June 10, 2026

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Core & Main, Inc. (NYSE: CNM) reported fiscal first-quarter 2026 results with stronger earnings, margin expansion, solid cash flow, and significant share repurchases, while reaffirming its full-year outlook.
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Core & Main is a specialty distributor of water, wastewater, storm drainage, fire protection, and infrastructure products serving municipalities, contractors, and utility customers.
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The company reported adjusted EPS of $0.70, above estimates of $0.68, representing a 2.9% earnings surprise. Revenue came in at $1.91 billion, slightly above estimates of $1.90 billion, though revenue growth was nearly flat at negative 0.1%.

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Results Showed Margin and EPS Growth

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Net sales were $1.91 billion, essentially flat from the prior-year quarter. Lower volume in pipes, valves, fittings, and storm drainage was offset by acquisitions, while fire protection and smart utility products saw growth.
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Gross profit increased 2.0% to $520 million, while gross margin improved 50 basis points to 27.2%. The increase was driven by pricing discipline, purchasing management, and margin initiatives.
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Net income increased 7.6% to $113 million, and diluted EPS rose 9.6% to $0.57. Adjusted EBITDA increased slightly to $226 million, while adjusted EBITDA margin improved 10 basis points to 11.8%.
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Core & Main also generated $82 million in operating cash flow and repurchased $88 million of stock during the quarter, plus another $37 million after quarter-end.

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Guidance Reaffirmed

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Core & Main reaffirmed its fiscal 2026 outlook.
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The company still expects net sales of $7.8 billion to $7.9 billion, adjusted EBITDA of $950 million to $980 million, and adjusted EBITDA margin of 12.2% to 12.4%.

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The Bigger Picture

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Core & Main delivered a steady quarter in a mixed demand environment.
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Revenue was flat, but the company expanded margins, grew earnings, generated cash, reduced net debt, and returned capital through buybacks. The reaffirmed outlook suggests management still sees healthy demand from repair-and-replace activity and infrastructure investment.
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