Core & Main Reports 6.6% Revenue Growth to $2.093 Billion in Q2 Fiscal 2025

Core & Main, Inc. reported a notable increase in financial performance for the second quarter of fiscal 2025, with net sales reaching $2.093 billion, a 6.6% rise from $1.964 billion in the same period last year. The company's gross profit also saw an increase, climbing to $560 million, up 8.1% from $518 million. This growth in revenue and profitability was attributed to higher volumes and acquisitions, particularly in the pipes, valves, and fittings segment, which alone generated $1.430 billion in sales, marking a 7.6% increase year-over-year.

In comparison to the previous fiscal period, Core & Main's operating income rose to $213 million, a 4.4% increase from $204 million. The company experienced a rise in selling, general, and administrative expenses, which increased by 12.7% to $302 million, primarily due to higher personnel costs and inflation-related expenses. Despite these rising costs, the company managed to reduce its interest expense to $31 million from $36 million, benefiting from amendments to its Senior Term Loan Credit Facility and a decrease in average borrowings.

Core & Main did not engage in any acquisitions during the six months ended August 3, 2025, following a significant acquisition spree in the previous fiscal year, which totaled $623 million. The company continues to focus on integrating these acquisitions into its operations, which include various distributors and fabricators of water and wastewater infrastructure products. As of August 3, 2025, Core & Main operated approximately 370 branches across 49 states, serving over 60,000 customers, including municipalities and private water companies.

The company reported a net income of $141 million for the quarter, up 11.9% from $126 million in the prior year, with earnings per share increasing to $0.71 from $0.62. For the six months ended August 3, 2025, net income attributable to Core & Main was $234 million, a 9.3% increase from $214 million. The company’s effective tax rate decreased to 22.5% from 25.0%, contributing to the improved net income figures.

Looking ahead, Core & Main anticipates continued growth driven by favorable market conditions, including increased federal infrastructure investment and expanding municipal budgets. However, the company remains cautious about potential risks, including fluctuations in construction market demand and supply chain disruptions. The management is optimistic about leveraging its recent acquisitions and operational efficiencies to sustain growth in the upcoming quarters.