Core & Main, Inc. distributes water, wastewater, storm drainage, and fire protection products and related services in the United States. Its portfolio includes pipes, valves, hydrants, and fittings for the service, repair, and replacement of underground water infrastructure, along with storm drainage products, fire protection products and fabrication services, smart meter products and metering solutions, and engineered treatment plant products. These specialty products and services support the maintenance, repair, replacement, and construction of water, wastewater, storm drainage, and fire protection infrastructure. The company serves municipalities, private water companies, and professional contractors across municipal, non-residential, and residential end markets, and was founded in 1874 with headquarters in Saint Louis, Missouri.
Zacks Adds Buenaventura, Core & Main, Tyson Foods to Strong Sell List
Zacks Investment Research added three stocks to its Zacks Rank #5 Strong Sell List for September 25th. Buenaventura Mining Company Inc. BVN, a Peruvian mining company, saw its Zacks Consensus Estimate for current year earnings revised 10.5% downward over the last 60 days. Core & Main, Inc. CNM, a distributor of water, wastewater, storm drainage, fire protection products and related services, had its current year earnings estimate revised 1.9% downward over the same period. Tyson Foods, Inc. TSN, a food company, saw its current year earnings estimate revised 13.5% downward over the last 60 days.
Watsco Q2 Revenue Misses Estimates as Industrial Distributors Post Strong Quarter
Watsco reported second-quarter revenues of $2.10 billion, up 2.1% year on year but falling 1.9% short of analysts' expectations, in a quarter that saw the 24 industrial distributors stocks tracked by the report collectively beat consensus revenue estimates by 3.7%. The HVAC and refrigeration distributor also posted a significant miss of analysts' EPS estimates, and its stock is down 17.4% since reporting, trading at $303.57. Chairman and CEO Albert H. Nahmad said the quarter's performance was indicative of improving end-market stability after a busy period of regulatory transitions. Among peers, Transcat reported revenues of $92.95 million, up 21.6% year on year and 7.4% above expectations, while SiteOne posted $1.53 billion, up 4.7% but 0.7% below estimates, Alta Equipment Group reported $475.5 million, down 1.2% and 3.1% short, and Core & Main reported $2.15 billion, up 2.5% and in line with expectations. On average, shares of the group are down 5.2% since the latest earnings results.
Core & Main Q2 FY26 Revenue Rises 2.5% to $2.145 Billion, Guidance Reiterated
Core & Main Inc. reported second-quarter fiscal 2026 results on September 9, with revenue up 2.5% year over year to $2.145 billion. Adjusted EBITDA came in at $274 million, a 12.8% margin and a 3% increase over Q2 FY25, while adjusted diluted EPS rose 8% to $0.94 on higher net income and a lower Class A share count following buybacks. Gross profit was $573 million, a 26.7% margin and 2.3% growth, and SG&A expenses slipped 0.3% to $301 million on lower variable compensation and cost-cutting. The company repurchased 3.7 million shares for $169 million in the quarter and another 0.3 million shares for $11 million after it closed, and management reiterated full-year fiscal 2026 guidance of $7.8 billion to $7.9 billion in net sales, $950 million to $980 million in adjusted EBITDA, and operating cash flow at 60% to 70% of adjusted EBITDA. For the first half, net sales rose just 1.3% over H1 FY25, most of it from recent acquisitions, and storm drainage sales declined on softer volumes.
Core & Main Q2 earnings beat estimates, revenue up 2.5%
Core & Main reported second-quarter adjusted earnings per share of $0.94, beating the analyst consensus of $0.92, while revenue rose 2.5% year over year to $2.14 billion, matching expectations. Net income increased 6.4% to $150 million, and adjusted EBITDA grew 3% to $274 million, with a margin of 12.8%. The company repurchased 3.7 million shares for $169 million during the quarter. For fiscal 2026, Core & Main maintained its net sales guidance of $7.8 billion to $7.9 billion and adjusted EBITDA forecast of $950 million to $980 million. Shares rose 1.04% in premarket trading following the announcement.
StockStory Highlights Marvell and Core & Main as Cash Producers, Flags American Airlines
StockStory identifies Marvell Technology and Core & Main as cash-producing stocks with competitive advantages, while American Airlines is flagged as an underwhelming performer. Marvell Technology, with a trailing 12-month free cash flow margin of 19.1%, has posted 22.9% annual revenue growth over five years and is projected to grow revenue 45.5% in the next 12 months. Core & Main, with an 8% free cash flow margin, achieved 14.7% annual revenue growth over five years and expanded its free cash flow margin by 8.9 percentage points. American Airlines, with a 2% free cash flow margin, faces sluggish revenue passenger mile trends, shrinking returns on capital, and a high 7× net-debt-to-EBITDA ratio.
Goldman Sachs Maintains Neutral Rating on Core & Main, Raises Price Target to $24
Goldman Sachs maintained a Neutral rating on Core & Main and raised its price target from $23 to $24. The firm cited the company's first-quarter EBITDA beat, driven by modest increases in sales and profit margins, with stable pricing as lower PVC costs were offset by price hikes in other commodities. Core & Main reaffirmed its 2026 financial targets, projecting total sales between $7.8 billion and $7.9 billion, adjusted EBITDA of $950 million to $980 million, and an adjusted EBITDA margin of 12.2% to 12.4%. CEO Mark Witkowski emphasized the company's focus on growth, margin expansion, and supporting complex infrastructure projects.
Core & Main removed from Russell 1000 Growth and Russell 3000 Growth indices
Core & Main has been removed from several Russell growth benchmarks, including the Russell 1000 Growth and Russell 3000 Growth indices, following the latest index reconstitution. The removal may influence ownership patterns and trading activity as funds tracking these benchmarks adjust their exposure. However, the change does not appear to materially alter near-term catalysts around execution, margins, or funding costs, nor key risks tied to interest expense and construction activity. The company's recent US$750.0 million senior notes offering is more relevant to its near-term story, as it directly addresses its high debt burden and variable interest costs. Core & Main's narrative projects US$8.6 billion in revenue and US$647.2 million in earnings by 2029, with a fair value estimate of US$60.56 per share, representing a 23% upside to its current price.
Core & Main Launches $750 Million Senior Notes Offering
Core & Main has launched a $750 million senior notes offering to refinance existing debt and fund growth initiatives. The company plans to use the proceeds for debt restructuring, potential mergers and acquisitions, and general corporate purposes. The notes are 6.000% Senior Notes due 2034, which will allow Core & Main to extend debt maturities and shift part of its senior term loan due 2028 into longer-dated fixed-rate funding. The new notes are senior unsecured obligations guaranteed by key parent entities and certain subsidiaries, while the existing term loan sits in senior secured credit facilities. The transaction is expected to affect Core & Main's capital structure, interest costs, and financial flexibility once completed.
Core & Main reports $1.91 billion in Q1 sales, reaffirms full-year outlook
Core & Main reported fiscal first-quarter net sales of $1.91 billion and reaffirmed its full-year fiscal 2026 net sales outlook of $7.8 billion to $7.9 billion. Management noted healthy municipal demand supported by repair-and-replace activity and infrastructure investment, while treatment plant solutions grew at a double-digit rate and smart utility products posted high-single-digit growth. The company also continued to see strong sales volumes in data center construction, where its role as a specialty distributor supplies water, wastewater, storm drainage, meter, fire protection, pipe, valve, fitting, and treatment plant products needed before campuses can scale.
CNM · Demand · Positive Healthy municipal demand, double-digit growth in treatment plant solutions, and strong sales volumes in data center construction.
Core & Main Outshines Lincoln Electric as a Better Value Stock
Core & Main appears to be a stronger value pick than Lincoln Electric Holdings in the manufacturing tools sector. Core & Main holds a Zacks Rank of 2, or Buy, while Lincoln Electric is ranked 3, or Hold. Core & Main trades at a forward price-to-earnings ratio of 14.83 compared with Lincoln Electric's 24.90, and its price-to-book ratio of 4.28 is less than half of Lincoln Electric's 9.77. These metrics contribute to Core & Main's Value grade of B versus Lincoln Electric's D.
CNM · Capital · Positive Core & Main has better valuation metrics (lower P/E and P/B) and a Zacks Rank of 2 (Buy), making it a stronger value stock.
LECO · Capital · Negative Lincoln Electric has higher valuation multiples (P/E 24.90, P/B 9.77) and a Zacks Rank of 3 (Hold), making it a weaker value stock compared to Core & Main.
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