Free cash flow generation is highly seasonal and volatile, with the operating cash flow conversion ratio ranging from 0.25x to 3.83x of net income over the past ten quarters, driven by large swings in working capital.
Core & Main, Inc. (CNM) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Feb'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 |
|---|
| Cash from Operations | 683M | 650M | 621M | 1.07B | 401M | -31M | 214M | 194M |
| Operating CF Margin % | - | 8.5% | 8.35% | 15.95% | 6.03% | -0.62% | 5.88% | 5.72% |
| Operating CF Growth % | 107.12% | 4.67% | -41.91% | 166.58% | 1393.55% | -114.49% | 10.31% | - |
| Net Income | 459M | 441M | 434M | 371M | 581M | 225M | 44.5M | 36M |
| Depreciation & Amortization | 193M | 192M | 194M | 154M | 148M | 150M | 153M | 138M |
| Stock-Based Compensation | 14M | 17M | 14M | 10M | 11M | 25M | 4M | 4M |
| Deferred Taxes | 34M | 28M | 13M | 0 | -857M | 0 | -4M | 4M |
| Other Non-Cash Items | -101M | 21M | 8M | 167M | 857M | 35M | -2.5M | 1M |
| Working Capital Changes | 64M | -49M | -42M | 367M | -339M | -466M | 19M | 11M |
| Change in Receivables | -71M | 26M | -2M | 21M | -51M | -312M | -28M | 3.2M |
| Change in Inventory | -73M | -70M | -36M | 328M | -149M | -440M | -27M | -2M |
| Change in Payables | 46M | -59M | 14M | 11M | -140M | 274M | 40M | 15M |
| Cash from Investing | -173M | -145M | -788M | -270M | -152M | -203M | -228.9M | -234M |
| Capital Expenditures | -55M | -46M | -35M | -39M | -25M | -20M | -11.9M | -14M |
| CapEx % of Revenue | 0.71% | 0.6% | 0.47% | 0.58% | 0.38% | 0.4% | 0.33% | 0.41% |
| Acquisitions | -61M | -61M | -741M | -231M | -128M | -179M | -217.2M | -220M |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -57M | -38M | -12M | 0 | 1M | 1M | 200K | 0 |
| Cash from Financing | -223M | -293M | 174M | -975M | -73M | -146M | 215M | 184M |
| Debt Issued (Net) | 200M | -117M | 391M | 415M | -17M | -850M | 237M | 513M |
| Equity Issued (Net) | -365M | -155M | -176M | -1.34B | 1M | 664M | 0 | 200K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -20.9M | -323.1M |
| Share Repurchases | -365M | -155M | -176M | -1.34B | 0 | 0 | 0 | -200K |
| Other Financing | -58M | -21M | -41M | -46M | -57M | 40M | -1.1M | -5.9M |
| Net Change in Cash | 287M | 212M | 7M | -176M | 176M | -380M | 200M | 144M |
| Free Cash Flow | 628M | 604M | 586M | 1.03B | 376M | -51M | 202M | 180M |
| FCF Margin % | 8.16% | 7.9% | 7.88% | 15.37% | 5.65% | -1.02% | 5.55% | 5.31% |
| FCF Growth % | 11.35% | 3.07% | -43.11% | 173.94% | 837.25% | -125.25% | 12.22% | - |
| FCF per Share | 3.25 | 3.05 | 2.91 | 4.52 | 1.53 | -0.21 | 0.84 | 0.75 |
| FCF Conversion (FCF/Net Income) | 1.37x | 1.47x | 1.51x | 2.88x | 1.10x | -0.19x | 5.78x | 5.39x |
| Interest Paid | 78M | 133M | 197M | 105M | 74M | 126M | 123M | 99M |
| Taxes Paid | 14M | 0 | 143M | 116M | 147M | 55M | 8M | 13M |
Quick answers to the most common questions about buying CNM stock.
Core & Main, Inc. (CNM) generated $650.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Core & Main, Inc. (CNM) generated $604.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Core & Main, Inc. (CNM) spent $46.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Core & Main, Inc. (CNM) spent $155.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Working capital volatility masking earnings quality
Metrics are mathematically derived from official filings.
Wild Swings in Cash Conversion Ratio
CNM's operating cash flow conversion ratio has fluctuated wildly from 0.25x to 3.83x over the last ten quarters, indicating that reported net income is an unreliable predictor of near-term cash generation, according to the company's financial statements.
The wide dispersion in the OCF/NI ratio suggests that accrual-based earnings are heavily influenced by non-cash timing differences, likely related to inventory and receivables cycles. The periods of low conversion (e.g., 2025Q2 at 0.25x) coincide with large negative working capital changes, implying that working capital swings, not core profitability, are the primary driver of cash flow volatility.
FCF Margins Exhibit Seasonal Pattern
Free cash flow margin demonstrates a pronounced seasonal pattern, surging above 12% in the second half of the year before contracting to low-single digits in the first half, as shown in the reported quarterly results.
This pattern indicates that CNM's cash generation is highly dependent on the construction cycle and project timing, with Q4 and Q3 typically seeing strong cash inflows from project completions. The 2026Q2 FCF margin of 2.1% appears in line with this historical pattern, but the trend suggests minimal underlying secular growth in cash conversion efficiency.
Working Capital Swings Drive Cash Flow
Working capital changes have been the dominant swing factor in operating cash flow, with quarterly swings ranging from a -$167 million use in 2025Q2 to a +$146 million source in 2025Q4, based on reported financial statements.
The magnitude of these swings dwarfs changes in net income, indicating that CNM's cash flow is more a function of managing its balance sheet (inventory and receivables) than its P&L performance. This creates a high degree of unpredictability in quarter-to-quarter cash generation and makes the company's cash flow statement a poor indicator of underlying business momentum.
Low Capital Intensity Supports Cash Flow
Capital expenditure has remained consistently low at 0.4% to 0.9% of revenue across all quarters, suggesting the business model requires minimal reinvestment to maintain operations, as reported in SEC filings.
This low capital intensity is a structural positive, allowing a larger portion of operating cash flow to be converted to free cash flow. The modest capex appears largely maintenance-oriented, as depreciation and amortization consistently exceeds capital expenditures, implying the company is not underinvesting in its asset base.
Aggressive Buybacks Offset by Acquisition Spending
CNM has prioritized share repurchases, spending $629 million over the last ten quarters, while also making strategic acquisitions totaling $802 million in 2024, as detailed in cash flow statements.
The capital deployment strategy appears balanced between returning capital to shareholders via buybacks and pursuing inorganic growth. However, the lack of dividends suggests a focus on growth and financial flexibility. The sustainability of this level of buyback activity is contingent on the volatile working capital swings not depleting cash reserves.
Cash Flow Statement Obscures Acquisition Impact
The cash flow statement does not disclose the recurring cash costs or integration expenses associated with the $802 million in 2024 acquisitions, which may be embedded within operating cash flow and could distort the underlying cash generation profile, based on reported figures.
Acquisition-related costs, such as inventory step-ups, earn-outs, or restructuring, are often not clearly separated from operating activities. Investors should monitor whether the reported operating cash flow is being bolstered by one-time working capital benefits from these deals, rather than sustained organic performance. The significant acquisition spending in 2024Q1 ($564M) warrants further investigation into the resulting asset base and its contribution to future cash flows.