 billion. The company plans to maintain and enhance gross margins through strategic initiatives, including growth in private label offerings and sourcing optimization. The fiscal outlook reflects a continuation of stable operating cash flow, estimated to be between $570 million and $650 million.

The company’s balance sheet shows net debt at approximately $2.28 billion, increasing from about $1.89 billion the previous year. This rise in leverage reflects the company’s ongoing acquisitions and share repurchase activities, totaling $176 million in share buybacks during the year. Core & Main’s robust cash flow and operational strategies underscore its focus on growth and shareholder returns amidst a dynamic market environment.