Cash flow generation remains highly sensitive to inventory cycles, with OCF/NI ratios fluctuating significantly from a low of 0.25 in 2025Q2 to a peak of 4.67 in 2023Q4.
| Cash from Operations | 655M | 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 % | -4.4% | 4.67% | -41.91% | 166.58% | 1393.55% | -114.49% | 10.31% | - |
| Net Income | 449M | 441M | 434M | 371M | 581M | 225M | 44.5M | 36M |
| Depreciation & Amortization | 191M | 192M | 194M | 154M | 148M | 150M | 152.7M | 138M |
| Stock-Based Compensation | 15M | 17M | 14M | 10M | 11M | 25M | 4M | 4M |
| Deferred Taxes | 31M | 28M | 13M | 0 | -857M | 0 | -4M | 4M |
| Other Non-Cash Items | -95M | 21M | 8M | 167M | 857M | 35M | -2.2M | 1M |
| Working Capital Changes | 50M | -49M | -42M | 367M | -339M | -466M | 19M | 11M |
| Change in Receivables | 70M | 26M | -2M | 21M | -51M | -312M | -28M | 3.2M |
| Change in Inventory | -26M | -70M | -36M | 328M | -149M | -440M | -27M | -2M |
| Change in Payables | -119M | -59M | 14M | 11M | -140M | 274M | 40M | 15M |
| Cash from Investing | -150M | -145M | -788M | -270M | -152M | -203M | -228.9M | -234M |
| Capital Expenditures | -47M | -46M | -35M | -39M | -25M | -20M | -11.9M | -14M |
| CapEx % of Revenue | 0.61% | 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 | -42M | -38M | -12M | 0 | 1M | 1M | 200K | 0 |
| Cash from Financing | -363M | -293M | 174M | -975M | -73M | -146M | 215M | 184M |
| Debt Issued (Net) | -124M | -117M | 391M | 415M | -17M | -850M | 237M | 513M |
| Equity Issued (Net) | -157M | -155M | -176M | -1.34B | 1M | 664M | 0 | 200K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -20.9M | -323.1M |
| Share Repurchases | -157M | -155M | -176M | -1.34B | 0 | 0 | 0 | -200K |
| Other Financing | -82M | -21M | -41M | -46M | -57M | 40M | -1.1M | -5.9M |
| Net Change in Cash | 142M | 212M | 7M | -176M | 176M | -380M | 200M | 144M |
| Free Cash Flow | 608M | 604M | 586M | 1.03B | 376M | -51M | 202M | 180M |
| FCF Margin % | 7.95% | 7.9% | 7.88% | 15.37% | 5.65% | -1.02% | 5.55% | 5.31% |
| FCF Growth % | -20.42% | 3.07% | -43.11% | 173.94% | 837.25% | -125.25% | 12.22% | - |
| FCF per Share | 3.11 | 3.05 | 2.91 | 4.52 | 1.53 | -0.21 | 0.84 | 0.75 |
| FCF Conversion (FCF/Net Income) | 1.35x | 1.47x | 1.51x | 2.88x | 1.10x | -0.19x | 5.78x | 5.39x |
| Interest Paid | 95M | 0 | 197M | 105M | 74M | 126M | 123M | 99M |
| Taxes Paid | 43M | 0 | 143M | 116M | 147M | 55M | 8M | 13M |
Working capital volatility
According to reported financial data, Core & Main exhibits significant quarterly variance in cash conversion, with OCF/NI ratios swinging from a low of 0.25 in 2025Q2 to a peak of 4.67 in 2023Q4, highlighting the heavy influence of seasonal working capital shifts on reported cash flow.
The wide dispersion in the OCF/NI ratio suggests that GAAP net income is a poor proxy for short-term liquidity generation in this business. Investors should monitor these fluctuations as they appear to be driven more by the timing of inventory procurement and municipal project cycles than by underlying changes in earnings quality.
As reported in financial statements, Core & Main's free cash flow margins have demonstrated extreme volatility, ranging from a low of 1.1% in 2025Q2 to a high of 20.1% in 2023Q4, indicating that cash generation is highly sensitive to the timing of large-scale inventory management.
The lack of a stable FCF trajectory suggests that the company's cash flow profile is heavily dependent on the cyclical nature of its distribution business. This inconsistency warrants further investigation into whether management can smooth out these cash flows through better inventory control or if this volatility is an inherent feature of the waterworks distribution model.
Based on the provided cash flow statements, working capital changes have been the primary driver of liquidity, with quarterly swings as large as $180 million in 2023Q4, suggesting that the company's cash position is highly vulnerable to shifts in inventory procurement and municipal project delivery timelines.
The significant negative working capital changes observed in the second quarters of 2024 and 2025 imply a recurring seasonal build-up of inventory ahead of peak construction periods. This pattern suggests that the company must maintain substantial liquidity buffers to fund these working capital requirements, which may limit the cash available for other capital allocation priorities.
As indicated by recent financial filings, Core & Main has prioritized share repurchases and acquisitions, with buybacks totaling $88 million in 2026Q1 alone, signaling a management focus on returning capital to shareholders and expanding the footprint despite the inherent volatility in the company's underlying cash flow generation.
The consistent use of cash for share repurchases, even during periods of lower FCF, suggests a high degree of confidence in the long-term durability of the business. However, investors should monitor whether this aggressive deployment strategy could constrain the company's ability to navigate potential downturns in municipal infrastructure funding.
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.