Strong Earnings Performance Driven by Margin Expansion
Core & Main, Inc. (NYSE:CNM) delivered first-quarter results ahead of market expectations, prompting shares to rise about 0.7% in premarket trading.
Adjusted earnings per share reached $0.72, surpassing analyst forecasts of $0.54 by $0.18. Revenue totaled $1.91 billion, slightly ahead of the $1.90 billion consensus estimate and broadly unchanged from the same period a year earlier.
Gross profit increased 2.0% year-on-year to $520 million, while gross margin improved by 50 basis points to 27.2%, reflecting the company’s continued focus on profitability and operational efficiency.
Full-Year Outlook Remains Unchanged
The specialty infrastructure distributor reaffirmed its fiscal 2026 guidance, continuing to forecast net sales of between $7.80 billion and $7.90 billion, representing anticipated growth of 2% to 3%.
Core & Main also maintained its adjusted EBITDA outlook of $950 million to $980 million, with an expected adjusted EBITDA margin ranging from 12.2% to 12.4%.
Net income rose 7.6% to $113 million during the quarter, while adjusted EBITDA increased 0.9% to $226 million.
Municipal Infrastructure Demand Continues to Support Growth
Management highlighted ongoing strength in municipal markets, supported by infrastructure spending and maintenance activity.
“In the first quarter, we delivered solid results despite a dynamic macroeconomic environment and strong prior-year comparison,” said Mark Witkowski, CEO of Core & Main. “Municipal demand remained healthy, supported by ongoing repair-and-replace activity and infrastructure investment.”
The company reported double-digit growth in its treatment plant solutions business and high-single-digit growth across smart utility product categories.
Expansion and Shareholder Returns Continue
Core & Main continued to invest in its network, opening five new greenfield locations during the quarter to support future growth.
The company also remained active in returning capital to shareholders, spending $88 million to repurchase 1.8 million shares during the quarter. Following quarter-end, it deployed an additional $37 million to buy back approximately 0.8 million shares.
Operating cash flow improved to $82 million from $77 million in the prior-year period.
Balance Sheet Strengthens Further
Core & Main ended the quarter with lower leverage, as net debt declined to $2.01 billion as of 3 May 2026, compared with $2.28 billion a year earlier.
The reduction in debt, combined with steady cash generation and continued investment in expansion initiatives, leaves the company well positioned to pursue growth opportunities while maintaining financial flexibility.
More about Core & Main
Core & Main is a leading specialty distributor serving the water, wastewater, storm drainage and fire protection sectors across the United States. The company supplies infrastructure products and related services to municipalities, contractors and private utilities, supporting critical water management and infrastructure projects nationwide.