Latest news with #IIJA
Yahoo
19 hours ago
- Business
- Yahoo
Can Sterling Continue to Maintain Its 29% EPS Growth in 2025?
Sterling Infrastructure, Inc. STRL has shifted its focus toward large-scale mission-critical projects, including data centers, which are proving incremental for its bottom line and revenue visibility. Supporting this strategic decision of the company is the current favorable market backdrop concerning public infrastructure demand, backed by several government initiatives, namely the Infrastructure Investment and Jobs Act (IIJA), CHIPS Act and Inflation Reduction Act (IRA). This shift toward higher-margin service offerings is boding well for STRL's margin and earnings per share (EPS) growth, as evidenced by the 29.4% year-over-year EPS growth in the first quarter of 2025, alongside its adjusted operating margin expanding 618 basis demand for data center-related projects is currently strong in the market thanks to the ongoing surge in Artificial Intelligence applications and the focus on digital transformation initiatives. STRL highlighted that the mission-critical projects hold the majority of its E-Infrastructure segment's (51% of first quarter 2025 revenue) backlog, with data center-related work accounting for more than 65%. Backed by the robust market trends, the E-Infrastructure segment's backlog grew 27% year over year to $1.2 billion as of the first quarter of 2025, with Sterling finishing the quarter with a total backlog of $2.13 Sterling's efficient project management skills and ability to complete projects on or before the deadline are acting as a catalyst toward its growth amid the favorable infrastructure spending market backdrop. Owing to these tailwinds, the company raised its 2025 adjusted EPS guidance to be in the range of $8.40-$8.90 from the previously expected range of $7.90-$8.40. The updated values reflect 18.5-25.5% year-over-year growth. The analysts' sentiments are bullish for Sterling, attributable to increased public infrastructure demand and its ability to capitalize on those opportunities, driving its backlog. For 2025, STRL's earnings estimates have trended upward in the past 60 days to $8.61 per share. The estimated figures reflect 41.2% year-over-year growth. Although the 2026 earnings estimate has been revised downward in the past 60 days to $9.48 per share, the estimated figure indicates 10.1% year-over-year growth. Image Source: Zacks Investment Research Moreover, EPS estimates for the second, third and fourth quarters indicate 35.3%, 32.5% and 43.8% year-over-year growth, respectively. The robust trend indicates that the company will be able to maintain or rather outperform its EPS growth streak for the remainder of 2025. STRL shares space with renowned market players, including EMCOR Group, Inc. EME and Quanta Services, Inc. PWR, which are also benefiting from the market backdrop of strong public infrastructure demand, especially across data centers, energy infrastructure and power grid is a Connecticut-based mechanical and electrical construction, industrial and energy infrastructure, and building services provider, which is gaining from the growing infrastructural demand across the network and communications sector. For 2025 and 2026, EMCOR's EPS estimates trended upward in the past 60 days by 0.9% to $23.59 and 0.3% to $25.47, indicating 9.6% and 8% year-over-year growth, is a Texas-based infrastructure services provider, currently benefiting from its involvement in the advancement and implementation of technology solutions throughout the entire decarbonization spectrum. For 2025 and 2026, Quanta's EPS estimates moved up in the past 60 days by 1% to $10.33 and 0.1% to $11.69, indicating 15.2% and 13.2% year-over-year growth, respectively. Shares of this Texas-based infrastructure services provider have gained 35.7% so far this year, significantly outperforming the Zacks Engineering - R and D Services industry, the broader Zacks Construction sector, and the S&P 500 index. Image Source: Zacks Investment Research STRL stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 25.32X, as evidenced by the chart below. The overvaluation of the stock compared with its industry peers indicates its strong potential in the market, given the favorable trends backing it up. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Car and Driver
2 days ago
- Automotive
- Car and Driver
Federal Judge Blocks Trump From Suppressing Funds for EV Chargers
A federal judge has issued a temporary block on a Trump administration order to withhold funds for EV charging infrastructure. U.S. District Judge Tana Lin ruled that states involved in a lawsuit with the federal government were likely to win, alleging that the government was illegally withholding billions of dollars. The suit refers to a $5 billion EV charging program intended to build out at least half a million chargers across the U.S. by 2030 that was frozen by the DOT in February. A federal judge has stepped in to issue a temporary block on the Trump administration's suppression of funds awarded to states for building improved electric vehicle charging infrastructure. The funds were part of a 2021 bipartisan infrastructure bill called the Infrastructure Investment and Jobs Act (IIJA) that specifically appropriated $5 billion for the National Electric Vehicle Infrastructure (NEVI) formula program. When he took office, President Trump issued an executive order directing federal agencies to stop releasing funds under the IIJA, resulting in 17 attorneys general filing suit against the administration. Following the executive order, the Department of Transportation (DOT) began withholding funds from states. Earlier this week, U.S. District Judge Tana Lin issued a preliminary injunction blocking the Trump administration's order. PATRICK T. FALLON | Getty Images According to a report from Automotive News, Lin's order does not apply to the District of Columbia, Minnesota, and Vermont. All three of which also sued over the funding rescission, but did not provide evidence that they would suffer immediate harm as a result of the DOT's decision. Lin's order won't go into effect for seven days, giving the Trump administration a grace period to file an appeal and ask an appellate court to block her ruling from taking effect. "The administration cannot dismiss programs illegally, like the bipartisan Electric Vehicle Infrastructure formula program, just so that the President's Big Oil friends can continue basking in record-breaking profits," said California Attorney General Rob Bonta in a social media post. Jack Fitzgerald Associate News Editor Jack Fitzgerald's love for cars stems from his as yet unshakable addiction to Formula 1. After a brief stint as a detailer for a local dealership group in college, he knew he needed a more permanent way to drive all the new cars he couldn't afford and decided to pursue a career in auto writing. By hounding his college professors at the University of Wisconsin-Milwaukee, he was able to travel Wisconsin seeking out stories in the auto world before landing his dream job at Car and Driver. His new goal is to delay the inevitable demise of his 2010 Volkswagen Golf. Read full bio
Yahoo
20-06-2025
- Business
- Yahoo
North American Air Circuit Breaker Market worth $1.08 billion by 2030
DELRAY BEACH, Fla., June 20, 2025 /PRNewswire/ -- The North American Air Circuit Breaker Market is anticipated to grow from estimated USD 0.82 billion in 2025 to USD 1.08 billion by 2030, at a CAGR of 5.7% during the forecast period. The North American Air Circuit Breaker (ACB) Market is likely to continue experiencing steady growth up to 2030, driven by growing investments in grid modernization, industrial automation, and renewable energy infrastructure in the United States and Canada. With aging legacy electrical systems and the growing need for uninterrupted power supply, utilities, commercial buildings, and industrial plants are turning toward ACBs due to their reliability, superior breaking capacity, and simplicity of integration with smart monitoring systems. Federal investment programs such as the IIJA (Infrastructure Investment and Jobs Act) and the Inflation Reduction Act are directing significant investment toward developing substations, transmission infrastructure, and power distribution systems. ACBs have an essential function in protection and load control. Besides that, the growth in renewable energy installations, electric vehicle charging points, and data centers has increased demand for high-endurance, flexible switchgear that can handle load fluctuations and grid complexity, further supporting the demand for air circuit breakers. Technological improvements in arc flash protection, remote diagnostics, and modular designs improve ACB applicability in today's power infrastructure. As the North American continent moves toward a digital, resilient, and sustainable grid power infrastructure, there are enormous opportunities for ACB manufacturers to address transforming utility, commercial, and industrial needs with next-generation technologies. Browse in-depth TOC on "North American Air Circuit Breaker Market" 100 - Tables50 - Figures200 – Pages Download PDF Brochure: By type, air blast circuit breakers are expected to hold larger market share throughout forecast period The air blast circuit breaker segment is expected to capture a significant share of the North American Air Circuit Breaker Market during the forecast period because of its better performance traits and applicability in medium-voltage and high-demand applications. Air blast circuit breakers utilize compressed high-pressure air to rapidly and effectively extinguish arcs, and as such, are suited for applications that demand the high-speed interruption of fault currents, such as power plants, industrial substations, and extensive business complexes. Their high-speed performance capability to manage frequent operations and guarantee greater electrical safety ranks them higher than simple air circuit breakers in mission-critical applications. In addition, air blast breakers generally represent lower maintenance requirements and longer life cycles, which add to their attractiveness for utility and industrial customers looking for long-term dependability and operational efficiency. As North America continues replacing aging infrastructure and incorporating renewable energy and distributed generation, demand for high-performance, arc-resistant switching technologies such as air blast circuit breakers is anticipated to grow steadily. By voltage, low voltage segment to account for majority of market share throughout forecast period. The low-voltage segment is anticipated to hold a larger market share of the North American Air Circuit Breaker Market during the forecast period, owing to its extensive usage in industrial, commercial, and infrastructure sectors. Low-voltage air circuit breakers, rated below 1 kV, play a vital role in the protection of electrical circuits in industrial plants, commercial facilities, data centers, hospitals, and institutional building environments where electrical security, equipment protection, and continuity of power are paramount. They are preferred due to their simplicity of installation, economic implications, and compatibility with intelligent monitoring systems and are, therefore, appropriate for contemporary energy management approaches. Also, contributing to the growth is the relentless growth of data centers, fast-paced commercial growth, and the upgrading of electrical infrastructure in cities throughout the US and Canada. As the focus on energy efficiency, automation, and smart grid compatibility intensifies, the low-voltage ACB segment is poised to continue leading the market. US to lead North American market during forecast period During the forecast period, the US is expected to dominate the North American Air Circuit Breaker Market due to massive infrastructure upgrades, increasing industrial automation, and robust policy support for clean energy integration and grid reliability. As the American government launches projects under the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), considerable investments are going into modernizing substations, replacing old switchgear, and making power distribution networks more resilient. The nation's strong industrial sector, increasing data center count, and increasing use of clean energy sources such as wind and solar have increased the need for smart air circuit breakers to manage power safely and efficiently. Moreover, the mandatory safety measures and energy efficiency standards imposed by organizations such as the US Department of Energy (DOE) are speeding up the integration of smart, low-maintenance ACBs for digital monitoring. Based on a well-developed electrical infrastructure and aggressive efforts in energy transition, the US will lead the region's market in terms of volume and value. Key Players Some prominent players in the North American Air Circuit Breaker Market are ABB Ltd. (Switzerland), Schneider Electric (France), Mitsubishi Electric Corporation (Japan), Eaton (Ireland), and Siemens AG (Germany). These players aggressively invest in product innovation, regional production expansion, and strategic acquisitions to meet the region's increasing demand for sophisticated circuit protection systems. As North America's electrical infrastructure undergoes digitalization, decarbonization, and decentralization efforts, these companies target intelligent air circuit breakers with IoT-based monitoring, arc flash protection, and remote diagnostic capabilities. The focus is on providing compact, cybersecure, and easy-to-maintain ACBs capable of facilitating renewable energy integration, critical infrastructure, and high-density urban developments. Partnerships with utilities, electric contractors, and grid operators form the core of their plans, particularly in aligning the design of products with changing safety codes such as UL, IEEE, and NEC standards. In addition, further investment in domestic manufacturing and R&D facilities in the US and Canada makes it possible to achieve quicker delivery cycles, customized product configurations, and compliance with federal infrastructure programs, cementing these companies' leadership roles in industrial, commercial, and utility markets. Request Sample Pages: ABB (Switzerland) ABB (Switzerland) is a global technology leader in electrification and automation that offers a complete line of low- and medium-voltage air circuit breakers across North America for industrial, utility, and infrastructure purposes. Its Emax and Tmax ACBs are widely used across mission-critical environments and enable intelligent protection, load management, and energy monitoring capabilities in all applications. ABB understands and embraces digital power management, as its ACBs integrate with digital solutions inherently, and its ACBs also feature communication protocols such as Modbus and Ethernet, which allow for rapid adoption of Industry 4.0. Aside from established channels, ABB invests heavily in emerging technologies such as predictive diagnostics, arc flash protection technologies, and compact modular designs that minimize space and keep workers safe working in data centers, commercial buildings, and industrial plants. ABB is increasingly embracing sustainability through its EcoSolutions product line, which includes air circuit breakers manufactured with recycled materials and a reduced CO2 footprint. In North America, ABB persists in developing its service and distribution network and working with EPCs, OEMs, and utilities on modernization and electrification initiatives under federal energy programs. Schneider Electric (France) Schneider Electric (France) is one of the key manufacturers in the North American ACB market. It supports market evolution with advanced and digitally connected solutions through its MasterPact and ComPact ACB brands. Schneider Electric embedded advanced digital trip units into its air circuit breakers (ACBs) to provide smart capabilities, such as real-time data acquisition, fault diagnostics, and remote operation, to better protect its customers' industrial and commercial facilities. Schneider Electric met the stressed energy management, operational safety, and regulatory compliance demands of the electricity grid and corporate responsibility for safety, decarbonization, and net-zero transitions of power-critical spaces in healthcare, manufacturing, and data center markets. Its EcoStruxure platform connects ACBs to cloud-based analytics that assess energy demands to assist with load optimization, condition monitoring, and predictive maintenance solutions. Schneider Electric in North America is increasing its manufacturing footprint and investing in partnerships with local utilities, contractors, and systems integrators to provide market access and knowledge on innovative infrastructure development. While investing in social impact initiatives, Schneider Electric is committed to decarbonization and resiliency by developing energy-efficient and low-GWP ACB systems that align with education on developing green building codes and net-zero environmental targets. For more information, Inquire Now! Related Reports: Switchgear Market Circuit Breaker Market AC Circuit Breaker Market Get access to the latest updates on North American Air Circuit Breaker Companies and North American Air Circuit Breaker Industry About MarketsandMarkets™: MarketsandMarkets™ has been recognized as one of America's Best Management Consulting Firms by Forbes, as per their recent report. MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. With the widest lens on emerging technologies, we are proficient in co-creating supernormal growth for clients across the globe. Today, 80% of Fortune 2000 companies rely on MarketsandMarkets, and 90 of the top 100 companies in each sector trust us to accelerate their revenue growth. With a global clientele of over 13,000 organizations, we help businesses thrive in a disruptive ecosystem. The B2B economy is witnessing the emergence of $25 trillion in new revenue streams that are replacing existing ones within this decade. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing. Built on the 'GIVE Growth' principle, we collaborate with several Forbes Global 2000 B2B companies to keep them future-ready. Our insights and strategies are powered by industry experts, cutting-edge AI, and our Market Intelligence Cloud, KnowledgeStore™, which integrates research and provides ecosystem-wide visibility into revenue shifts. To find out more, visit or follow us on Twitter, LinkedIn and Facebook. Contact:Mr. Rohan SalgarkarMarketsandMarkets™ INC.1615 South Congress 103, Delray Beach, FL 33445USA: +1-888-600-6441Email: sales@ Our Website: Logo: View original content to download multimedia: SOURCE MarketsandMarkets
Yahoo
13-06-2025
- Business
- Yahoo
Great Lakes Stock Trading at a Discount: Is It Buy Time Now?
Great Lakes Dredge & Dock Corporation's GLDD current valuation is enticing for investors. Currently, the stock is trading below its industry peers with a forward 12-month price-to-earnings (P/E) ratio of 12.43X, as evidenced by the chart below. Moreover, the discounted valuation of GLDD compares favorably with a few of the other market players, including Orion Group Holdings, Inc. ORN, Quanta Services, Inc. PWR and Granite Construction Incorporated GVA. The 12-month P/E ratios of Orion Group, Quanta and Granite Construction are 31.69X, 32.73X and 13.98X, respectively. Image Source: Zacks Investment Research The discounted valuation of GLDD stock, compared with its peers, advocates for an attractive entry point for investors. That said, in the long term, the valuation could move toward a premium, given the strong market fundamentals backing the company's revenue visibility and Texas-based dredging services provider is mainly gaining from large-scale capital and coastal protection projects compared with mainstream maintenance dredging. Thanks to its resilience in offering such services, it enjoys a competitive edge in the market. Moreover, its new build program, proposed in 2020, catalyzes its ability to offer such services efficiently and expand the margins in the process. With such favorable market fundamentals and its in-house capabilities, the company is consistently able to enhance its liquidity position, thus increasing space for strategic long-term investments and shareholder GLDD's shares have soared 34.6% in the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector and the S&P 500 index. The detailed price performance can be studied from the chart below. Image Source: Zacks Investment Research Let's delve deeper into understanding the factors driving GLDD's momentum. Great Lakes is significantly benefiting from the robust demand trends for large-scale capital and coastal protection projects. This is because it houses the specifications that are required to offer these services, differing from maintenance dredging, allowing it a competitive advantage over other market players like Orion Group, which mainly offers mainstream dredging services. As of March 31, 2025, GLDD's substantial dredging backlog was $1 billion compared with $879.4 million as of last year's first quarter, with capital and coastal protection projects accounting for 95% of the total dredging main driver for coastal restoration projects is the increased government funding for infrastructure projects, at the state and federal levels, due to the U.S. Army Corps of Engineers or FEMA-backed initiatives backed by the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). These projects being government-funded, reduce payment failure risks, and with being larger in scale and having longer duration, it also ensures efficient asset utilization. Such characteristics of these projects not only boost the company's revenue visibility but also foster its margin growth. Tailwinds from public infrastructure spending are also aiding other market players like Quanta and Granite Construction. Proposed in 2020, the new build program was approved and rolled out to renew and modernize GLDD's fleet. Through this program, the company mainly aims to stand tall for offering services in coastal restoration and shoreline protection, establishing a resilient business model. As part of this program, the company is currently undergoing construction of Acadia, the first U.S.-flagged Jones Act-compliant subsea rock installation vessel, which is expected to be delivered by the first quarter of 2026. Acadia will be considered for domestic and international offshore wind projects alongside critical subsea infrastructure protection the newest hopper dredge, the Amelia Island (expected delivery in the third quarter of 2025) and the Galveston Island have been designed specifically by GLDD to work efficiently in shallow and narrow waters along the U.S. coastlines, specifically for coastal protection projects such as beach restoration, wetlands improvements and Barrier Island construction. With the program wrapping up by the end of 2025 or the beginning of 2026, the company expects to witness incremental revenue trends and increased free cash flow thereafter. Given the current market uncertainties and an inflationary scenario, maintaining a substantial liquidity position alongside making strategic business investments is a strenuous task. Great Lakes is managing this job just fine by leveraging its increasing top line and almost concluding its investment of March 31, 2025, GLDD had cash and cash equivalents of $11.3 million, up from $10.2 million at 2024-end. Net cash from operating activities, as of the same period, was $60.9 million, up year over year from $38.4 million, attributable to higher earnings in the period and an increase in billings above contract revenues. With no debt maturities until 2029 and liquidity of more than $300 million, the company has a stable liquidity position to function in an uncertain market scenario. GLDD's earnings estimates for 2025 and 2026 have trended upward in the past 60 days by 39.1% to 96 cents per share and 11.8% to 95 cents, respectively. The estimated figure for 2025 reflects 14.3% year-over-year growth, with the same for 2026 indicating a 0.4% inch-down. EPS Trend Image Source: Zacks Investment Research Technical indicators suggest a continued strong performance for Great Lakes. From the graphical representation given below, it can be observed that GLDD stock is riding above both the 50-day simple moving average (SMA) and the 200-day SMA, signaling a bullish trend. The technical strength underscores positive market sentiment and confidence in GLDD's financial health and prospects. 50 & 200-Day Moving Averages Image Source: Zacks Investment Research As discussed above, strong demand trends for large-scale capital and coastal protection projects, backed by a favorable government funding scenario in the US, are the main driving factors for Great Lakes' revenues and margins. The company's competitive edge over its peers for offering these services, thanks to its multi-year new build program, is an added catalyst amid the favorable market optimism regarding GLDD stock is reflected in three of the three recommendations pointing at a "Strong Buy'. Image Source: Zacks Investment Research Thus, based on the above discussion and trends of the technical indicators, this Zacks Rank #1 (Strong Buy) stock is a decent choice to be added to the portfolio for now. You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Orion Group Holdings, Inc. (ORN) : Free Stock Analysis Report Great Lakes Dredge & Dock Corporation (GLDD) : Free Stock Analysis Report Granite Construction Incorporated (GVA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
CNM Q1 Earnings Call: Market Share Gains and Steady Infrastructure Demand Shape Outlook
Water and fire protection solutions company Core & Main (NYSE:CNM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 9.8% year on year to $1.91 billion. On the other hand, the company's full-year revenue guidance of $7.7 billion at the midpoint came in 0.6% below analysts' estimates. Is now the time to buy CNM? Find out in our full research report (it's free). Revenue: $1.91 billion vs analyst estimates of $1.85 billion (9.8% year-on-year growth, 3.5% beat) Adjusted EBITDA: $224 million vs analyst estimates of $225 million (11.7% margin, in line) The company reconfirmed its revenue guidance for the full year of $7.7 billion at the midpoint EBITDA guidance for the full year is $975 million at the midpoint, below analyst estimates of $982.9 million Operating Margin: 8.9%, in line with the same quarter last year Organic Revenue rose 4.8% year on year (2.7% in the same quarter last year) Market Capitalization: $11.02 billion Core & Main's first quarter results were shaped by steady municipal infrastructure demand, continued share gains, and resilient activity in nonresidential construction. Management pointed to above-market growth in its smart meters and storm drainage products, as well as the benefits of recent product and geographic expansion initiatives. CEO Mark Witkowski emphasized the importance of local relationships and a diversified product mix, stating, 'We drove 10% growth in meters and growth well into the double digits in our treatment plant and fusible high-density polyethylene offerings.' While residential lot development started the year with healthy activity, management acknowledged the segment is showing early signs of softening due to affordability pressures and cautious developer spending. Looking forward, Core & Main's guidance reflects a stable but uncertain environment, with management citing tariff risks, inflation, and interest rates as key variables for the remainder of the year. CFO Robyn Bradbury noted, 'We have good visibility into demand through the next quarter and expect to finish the first half strong supported by healthy project activity and backlogs,' but flagged less clarity for the back half of the year. Management expects flat to slightly positive pricing trends and is focused on passing through supplier cost increases, while also pursuing margin improvement through private label expansion and sourcing initiatives. Investments in greenfield branches and bolt-on acquisitions remain central to the company's growth strategy. Management attributed first quarter performance to municipal infrastructure funding, strong nonresidential demand, and share gains in targeted product categories. Expansion initiatives and disciplined pricing also played a significant role. Municipal project momentum: Ongoing funding from the Infrastructure Investment and Jobs Act (IIJA) supported growth in water and wastewater projects, especially in treatment plants, transmission line replacements, and stormwater management. Management cited a growing pipeline of shovel-ready municipal projects that contributed to steady demand in Q1. Nonresidential segment stability: While commercial buildings and manufacturing remained soft, Core & Main saw solid sales into data center construction, institutional buildings, multifamily housing, and road and bridge projects. The company's diversified exposure provided a buffer against weaker categories, and bidding activity across nonresidential segments was described as healthy. Smart meter and storm drainage growth: The company achieved 10% growth in smart meter sales (on top of strong prior-year results) and 17% growth in storm drainage, driven by both organic initiatives and M&A. Management attributed storm drainage strength in part to road and bridge projects and changes in product acceptance at the local level. Pricing and margin discipline: Sequential improvement in gross margins was realized through disciplined pricing and ongoing efforts in private label and sourcing optimization. While tariffs have had minimal direct impact so far, management is closely monitoring supplier cost increases and has taken steps to pass on higher costs where necessary. Local expansion and M&A: Core & Main continues to expand via greenfield branches and bolt-on acquisitions, having opened 20 greenfields since 2017 and completed over 40 acquisitions. The company emphasized the importance of local expertise in driving organic growth and indicated that its acquisition pipeline remains active. Core & Main's guidance is shaped by expectations of flat end markets, margin expansion strategies, and ongoing uncertainty in residential and private construction. Infrastructure funding tailwinds: Management expects continued support from federal and state funding for municipal water and wastewater projects, which should provide stability even if other construction segments soften. The company anticipates municipal demand to remain steady throughout the year. Margin improvement initiatives: The company is focused on expanding gross margins through private label growth, sourcing optimization, and disciplined pricing. Management stated that SG&A productivity and cost-out activities are expected to further support EBITDA margin expansion, despite acquisition-related expense pressures. Residential and macroeconomic risks: Core & Main anticipates a neutral to slightly down outlook for residential lot development, citing affordability pressures and smaller project footprints. Uncertainty around tariffs, interest rates, and inflation could dampen private construction activity and impact demand in the second half of the year. In the coming quarters, the StockStory team will be watching (1) continued flow of IIJA funding into municipal projects and the impact on Core & Main's backlog, (2) execution of margin expansion initiatives, particularly in private label and sourcing, and (3) signals of stabilization or further softening in residential and private nonresidential construction. The pace of greenfield openings and progress on acquisition integration will also be closely tracked. Core & Main currently trades at a forward P/E ratio of 23.4×. At this valuation, is it a buy or sell post earnings? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
