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Aug 01, 2021
Core & Main Q2 2021 Earnings Report
Achieved record net sales with nearly 36% growth and outperformed end markets, delivering core market share gains.
Key Takeaways
Core & Main reported strong second-quarter results, with net sales increasing by 35.7% to $1,297.6 million. The company benefited from strong end market demand, driven by municipal water infrastructure spending and robust housing demand.
Net sales increased 35.7% to $1,297.6 million.
Gross profit margin increased 100 basis points to 25.1%.
Net income decreased 47.5% to $9.5 million.
Adjusted EBITDA increased 56.8% to $155.2 million.
Core & Main
Core & Main
Forward Guidance
The company expects demand and pricing trends to continue into the second half of the fiscal year, with full-year fiscal 2021 Adjusted EBITDA expected to be in the range of $470 million to $510 million.
Positive Outlook
- Demand and pricing trends are expected to continue.
- Each end market appears poised for continued growth based on bidding activity and order flow.
- Execution of growth initiatives is expected to continue driving core market share gains.
- Adjusted EBITDA is expected to be in the range of $470 million to $510 million.
- Represents a year-over-year Adjusted EBITDA increase of 37% to 49%.
Challenges Ahead
- Tempered against tougher prior year comps.
- Anticipated supply chain constraints.
- Potential declines in U.S. residential and non-residential construction markets.
- Slowdowns in municipal infrastructure spending and delays in appropriations of federal funds.
- Price fluctuations in product costs.