Core & Main on Tuesday reported improved sales in its latest quarter as contributions from its recent acquisitions overcame “soft residential demand and a tough comparison from last year.”
The St. Louis-based waterworks and fire protection giant — no. 6 on ID’s 2025 Big 50 — posted $2.06 billion in net sales in the three months ending Nov. 2, up 1.2% from the $2.04 billion reported in the three months ending last Oct. 27.
Core & Main CEO Mark Witkowski said in the earnings release that the increase was “driven by contribution from acquisitions and strong performance across our sales initiatives.” Sales of the company’s pipes, valves and fittings declined amid “slightly” lower volumes, while its storm drainage and fire protection product lines saw increases. Witkowski highlighted double-digit growth in fusible high-density polyethylene, treatment plant solutions and geosynthetics products, along with “high single-digit growth” in metering products.
Core & Main’s quarterly gross profit rose from $543 million to $561 million year-over-year, but operating income dipped slightly over that span from $223 million down to $220 million. Net income climbed from $140 million to $143 million. Witkowski said that Core & Main’s private-label initiative and “disciplined purchasing and pricing execution” fueled continued expansion of the company’s gross margin.
Core & Main reaffirmed its full-year outlook of 2% to 3% sales growth heading into its fourth quarter.
"We're encouraged by the growth opportunities we see on the horizon, particularly in large, complex projects across our core end markets, coupled with opportunities to drive above market growth through sales initiatives and geographic expansion,” Witkowski said. “Our one-stop-shop offering and exceptional service levels continue to differentiate Core & Main in the industry.”
Core & Main also announced Thursday that its board had authorized an additional $500 million for the company’s share repurchase program, expanding it to $1 billion overall. The company said that it has repurchased about $316 million of its Class A common stock as of Dec. 8.
