Core Main 2026 Q2 Earnings Solid Performance as Net Income Surges 11.9%

Core & Main (CNM) reported its fiscal 2026 Q2 earnings on Sep 9, 2025, exceeding expectations with robust revenue growth and improved profitability. The company’s net income surged 11.9% year-over-year to $141 million, outpacing the earnings per share (EPS) of $0.71, which marked a 14.5% increase from $0.62 in the same period of 2025. Management adjusted full-year guidance, reflecting confidence in its strategic initiatives and cost optimization efforts.

Revenue
Total revenue for Core & Main rose by 6.6% to $2.09 billion in 2026 Q2, compared to $1.96 billion in 2025 Q2, demonstrating strong demand across key markets.

Earnings/Net Income
The company’s earnings per share (EPS) increased by 14.5% to $0.71, and net income surged by 11.9% to $141 million, reflecting improved profitability. This performance underscores Core & Main’s ability to manage costs and deliver value to shareholders.

Price Action
Despite strong earnings, Core & Main’s stock price faced downward pressure, falling 2.78% on the latest trading day, 23.17% over the past week, and 22.46% month-to-date. The market appears to be factoring in near-term headwinds despite the company’s improved financial results.

Post-Earnings Price Action Review
Following the earnings release, Core & Main’s stock experienced a sharp decline, suggesting investor concerns about near-term challenges such as elevated operating costs and softer demand in certain segments. However, the company’s leadership expressed confidence in its long-term growth prospects and cost-saving initiatives.

CEO Commentary
Mark Witkowski, CEO & Director, emphasized the company’s 7% net sales growth in Q2, driven by organic expansion and strong municipal demand. He noted challenges in residential development linked to high interest rates and affordability issues but highlighted growth in nonresidential markets, including data centers. Witkowski reiterated the company’s commitment to strategic investments, technology, and M&A, such as the acquisition of Canada Waterworks, to strengthen its market position. He expressed cautious optimism about the long-term outlook despite near-term pressures.

Guidance
Robyn Bradbury, CFO, revised fiscal 2026 guidance to reflect a revenue range of $7.6–7.7 billion, adjusted EBITDA of $920–940 million, and operating cash flow of $550–610 million. Residential lot development is expected to contract in the low double digits, while municipal markets are projected to grow in the low single digits and nonresidential markets remain stable. Margins are anticipated to decline in the second half due to softer demand and higher SG&A, though gross margins are expected to stay steady. The company aims to deliver 2–4 percentage points of above-market growth through strategic investments, cost optimization, and M&A.

Additional News
Recent corporate developments include strategic investments in greenfield locations and the acquisition of Canada Waterworks, signaling Core & Main’s commitment to expanding its market presence. On the leadership front, Mark Witkowski remains at the helm, reinforcing the company’s strategic direction. Additionally, the company has not announced any new share repurchase or dividend initiatives in the current quarter.