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Core & Main Inc. (NYSE:CNM) just delivered a blockbuster fiscal Q3, smashing expectations with record sales of $2.04 billionan 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 workingexpanding 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.
This article first appeared on GuruFocus.