Q1 Q1 Net sales increased to US$1.91 billion, up 9.8% year-on-year; Adjusted EBITDA increased by 3.2%, earnings per share increased to US$0.52; gross profit margin was 26.7%

Core & Main (NYSE:CNM) reported its first-quarter adjusted EPS of $0.52, higher than expected $0.49, with revenue reaching $191 million, slightly below the market forecast of $193 million. Shares fell 0.2% in pre-sale transactions. Actual sales were $1.91 billion, surpassing the previously estimated $1.89 billion.

Key data for the first quarter:

* Net sales increased by 9.8% year-on-year to US$1.91 billion.

* Adjusted EBITDA was US$224 million, up 3.2% year-on-year.

* Earnings per share increased by 6.1% to $0.52.

* Operating income is US$171 million.

* Core & Main achieved operating cash flow of $77 million.

* The company repurchased 837,000 shares for $39 million and invested $13 million for capital expenditures.

* Net debt fell to $2.276 billion from $2.419 billion in the same period last year.

Core growth strategy:

* The sales team continues to expand, with 600 members covering 49 states and a total of 370 branches.

* Completed 40 strategic acquisitions, with a total annual sales of US$1.8 billion.

* Product line expands to 225,000 municipal, residential and commercial customers.

* 20 new Greenfield sites have been added since 2017.

The outlook for fiscal year 2025 remains unchanged:

* Net sales are expected to range between $7.6 billion and $7.8 billion, with adjusted EBITDA between $950 million and $1 billion.

* EBITDA profit margin is expected to be 12.5%-12.8%, and operating cash flow is expected to be between US$570 million and US$650 million.

* Gross profit margin fell slightly to 26.7%, partly offset by price increases and new acquisitions.

* SG&A expenses surged 14% to $293 million, mainly affected by mergers and acquisitions and inflation.

Cash flow and capital allocation:

* Despite the demand for seasonal working capital, operating cash flow reached $17 million, close to $78 million in the same period last year.

* The company performed stock buybacks this quarter, repurchasing 837,000 shares for $39 million, with an average buyback price of $46.64; capital expenditure reached $13 million.

* The quarter-end net debt was $2.276 billion, down $14.3 million from the same period last year, mainly due to the reduction in senior ABL line of credit borrowing.

* As of May 4, 2025, the available loan amount of Core&Main is approximately US$1.135 billion.

Record first quarter results:

* Core & Main released record financial results for the first quarter of the fiscal year ending May 4, 2025.

* Net sales rose 9.8% year-on-year to $1.91 billion, exceeding analyst expectations.

* Adjusted EBITDA was US$224 million, up 3.2% year-on-year.

* Earnings per share increased by 6.1% to $0.52.

Key contents in the financial report:

* Gross profit increased by 9% to $510 million.

* Operating income increased to $171 million, up $1.8 million from the same period last year.

* Adjusted EBITDA reached US$224 million.

* Net profit reached US$105 million, a year-on-year increase of 4%.

* Operating cash flow is $77 million.

* Capex is $13 million.

* The company repurchased shares in this quarter to $39 million, with a total of 837,000 shares repurchased.

Strong infrastructure demand drives financial performance growth

Faced with macroeconomic challenges, Core & Main (NYSE: CNM) showed outstanding financial performance in the fiscal first quarter ended May 4, 2025. As a leading distributor of hydraulics, drainage, sewage and stormwater products, the company has achieved solid growth and profitability amid strong infrastructure demand.

Net sales rose 9.8% year-on-year to $1.91 billion, higher than analysts' general expectations of $1.89 billion. This growth is mainly due to rising prices in response to inflationary pressures, increased sales volume and the contributions brought by several recent acquisitions.

Gross profit rose 9% to $510 million, further demonstrating the company's increased profitability.

The above is the detailed content of Core & Main (CNM) provides a guide to record Q1 FY2025 results, improving its revenue. For more information, please follow other related articles on the PHP Chinese website!