Core Main 2026 Q3 Earnings Beats Estimates, Net Income Rises 2.1%

Core & Main (CNM) reported Q3 2026 earnings on Dec 9, 2025, with results in line with expectations. Revenue rose 1.2% to $2.06 billion, and adjusted EPS hit $0.72, exceeding 2025 Q3’s $0.69. The company reaffirmed its full-year guidance, with net sales projected at $7.6B–$7.7B and adjusted EBITDA of $920M–$940M.

Revenue

Core & Main’s Q3 2026 revenue totaled $2.06 billion, a 1.2% increase from $2.04 billion in 2025 Q3. Pipes, valves & fittings drove the largest segment revenue at $1.38 billion, followed by storm drainage at $333 million. Fire protection and meter products contributed $152 million and $195 million, respectively.

Earnings/Net Income

Earnings per share (EPS) rose 4.3% to $0.72, with net income climbing 2.1% to $143 million. The EPS growth outperformed the 3% year-over-year increase in the 2025 Q3 transcript, reflecting improved operational efficiency. The earnings trajectory indicates strong management of costs and pricing power.

Post-Earnings Price Action Review

A strategy of buying CNM shares after revenue growth and holding for 30 days delivered 97.20% returns over three years, outperforming the 67.70% benchmark by 29.51%. The Sharpe ratio of 0.70 and zero maximum drawdown highlight low-risk, high-reward potential.

CEO Commentary

CEO Mark Witkowski emphasized resilience, driven by municipal infrastructure demand and strategic expansion into nonresidential sectors like data centers. Challenges in residential markets were acknowledged, but growth in HDPE and treatment plant products, along with the Canada Waterworks acquisition, underscored long-term confidence.

Guidance

Full-year 2026 guidance includes net sales of $7.6B–$7.7B, adjusted EBITDA of $920M–$940M, and operating cash flow of $550M–$610M. The company anticipates flat to slightly down end markets but expects municipal growth in low to mid-single digits, with gross margin improvements.

Additional News

Core & Main increased its share repurchase authorization by $500 million, bringing the total to $1 billion, signaling confidence in capital returns. Recent M&A activity includes the Canada Waterworks acquisition to strengthen its Canadian infrastructure platform. No C-level changes were reported, but the board’s strategic focus on margin expansion and operational efficiency remains unchanged.