Core & Main’s fourth quarter saw the company navigate a challenging demand landscape, with end market softness particularly evident in residential and certain nonresidential segments. Management credited steady municipal demand and robust execution in specialty categories such as meters and treatment plant solutions for partially offsetting these pressures. CEO Mark Witkowski highlighted, “Municipal volumes were up low to mid-single digits and continue to be a source of strength supported by steady repair and replacement activity.” The company’s ability to expand gross margins, driven by increased private label penetration and disciplined pricing, was also key to sustaining profitability as overall sales declined year on year.
Is now the time to buy CNM? Find out in our full research report (it’s free for active Edge members).
Core & Main (CNM) Q1 CY2026 Highlights:
- Revenue: $1.91 billion vs analyst estimates of $1.90 billion (flat year on year, 0.8% beat)
- Adjusted EPS: $0.56 vs analyst estimates of $0.57 (in line)
- Adjusted EBITDA: $226 million vs analyst estimates of $220.7 million (11.8% margin, 2.4% beat)
- The company reconfirmed its revenue guidance for the full year of $7.85 billion at the midpoint
- EBITDA guidance for the full year is $965 million at the midpoint, in line with analyst expectations
- Operating Margin: 9.3%, in line with the same quarter last year
- Market Capitalization: $9.37 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Core & Main’s Q1 Earnings Call
- David Manthey (Baird) asked about the growth disconnect between Core & Main and its largest competitors. CEO Mark Witkowski attributed differences to end market mix and highlighted growing share in data centers and treatment plant projects.
- David Manthey (Baird) also pushed for clarity on cost-out program benefits. CFO Robyn Bradbury confirmed that most savings will be realized in the first three quarters of next year, supporting incremental margin improvement.
- Matthew Bouley (Barclays) questioned exposure to commodity inflation and price setting strategies. Witkowski said rising resin and fuel costs are embedded in guidance, with positive signs for price stability in certain product categories.
- Joseph Ritchie (Goldman Sachs) inquired about the EBITDA guidance range. Bradbury noted that higher inflation or weaker markets could bring results to the low end, while upside could come from pricing or improved residential demand.
- Matthew Johnson (UBS) asked for details on meter business growth. President Brad Cowles stated that large project wins and municipal base sales will continue to drive double-digit growth in this segment.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will watch (1) Core & Main’s ability to sustain above-market growth in specialty initiatives like meters and treatment plants, (2) execution on cost reduction and margin expansion strategies as inflation and commodity costs fluctuate, and (3) the pace of greenfield expansion and integration of recent acquisitions. Trends in residential and nonresidential demand, along with developments in municipal funding, will also serve as important indicators.
Core & Main currently trades at $47.77, down from $52.65 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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