Core & Main, Inc. (NYSE:CNM) shares declined in premarket trading on Tuesday after the company released its fourth-quarter earnings results.
The specialty infrastructure distributor reported adjusted earnings per share of $0.52, surpassing analyst expectations of $0.33. However, quarterly revenue totaled $1.58 billion, slightly below the $1.59 billion consensus estimate. The stock fell 6.2% following the announcement, as investors focused on revenue guidance that came in under Wall Street projections.
Revenue for the quarter declined 6.9% year over year to $1.58 billion from $1.70 billion, although the company noted that the prior-year period included an additional selling week. On an average daily basis, net sales increased 0.9%. For the full fiscal year 2025, net sales rose 2.8% to $7.65 billion.
Core & Main forecast fiscal 2026 revenue in the range of $7.80 billion to $7.90 billion. The midpoint of $7.85 billion falls short of the analyst consensus estimate of $7.93 billion.
Gross profit margin improved by 50 basis points to 27.1% during the quarter, supported by the company’s margin improvement initiatives and disciplined pricing strategies. Net income increased 9.0% to $73 million, while diluted earnings per share rose 12.1% to $0.37.
“Fiscal 2025 marked our 16th consecutive year of sales growth, a result that reflects the resilience of our business, the long-term strength of our end markets and the disciplined execution by our teams across the country,” said Mark Witkowski, CEO of Core & Main.
For fiscal 2026, the company expects adjusted EBITDA between $950 million and $980 million, corresponding to an adjusted EBITDA margin of 12.2% to 12.4%. Core & Main also anticipates operating cash flow equivalent to 60% to 70% of adjusted EBITDA.
The outlook assumes stable pricing and end-market conditions, contributions from acquisitions and benefits from cost reduction initiatives implemented during fiscal 2025.