Core & Main, Inc. (NYSE: CNM), a St. Louis based specialty distributor of water, wastewater, storm drainage and fire protection products, reported fiscal 2026 second quarter results on September 9, 2026. The company completed its second consecutive quarter of record open market share repurchases while posting higher net sales, net income and earnings per share for the quarter ended August 2, 2026.
Specialty distributors such as Core & Main supply pipes, valves, fittings and related equipment to municipalities, private water utilities and contractors working on water, wastewater and fire protection infrastructure. Demand for these products is tied to public and private spending on water systems, storm drainage networks and fire protection installations across the United States and Canada.
#Core & Main Grows Second Quarter Sales And Earnings
Net sales for the quarter ended August 2, 2026 rose 2.5% to $2,145 million, up from $2,093 million a year earlier. Core & Main said the increase reflected contributions from volume, pricing and acquisitions across its product lines.
Gross profit increased 2.3% to $573 million from $560 million. Gross profit as a percentage of net sales was 26.7%, down slightly from 26.8% in the prior year quarter.
Net income rose 6.4% to $150 million from $141 million. Diluted earnings per share increased 10.0% to $0.77 from $0.70.
Adjusted EBITDA, a non-GAAP measure, increased 3.0% to $274 million, a margin of 12.8% of net sales. Adjusted Diluted EPS, also non-GAAP, rose 8.0% to $0.94.
Net cash provided by operating activities was $62 million for the quarter. For the six months ended August 2, 2026, operating cash flow was $144 million, up from $111 million a year earlier.
"We delivered growth across sales, adjusted EBITDA and earnings per share during the second quarter, while momentum continues to build across the business," Mark Witkowski, Chief Executive Officer of Core & Main, said in the earnings release.
#Core & Main Deploys $169 Million In Record Quarterly Buybacks
Core & Main deployed $169 million to repurchase 3.7 million shares during the second quarter. The company spent an additional $11 million to repurchase 0.3 million more shares after the quarter ended.
Year to date open market share repurchases reached nearly $270 million and 5.7 million shares. Management called the pace its second consecutive quarter of record open market share repurchases.
Net debt was $2,166 million as of August 2, 2026, down from $2,253 million a year earlier, which the company attributed to lower borrowings on its senior asset based revolving credit facility. Core & Main had no outstanding borrowings on that facility and said it remains positioned to fund additional repurchases and pursue acquisitions.
#Core & Main Reaffirms Fiscal 2026 Sales And Earnings Outlook
Core & Main reaffirmed the full year fiscal 2026 outlook it issued in March 2026. The company projected net sales of $7,800 million to $7,900 million, reflecting growth of 2% to 3%.
Management also projected Adjusted EBITDA of $950 million to $980 million for fiscal 2026, with an Adjusted EBITDA margin of 12.2% to 12.4%. The company projected operating cash flow of 60% to 70% of Adjusted EBITDA.
Core & Main opened seven greenfield locations during fiscal 2026, including two opened during and after the second quarter. The company said it continues to evaluate acquisition opportunities alongside its greenfield expansion plans.
Core & Main operates more than 370 locations across the United States and Canada and employs about 5,600 people. The company distributes water, wastewater, storm drainage and fire protection products to municipalities, private water companies and contractors.
Core & Main's forward-looking projections are subject to risks the company has disclosed in its securities filings, including cyclicality in construction markets, delays in municipal infrastructure spending, integration risk from acquisitions and fluctuations in product costs. The company said actual results could differ from its outlook.
Management expressed confidence in the second half of fiscal 2026, citing strength in municipal demand, fire protection and large capital projects, and opportunities in its acquisition pipeline.