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

Core & Main (NYSE:CNM) released its earnings results on Wednesday. The company reported $0.94 EPS for the quarter, topping the consensus estimate of $0.91 by $0.03, FiscalAI reports. Core & Main had a net margin of 5.96% and a return on equity of 25.98%. The firm had revenue of $2.15 billion for the quarter, compared to the consensus estimate of $2.14 billion. During the same quarter in the previous year, the firm earned $0.87 earnings per share. The company’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

Core & Main stock opened at $40.71 on Friday. The company has a debt-to-equity ratio of 1.16, a current ratio of 2.47 and a quick ratio of 1.31. The firm has a market capitalization of $7.88 billion, a P/E ratio of 16.75, a price-to-earnings-growth ratio of 1.43 and a beta of 0.91. Core & Main has a 1-year low of $40.41 and a 1-year high of $59.66. The company’s 50-day moving average is $44.57 and its 200 day moving average is $47.88.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Royal Bank Of Canada lowered their target price on Core & Main from $63.00 to $60.00 and set an “outperform” rating for the company in a research report on Thursday. Deutsche Bank Aktiengesellschaft set a $55.00 price target on shares of Core & Main in a research note on Thursday. William Blair initiated coverage on shares of Core & Main in a research report on Thursday, July 23rd. They set a “market perform” rating for the company. Citigroup dropped their price objective on shares of Core & Main from $54.00 to $53.00 and set a “neutral” rating for the company in a research note on Thursday, June 11th. Finally, Wall Street Zen downgraded shares of Core & Main from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Seven analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $55.60.

Insider Buying and Selling at Core & Main

In other Core & Main news, Director James Hope purchased 2,067 shares of Core & Main stock in a transaction dated Monday, July 6th. The shares were purchased at an average cost of $46.01 per share, for a total transaction of $95,102.67. Following the completion of the acquisition, the director owned 11,805 shares in the company, valued at $543,148.05. This represents a 21.23% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 1.51% of the company’s stock.

Hedge Funds Weigh In On Core & Main

Several hedge funds have recently bought and sold shares of the business. First Trust Advisors LP grew its holdings in shares of Core & Main by 38.6% during the fourth quarter. First Trust Advisors LP now owns 5,318,070 shares of the company’s stock worth $276,380,000 after purchasing an additional 1,482,235 shares during the last quarter. Zurich Insurance Group Ltd FI purchased a new position in Core & Main in the 3rd quarter valued at $67,284,000. Morgan Stanley increased its position in Core & Main by 8.3% during the 4th quarter. Morgan Stanley now owns 14,586,859 shares of the company’s stock worth $758,079,000 after purchasing an additional 1,118,145 shares during the period. Schonfeld Strategic Advisors LLC raised its position in Core & Main by 286.6% in the third quarter. Schonfeld Strategic Advisors LLC now owns 1,379,820 shares of the company’s stock worth $74,276,000 after acquiring an additional 1,022,864 shares in the last quarter. Finally, Millennium Management LLC increased its holdings in shares of Core & Main by 217.9% in the 3rd quarter. Millennium Management LLC now owns 1,181,907 shares of the company’s stock valued at $63,622,000 after purchasing an additional 810,155 shares in the last quarter. Institutional investors own 94.19% of the company’s stock.

Trending Headlines about Core & Main

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

• Positive Sentiment: Core & Main reported fiscal second-quarter adjusted earnings of $0.94 per share, ahead of the roughly $0.91–$0.93 consensus, while revenue of $2.15 billion increased 2.5% year over year and slightly exceeded estimates. Core & Main Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management reaffirmed its fiscal 2026 outlook, including revenue of $7.8 billion to $7.9 billion, above the approximately $7.7 billion analyst consensus. Growth was supported by fire-protection products and acquisitions. Core & Main Reaffirms FY26 Outlook
• Neutral Sentiment: Brokerage sentiment remains generally constructive, with Core & Main receiving a consensus rating of “Moderate Buy.” Robert W. Baird kept an “outperform” rating but lowered its price target from $66 to $57, still implying substantial potential upside from recent levels. Core & Main Given Consensus Rating of Moderate Buy
• Negative Sentiment: Truist cut its price target from $50 to $45 and maintained a “hold” rating, signaling more limited near-term conviction despite the target remaining above the recent share price. Truist Cuts Price Target on Core & Main
• Negative Sentiment: Investors are concerned that growth in smart utilities and storm drainage remains tepid, prompting analysts to reduce forecasts after the earnings report. The stock subsequently reached a two-year low as markets weighed subdued organic growth against the earnings beat. Core & Main Slides to Two-Year Low on Organic Growth Concerns

Core & Main Company Profile

Core & Main, Inc (NYSE: CNM) is a specialized distributor of water, wastewater, storm drainage and fire protection products in the United States. The company supplies infrastructure materials used in the construction, maintenance and repair of public and private utility systems.

Its product offerings include ductile iron and PVC pipe, valves, hydrants, water meters, storm drainage systems, pipe fittings, fire protection equipment and related products. Core & Main also provides services such as product sourcing, technical support, fabrication, field assistance and inventory management to help customers complete infrastructure projects.

Core & Main serves municipalities, utility contractors, water and wastewater authorities, private water companies, civil and site-development contractors, and other industrial customers through a nationwide distribution network.