Core & Main, Inc. (CNM)

Core & Main reported second-quarter fiscal 2026 net sales of $2,145 million on 9 September 2026, up 2.5 percent 1. Net income was $150 million, up 6.4 percent 1.

The company said pipes, valves and fittings sales rose because of acquisitions, fire protection grew on higher volumes and prices, and storm drainage was essentially flat 1. Chief Executive Mark Witkowski called municipal demand a source of strength and named fire protection and large projects, including treatment plants and data centers, as growth areas 1.

It spent $169 million repurchasing 3.7 million of its own shares in the quarter and reaffirmed its fiscal 2026 outlook for net sales of $7,800 to $7,900 million 1.

On 1 July 2026 its operating subsidiary issued $750 million of 6.000 percent senior notes due 2034, mainly to prepay part of an older term loan 5. The open question is acquisitions: the company said it is encouraged by opportunities in its pipeline, though it closed none in the first six months of the fiscal year 12.

The earliest of the businesses behind Core & Main dates back to 1874 3. In 2005 The Home Depot bought National Waterworks Holdings and merged it with Hughes Supply, which became HD Supply Waterworks 3.

A group of private equity investors bought HD Supply from The Home Depot in 2007 3. In August 2017 the investment firm Clayton, Dubilier & Rice bought the waterworks unit, which was then renamed Core & Main 3.

Core & Main sold Class A shares to the public in an initial public offering on 27 July 2021 3. Clayton, Dubilier & Rice sold its stake through later offerings, and by 25 January 2024 it no longer held any of the company's common stock 3.

Net sales were $6,651 million in fiscal 2022 and $6,702 million in fiscal 2023, a rise of 0.8 percent 8. The company tied the small gain to higher selling prices and acquisitions, offset by lower end-market volumes 8.

Fiscal 2024 was the big acquisition year 9. Net sales rose 11.0 percent to $7,441 million, which the company credited to acquisitions, higher volumes and a 53rd selling week 9. The acquisitions closed in fiscal 2023, 2024 and 2025 had aggregate transaction values of $244 million, $769 million and $76 million 3.

That year fire protection sales fell 13.4 percent on lower selling prices and end-market volumes, while meter product sales rose 31.8 percent as municipalities adopted smart meters 9.

In fiscal 2025 net sales rose 2.8 percent to $7,647 million, as higher volumes and acquisitions outweighed one less selling week 3. Operating income edged up 0.4 percent to $722 million, because higher gross profit was mostly offset by selling, general and administrative costs, which rose 7.1 percent to $1,154 million 3.

Pipes, valves and fittings

This is the largest line, with $5,137 million of fiscal 2025 net sales, about 67 percent of the total and up 2.6 percent 3. The line covers the pipes, valves, hydrants and fittings that carry and control water in underground networks, with pipe made of PVC, ductile iron, fusible HDPE and copper 3.

Storm drainage, fire protection and meters

Storm drainage products, which manage rainwater runoff, brought in $1,194 million, about 16 percent of sales 3. Fire protection products, such as sprinkler pipe, valves and custom fabrication, brought in $600 million, about 8 percent 3. Meter products, including smart meters that report water use automatically, brought in $716 million, about 9 percent 3.

Customers, suppliers and rivals

The company estimates 44 percent of fiscal 2025 sales went to municipal work, 38 percent to non-residential construction and 18 percent to residential land development 3. It serves over 60,000 customers, and the top 50 made up about 12 percent of sales 3.

It buys from more than 5,000 suppliers, and its top ten supplied about 45 percent of product spending 3. It says only one other distributor competes nationally, and it puts its own sales at about 17 percent of a $44 billion market 3.

Branches, people and problems

Business runs through a network of over 370 branches in the United States and Canada, with about 5,600 associates 3. It owned 47 properties and leased 331, and it reported no material legal proceedings 3.

Mark Witkowski is chief executive 1. M. Susan Hardwick, former chief executive of American Water Works, joined the board on 1 April 2026 7. The company says over three-quarters of what it buys is made in the United States, which limits its exposure to tariffs 3.

The umbrella, in words

Core & Main, Inc. is a holding company whose main assets are its ownership of Core & Main Holdings, LP and tax assets tied to it 3. Core & Main LP, a Florida limited partnership, conducts the operations, and Core & Main Canada, Inc. is an Ontario subsidiary 24.

In fiscal 2025 it bought Pioneer Supply LLC, with two locations, and the assets of Canada Waterworks, with three locations, for an aggregate transaction value of $76 million 2. It is also bound by tax receivable agreements with a total liability of $720 million 3.

The proxy statement lists BlackRock at 10.1 percent, Morgan Stanley at 6.6 percent and Vanguard Capital Management at 5.3 percent of Class A shares as of 27 April 2026 6. Each Class A share carries one vote 6.

The company expects fiscal 2026 net sales of $7,800 to $7,900 million, growth of 2% to 3%, and adjusted EBITDA of $950 to $980 million 1. Adjusted EBITDA is earnings before interest, taxes and depreciation, adjusted for items management says do not reflect the core business 3.

It also expects an adjusted EBITDA margin of 12.2% to 12.4% and operating cash flow of 60% to 70% of adjusted EBITDA 1. The company reaffirmed this outlook on 9 September 2026 1.

Growth plans in the annual report include opening branches in underpenetrated areas and pursuing acquisitions 3. The release says seven greenfield locations (new branches built from scratch) opened in fiscal 2026 so far 1.

On share repurchases, $412 million of a $1 billion authorization remained as of 2 August 2026 2. After the quarter ended, the company bought another $11 million of stock 1.

The 2034 notes pay interest on 1 January and 1 July, starting 1 January 2027, and mature on 1 July 2034 5. A new $800 million term loan matures on 1 July 2033, and the revolving credit commitments run to 9 April 2031 210.