Core & Main (NYSE: CNM) reported its financial results for the fourth quarter and full fiscal year ended February 1, 2026, showing annual sales growth alongside mixed quarterly performance. The company posted fiscal 2025 net sales of $7.65 billion, up 2.8% year over year, while fourth-quarter sales declined 6.9% to $1.58 billion.
The distributor of water, wastewater, and fire protection products reported net income of $462 million for the full year, an increase of 6.5% compared with fiscal 2024. Quarterly net income rose 9.0% to $73 million despite lower revenue, reflecting reduced interest expense and share count impacts.
The results reflect a year that included one fewer selling week compared with the prior period, which the company said affected reported sales but not underlying daily performance trends.
#Quarterly Performance Reflects Calendar Impact
Fourth-quarter net sales declined primarily due to the shorter reporting period, though average daily sales increased 0.9%. The company cited lower volumes in pipes, valves, fittings, and storm drainage products, partially offset by growth in fire protection and meters.
Gross profit margin in the quarter improved to 27.1%, up from 26.6% a year earlier, while operating income declined 4.8% to $118 million. Adjusted EBITDA fell 6.7% to $167 million.
Earnings per share rose to $0.37 on a diluted basis, compared with $0.33 in the prior-year quarter. The increase was attributed to higher net income and a reduced share count following repurchase activity.
Selling, general, and administrative expenses decreased in absolute terms but increased slightly as a percentage of sales, reflecting ongoing investments and inflation-related costs.
#Full-Year Growth Driven by Volume and Acquisitions
For fiscal 2025, Core & Main reported growth in average daily sales of 4.8%, supported by higher volumes and contributions from acquisitions. The company noted increased demand across key product categories, including pipes, storm drainage, and meters.
Gross profit for the year rose 4.0% to $2.06 billion, with margin expansion attributed to pricing discipline and sourcing initiatives. Operating income remained relatively flat at $722 million, as higher gross profit was offset by increased operating expenses.
Adjusted EBITDA was $931 million, essentially unchanged from the prior year, while adjusted diluted earnings per share increased 6.8% to $2.97.
The company generated $650 million in operating cash flow during the year, up from $621 million in fiscal 2024. It also repurchased approximately $155 million in shares during the fiscal year, with additional repurchases occurring after year-end.
#Balance Sheet and Capital Allocation
Core & Main reduced its net debt position to $1.95 billion as of February 1, 2026, down from $2.28 billion a year earlier. The reduction was primarily driven by lower borrowings on its asset-based credit facility.
The company ended the fiscal year with $220 million in cash and no outstanding borrowings under its revolving credit facility, providing available liquidity of over $1.2 billion, subject to borrowing base conditions.
Capital allocation during the year included acquisitions, branch expansion, and share repurchases, reflecting a mix of growth and shareholder return strategies.
#Outlook and Industry Context
For fiscal 2026, Core & Main expects net sales between $7.8 billion and $7.9 billion, representing projected growth of 2% to 3%. The company also forecasts adjusted EBITDA in the range of $950 million to $980 million.
The outlook assumes relatively stable pricing conditions and consistent demand across its end markets, including municipal infrastructure and construction-related sectors. The company indicated that prior cost initiatives and acquisitions are expected to contribute to performance.
Core & Main operates within infrastructure-related distribution markets that are influenced by public spending cycles, construction activity, and commodity price trends. Demand in these sectors can be sensitive to interest rates, government funding timelines, and broader economic conditions.
The company also noted that future performance may be affected by factors such as supply chain conditions, competitive dynamics, and acquisition integration risks, consistent with disclosures in its regulatory filings.