Strong Earnings Performance Driven by Margin Expansion Core & Main, Inc. (NYSE:CNM) delivered first-quarter results ahead of market expectations, prompting shares to rise about 0.7% in premarket trading.
Adjusted earnings per share reached $0.72, surpassing analyst forecasts of $0.54 by $0.18
Revenue totaled $1.91 billion, slightly ahead of the $1.90 billion consensus estimate and broadly unchanged from the same period a year earlier. Gross profit increased 2.0% year-on-year to $520 million, while gross margin improved by 50 basis points to 27.2%, reflecting the company’s continued focus on profitability and operational efficiency. Full-Year Outlook Remains Unchanged The specialty infrastructure distributor reaffirmed its fiscal 2026 guidance, continuing to forecast net sales of between $7.80 billion and $7.90 billion, representing anticipated growth of 2% to 3%.
Core & Main also maintained its adjusted EBITDA outlook of $950 million to $980 million, with an expected adjusted EBITDA margin ranging from 12.2% to 12.4%. Net income rose 7.6% to $113 million during the quarter, while adjusted EBITDA increased 0.9% to $226 million. Municipal Infrastructure Demand Continues to Support Growth Management highlighted ongoing strength in municipal markets, supported by infrastructure spending and maintenance activity. “In the first quarter, we delivered solid results despite a dynamic macroeconomic environment and strong prior-year comparison,” said Mark Witkowski, CEO of Core & Main. “Municipal demand remained healthy, supported by ongoing repair-and-replace activity and infrastructure investment.” The company reported double-digit growth in its treatment plant solutions business and high-single-digit growth across smart utility product categories.