Core & Main Delivers Q1 EPS of $0.72; Margins Expand 50bps
CNM•Core & Main posted adjusted EPS of $0.72, beating forecasts by $0.18, and reported $1.91 billion in revenue, slightly above estimates. Gross margin rose 50 basis points to 27.2% and the company maintained full-year guidance of $7.8–$7.9 billion in sales and $950–$980 million of EBITDA.
1. Q1 Performance Highlights
The company reported adjusted EPS of $0.72, $0.18 above consensus, on revenue of $1.91 billion. Gross profit increased 2% to $520 million, with gross margin improving 50 basis points to 27.2%.
2. Guidance and Outlook
Core & Main reaffirmed its fiscal 2026 net sales forecast of $7.8–$7.9 billion and maintained adjusted EBITDA guidance of $950–$980 million, with margins expected between 12.2% and 12.4%.
3. Shareholder Returns
During the quarter, the company repurchased $88 million of shares and deployed an additional $37 million after quarter-end, totaling $125 million in buybacks.
4. Balance Sheet Strength
Net debt fell to $2.01 billion from $2.28 billion a year earlier, while operating cash flow improved to $82 million from $77 million, enhancing financial flexibility.
