Core & Main (CNM) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2025 net sales of $1,911 million, up 9.8%–10% year-over-year, with strong market share gains and resilient demand in water infrastructure and municipal construction.

• Adjusted EBITDA rose 3.2% to $224 million, with margin initiatives and M&A synergies supporting sequential gross margin improvement.

• Net income increased to $105 million, with diluted EPS up 6.1% to $0.52.

• Growth driven by strong municipal, non-residential, and product initiatives, including meters and storm drainage.

• Continued investment in talent, training, and local relationships, with a focus on organic and inorganic growth.

Financial highlights

• Gross profit increased 9% to $510 million; gross margin at 26.7%, down 20 bps year-over-year but up sequentially.

• SG&A expenses rose 14% to $293 million, mainly from acquisitions and inflation; organic SG&A up 4%.

• Operating income up 1.8% to $171 million; interest expense declined to $30 million.

• Net cash from operating activities was $77 million, flat year-over-year.

• Net debt at $2,276–$2,284 million, net leverage 2.4x, and total liquidity of $1.1 billion.

Outlook and guidance

• FY2025 net sales guidance reaffirmed at $7,600–$7,800 million, with 2–7% growth expected.

• Adjusted EBITDA expected at $950–$1,000 million; margin of 12.5%–12.8%.

• Operating cash flow guidance of $570–$650 million.

• End markets expected to be flat overall, with municipal segment seeing low single-digit growth.

• Gross margin improvement anticipated through private label, sourcing, and pricing initiatives.