Core Main 2026 Q1 Earnings Beats Expectations with Net Income Growth

Core & Main (CNM) reported its fiscal 2026 Q1 earnings on June 10th, 2025. The company surpassed analysts' expectations, achieving a 9.8% increase in total revenue to $1.91 billion, higher than anticipated estimates of $1.85 billion. Core & Main maintained its full-year revenue guidance, expecting net sales between $7.6 billion and $7.8 billion, in line with expectations. Despite slight softening in residential development, the outlook remains stable with anticipated EBITDA margins between 12.5% and 12.8%.

Revenue

Core & Main's revenue reached $1.91 billion in the first quarter of 2026, reflecting a 9.8% growth from the previous year. The pipes, valves, and fittings products segment led the way, generating $1.30 billion. Storm drainage products contributed $295 million, while fire protection products added $152 million. Meter products saw $167 million in revenue, rounding out the total net sales.

Earnings/Net Income

Core & Main's earnings per share (EPS) rose to $0.53 in 2026 Q1 from $0.49 in 2025 Q1, reflecting an 8.2% increase. Net income improved by 4.0%, reaching $105 million, indicating a positive earnings performance.

Price Action

The stock price of Core & Main has edged up 1.38% during the latest trading day, has edged down 1.68% during the most recent full trading week, and has jumped 12.08% month-to-date.

Post-Earnings Price Action Review

The strategy of purchasing CNM shares after a revenue miss and holding for 30 days resulted in a remarkable 163.68% return, significantly outpacing the benchmark return of 32.33%. Despite experiencing a maximum drawdown of -39.32%, the strategy demonstrated a positive Sharpe ratio of 0.79, showcasing favorable risk-adjusted returns. Although high volatility at 38.74% could be challenging for risk-averse investors, the strategy's performance underscores its potential for substantial gains following revenue misses.

CEO Commentary

Mark R. Witkowski, CEO & Director, expressed pride in Core & Main's record performance, noting first-quarter net sales of $1.9 billion and adjusted EBITDA of $224 million, attributed to resilient end markets and strong local relationships. He highlighted growth in municipal construction driven by the Infrastructure Investment and Jobs Act, while acknowledging slight softening in residential development due to economic pressures. Witkowski emphasized the company’s strategic focus on expanding product offerings and geographic presence, leveraging their competitive advantages. He remains optimistic about the long-term outlook, citing strong fundamentals in the U.S. housing market and the potential for growth from their diversified nonresidential portfolio.

Guidance

Core & Main reaffirms its full-year guidance, expecting net sales between $7.6 billion and $7.8 billion and adjusted EBITDA of $950 million to $1 billion, reflecting anticipated EBITDA margins of 12.5% to 12.8%. The company expects stable end markets with potential flat growth, though some uncertainty regarding tariffs and inflation may impact demand in the second half. The guidance indicates confidence in maintaining neutral or improved pricing and plans to enhance gross margins through strategic initiatives.

Additional News

Core & Main has been named to the Fortune 500 list for the first time, ranking at No. 497, marking a significant achievement under CEO Mark Witkowski's leadership. The company has demonstrated remarkable growth through organic expansion and strategic acquisitions, validating its business strategy. Additionally, Core & Main successfully repurchased $39 million of shares at an average price of $46.64 per share, reflecting confidence in its financial strength. Key leadership changes were also announced, with Steve LeClair transitioning to executive chair and Mark Witkowski succeeding as CEO, effective March 31, 2025.