Core & Main, Inc. (NYSE:CNM), a distributor specializing in water, wastewater, and fire protection infrastructure products, saw its stock jump 5.4% in premarket trading Tuesday after delivering third-quarter results that surpassed analyst forecasts, even as the company contended with weaker residential demand.
Adjusted earnings came in at $0.89 per share, easily above the consensus estimate of $0.74. Quarterly revenue totaled $2.06 billion, matching expectations and marking a modest 1.2% year-over-year increase.
The company noted that revenue growth was achieved despite “soft residential demand and a tough comparison from last year.”
Gross profit rose 3.3% to $561 million, and gross margin expanded to 27.2%, up from 26.6% a year earlier. Management attributed the improvement to private-label momentum and disciplined purchasing and pricing strategies.
CEO Mark Witkowski said, “We delivered positive net sales growth despite soft residential demand and a tough comparison from last year, driven by contribution from acquisitions and strong performance across our sales initiatives.”
He added that fusible high-density polyethylene, treatment-plant solutions, and geosynthetics all posted double-digit growth in the quarter.
Core & Main also pointed to continued geographic expansion, with new branches opening in Houston, Texas, and Denver, Colorado. Additionally, the firm completed its acquisition of Canada Waterworks on September 30, 2025, broadening its North American footprint.
Despite the earnings beat, adjusted EBITDA slipped 1.1% to $274 million, primarily reflecting higher selling, general, and administrative expenses.
The company reaffirmed its full-year fiscal 2025 guidance, projecting net sales between $7.6 billion and $7.7 billion—representing 2% to 3% growth—and adjusted EBITDA of $920 million to $940 million.
After the quarter closed, Core & Main boosted its share-repurchase authorization by $500 million, a sign of management’s confidence in the balance sheet and future performance.