Core & Main Inc. on Wednesday reported stronger sales, profit and earnings in its latest fiscal quarter, but its gross margin edged down year-over-year.
The St. Louis-based waterworks and fire protection distributor — no. 6 on ID’s latest Big 50 list — posted net sales of nearly $2.15 billion in the three months ending Aug. 2, an increase of 2.5% compared to the same timeframe last year.
The company said that volume, prices and recent acquisitions each contributed to the quarterly increase; Core & Main CEO Mark Witkowski said that demand from municipal customers was a “source of strength” in the period and that fire protection and “large capital projects,” including treatment plants and data centers, delivered “strong growth." The company credited acquisitions for an increase in sales of its pipes, valves and fittings.
Gross profit rose 2.3% year-over-year to $573 million, but its gross margin ticked down by 10 basis points over that span to 26.7%. Net income, meanwhile, climbed by 6.4% to $150 million.
"We delivered growth across sales, adjusted EBITDA and earnings per share during the second quarter, while momentum continues to build across the business," Witkowski said in a statement.
Core & Main said that it reaffirmed its full-year forecast of 2% to 3% annual growth heading into the second half of its fiscal year, and Witkowski added the company was “encouraged by the opportunities emerging across our acquisition pipeline.”
