Core & Main, Inc.

What they do

Core & Main distributes pipes, valves, fittings, storm drainage, fire protection and smart metering products, serving municipalities, private water companies and professional contractors. As of February 1, 2026, the company operated over 370 branch locations across the U.S. and Canada, linking more than 5,000 suppliers to over 60,000 customers. Products are used primarily in maintenance, repair, replacement and new construction of water and fire protection infrastructure. The company estimates its addressable market at approximately $44 billion in annual sales.

Revenue drivers

• Pipes, Valves & Fittings — Largest product category at approximately 67% of fiscal 2025 net sales, used in water and wastewater transmission networks and sold to municipalities and contractors.
• Municipal end market — Approximately 44% of fiscal 2025 net sales came from municipal projects, driven by steady repair and replacement demand and municipal infrastructure spending.
• Non-residential end market — Approximately 38% of fiscal 2025 net sales, tied to commercial construction including large capital projects such as treatment plants and data centers.
• Residential end market — Approximately 18% of fiscal 2025 net sales, primarily driven by housing starts, lot development and interest rates.

Recent performance

For the second quarter ended August 2, 2026, net sales increased 2.5% to $2,145 million, with growth across volume, price and acquisitions. Gross profit rose 2.3% to $573 million, but gross margin dipped to 26.7% from 26.8%. Net income increased 6.4% to $150 million, and diluted EPS rose 10.0% to $0.77. Adjusted EBITDA grew 3.0% to $274 million, a 12.8% margin. The company deployed $169 million to repurchase 3.7 million shares during the quarter.

Strategy

Core & Main is pursuing margin enhancement through private label expansion, sourcing optimization, data-driven pricing and value-added services. It continues to acquire companies, open greenfield locations—seven in fiscal 2026—and repurchase shares, with nearly $270 million of open market repurchases year to date. Management refinanced debt in July 2026, issuing $750 million of 6.0% senior unsecured notes due 2034 and a new $800 million senior term loan due 2033 to prepay the 2028 term loan. The company emphasizes talent development and maintaining a strong balance sheet to fund growth.

Risks

• Construction market cyclicality — Declines or volatility in U.S. residential and non-residential construction markets could reduce demand for Core & Main's products.
• Municipal infrastructure spending slowdowns — Delays in appropriations of federal funds or slowdowns in municipal infrastructure spending could weaken the 44% of sales tied to the municipal end market.
• Product cost fluctuations — Price fluctuations in product costs, including effects of tariffs, could pressure gross margins if not passed through to customers.
• Acquisition and integration risk — The company's growth strategy depends on identifying, acquiring and integrating targets successfully, and failure to do so could disrupt operations or dilute returns.

Outlook

Management reaffirmed its full-year fiscal 2026 outlook, citing growth in municipal demand, fire protection and large capital projects including treatment plants and data centers. CEO Mark Witkowski said momentum is building across the business and expressed confidence in the second half. The company highlighted a robust acquisition pipeline and substantial liquidity to fund additional share repurchases and acquisitions.