Core & Main net sales up 2.5% for fiscal Q2
Core & Main Inc., a specialty distributor of products supporting reliable infrastructure, reported a net sales increase of 2.5% ($2,145 million) for its second fiscal quarter.
Gross profit increased 2.3% to $573 million with a gross profit margin of 26.7%. Net income increased 6.4% to $150 million.
The company opened seven greenfield locations in fiscal 2026, including two during and after the quarter.
"We delivered growth across sales, adjusted EBITDA and earnings per share during the second quarter, while momentum continues to build across the business" said Chief Executive Officer Mark Witkowski. "Municipal demand remained a source of strength. Fire protection and large capital projects, including treatment plants and data centers, delivered strong growth and we are encouraged by the opportunities emerging across our acquisition pipeline. These trends support our confidence in the second half and reaffirmed full-year outlook.
"We also deployed significant levels of capital, executing our second consecutive quarter of record open market share repurchases while investing in future growth through acquisitions, greenfield expansions and other strategic initiatives," he continued. "With a strong balance sheet and substantial liquidity, we remain well positioned to fund potential additional share repurchases and pursue attractive acquisition opportunities.
"The quarter highlights the durability of the Core & Main business model: growing revenue, generating strong cash flow, investing for the future and strengthening our market position while operating in a mixed demand environment. With a robust acquisition pipeline and multiple avenues for growth, we remain confident in our ability to create long-term value for our customers, associates and shareholders."
Three Months Ended August 2, 2026
Net sales for the three months ended August 2 increased $52 million, or 2.5% to $2,145 million compared with $2,093 million for the three months ended August 3, 2025. Net sales increased with contributions across volume, price and acquisitions. Net sales for pipes, valves & fittings increased due to acquisitions. Net sales for storm drainage was essentially flat. Net sales of fire protection products increased due to higher volumes and higher selling prices. Net sales of smart utility products increased primarily due to higher selling prices.
Gross profit for the three months ended August 2 increased $13 million, or 2.3%, to $573 million compared with $560 million for the three months ended August 3, 2025. Gross profit as a percentage of net sales for the three months ended August 2, 2026 was 26.7% compared with 26.8% for the three months ended August 3, 2025.
Selling, general and administrative ("SG&A") expenses for the three months ended Aug. 2 decreased $1 million, or 0.3%, to $301 million compared with $302 million during the three months ended Aug. 3, 2025. SG&A expenses as a percentage of net sales were 14.0% for the three months ended Aug. 2 compared with 14.4% for the three months ended Aug. 3, 2025. The improvement was primarily attributable to the benefits of recent cost actions and lower variable compensation costs partially offset by higher distribution costs and investments to support long-term growth, including greenfield expansion and sales initiatives.
Operating income for the three months ended Aug. 2 increased $14 million, or 6.6%, to $227 million compared with $213 million during the three months ended August 3, 2025. The increase in operating income was primarily attributable to higher gross profit.
Net income for the three months ended Aug. 2 increased $9 million, or 6.4%, to $150 million compared with $141 million for the three months ended August 3, 2025. The increase in net income was primarily attributable to an increase in operating income partially offset by higher income tax expense.
Fiscal 2026 Outlook
Core & Main reaffirmed its full-year fiscal 2026 outlook issued in March:
- Net sales of $7,800 to $7,900 million, reflecting net sales growth of 2% to 3%
- Adjusted EBITDA (Non-GAAP) of $950 to $980 million
- Adjusted EBITDA Margin (Non-GAAP) of 12.2% to 12.4%
- Operating Cash Flow of 60% to 70% of Adjusted EBITDA
INDUSTRIAL SUPPLY MAGAZINE
The September/October issue of Industrial Supply magazine features an in-depth cover story about Rotator Products. Plus, we're featuring articles by contributing writers Dr. Bharani Nagarathnam and Frank Hurtte, as well as interviews with numerous product and distribution industry experts.
