Core & Main (NYSE:CNM) Announces Earnings Results, Beats Expectations By $0.03 EPS

Core & Main (NYSE:CNM) released its quarterly earnings data on Wednesday. The company reported $0.94 EPS for the quarter, beating the consensus estimate of $0.91 by $0.03, FiscalAI reports. Core & Main had a net margin of 5.87% and a return on equity of 26.17%. The business had revenue of $2.15 billion during the quarter, compared to analyst estimates of $2.14 billion. During the same quarter last year, the business earned $0.87 earnings per share. Core & Main’s quarterly revenue was up 2.5% compared to the same quarter last year.

Here are the key takeaways from Core & Main’s conference call:

• Q2 earnings grew despite mixed end markets: Sales increased 2.5% to approximately $2.1 billion, Adjusted EBITDA rose 3% to $274 million, and Adjusted EPS increased 8% to $0.94. SG&A discipline expanded Adjusted EBITDA margin by 10 basis points to 12.8%.
• Municipal infrastructure, treatment plants, fire protection and data centers drove momentum. Treatment plant sales grew at a double-digit rate, fire protection sales increased 14%, and data-center-related activity nearly doubled year over year, reaching the mid-single-digit percentage range of total sales.
• Smart Utility growth was constrained by project timing rather than demand. Volumes were essentially flat in the quarter, but the company cited a strong backlog and expects projects such as Miami-Dade to begin ramping late in the year and reach full run rate in 2027.
• Residential lot development remained weak, declining at a high-single-digit rate in Q2 amid affordability and interest-rate pressures. Management expects easier comparisons in the second half but still projects residential sales to decline by a mid-single-digit percentage for the full year.
• Full-year guidance was reaffirmed for sales of $7.8 billion–$7.9 billion, Adjusted EBITDA of $950 million–$980 million, and operating cash-flow conversion of 60%–70%. The company also repurchased $169 million of stock in Q2, opened seven greenfield locations year to date, and reported an accelerating M&A pipeline.

Core & Main Stock Performance

Shares of Core & Main stock opened at $41.65 on Thursday. The stock’s fifty day moving average is $44.65 and its two-hundred day moving average is $47.99. The company has a market capitalization of $8.06 billion, a PE ratio of 17.65, a price-to-earnings-growth ratio of 1.52 and a beta of 0.91. The company has a quick ratio of 1.31, a current ratio of 2.31 and a debt-to-equity ratio of 1.00. Core & Main has a 52 week low of $41.25 and a 52 week high of $59.66.

Insiders Place Their Bets

In other Core & Main news, Director James Hope bought 2,067 shares of the firm’s stock in a transaction dated Monday, July 6th. The stock was acquired at an average cost of $46.01 per share, for a total transaction of $95,102.67. Following the completion of the transaction, the director owned 11,805 shares in the company, valued at $543,148.05. This trade represents a 21.23% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 1.51% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Invesco Ltd. lifted its holdings in Core & Main by 2.9% during the 4th quarter. Invesco Ltd. now owns 2,917,310 shares of the company’s stock valued at $151,613,000 after buying an additional 81,749 shares in the last quarter. Mercer Global Advisors Inc. ADV increased its position in shares of Core & Main by 7.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 7,449 shares of the company’s stock worth $387,000 after acquiring an additional 546 shares during the period. Vident Advisory LLC increased its position in shares of Core & Main by 230.9% during the fourth quarter. Vident Advisory LLC now owns 27,151 shares of the company’s stock worth $1,411,000 after acquiring an additional 18,945 shares during the period. Mackenzie Financial Corp increased its position in shares of Core & Main by 0.5% during the fourth quarter. Mackenzie Financial Corp now owns 769,524 shares of the company’s stock worth $40,597,000 after acquiring an additional 3,483 shares during the period. Finally, Empowered Funds LLC bought a new stake in shares of Core & Main during the fourth quarter valued at approximately $454,000. 94.19% of the stock is currently owned by institutional investors.

Core & Main News Roundup

Here are the key news stories impacting Core & Main this week:

• Positive Sentiment: Second-quarter results exceeded expectations. Core & Main reported adjusted EPS of $0.94, ahead of the roughly $0.91–$0.93 consensus range, while revenue reached $2.15 billion versus estimates of $2.14 billion. EPS increased from $0.87 a year earlier, and revenue rose 2.5% year over year. Core Main Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management reaffirmed its fiscal 2026 outlook. The company continues to project revenue of approximately $7.8 billion to $7.9 billion and adjusted EBITDA of $950 million to $980 million, with the revenue range above the roughly $7.7 billion analyst consensus. Maintaining guidance indicates management remains confident in its outlook. Core Main Reaffirms FY26 Outlook
• Positive Sentiment: Growth in fire-protection products and acquisitions continued to support results. One analyst upgraded CNM from “hold” to a soft “buy,” arguing that the recent selloff has made the shares more attractive on an absolute and peer-relative valuation basis. Core and Main Drop Is a Great Chance to Dive In
• Neutral Sentiment: Analysts collectively rate Core & Main a “Moderate Buy,” suggesting constructive longer-term sentiment but not an overwhelming consensus. Core Main Given Consensus Rating of Moderate Buy
• Negative Sentiment: Investors remain concerned about organic growth. Smart utility and storm-drainage demand was described as weak or tepid, raising questions about the company’s underlying growth rate once acquisitions are excluded. Those concerns drove the stock toward a two-year low even after the earnings beat. Core and Main Slides to Two-Year Low on Concerns About Organic Growth

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on CNM. Citigroup reduced their target price on shares of Core & Main from $54.00 to $53.00 and set a “neutral” rating on the stock in a report on Thursday, June 11th. Northcoast Research downgraded shares of Core & Main from a “buy” rating to a “neutral” rating in a report on Wednesday, August 26th. William Blair started coverage on Core & Main in a research report on Thursday, July 23rd. They issued a “market perform” rating for the company. The Goldman Sachs Group reissued a “neutral” rating and set a $24.00 price objective on shares of Core & Main in a research note on Thursday, June 11th. Finally, Wall Street Zen cut Core & Main from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Seven investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Core & Main currently has an average rating of “Moderate Buy” and a consensus target price of $56.70.

Core & Main Company Profile

Core & Main, Inc (NYSE:CNM) is a leading distributor of water, sewer, storm drainage and fire protection products across North America. The company’s product portfolio includes valves, hydrants, pipe and fittings, meters, couplings and other essential components that support municipal, industrial and environmental infrastructure projects. By combining a comprehensive inventory with logistics and technical support, Core & Main helps customers address complex water system and distribution challenges.

With more than 300 branch locations and over 3,500 employees, Core & Main serves a diverse customer base that includes municipalities, contractors, engineers and utility providers.