Core & Main, Inc. · NYSE:CNM
Core & Main — Q4 2024 Earnings Presentation
21 slides from Core & Main's earnings presentation, Mar 25, 2025
Slide 1: Fiscal 2024 Fourth Quarter and Full-Year Results
Fiscal 2024 Fourth Quarter and Full-Year Results MARCH 25, 2025
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all st
Slide 3: Today's Presenters
TODAY’S PRESENTERS Steve LeClair Mark Witkowski Robyn Bradbury Chair & Chief Executive Officer Chief Financial Officer SVP, Finance & Investor Relations © Core & Main All Rights Reserved. Confidential and Proprietary Information. 3
Slide 4: Business Update
Business Update STEVE LECLAIR
Slide 5: Core & Main Snapshot
CORE & MAIN SNAPSHOT Key Stats(1) Market Reach(1) $11.2B $7.4B $434M $930M 370+ ~5,700 49 60K+ 5,000+ 225K+ Market Cap Net Sales Net Income Adjusted EBITDA(2) Branches Associates U.S. States Customers Suppliers Products Market Share Product Mix 8% 19% 9% Pipes, Valves & Fittings Storm Drainage $39B
Slide 6: Our Operating Model Guides Our Strategy
OUR OPERATING MODEL GUIDES OUR STRATEGY © Core & Main All Rights Reserved. Confidential and Proprietary Information. 6
Slide 7: Advancing Reliable Infrastructure in the Communities We Serve
ADVANCING RELIABLE INFRASTRUCTURE IN THE COMMUNITIES WE SERVE After the devastating wildfires in Lahaina, Hawaii, Core & Main demonstrated its commitment to advancing reliable infrastructure by partnering with local teams to support the construction of an elementary school in just 95 days. This new
Slide 8: FY24 Accomplishments
FY24 ACCOMPLISHMENTS ▪ Achieved record net sales of over $7.4 billion, marking our 15th consecutive year of positive sales growth ▪ Drove strong execution to increase profitability ▪ Generated over $620 million of operating cash flow ▪ Completed 10 acquisitions adding more than $600 million of annua
Slide 9: Driving Sustainable Growth Through M&A
DRIVING SUSTAINABLE GROWTH THROUGH M&A Our Size, Scale & Differentiated Capabilities Deliver Immediate Value to Acquired Businesses Significant Growth Opportunity in a FY24 Highlights Highly Fragmented Market 10 Acquisitions 40 $39B Addressable Locations Acquired Market(1) $600M+ 60%+ Acquired Net S
Slide 10: Financial Results
Financial Results MARK WITKOWSKI
Slide 11: Q4 2024 Financial Results
Q4 2024 FINANCIAL RESULTS Net Sales Gross Profit ($ in Millions) ($ in Millions) $1,698 $451 $1,440 +18% $384 +17% % of Sales 26.7% (10 bps) 26.6% Q4'23 Q4'24 Q4'23 Q4'24 Net Income Adjusted EBITDA(1) ($ in Millions) ($ in Millions) $76 $179 (12%) $67 $160 +12% % of Sales 5.3% (140 bps) 3.9% % of Sa
Slide 12: FY24 Financial Results
FY24 FINANCIAL RESULTS Net Sales Gross Profit ($ in Millions) ($ in Millions) $7,441 $1,980 $6,702 $1,818 +11% +9% % of Sales 27.1% (50 bps) 26.6% FY23 FY24 FY23 FY24 Net Income Adjusted EBITDA(1) ($ in Millions) ($ in Millions) $531 $930 (18%) $434 $910 +2% % of Sales 7.9% (210 bps) 5.8% % of Sales
Slide 13: FY24 Cash Flow & Balance Sheet
FY24 CASH FLOW & BALANCE SHEET Robust Cash Flow with Strategic Approach to Capital Allocation Operating Cash Flow Capital Structure ($ in Millions) Facility Maturity Interest Rate As of 2/2/25 (3) Senior ABL Credit Facility 2/9/29 S + 125 93 $930 ($29) ($143) Senior Term Loan due 2028 7/27/28 S + 20
Slide 14: Fiscal 2025 Outlook
FISCAL 2025 OUTLOOK Another Year of Profitable Growth Expected Metric FY24 FY25 Outlook Considerations Net Sales $7,441 $7,600 - $7,800 ▪ Expect sales growth of 4% to 7% for fiscal 2025, excluding the ($ in Millions) effects of one less selling week compared with fiscal 2024 Adjusted EBITDA(1) $930
Slide 15: Appendix
Appendix
Slide 16: Annual Value Creation Targets
ANNUAL VALUE CREATION TARGETS +2 – 4% +2 – 4% +2 – 4% 30 – 50 bps 60 – 70% Market Volume Organic Above Growth from Adjusted Operating Growth Market Volume Acquisitions EBITDA Margin Cash Flow Growth Enhancement Conversion Fusible HDPE Treatment Greenfield Multiple Levers Solutions Plant to Drive Sus
Slide 17: Product & Service Offering
PRODUCT & SERVICE OFFERING © Core & Main All Rights Reserved. Confidential and Proprietary Information. 17
Slide 18: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK Significant Cash Generation with a Focus on Fueling Growth & Shareholder Returns Organic Growth & ▪ Expect future capital expenditures to Operating Cash Flow Operational Initiatives average ~0.5% – 0.6% of net sales Target ~60% – 70% of Adjusted EBITDA ▪ Maintain a robus
Slide 19: Compounding Growth Through M&A
COMPOUNDING GROWTH THROUGH M&A FY17 – FY20 FY21 FY22 FY23 FY24 Total ▪ Minnesota Pipe & ▪ Triple T Pipe & Supply ▪ Dodson Engineered ▪ Landscape & Construction ▪ Eastern Supply Equipment Products Supplies ▪ Pacific Pipe ▪ Dana Kepner ▪ STL Fab & Supply ▪ Lock City Supply ▪ UPSCO ▪ L&M Bag and Supply
Slide 20: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Adjusted EBITDA & Adjusted EBITDA Margin Three Months Ended Fiscal Years Ended Three Months Ende February 2, 2025 January 28, 2024 February 2, 2025 January 28, 2024 Net income attributable to Core & Main, Inc. $ 64 $ 63 $ 411 $ 371 Plus: net income
Slide 21: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES ($ in Millions) Net Debt As of February 2, 2025 January 28, 2024 Senior ABL Credit Facility due February 2029 $ 93 $ 430 Senior Term Loan due July 2028 1,248 1,463 Senior Term Loan due February 2031 942 - Total Debt $ 2,283 $ 1,893 Less: Cash & Cash Equivalents (8