Core & Main Reports 11% Revenue Growth to $7.44 Billion for Fiscal Year Ending February 2025

Core & Main, Inc. reported a significant increase in financial performance for the fiscal year ending February 2, 2025, with net sales reaching $7.44 billion, an 11% increase from $6.70 billion in the previous fiscal year. The company's gross profit also rose to $1.98 billion, up from $1.82 billion, although the gross profit margin slightly decreased from 27.1% to 26.6%. The increase in sales was attributed to higher volumes, contributions from acquisitions, and an additional selling week in the fiscal year, despite a slight decline in selling prices.

The company experienced notable changes in its operational structure, including a rise in selling, general, and administrative expenses, which increased by 15.8% to $1.08 billion, primarily due to personnel costs related to acquisitions and inflationary pressures. Operating income decreased by 2.8% to $719 million, influenced by these higher expenses. Interest expenses also rose significantly to $142 million from $81 million, reflecting increased borrowings to support acquisitions. Consequently, net income attributable to Core & Main increased by 10.8% to $411 million, while diluted earnings per share slightly decreased to $2.13 from $2.15.

Strategically, Core & Main has been active in pursuing acquisitions to expand its market presence. In fiscal 2024, the company completed several acquisitions, including ARGCO Northeast LLC and Eastcom Associates, Inc., with a total transaction value of $769 million. These acquisitions are expected to enhance the company's product offerings and geographic reach. The company also initiated a share repurchase program, authorizing the buyback of up to $500 million of its Class A common stock, and repurchased approximately 3.97 million shares for $176 million during the fiscal year.

Operationally, Core & Main maintained a robust network of over 370 branch locations across 49 states, serving more than 60,000 customers. The company reported a balanced mix of sales across municipal (42%), non-residential (38%), and residential (20%) construction sectors. The company’s workforce grew to approximately 5,700 employees, reflecting its commitment to expanding its operational capabilities. The company also emphasized its focus on enhancing gross margins through strategic inventory management and supplier relationships.

Looking ahead, Core & Main anticipates continued growth driven by federal infrastructure investments, particularly in water infrastructure, as outlined in the Infrastructure Investment and Jobs Act. However, the company acknowledged potential risks, including fluctuations in market conditions, interest rates, and supply chain disruptions, which could impact future performance. The company remains focused on leveraging its competitive advantages to capitalize on growth opportunities while managing its operational and financial risks effectively.