Infrastructure and industrial supplies distributor Core & Main reported financial results for its 2024 second quarter that ended July 28, showing healthy year-over-year sales growth, while net profit and gross margin declined.

The St. Louis-based company posted total 2Q sales of $1.96 billion, up 5.5% year-over-year. The company noted that the annual increase was primarily attributed to acquisitions, partially offset by project delays from wet weather conditions, as well as lower end-market volumes.

• Net sales for fire protection products declined due to lower seller prices and end-market volumes, offset by acquisitions.
• Net sales for meter products benefited from the adoption of smart meter technology through municipalities, increased product availability and acquisitions.

Core & Main’s 2Q gross profit increased 3.4% year-over-year, with gross margin of 26.4% down 50 basis points year-over-year, and down 50 points from 1Q24. Operating profit of $204 million trailed the $226 million of a year earlier but topped 1Q24’s $181 million, while net profit of $126 million fell 30.1% year-over-year but topped 1Q24’s $168 million.

The company’s 2Q adjusted EBITDA of $257 million fell 4.8% year-over-year but topped 1Q24’s $217 million.

Core & Main closed on five acquisitions during 2Q or since: Geothermal Supply, EGW Utilities, HM Pipe, GoGreen Solutions and Green Equipment Company.

Looking forward, Core & Main narrowed its full-year 2024 sales and adjusted EBITDA outlook to reflect lower-than-expected end market volumes. It now expects full-year sales to range from $7.3 billion to $7.4 billion ($7.5B to $7.6B in 1Q report), with adjusted EBITDA of $900 million to $930 million ($935M to $975M in 1Q report).

“We grew net sales by approximately 6% to a new quarterly record of $1.96 billion, reflecting strong growth from acquisitions that was partially offset by project delays from wet weather conditions and comparably lower end-market volumes,” Core & Main Chair and CEO Steve LeClair said in the company’s financial release. “Despite the challenging weather and market conditions, our meter initiative continues to outpace the growth of our end markets, highlighted by the 48% growth we achieved this quarter. Pricing and gross margins were in line with our expectations, with our gross margin initiatives delivering outstanding results to partially offset the impact of higher inventory costs.”

Core & Main ranked No. 1 on MDM’s 2024 Top Distributors List for Industrial PVF and No. 9 for Industrial Distributors.