Core & Main reported adjusted earnings per share of $0.72 for the first quarter ended May 3, 2026, beating the analyst consensus estimate of $0.67 by 7.46%. This represents a 38.46% increase compared to earnings of $0.52 per share in the same period last year. The company reaffirmed its full-year fiscal 2026 outlook, projecting net sales of $7,800 to $7,900 million, which compares to an estimate of $7.901 billion.

Net sales for the quarter were $1.910 billion, slightly topping the analyst consensus estimate of $1.905 billion by 0.25%. Sales decreased marginally by 0.05% compared to $1.911 billion in the prior year. Net income rose 7.6% to $113 million, driven by operational efficiency and disciplined cost management.

Operational Performance

Gross profit increased 2.0% to $520 million, with the gross profit margin expanding 50 basis points to 27.2%. This expansion was primarily attributable to the execution of gross margin initiatives and disciplined purchasing and pricing management. Adjusted EBITDA increased 0.9% to $226 million, with a margin of 11.8%. Municipal demand remained healthy, supported by ongoing repair-and-replace activity and infrastructure investment, which drove double-digit growth in treatment plant solutions and high-single-digit growth in smart utility categories.

Liquidity and Capital Allocation

Net cash provided by operating activities was $82 million, an increase from $77 million in the prior year. Net debt decreased to $2,010 million from $2,276 million as of May 4, 2025, primarily due to lower borrowings on the senior asset-based revolving credit facility. As of May 3, 2026, there were no outstanding borrowings on the facility, which provides for up to $1,250 million.

Fiscal 2026 Outlook

Core & Main reaffirmed its full-year fiscal 2026 outlook issued in March 2026. The company projects net sales of $7,800 to $7,900 million, reflecting growth of 2% to 3%, and Adjusted EBITDA of $950 to $980 million.