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…
Earnings analysis · 10-Q
CNM earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.77
- Operating margin
- 10.6%
What stood out
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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.
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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.
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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.
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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.
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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.
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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%.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.