Core & Main, Inc. reported stronger sales and earnings in its second quarter but lowered its full-year outlook as higher operating costs and weak residential demand pressured results.
For the quarter ending Aug. 3, net sales rose 6.6% to $2.09 billion, up from $1.96 billion a year earlier. Net income climbed 11.9% to $141 million, compared with $126 million last year. Diluted earnings per share increased to $0.70, from $0.61. Gross profit grew 8.1% to $560 million, while operating income edged up 4.4% to $213 million.
Year-to-date results also showed gains. For the first half of fiscal 2025, net sales rose 8.1% to $4.00 billion from $3.71 billion a year earlier. Net income increased 8.4% to $246 million, while diluted earnings per share rose to $1.22 from $1.11. Gross profit grew 8.5% to $1.07 billion.
“We achieved roughly 7% net sales growth in the second quarter, and our balanced end market exposure served us well, with strength in municipal demand and stability in non-residential demand helping to offset softness in residential lot development,” said CEO Mark Witkowski.
The company continued to expand during the quarter, opening new branches in Kansas and Wisconsin and acquiring Canada Waterworks. Still, Core & Main cut its full-year sales forecast to a range of $7.6 billion to $7.7 billion, down from earlier projections, and now expects operating cash flow between $550 million and $610 million.
With more than 370 locations, Core & Main supplies water, wastewater, storm drainage, and fire protection products to municipalities and contractors across the U.S.
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