Strong Sales Growth
Sales of $7.6 billion increased 4.3% over the prior year, driven by organic growth of 5% and acquisition growth of 1% despite fewer sales days and foreign exchange impacts.
Improved Gross Margin
Gross margin improved to 31%, up 130 basis points sequentially, driven by better value capture and moderating deflation.
Operating Profit and Margin Expansion
Operating profit increased 6.1%, with operating margin expanding 20 basis points to 9.4%.
Diluted Earnings Per Share Increase
Diluted earnings per share increased 7.8% over the prior year to $2.50.
Strong Balance Sheet
Net debt to EBITDA ratio of 1.2x, indicating a robust financial position.
Nonresidential End Market Growth
Nonresidential revenue grew approximately 7%, with strong activity in commercial, industrial, and civil infrastructure.
HVAC Growth
HVAC customer group delivered strong growth with a 10% increase in the quarter, driven by investments and dual trade contractor conversions.
Waterworks Growth
Waterworks revenue grew 12%, driven by public works and municipal projects.