Core & Main, Inc.

How Core & Main makes money

Core & Main distributes pipes, valves, fittings and related products for water, wastewater, storm drainage and fire protection. It serves municipalities, private water utilities and contractors in the United States and Canada.

Preliminary third-quarter results

Full results are scheduled for December 8. Adjusted EBITDA removes interest, taxes, depreciation, amortization, stock compensation and selected acquisition and other expenses. The estimated adjusted margin is about 12.5% to 13.0%, against 13.3% a year earlier.

Annual forecast history

In September, Core & Main reaffirmed fiscal 2026 sales of $7.8 billion to $7.9 billion and adjusted EBITDA of $950 million to $980 million. On November 10, it kept the sales range and narrowed adjusted EBITDA to $950 million to $960 million. Fiscal 2026 ends January 31, 2027.

Municipal demand remains stable, while residential lot development and light commercial activity have been softer than expected. Higher transportation costs and spending on new locations affected preliminary Q3 earnings. Eight new locations opened during the year to date.

Completed acquisitions

Southwest Stormwater Solutions joined Core & Main in September 2026, adding an Arizona stormwater-vault specialist. Gajeske was acquired in October, adding eight locations in Texas and Oklahoma focused on fusible pipe, fittings and related services. KTI Limited and KTI Utility Services were acquired in November, adding seven Canadian locations providing meters, installation and utility services.

The three businesses have more than $250 million in combined annual revenue. The November release did not disclose their purchase prices.

Cash and capital allocation

At August 2, before the three acquisitions above, cash was $312 million and gross debt was $2.478 billion. First-half operating cash flow was $144 million and capital spending $32 million. Share repurchases used $257 million in that half.

Q3 repurchases were $171 million, taking the year-to-date total to approximately $428 million. About $240 million remained authorized at the November update.

Our analysis of sales growth and the lower profit ceiling examines what the preliminary figures say about margins.