CNM earnings analysis
What we found in CNM's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Core & Main reported fiscal Q2 revenue of $2.145 billion, up 12.3% sequentially and 2.5% year over year, while diluted EPS of $0.77 missed the $0.81 consensus estimate. Operating income rose 6.6% year over year to $227 million, implying approximately 10.6% operating margin, and Adjusted EBITDA increased 3.0% to $274 million. Management maintained its fiscal 2026 outlook for $7.8 billion-$7.9 billion of sales and $950 million-$980 million of Adjusted EBITDA. The main material risk is floating-rate leverage of $1.728 billion, with a one-percentage-point rate change affecting annual term-loan interest expense by approximately $17 million.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue grew sequentially and year over year
- Revenue was $2.145 billion, up approximately 12.3% from $1.91 billion in the prior quarter and 2.5% year over year from approximately $2.09 billion. Sales were slightly below the $2.146 billion consensus estimate.
- EPS improved sequentially but missed consensus
- Diluted EPS was $0.77, up from $0.57 in the prior quarter, but below the $0.81 consensus estimate. The year-over-year EPS comparison is not provided in the supplied filing text.
- Operating profitability improved
- Operating income increased 6.6% year over year to $227 million. Based on revenue of $2.145 billion, operating margin was approximately 10.6%, up from 9.3% in the prior quarter and 10.2% in the comparable prior-year quarter.
- Adjusted EBITDA increased 3.0%
- Adjusted EBITDA increased 3.0% year over year to $274 million, indicating positive earnings growth despite revenue increasing 2.5% year over year.
- Repurchases continued at scale
- The company repurchased 3,685,511 shares through open-market transactions at an average price of $45.72 during the three months ended August 2, 2026; $412 million remained available under the repurchase program.
- Fiscal outlook was reaffirmed
- Management maintained the fiscal 2026 sales outlook of $7.8 billion-$7.9 billion and Adjusted EBITDA outlook of $950 million-$980 million, with expected Adjusted EBITDA margin of 12.2%-12.4%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Floating-rate debt creates interest risk
- As of August 2, 2026, net borrowings under the Senior Term Loan and Senior ABL facilities were $1.728 billion. Excluding interest-rate swaps, a one-percentage-point rate change would affect annual interest expense by approximately $17 million on the term loan; full ABL utilization would add approximately $12 million.
- Product-cost and margin volatility
- The company states that supplier pricing, transportation, governmental fees and petroleum costs can create volatility and reduce gross margins. The quantitative outlook targets an Adjusted EBITDA margin of 12.2%-12.4%, highlighting the importance of maintaining pricing and gross-margin initiatives.
- No formal risk-factor update
- The company states that there were no material changes to the risk factors disclosed in the Fiscal 2025 Form 10-K. Nevertheless, it remains exposed to litigation, including asbestos-related matters, and says it is not currently party to any material legal proceedings.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.77
- Operating margin
- 10.6%
What they said about what is next.
The company maintained fiscal 2026 outlook for net sales of $7.8 billion-$7.9 billion, Adjusted EBITDA of $950 million-$980 million, Adjusted EBITDA margin of 12.2%-12.4%, and operating cash flow equal to 60%-70% of Adjusted EBITDA.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 10, 2026
- Core & Main (CNM) reported Q1 fiscal 2026 results showing revenues of $1.91 billion, slightly increasing from $1.70 billion in Q4 2025 but falling short of revenue estimates of $1.90 billion. The diluted EPS was…
- 10-K · March 24, 2026
- Core & Main positions itself as one of two national specialty distributors in a roughly $44 billion U.S. and Canada addressable market and estimates it captured approximately 17% of that market in fiscal 2025. The…
- 10-Q · June 10, 2025
- Core & Main reported Q1 net sales of $1,911.0 million, up $170.0 million (+9.8%) versus the prior-year quarter, with gross profit of $510.0 million (26.7% margin) and diluted EPS of $0.52 (up $0.03 vs $0.49). Operating…
- 10-Q · December 3, 2024
- Core & Main reported third-quarter net sales of $2,038.0 million and diluted EPS of $0.69 for the three months ended October 27, 2024. Revenue rose versus the prior-year quarter by $211.0 million (+11.6%) while gross…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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