Core & Main, Inc. (NYSE: CNM), based in St. Louis, is a prominent distributor specializing in water, wastewater, storm drainage, and fire protection products and services. The company, serving municipalities, private water companies, and professional contractors, operates over 370 locations across the United States.

In its first quarter of fiscal 2025, Core & Main reported net sales of $1.911 billion, marking an increase of 9.8% from $1.741 billion in the same quarter of the previous year. The growth was attributed to higher volumes and contributions from six acquisitions. Adjusted EBITDA rose 3.2% to $224 million, with a corresponding adjusted EBITDA margin of 11.7%, down from 12.5% a year earlier.

Gross profit for the quarter was $510 million, a 9.0% increase over $468 million in the year-ago quarter, resulting in a gross profit margin of 26.7% compared to 26.9% the prior year. Selling, general, and administrative (SG&A) expenses climbed by 14.0% to $293 million, attributed mainly to higher personnel costs and inflation, shaping an SG&A margin of 15.3% for the quarter.

The company achieved net income of $105 million, an increase of 4.0% from the $101 million recorded a year prior, while diluted earnings per share grew 6.1% to $0.52 from $0.49. Interest expense decreased to $30 million from $34 million year-over-year.

For the full fiscal year, Core & Main has reaffirmed its guidance for net sales between $7.6 billion to $7.8 billion, reflecting expected year-over-year growth of 2% to 5%. Adjusted EBITDA is projected to be in the range of $950 million to $1 billion. The guidance indicates expected adjusted EBITDA margins between 12.5% to 12.8%.

Core & Main ended the first quarter with net debt of approximately $2.276 billion and liquidity of $1.1 billion, primarily from its asset-based revolving credit facility. The company generated $77 million in operating cash flow during the quarter. It allocated $39 million for share repurchases and invested approximately $13 million in capital expenditures.

In summary, Core & Main demonstrated robust performance through significant sales growth, continued improvement in gross profit, and sustained income growth during the first fiscal quarter of 2025, backed by a solid outlook for the year.