Core & Main Inc. (CNM, Financial) just delivered a blockbuster fiscal Q3, smashing expectations with record sales of $2.04 billion—an 11.5% jump from last year. Its shares soars by nearly 14% this morning. The water infrastructure and fire protection heavyweight posted earnings of $0.69 per share, breezing past Wall Street's $0.65 forecast. CEO Steve LeClair didn't mince words, crediting the results to a winning combo of organic growth and strategic acquisitions. “Core & Main can grow in any environment,” LeClair said, highlighting a busy quarter that saw five acquisitions and $100 million in share buybacks.
The numbers tell the story: Adjusted EBITDA hit $277 million, up 6.5%, even as net income dipped 11.4% to $140 million due to higher taxes and interest costs. The company's playbook is clearly working—expanding into new markets, boosting its product lineup, and delivering operational efficiencies that padded margins despite a tough macro backdrop. The acquisitions weren't just for show; they're already driving market share gains and bolstering Core & Main's ability to meet complex customer needs, from smart meters to advanced stormwater management systems.
Looking ahead, Core & Main isn't slowing down. Management raised their full-year outlook, now projecting revenues between $7.35 billion and $7.45 billion, with Adjusted EBITDA forecasted to land between $915 million and $935 million. LeClair pointed to the non-discretionary nature of Core & Main's repair and replacement business as a key advantage, keeping demand steady even in choppy waters. The CEO signals confidence in the company's ability to keep delivering for both customers and shareholders.
