Core & Main Hits 16th Year of Growth, Eyes Expansion in 2026

ST. LOUIS, MO – March 24, 2026 – Core & Main, Inc. (NYSE: CNM) today announced its sixteenth consecutive year of sales growth, reporting a 2.8% increase in net sales to $7.65 billion for its 2025 fiscal year. The specialty distributor of water, wastewater, and fire protection products demonstrated financial resilience and strategic execution, posting higher full-year profits and outlining a confident outlook for fiscal 2026, even as it navigated a challenging fourth quarter.

Despite the full-year gains, the company reported a 6.9% decrease in fourth-quarter net sales. However, this figure was skewed by a shorter fiscal period, containing one less selling week than the prior year. A closer look reveals a 0.9% increase in average daily net sales for the quarter, suggesting stable underlying demand. For the full year, average daily net sales grew by a more robust 4.8%.

“Fiscal 2025 marked our 16th consecutive year of sales growth, a result that reflects the resilience of our business, the long-term strength of our end markets and the disciplined execution by our teams across the country,” said Mark Witkowski, CEO of Core & Main, in the company’s official announcement.

Full-Year Strength Overcomes Quarter Volatility

A detailed analysis of Core & Main's performance reveals a story of sustained annual momentum despite quarterly fluctuations. For the full fiscal year ending February 1, 2026, the company's net income rose 6.5% to $462 million, with diluted earnings per share increasing 8.5% to $2.31. This growth was fueled by higher volumes, contributions from acquisitions, and disciplined pricing strategies.

In contrast, the fourth quarter presented a more complex picture. The reported net sales of $1.58 billion were down from $1.70 billion in the same period last year, a decline officials primarily attribute to the shorter 13-week quarter. When normalized on a daily basis, sales trends showed modest growth. Performance varied across product categories; average daily sales for fire protection and meters increased due to higher volumes, while pipes, valves, and fittings saw a decrease.

Notably, the company highlighted strong performance in higher-growth, specialized product lines. “Our sales initiatives performed well throughout the year as we continued to expand our role as a solutions partner for aging water infrastructure,” Witkowski stated. “Fusible high-density polyethylene, treatment plant solutions, and geosynthetics delivered double-digit average daily net sales growth.” This focus on high-value solutions appears to be a key component of the company's strategy to deepen its market penetration.

Building the Footprint Through Strategic Expansion

Core & Main aggressively pursued both organic and inorganic growth in fiscal 2025, significantly expanding its operational footprint. The company opened ten new branch locations in what it described as “attractive markets.” This greenfield expansion is set to continue, with plans for another seven to ten new locations in fiscal 2026.

Alongside organic growth, the company completed two complementary acquisitions, Canada Waterworks and Pioneer Supply, enhancing its presence in high-growth geographies. These moves bolster the company's capabilities, particularly in the Canadian market where it now operates seven branches in Ontario. This disciplined M&A activity is a core part of its strategy in a highly fragmented market where Core & Main holds an estimated 20% share.

“We also expanded our footprint through disciplined organic and inorganic investments during and shortly after the year,” Witkowski noted, emphasizing that these actions “enhance our presence in high-growth geographies and extend our service capabilities.”

Fortifying the Foundation with Financial Discipline

Beyond top-line growth, Core & Main demonstrated a strong focus on operational efficiency and balance sheet health. The company’s gross profit margin increased by 30 basis points for the full year to 26.9%, a gain attributed to the growth of private label products and effective sourcing and pricing management. This margin improvement contributed to a robust net cash flow of $650 million from operating activities.

The company deployed this strong cash flow with a balanced approach. It invested in growth through capital expenditures ($46 million) and acquisitions ($61 million) while also returning significant value to shareholders. Core & Main repurchased 3.2 million shares for $155 million during the fiscal year and another 0.8 million shares for $39 million after the year-end. Over $600 million remains under its current repurchase authorization.

A key highlight was the substantial reduction in debt. Net debt fell to $1.95 billion from $2.28 billion a year prior. This brought the company's net debt leverage ratio to a healthy 2.1 times, well within its target range and providing ample flexibility for future strategic moves.

Navigating 2026 with a Cautious but Confident Outlook

Looking ahead to fiscal 2026, Core & Main projects continued growth, with net sales forecasted to be between $7.8 billion and $7.9 billion, a 2% to 3% increase. Adjusted EBITDA is expected to reach between $950 million and $980 million. This outlook is built on an assumption of “flat pricing and end-market performance,” reflecting a cautious view of the broader economy.

The company anticipates continued strength in municipal infrastructure spending, a core market driven by the non-discretionary need to repair and upgrade America's aging water systems. This is balanced against ongoing challenges in the residential construction sector and what the company terms “muted” activity in non-residential development, although it sees strength in specific areas like data centers and highway projects.

Core & Main's strategy for the coming year remains focused on its key priorities: expanding its offerings in high-growth categories, pursuing measured greenfield expansion, executing disciplined acquisitions, and investing in technology. By focusing on these internal initiatives, the company aims to compound market share gains and expand margins, positioning itself to thrive even if the broader market remains flat.