Nov. 7 at 7:03 PM
S&P Global Ratings upgraded Core & Main L.P. to ‘BB’ from its previous rating, citing the company’s ability to maintain low leverage despite heavy spending on acquisitions and share repurchases.
The agency expects debt leverage to stay between 2.5x and 3x in fiscal years 2025 and 2026, remaining below 4x even amid acquisition activity or weaker economic conditions. The outlook reflects solid performance through the first half of fiscal 2025, with S&P-adjusted debt-to-EBITDA at 3.1x for the 12 months ended August 3, 2025.
Core & Main has consistently managed leverage below 3.5x over the past four fiscal years. In fiscal 2024, despite spending
$740 million on acquisitions and
$176 million on share buybacks, leverage rose only slightly to 3.2x.
For fiscal 2025, S&P forecasts revenue growth of about 3%, supported by strength in municipal end markets and stable commercial demand, offsetting weaker residential trends.
$CNM