Core Main 2026 Q3 Earnings Strong Performance with 2.1% Net Income Growth

Core & Main (CNM) reported fiscal 2026 Q3 earnings on Dec 9, 2025, delivering revenue growth and reaffirming full-year guidance. The company exceeded expectations with a 1.2% year-over-year revenue increase and a 4.3% rise in EPS, signaling robust operational performance.

Revenue

Core & Main’s total revenue reached $2.06 billion in Q3 2026, a 1.2% increase from $2.04 billion in Q3 2025. Pipes, valves, and fittings accounted for the largest share at $1.38 billion, followed by storm drainage products contributing $333 million. Fire protection products generated $152 million, while meter products added $195 million to the total net sales.

Earnings/Net Income

The company’s earnings per share (EPS) rose 4.3% to $0.72 in Q3 2026 from $0.69 in Q3 2025. Net income also increased by 2.1%, reaching $143 million compared to $140 million in the prior year. This demonstrates the company’s ability to maintain profitability despite market challenges.

Price Action

Following the earnings report, Core & Main’s stock price declined 2.81% during the latest trading day but showed resilience with a 5.27% gain over the past week and a 0.90% increase month-to-date.

Post-Earnings Price Action Review

The strategy of buying Core & Main (CNM) shares after its revenue raised quarter-over-quarter on the financial report release date and holding for 30 days delivered strong returns over the past three years. The strategy achieved a 97.20% return, significantly outperforming the benchmark return of 67.70%. The excess return of 29.51% highlights its effectiveness in capitalizing on positive earnings news. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.70, the strategy also showcased robust risk management, maintaining positive returns even in volatile markets.

CEO Commentary

Mark Witkowski, CEO of Core & Main, emphasized the company’s resilience driven by municipal projects and nonresidential growth. Despite challenges in the residential market, he expressed long-term optimism due to population growth and housing demand. Strategic priorities include geographic expansion, product diversification, and M&A, exemplified by the Canada Waterworks acquisition.

Guidance

Core & Main reaffirmed its full-year revenue guidance of $7.65 billion and EBITDA guidance of $930 million. The company also announced a $500 million increase to its share repurchase authorization, bringing the total to $1 billion, reflecting confidence in its cash flow and growth outlook.

Additional News

Core & Main’s recent $500 million share repurchase authorization expansion underscores its commitment to returning capital to shareholders. The acquisition of Canada Waterworks further strengthens its Canadian presence, aligning with its strategy to expand high-growth markets. Additionally, the company reported a 60 bps improvement in gross margins year-over-year, driven by private label initiatives and disciplined sourcing. These moves highlight Core & Main’s focus on long-term value creation through strategic investments and operational efficiency.