Infrastructure and industrial supplies distributor Core & Main announced changes to the top of its executive leadership team, and shared the company’s 2024 full-year and fourth quarter financial results on March 25.
Leadership Transition
After nearly two decades leading Core & Main, CEO Steve LeClair will transition to executive chair, advising the company and continuing to lead the board. Mark Witkowski, Core & Main’s current CFO, will succeed LeClair as CEO and will also join the board. Roby Bradbury, senior VP of finance and investor relations, will take over Witkowski’s role as CFO.
All changes will take effect on March 31.
Witkowski joined Core & Main in 2007, taking on roles of increasing responsibility before becoming CFO in 2016. The company said he played a key role in developing and executing its value creation strategies.
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Bradbury, who joined Core & Main in 2009, has held various finance and strategy roles. She and her team established the company’s investor relations function, leading the successful IPO in 2021 and Core & Main’s first Investor Day in 2023.
Core & Main ranked No. 1 on MDM’s 2024 Top Distributors List for Industrial PVF and No. 9 for Industrial Supplies.
“As we enter this next chapter, continuity of leadership is important. Mark and Robyn have been key members of the management team for many years,” Core & Main Lead Independent Director James Castellano said in a news release. “They know our business well and have been instrumental in building Core & Main into the industry leader it is today. Today’s announcement, together with the executive leadership changes we announced last July, further position the Company for continued growth and success.”
4Q Results
The St. Louis-based company posted 4Q sales of $1.6 billion, up 17.9% year-over-year for the three months ended Feb. 2. The company noted that the annual increase was primarily attributed to acquisitions, higher volumes and contributions from the 53rd selling week in the current year, partially offset by slightly lower selling days.
- Pipe, valves & fitting net sales increased due to acquisitions and higher volumes, partially offset by slightly lower selling prices
- Storm drainage net sales increased due to acquisitions and the company’s ability to drive the adoption of advanced stormwater management systems.
- Net sales for fire protection products decreased due to lower selling prices and lower end-market volume, partially offset by acquisitions
- Meter products net sales benefitted from the company’s ability to drive adoption of smart meter technology through municipalities, increase product availability and acquisitions.
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Core & Main’s 4Q gross profit increased 17.4% year-over-year, with gross margin of 26.6% own 10 basis-points from 4Q23. Operating profit of $124 million increased 6.9% year-over-year, but declined from 3Q24’s $223 million. Net profit of $67 million decreased 11.8% year-over-year and likewise decreased from 3Q24’s $140 million.
The company’s 4Q adjusted EBITDA of $179 million increased 11.9% year-over-year, but decreased from 3Q24’s $277 million.
2024 Results
For its full-year results, Core & Main posted 2024 sales of $7.4 billion, up 11% year-over-year. The company noted that the increase was primarily due to acquisitions, higher volumes and contributions from 53rd selling week in the current year, partially offset by slightly lower selling prices.
- Pipe, valves & fitting net sales increased due to acquisitions, partially offset by slightly lower selling prices.
- Net sales for storm drainage increase primarily due to acquisitions the company’s ability to drive the adoption of advanced storm water management systems.
- Fire protection products net sales decreased due to lower selling prices and lower end-market volumes partially offset by acquisitions
- Meter products net sales benefitted from the company’s ability to drive the adoption of smart meter technology through municipalities, increased product availability and acquisitions.
Core & Main’s gross profit increased 8.9% year-over-year, with gross margin of 26.6% down 50 bps from 2023. The company said the decreased in gross margin was primarily due to larger prior year benefits from strategic inventory investments during an inflationary period partially offset by favorable impacts from the execution of the company’s gross margin initiatives and accretive acquisitions.
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Operating profit of $719 million declined 2.8% year-over-year, while net profit of $434 million likewise declined 18.3% from the same period a year prior.
The company’s full-year adjusted EBITA of $930 million increased 2.2% year-over-year.
“These consistently strong results are driven by our balanced business mix, the investments we have made to support and execute our growth strategy, and the expertise and dedication of our associates,” LeClair said in the company’s financial release. “With growing demand for innovative water infrastructure solutions, we continue to add new products, branches and capabilities to strengthen our leadership position in the industry. We also completed ten acquisitions to expand our presence in important geographies, gain access to new product lines and add key talent. Our strong cash flow generation and flexible balance sheet allow us to invest in organic growth and consolidate our fragmented markets through acquisitions, while returning capital to shareholders.”
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