Core & Main, Inc.

Core & Main reported first-quarter net sales of $1.9 billion, adjusted EBITDA of $226 million, and adjusted diluted EPS of $0.72, versus $0.68 a year ago, implying about 6% EPS growth. Gross margin was 27.2%, up approximately 50 basis points year over year, and adjusted EBITDA margin increased 10 basis points to 11.8%. Organic volumes were down approximately 1% year over year, with acquisitions adding about 1 point of growth; total SG&A rose 2% to $299 million, adjusted EBITDA was 1% above the prior year, and operating cash flow was $82 million. For FY2026, the company reaffirmed net sales of $7.8 billion to $7.9 billion, adjusted EBITDA of $950 million to $980 million, and operating cash flow conversion of 60% to 70% of adjusted EBITDA; it also expects roughly flat overall end-market volumes, with municipal strength offsetting cautious private construction. Management said it expects slight growth in Q2, with most growth in the back half of the year, and noted potential modest tailwind from PVC price increases later in the year.

Mark Witkowski said the underlying demand backdrop remains supported by long-term water infrastructure needs, especially in municipal markets, and emphasized Core & Main’s relationship-driven local model backed by national scale. He highlighted data centers as a compelling long-term opportunity, treatment plant and smart utility as major growth engines, and said the company is seeing strong bidding activity and a building backlog. His tone was constructive and confident, but he acknowledged near-term uncertainty in residential and timing risk on project releases.

Robyn Bradbury said results were broadly in line with expectations, with net sales flat year over year, gross margin at 27.2%, adjusted EBITDA of $226 million, and SG&A up 2% to $299 million due mainly to strategic investments, M&A costs, and inflation. She noted net debt of $2 billion and leverage of 2.2x, liquidity of nearly $1.4 billion, and operating cash flow of $82 million; she also said the company returned $88 million via share repurchases in Q1 and has already repurchased 2.5 million shares through fiscal 2026, about 80% of all fiscal 2025 buybacks. On guidance, she reaffirmed the full-year outlook and said PVC has stabilized, supplier price increases could help later in the year, and gross margins are expected to stay around Q1 levels, supporting year-over-year expansion.

Analysts focused on the unchanged full-year guide, the trajectory of residential demand, PVC price increases, and whether Q1 marked a volume bottom. Management said the quarter tracked expectations, with pricing the main variable and potential upside later in the year, while residential was stable versus Q4 but not yet improving. Questions also centered on meters, fire protection, data centers, treatment plants, greenfield expansion, IIJA funding, and M&A; management answered that large integrated projects are driving smart utility and data center strength, treatment plant remains a durable and growing mid-single-digit share of sales, and the M&A pipeline has recently improved after a lull.