TLDR
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Q1 FY2025 net sales rose 9.8% to $1.91B; adjusted EBITDA grew 3.2%
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EPS increased to $0.52; gross margin stood at 26.7%
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Operating income rose to $171M; net income reached $105M
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$39M in share repurchases; operating cash flow at $77M
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FY2025 outlook reaffirmed: net sales of $7.6B–$7.8B
Core & Main Inc. (NYSE: CNM) delivered record financial results for the fiscal Q1 ended May 4, 2025, showcasing resilient infrastructure demand. Net sales rose 9.8% year-over-year to $1.91 billion, supported by higher volumes and strategic acquisitions. Net income climbed 4% to $105 million, while diluted EPS rose 6.1% to $0.52.
Gross profit increased 9% to $510 million. Gross margin slightly decreased to 26.7% from 26.9% due to higher inventory costs, partially offset by pricing and acquisition benefits. Operating income improved by 1.8% to $171 million.
Adjusted EBITDA reached $224 million, up 3.2% from last year. EBITDA margin dipped to 11.7% from 12.5%, mainly reflecting higher SG&A expenses, which rose 14% to $293 million due to acquisitions and inflationary pressures.
Core & Main, $CNM, Q1-25. Results:
🔴 -2.5% Pre-Market📊 Adj. EPS: $0.52 🔴
💰 Revenue: $1.91B 🟢
🔎 Record Q1 results driven by strong volume growth and margin expansion initiatives, with $77M in operating cash flow and $39M in share repurchases. pic.twitter.com/TjdoE83fC5— EarningsTime (@Earnings_Time) June 10, 2025
Capital Allocation & Cash Flow
During Q1, Core & Main generated $77 million in operating cash flow, similar to the $78 million recorded a year ago, even with seasonal working capital demands. The company repurchased 837,000 shares for $39 million at an average price of $46.64, and spent $13 million on capital expenditures.
Net debt stood at $2.276 billion, down from $2.419 billion a year ago, driven by reduced borrowings on its senior ABL credit facility. As of May 4, 2025, the company had access to approximately $1.135 billion in available borrowing capacity.
Strategic Growth Initiatives Drive Long-Term Expansion
Core & Main emphasized multiple growth levers. Its 600+ strong sales team, extensive 370-branch footprint across 49 states, and robust acquisition track record have helped drive its scale. With 20 greenfield sites added since 2017 and 40+ acquisitions totaling $1.8 billion in annual sales, CNM has established itself as the “acquirer of choice” in its space.
The company serves over 60,000 customers and offers 225,000+ products across municipal, residential, and commercial water infrastructure.
Outlook for Fiscal 2025
Core & Main reaffirmed its fiscal 2025 guidance. It expects net sales between $7.6 billion and $7.8 billion, representing 2%–5% annual growth. Adjusted EBITDA is forecast in the range of $950 million to $1 billion, with an EBITDA margin of 12.5%–12.8%. Operating cash flow is projected between $570 million and $650 million.
Despite flat trends in residential and non-residential markets, management anticipates low-single-digit growth in the municipal segment, supported by minimal tariff exposure and ongoing margin initiatives.
