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Oct 31, 2021

Core & Main Q3 2021 Earnings Report

Core & Main delivered exceptional performance in the third quarter by capitalizing on strong end-market trends, proactively managing inflation and executing on margin initiatives.

Key Takeaways

Core & Main reported a strong Q3 2021 with net sales increasing by 38.7% to $1,404.8 million and net income increasing by 406.0% to $109.3 million. The company benefited from strong demand across end markets and proactive management of inflation.

Net sales increased 38.7% to $1,404.8 million.

Gross profit margin increased 230 basis points to 26.4%.

Net income increased 406.0% to $109.3 million.

Adjusted EBITDA increased 83.4% to $189.1 million.

Total Revenue
$1.4B
Previous year: $1.01B
+38.7%
EPS
$0.39
Previous year: $0.0897
+334.6%
Gross Profit
$371M
Previous year: $244M
+51.6%
Cash and Equivalents
$4.9M

Core & Main

Core & Main

Forward Guidance

Based on current visibility, backlog of existing orders and business trends, we now expect full year fiscal 2021 Adjusted EBITDA to be in the range of $560 million to $580 million, representing year-over-year growth of 64% to 70%.

Positive Outlook

  • Demand and pricing trends remain favorable across each of our end markets.
  • Positive market tailwinds.
  • Growing acquisition pipeline.
  • Steady momentum across margin initiatives.
  • Exceptional performance in the third quarter.

Challenges Ahead

  • Ongoing supply chain constraints.
  • Product availability challenges.
  • Inflationary trends across many product lines.
  • Shortages of semi-conductor chips.
  • Potential impacts from COVID-19.