Core & Main (CNM) Q4 2026 earnings summary

Executive summary

• Fiscal 2025 marked the 16th consecutive year of sales growth, with net sales of $7.65 billion, Adjusted EBITDA of $931 million, and Adjusted Diluted EPS of $2.97, reflecting consistent execution and margin improvement.

• Broadened product portfolio and expanded footprint through ten new greenfields and two acquisitions (Canada Waterworks and Pioneer Supply), enhancing presence in high-growth markets.

• Gross margin expanded by 30 basis points year-over-year to 26.9%, aided by higher private label penetration and disciplined pricing.

• Generated $650 million in operating cash flow, supporting investments in organic growth, M&A, and $155 million in share repurchases.

• Continued to invest in product categories, footprint, and capabilities to support long-term growth.

Financial highlights

• Net sales grew 3% year-over-year to $7.65 billion; adjusted for one less selling week, growth was 5%.

• Adjusted EBITDA was $931 million, with margin at 12.2%; Adjusted Diluted EPS increased 7% to $2.97.

• Gross profit increased 4% to $2.06 billion; gross margin improved 30 bps to 26.9%.

• Net income rose 7% to $462 million; net income margin up 20 bps to 6.0%.

• Returned $155 million to shareholders via share repurchases, reducing share count by 3.2 million.

Outlook and guidance

• Fiscal 2026 guidance: net sales of $7.8–$7.9 billion (2–3% growth), Adjusted EBITDA of $950–$980 million, margin of 12.2–12.4%, and operating cash flow conversion of 60–70%.

• Municipal market expected to remain strong; residential to be down mid-single digits, non-residential flattish.

• Anticipates above-market volume growth from sales and geographic expansion, with record 7–10 greenfield openings.

• Expects to grow Adjusted EBITDA margins through gross margin initiatives and cost actions.

• Capital allocation priorities unchanged: invest in growth, pursue M&A, and continue share repurchases.