Core & Main Achieves Record Sales in Q3 2024, Driven by Water Sector Growth

2025-01-24

Core & Main, a prominent distributor of water, wastewater, storm drainage, and fire protection products, recently conducted its Q3 2024 earnings call. The meeting featured key participants including Robyn Bradbury, Steve LeClair, Mark Witkowski, and various analysts. During the call, it was revealed that the company achieved a record quarterly sales figure exceeding $2 billion. This remarkable milestone was driven by a substantial sales growth of almost 12%, attributed to organic market share gains and disciplined M&A strategies.

Steve LeClair, who serves as the Chair and CEO of Core & Main, underscored a significant theme in the water sector during the meeting. He highlighted the escalating disparity between water supply and demand in the United States. Factors such as groundwater depletion, aging infrastructure, and rising consumption levels were identified as challenges that Core & Main is actively working to tackle. The company aims to address these issues through its diverse product portfolio and strategic initiatives.

The outlook presented by Core & Main regarding meeting the demand for infrastructure upgrades in the water sector remained optimistic. The company emphasized its commitment to product, customer, and geographic expansion as part of its growth strategy. Core & Main's dedication to driving growth and creating value for shareholders was evident through its strong operating cash flow, strategic acquisitions to broaden its footprint, and effective capital allocation strategies.

Furthermore, the company's performance in the third quarter, which included achieving record sales, expanding margins, and experiencing growth in meter sales, showcased its resilience and adaptability in navigating market challenges. Core & Main's strategic approach to fostering organic growth, improving gross margins, and seizing market opportunities positions it favorably for sustained success in the ever-evolving business environment.

Looking ahead, Core & Main's emphasis on sustainable margin expansion, value creation for customers and stakeholders, and addressing critical infrastructure needs aligns with its long-term growth objectives. With a solid foundation, well-defined strategic priorities, and a commitment to operational excellence, Core & Main is well-positioned to capitalize on market opportunities, drive growth, and deliver value in the water infrastructure sector.