Water, sewer and fire protection distribution giant Core & Main on Wednesday posted an increase in sales and profits during the second quarter, although its earnings took a step back.
The St. Louis-based company posted nearly $2 billion in sales, an increase of 5.5% compared to the same quarter last year. That revenue total set a new quarterly record, officials said, but it largely stemmed from recent company acquisitions. Wet weather and low end-market volumes hindered the overall number during the latest three-month window.
"Despite the challenging weather and market conditions, our meter initiative continues to outpace the growth of our end markets, highlighted by the 48% growth we achieved this quarter,” said Steve LeClair, the company’s chairman and CEO. “Pricing and gross margins were in line with our expectations, with our gross margin initiatives delivering outstanding results to partially offset the impact of higher inventory costs.”
Core & Main reported $518 million in gross profit during the latest quarter — up 3.4% year-over-year — but gross profit margin slid by 50 basis points. Net income, meanwhile, fell by more than 23% over that span to $126 million.
LeClair said the company lowered its full-year outlook following the “significant” weather-related disruptions in the most recent quarter, along with projections that growth previously anticipated toward the end of this calendar year would instead “likely be pushed into 2025.” Core & Main now expects full-year sales of $7.3 billion to $7.4 billion.
The company also highlighted five acquisitions completed since the end of the first quarter: EGW Utilities, Geothermal Supply, Green Equipment Company, GroGreen Solutions and HM Pipe Products — the latter of which, LeClair said, would provide opportunities to tap into a “multi-billion-dollar” market in Canada.
