Waterworks and fire protection distributor Core & Main on Tuesday announced a change in leadership after posting what officials said was its 15th consecutive year of annual sales growth.
The company’s earnings, however, slipped in both the fourth quarter and on an annual basis.
The St. Louis-based company, no. 6 on ID’s 2024 Big 50, reported net sales of more than $7.4 billion last year, an 11% increase compared to 2023’s total. Gross profit rose by nearly 9% to just shy of $2 billion, but net income dropped by more than 18% last year to $434 million. Diluted earnings, the company said, fell by 0.9% to $2.13 per share.
In the final quarter of the year, net sales jumped by nearly 18% to $1.7 billion and gross profit rose 17.4% to $451 million, while net income fell to $67 million, a decline of nearly 12% compared to the same three-month period in 2023.
Company officials attributed the revenue growth primarily to the impact of recent acquisitions, and said that the decline in net income stemmed from increased expenses — particularly interest on borrowings that the company made to support acquisitions during the year.
Chairman and CEO Steve LeClair said that the company benefited from a strong business mix and new investments — including additional branches and 10 acquisitions. The company's debut 2025 forecast anticipated net sales growth of between 2% and 5% amid “flat to slightly positive” demand.
“With growing demand for innovative water infrastructure solutions, we continue to add new products, branches and capabilities to strengthen our leadership position in the industry,” LeClair said in the earnings release.
In a separate statement issued Tuesday, the company announced that LeClair would step down as CEO at the end of the month and be replaced as chief executive by CFO Mark Witkowski. LeClair will shift to an advisory position as executive chair, as well as remain chairman of the company’s board.
Robyn Bradbury, the company’s senior vice president of finance and investor relations, will succeed Witkowski as CFO.
The company said that the changes were part of its long-term succession planning.
“Mark and Robyn have been key members of the management team for many years,” James Castellano, lead independent director for Core & Main, said in the announcement. “They know our business well and have been instrumental in building Core & Main into the industry leader it is today.”
