Core & Main (CNM) Company Report

Core & Main reported Q3 2026 net sales growth of 1% to $2.1 billion, primarily driven by acquisitions, with organic volumes and prices remaining flat.
Gross margin improved by 60 basis points to 27.2% in Q3 2026, attributed to private label initiatives and disciplined execution, though adjusted EBITDA saw a 1% decline to $274 million.
The company announced $30 million in annualized cost savings, with $1 million realized in Q3 2026, and anticipates a $25 million sequential reduction in SG&A for Q4.
A $500 million increase to the share repurchase authorization was announced, bringing the total capacity to $684 million, alongside the completion of the Canada Waterworks acquisition.
Full-year guidance was reaffirmed, projecting net sales between $7.6 billion and $7.7 billion and Adjusted EBITDA of $920 million to $940 million.

Dec 9, 2025, 12:30 PM

Transcript

Core & Main Reports Q3 2026 Results and Reaffirms Full-Year Guidance

CNM

Earnings

Guidance Update

Share Buyback

Core & Main reported Q3 2026 adjusted diluted EPS of $0.89, an increase of approximately 3% year-over-year, with adjusted EBITDA of $274 million and a 60 basis point gross margin expansion.
The company reaffirmed its full-year FY25 guidance, projecting net sales of $7.6-$7.7 billion, Adjusted EBITDA of $920-$940 million, and operating cash flow of $550-$610 million.
Core & Main significantly increased its share repurchase authorization by $500 million, bringing the total capacity to approximately $684 million, and has repurchased $140 million year-to-date, reducing its share count by roughly 2.9 million.
Growth drivers include substantial long-term funding for critical water infrastructure projects, such as $20 billion in Texas and $3 billion in New York, and increasing demand from data center development, which currently represents a low single-digit portion of total sales but is growing rapidly.
The company is implementing cost-out actions, including a $30 million SG&A reduction, primarily personnel-related, and expects continued gross margin expansion driven by private label growth, which currently accounts for 5% of sales with a long-term target of 10%-15%.

Dec 9, 2025, 12:30 PM

Transcript

Core & Main Announces Q3 2026 Financial Results and Reaffirms Full-Year Guidance

CNM

Earnings

Guidance Update

Share Buyback

Core & Main reported Q3 2026 net sales of $2.1 billion, a 1% increase year-over-year, primarily driven by acquisitions.
Gross margin expanded by 60 basis points to 27.2% in Q3 2026, attributed to private label growth and pricing discipline.
Adjusted Diluted EPS for Q3 2026 rose 3% to $0.89, while Adjusted EBITDA was $274 million, a 1% decrease compared to the prior year.
The company increased its share repurchase authorization by $500 million, bringing the total capacity to approximately $684 million.
Core & Main reaffirmed its full-year FY 2025 guidance, projecting net sales between $7.6 billion and $7.7 billion and Adjusted EBITDA between $920 million and $940 million.

Dec 9, 2025, 12:30 PM

Transcript

Core & Main Announces Q3 2025 Results and Reaffirms FY25 Guidance

CNM

Earnings

Guidance Update

Share Buyback

Core & Main reported Q3 2025 Net Sales of $2,062 million and Net Income of $143 million, with Diluted EPS of $0.72 and Adjusted Diluted EPS of $0.89.
The company's gross margin improved 60 basis points year-over-year to 27.2% in Q3 2025, and it implemented ~$30 million of annualized cost savings.
Core & Main reaffirmed its Fiscal Year 2025 outlook, projecting Net Sales between $7,600 million and $7,700 million and Adjusted EBITDA between $920 million and $940 million.
The company completed the Canada Waterworks acquisition and increased its share repurchase authorization by $500 million, bringing the total capacity to $684 million as of December 8, 2025.

Dec 9, 2025, 12:30 PM

Presentation

Core & Main Expands Share Buyback Program to $1 Billion

CNM

Share Buyback

Revenue Acceleration/Inflection

Core & Main, Inc. has expanded its share repurchase program by $500 million, increasing the total authorized amount to $1 billion.
As of early December 2025, the company had repurchased approximately $316 million of its Class A common stock, leaving about $684 million available for future buybacks.
The company intends to fund these repurchases using existing cash, short-term borrowings, and future cash flows, demonstrating its commitment to shareholder value amidst robust operational results.
Following the announcement, Core & Main's stock price rose 5.9% in premarket trading, reaching $53.53 per share.

Dec 9, 2025, 11:38 AM

Morningstar

Core & Main Announces Fiscal Q3 2025 Results and Increased Share Repurchase Authorization

CNM

Earnings

Share Buyback

Guidance Update

Core & Main reported Q3 2025 net sales of $2,062 million, a 1.2% increase compared to Q3 2024, with net income rising 2.1% to $143 million and diluted earnings per share increasing 4.3% to $0.72 for the quarter ended November 2, 2025.
The company's board authorized a $500 million increase to its share repurchase program, bringing the total authorization to $1 billion, with approximately $684 million remaining for future repurchases as of December 8, 2025.
Core & Main reaffirmed its Fiscal 2025 outlook, projecting net sales between $7,600 million and $7,700 million and Adjusted EBITDA between $920 million and $940 million.
During Q3 2025, Core & Main completed the acquisition of Canada Waterworks and expanded its geographic presence by opening new locations in Houston, Texas, and Denver, Colorado.

Dec 9, 2025, 11:30 AM

8-K

Core & Main Announces Fiscal 2025 Third Quarter Results

CNM

Earnings

Guidance Update

Share Buyback

Core & Main announced fiscal 2025 third-quarter net sales increased 1.2% to $2,062 million and net income increased 2.1% to $143 million for the period ended November 2, 2025.
Diluted earnings per share for the quarter grew 4.3% to $0.72, and Adjusted Diluted Earnings Per Share increased 3.5% to $0.89.
The company repurchased $50 million of shares during the quarter and subsequently increased its share repurchase authorization by $500 million.
Core & Main reaffirmed its full-year fiscal 2025 outlook, expecting net sales of $7,600 million to $7,700 million and Adjusted EBITDA of $920 million to $940 million.

Dec 9, 2025, 11:28 AM

Press Release

Core & Main Increases Share Repurchase Authorization

CNM

Share Buyback

Core & Main's board of directors authorized a $500 million increase to its existing share repurchase program.
This increase brings the total share repurchase authorization to $1 billion.
As of December 8, 2025, approximately $316 million of Class A Common Stock had been repurchased, leaving $684 million available for future repurchases.
The company expects to fund these repurchases using existing cash, short-term borrowings, and/or future cash flows.

Dec 9, 2025, 11:26 AM

Press Release

Core & Main Completes Acquisition of Canada Waterworks

CNM

M&A

Core & Main Inc. (NYSE: CNM) has completed its previously announced acquisition of substantially all the assets of Canada Waterworks Inc. and Canada Waterworks Ottawa Inc.
Canada Waterworks is a Canadian distributor of water, wastewater, and storm drainage products.
Core & Main is a U.S.-based specialty distributor focused on water, wastewater, storm drainage, and fire protection products and services, operating over 370 locations across the U.S.

Sep 30, 2025, 8:15 PM

Press Release

Core & Main Signs Agreement to Acquire Canada Waterworks

CNM

M&A

Core & Main Inc. (NYSE: CNM) has entered into a definitive agreement to acquire substantially all the assets of Canada Waterworks Inc. and Canada Waterworks Ottawa Inc.
Canada Waterworks is a Canadian distributor of water, wastewater, and storm drainage products, operating from three locations in Toronto, Ottawa, and Hamilton, Ontario.
This acquisition is intended to expand Core & Main's platform and reach in Canada, complementing its existing footprint in the province and pursuing growth opportunities.

Sep 2, 2025, 11:30 AM

Press Release