Core & Main's Q2 sales slightly beat, adjusted EPS tops estimates

The company repurchased $169 mln in shares during the quarter and reaffirmed its full-year outlook.

Core & Main reaffirms fiscal 2026 net sales guidance of $7.8 bln to $7.9 bln and maintains its fiscal 2026 adjusted EBITDA forecast of $950 mln to $980 mln.

The company expects continued strength in municipal demand and growth in fire protection projects.

Result drivers included:

• Segment performance - Fire protection and large capital projects, including treatment plants and data centers, delivered strong growth; storm drainage sales were flat.
• Acquisitions and pricing - Net sales increased with contributions across volume, price and acquisitions; pipes, valves & fittings sales rose due to acquisitions.
• Municipal demand - Municipal demand remained a source of strength, according to CEO Mark Witkowski.

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell".

The average consensus recommendation for the industrial machinery & equipment peer group is "buy".

Wall Street's median 12-month price target for Core & Main Inc is $61.69, about 40% above its September 8 closing price of $44.06.

The stock recently traded at 13 times the next 12-month earnings versus a P/E of 15 three months ago.