Core & Main Announces Record Fiscal Quarter

Net sales increased more than 43%.

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ST. LOUIS — Core & Main Inc., a leading specialized distributor of water, wastewater, storm drainage and fire protection products and related services, on Tuesday announced financial results for its second fiscal quarter, ending July 31, 2022.

The company reported net sales increased to $1.86 billion, up 43.4% compared to the same quarter last year. Its gross profit margin increased 190 basis points to 26.9%, while net income climbed to $182 million — an increase of $172 million.

Adjusted EBITDA (non-GAAP) increased 78.7% to $277 million, and adjusted EBITDA margin (non-GAAP) rose 300 basis points to 14.9%. Net debt leverage (non-GAAP) stood at 1.9x as of July 31.

The company noted that it remained active in M&A during and subsequent to the quarter, closing the Earthsavers Erosion Control and Inland Water Works Supply Co. acquisitions and signing a definitive agreement to acquire the municipal waterworks division of Trumbull Industries Inc. and an affiliated entity. Core & Main raised its forecast for the full fiscal year to adjusted EBITDA between $840 and $890 million, representing year-over-year growth of 39% to 47%.

“I am pleased to report another record quarter as we continue to build on our momentum, achieving solid growth in both net sales and Adjusted EBITDA," said CEO Steve LeClair. ""This is a remarkable accomplishment considering our strong performance in the same period last year."

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