Core & Main (CNM) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 net sales of $2.04 billion, up 12% year-over-year, with Adjusted EBITDA of $277 million and strong operating cash flow, driven by organic growth and acquisitions.

• Completed five acquisitions in Q3, contributing $150 million in annualized net sales and expanding geographic reach and product offerings; YTD acquisitions totaled up to $748 million.

• Opened new facilities in Idaho and Tennessee, further expanding geographic reach.

• Repurchased and retired 2.46 million shares for $100 million in Q3, reflecting confidence in future growth.

• End markets remain stable, with resilient municipal demand and positive trends in non-residential and residential activity.

Financial highlights

• Q3 net sales reached $2.04 billion, up 12% year-over-year, with gross profit of $543 million and gross margin at 26.6%.

• Adjusted EBITDA was $277 million (13.6% margin), up 7% year-over-year.

• Diluted EPS increased to $0.69, up 6% year-over-year, aided by share repurchases.

• Net income for Q3 was $140 million, down from $158 million last year, due to higher SG&A, amortization, and interest expenses.

• Operating cash flow for Q3 was $260 million; nine-month cash flow was $386 million, down from $775 million last year.

Outlook and guidance

• Raised full-year net sales guidance to $7.35–$7.45 billion and Adjusted EBITDA to $915–$935 million.

• Expects stable end markets and pricing for the remainder of fiscal 2024, with gross margins to sustain at current levels.

• Anticipates 2–4 points of organic above-market growth and 2 points from acquisitions in 2025.

• Targets 30–50 bps annual Adjusted EBITDA margin expansion and 60–70% operating cash flow conversion from Adjusted EBITDA.

• Management expects continued benefit from federal infrastructure investment and expanding municipal budgets.