Core & Main (CNM) Q2 2026 earnings summary

Executive summary

• Net sales rose 6.6%–7% year-over-year in Q2 2025 to $2,093 million, driven by strong municipal demand, higher volumes, and acquisitions.

• Gross margin expanded to 26.8%, supported by pricing discipline and cost actions.

• Net income grew 11.9% to $141 million, with diluted EPS up 14.8% to $0.70 and adjusted diluted EPS up 13% to $0.87.

• Municipal demand remained strong, non-residential stable, while residential lot development softened, especially in the Sun Belt.

• Opened new branches in Kansas City and Wisconsin; announced acquisition of Canada Waterworks, expanding Canadian footprint.

Financial highlights

• Q2 net sales reached $2,093 million, with organic sales up 5%.

• Gross margin was 26.8%, up 10–40 bps year-over-year.

• Adjusted EBITDA increased 3.5%–4% to $266 million; margin was 12.7%.

• Net income for Q2 was $141 million; diluted EPS up 14.8% to $0.70.

• Net debt as of August 3, 2025, was $2,253–$2,278 million; total liquidity $1.1 billion.

Outlook and guidance

• Full-year net sales guidance lowered to $7.6–$7.7 billion; adjusted EBITDA expected at $920–$940 million, margin 12.1–12.2%.

• Operating cash flow forecasted at $550–$610 million.

• Municipal volumes to grow low single digits, non-residential flat, residential to decline low double digits.

• FY25 gross margin expected to exceed prior year, supported by private label and pricing initiatives.

• Targeted SG&A actions underway to enhance operating margins.