Core & Main Delivers $650M Cash Flow, 15% PVC Price Drop, $30M Cost Cuts
Core & Main reported flat pricing overall in fiscal 2025 with PVC pipe pricing down 15%, and generated $650M operating cash flow, achieving a 60–70% adjusted EBITDA conversion rate. Its $30M cost-out program delivered $6M of savings in H2 FY25, with remaining benefits to materialize throughout FY26.
1. Pricing Challenges and Headwinds
Core & Main reported flat overall pricing in fiscal 2025, driven by a 15% decline in PVC pipe prices. This drop created a notable headwind for the first half of fiscal 2026, pressuring product margins in key markets.
2. Strong Cash Flow and Cost-Out Program
The company generated $650 million in operating cash flow, representing a conversion rate at the high end of its 60–70% adjusted EBITDA target. Its $30 million cost-out initiative delivered $1 million in savings in Q3 and $5 million in Q4 FY25, with the remaining $24 million expected to be realized in the first three quarters of FY26.
3. Market Outlook and Investment Strategy
Residential end markets are forecast to decline low-double digits in H1 FY26, improving to high-single digits in Q2 and flattening by year-end. Core & Main is adding about 30 specialists to support treatment plants and complex water projects, while monitoring fuel and resin price trends to stabilize future pricing.