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Core & Main Q1 – Flat Sales, Rising Profit

Core & Main said fiscal first-quarter net sales were essentially flat at $1.91 billion, down $1 million from $1.911 billion a year earlier, as lower volume was offset by acquisitions.

Gross profit rose 2.0% to $520 million from $510 million, and gross margin widened 50 basis points to 27.2% from 26.7%.

Operating income increased 3.5% to $177 million from $171 million, while SG&A rose 2.0% to $299 million from $293 million, pushing SG&A to 15.7% of sales from 15.3%.

Net income climbed 7.6% to $113 million from $105 million. Diluted earnings per share increased 9.6% to $0.57 from $0.52, and basic EPS rose 7.5% to $0.57 from $0.53.

Adjusted EBITDA increased 0.9% to $226 million from $224 million, with adjusted EBITDA margin up 10 basis points to 11.8% from 11.7%. Adjusted diluted EPS rose 5.9% to $0.72 from $0.68.

Cash from operations increased to $82 million from $77 million.

Net debt fell to $2.010 billion from $2.276 billion a year earlier, a decline of $266 million.

During the quarter, the company repurchased 1.8 million shares for $88 million and then bought back another 0.8 million shares for $37 million after quarter-end.

Core & Main opened five greenfield locations in the quarter and reaffirmed its full-year fiscal 2026 outlook for net sales of $7.8 billion to $7.9 billion, adjusted EBITDA of $950 million to $980 million, and operating cash flow of 60% to 70% of adjusted EBITDA. Following these announcements, the company's shares moved 0.86%, and are now trading at a price of $52.63. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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