Core & Main, Inc. (CNM): Results of Operations and Financial Condition
Core & Main, Inc. (CNM) filed an SEC Form 8-K — Results of Operations and Financial Condition. News Release FOR IMMEDIATE RELEASE Core & Main Announces Fiscal 2026 Second Quarter Results Delivers Net Sales and Adjusted EBITDA Growth, Continues Record Share Repurchases, and Reaffirms Full-Year Outlook ST. LOUIS, Sept. 9, 2026— Core & Main, Inc. (NYSE: CNM) ("Core & Main"),
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, profitability, and cash flow, enabling traders to reassess valuation and positioning.
Market read
First‑hand earnings data with modest growth and strong balance sheet; likely to influence CNM price action and sector sentiment.
What to watch
Potential headwinds from mixed demand environment and rising distribution costs could temper upside.
Core & Main Announces Fiscal 2026 Second Quarter Results Delivers Net Sales and Adjusted EBITDA Growth, Continues Record Share Repurchases, and Reaffirms Full-Year Outlook
Net sales, gross profit, operating income, net income, diluted EPS and Adjusted EBITDA increased from the fiscal 2025 second quarter. Gross profit margin declined to 26.7% from 26.8%, while SG&A expense as a percentage of net sales improved to 14.0% from 14.4%. The company reaffirmed its full-year fiscal 2026 outlook and continued substantial share repurchases.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended August 2, 2026GAAP | $2,145 million | – | 2.5% |
| Cost of sales, three months ended August 2, 2026GAAP | $1,572 million | – | – |
| Gross profit, three months ended August 2, 2026GAAP | $573 million | – | 2.3% |
| Gross profit margin, three months ended August 2, 2026GAAP | 26.7% | – | – |
| Selling, general and administrative expenses, three months ended August 2, 2026GAAP | $301 million | – | 0.3% |
| SG&A expenses as a percentage of net sales, three months ended August 2, 2026GAAP | 14.0% | – | – |
| Depreciation and amortization, three months ended August 2, 2026GAAP | $45 million | – | – |
| Total operating expenses, three months ended August 2, 2026GAAP | $346 million | – | – |
| Operating income, three months ended August 2, 2026GAAP | $227 million | – | 6.6% |
| Net income, three months ended August 2, 2026GAAP | $150 million | – | 6.4% |
| Net income attributable to Core & Main, Inc., three months ended August 2, 2026GAAP | $144 million | – | – |
| Class A common stock basic earnings per share, three months ended August 2, 2026GAAP | $0.77 | – | 8.5% |
| Class A common stock diluted earnings per share, three months ended August 2, 2026GAAP | $0.77 | – | 10.0% |
| Adjusted EBITDA, three months ended August 2, 2026non-GAAP | $274 million | – | 3.0% |
| Adjusted EBITDA margin, three months ended August 2, 2026non-GAAP | 12.8% | – | – |
| Adjusted Diluted Earnings Per Share, three months ended August 2, 2026non-GAAP | $0.94 | – | 8.0% |
| Net cash provided by operating activities, three months ended August 2, 2026GAAP | $62 million | – | – |
| Net sales, six months ended August 2, 2026GAAP | $4,055 million | – | 1.3% |
| Gross profit, six months ended August 2, 2026GAAP | $1,093 million | – | 2.1% |
| Gross profit margin, six months ended August 2, 2026GAAP | 27.0% | – | – |
| Operating income, six months ended August 2, 2026GAAP | $404 million | – | 5.2% |
| Net income, six months ended August 2, 2026GAAP | $263 million | – | 6.9% |
| Class A common stock diluted earnings per share, six months ended August 2, 2026GAAP | $1.34 | – | 9.8% |
| Adjusted EBITDA, six months ended August 2, 2026non-GAAP | $500 million | – | 2.0% |
| Adjusted Diluted Earnings Per Share, six months ended August 2, 2026non-GAAP | $1.66 | – | 7.1% |
| Net cash provided by operating activities, six months ended August 2, 2026GAAP | $144 million | – | – |
Full-year fiscal 2026 outlook
- RevenueNet sales of $7,800 to $7,900 million, reflecting net sales growth of 2% to 3%
- NoteAdjusted EBITDA (Non-GAAP) of $950 to $980 million
- NoteAdjusted EBITDA Margin (Non-GAAP) of 12.2% to 12.4%
- NoteOperating Cash Flow of 60% to 70% of Adjusted EBITDA
Capital returns
- Deployed $169 million to repurchase 3.7 million shares during the quarter.
- Deployed an additional $11 million to repurchase 0.3 million shares subsequent to quarter end.
- Year-to-date open market share repurchases were nearly $270 million and 5.7 million shares.
- Repurchase and retirement of equity interests was $257 million for the six months ended August 2, 2026 compared with $47 million for the six months ended August 3, 2025.
What drove it
- Quarterly net sales increased with contributions across volume, price and acquisitions.
- Pipes, valves & fittings net sales increased due to acquisitions.
- Storm drainage net sales was essentially flat in the quarter.
- Fire protection product sales increased due to higher volumes and higher selling prices.
- Smart utility product sales increased primarily due to higher selling prices.
- Municipal demand remained a source of strength, and fire protection and large capital projects, including treatment plants and data centers, delivered strong growth.
- Six-month gross profit margin benefited from gross margin initiatives and disciplined purchasing and pricing management.
- Quarterly SG&A improvement reflected recent cost actions and lower variable compensation costs.
Concerns
- Gross profit margin was 26.7% in the fiscal 2026 second quarter compared with 26.8% in the fiscal 2025 second quarter.
- Storm drainage net sales was essentially flat in the quarter and decreased for the six-month period due to lower volumes partially offset by acquisitions.
- Higher distribution costs and investments in greenfield expansion and sales initiatives partially offset the benefits of cost actions and lower variable compensation costs.
- Net income growth was partially offset by higher income tax expense in the quarter.
What to watch
- Progress against the reaffirmed full-year fiscal 2026 net sales outlook of $7,800 to $7,900 million.
- Delivery against the full-year Adjusted EBITDA outlook of $950 to $980 million and Adjusted EBITDA margin outlook of 12.2% to 12.4%.
- Municipal demand, fire protection, treatment plant and data center project activity.
- Sales trends in storm drainage, including volumes.
- Further acquisition activity, greenfield expansion and open market share repurchases.
- Operating cash flow delivery against the outlook of 60% to 70% of Adjusted EBITDA.
Balance sheet and cash flow
- Cash and cash equivalents were $312 million as of August 2, 2026, compared with $220 million as of February 1, 2026.
- Total Debt was $2,478 million as of August 2, 2026, compared with $2,278 million as of August 3, 2025.
- Net Debt was $2,166 million as of August 2, 2026, compared with $2,253 million as of August 3, 2025.
- There were no outstanding borrowings on the Senior ABL Credit Facility as of August 2, 2026.
- After giving effect to approximately $24 million of letters of credit, Core & Main LP would have been able to borrow approximately $1,226 million under the Senior ABL Credit Facility, subject to borrowing base availability.
- Capital expenditures were $32 million for the six months ended August 2, 2026 compared with $23 million for the six months ended August 3, 2025.
- Net cash used in investing activities was $56 million for the six months ended August 2, 2026 compared with $28 million for the six months ended August 3, 2025.
- Net cash provided by financing activities was $4 million for the six months ended August 2, 2026 compared with net cash used in financing activities of $66 million for the six months ended August 3, 2025.
Analysis
Core & Main reported fiscal 2026 second-quarter net sales of $2,145 million, up 2.5% from $2,093 million. The company cited contributions from volume, price and acquisitions. Pipes, valves & fittings grew through acquisitions, fire protection benefited from volume and price, and smart utility products benefited primarily from price. Storm drainage sales were essentially flat, indicating uneven demand across product categories.
Profit growth exceeded sales growth at the operating and net-income levels. Gross profit increased 2.3% to $573 million, though gross profit margin declined to 26.7% from 26.8%. SG&A expense declined to $301 million from $302 million, and SG&A as a percentage of net sales improved to 14.0% from 14.4%, reflecting recent cost actions and lower variable compensation costs. Higher distribution costs and investment in greenfield expansion and sales initiatives remained offsets. Operating income increased 6.6% to $227 million and net income increased 6.4% to $150 million.
Adjusted EBITDA increased 3.0% to $274 million and Adjusted EBITDA margin was 12.8%. Diluted EPS increased 10.0% to $0.77, while Adjusted Diluted EPS increased 8.0% to $0.94. The company attributed the EPS gains to higher net income and lower Class A share counts following repurchases. For the first six months, net sales increased 1.3% to $4,055 million, while gross profit margin improved to 27.0% from 26.7%, which management attributed to gross-margin initiatives and disciplined purchasing and pricing management.
Capital deployment was a central feature of the release. Core & Main repurchased $169 million of shares during the quarter and $11 million subsequent to quarter end, bringing year-to-date open market repurchases to nearly $270 million. Net cash provided by operating activities was $144 million for the first six months, compared with $111 million in the prior-year period. Cash and cash equivalents were $312 million, Net Debt was $2,166 million, and there were no outstanding borrowings under the Senior ABL Credit Facility as of August 2, 2026.
Management reaffirmed its full-year fiscal 2026 outlook for net sales of $7,800 to $7,900 million, Adjusted EBITDA of $950 to $980 million, Adjusted EBITDA margin of 12.2% to 12.4%, and operating cash flow of 60% to 70% of Adjusted EBITDA. The stated support for the outlook includes municipal demand, growth in fire protection and large capital projects, and an acquisition pipeline. The main reported operating issue remains the mixed demand environment, including flat quarterly storm drainage sales and a one-tenth percentage-point year-over-year decline in quarterly gross profit margin.
Management, verbatim
We delivered growth across sales, adjusted EBITDA and earnings per share during the second quarter, while momentum continues to build across the business
Mark Witkowski, Chief Executive Officer of Core & Main
Municipal demand remained a source of strength. Fire protection and large capital projects, including treatment plants and data centers, delivered strong growth and we are encouraged by the opportunities emerging across our acquisition pipeline.
Mark Witkowski, Chief Executive Officer of Core & Main
The quarter highlights the durability of the Core & Main business model: growing revenue, generating strong cash flow, investing for the future and strengthening our market position while operating in a mixed demand environment.
Mark Witkowski, Chief Executive Officer of Core & Main
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly metrics were not provided.
- Revenue by product category or operating segment was not provided.
- Prior-year dollar revenue and percentage growth for individual product categories were not provided.
- Free cash flow was not provided.
- Dividend declarations or payments were not provided.
- Full-year fiscal 2026 gross margin, operating expenses and tax-rate guidance were not provided.
- A prior outlook section was not provided, so reported results cannot be compared with prior guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Core & Main, Inc. (NYSE:CNM) filed an SEC Form 8‑K reporting its fiscal 2026 second‑quarter financial results.
Ticker impact
Core & Main reported Q2 2026 results with 2.5% sales growth, 6.4% net income increase and record share repurchases.
upward pressure on CNM stock in the near term
Revenue and earnings rose year‑over‑year, adjusted EBITDA margin improved, and the company reaffirmed full‑year guidance while repurchasing shares, indicating financial strength.
Market effects
Positive for specialty distribution and infrastructure supply chain sector, may lift peers.
U.S. market, particularly industrial and construction stocks, could see modest gains.
Limited to U.S. investors; no direct global macro effect.
Counterpoint
Growth is modest; high share repurchases may signal limited organic expansion opportunities.
Key entities
- companyCore & Main, Inc.
Specialty distributor of infrastructure products.
- executiveMark Witkowski
Chief Executive Officer of Core & Main.
