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Core & Main falls on weak full-year revenue guidance

March 24, 2026 8:55 AM

Investing.com -- Core & Main, Inc. (NYSE: CNM) shares fell premarket on Tuesday after the company released its fourth-quarter earnings report.

CNM posted adjusted earnings per share of $0.52, beating analyst estimates of $0.33, but revenue of $1.58 billion fell short of the $1.59 billion consensus. The specialty infrastructure distributor's stock declined 6.2% following the results, driven by revenue guidance that came in below Wall Street expectations.

Revenue for the quarter decreased 6.9% YoY to $1.58 billion from $1.70 billion, though the company noted the prior year period included an extra selling week. Average daily net sales increased 0.9%. For the full fiscal year 2025, net sales rose 2.8% to $7.65 billion.

The company provided fiscal 2026 revenue guidance of $7.80 billion to $7.90 billion, with the midpoint of $7.85 billion falling below the analyst consensus of $7.93 billion.

Gross profit margin improved 50 basis points to 27.1% in the quarter, reflecting the company's gross margin initiatives and disciplined pricing management. Net income increased 9.0% to $73 million, while diluted earnings per share rose 12.1% to $0.37.

"Fiscal 2025 marked our 16th consecutive year of sales growth, a result that reflects the resilience of our business, the long-term strength of our end markets and the disciplined execution by our teams across the country," said Mark Witkowski, CEO of Core & Main.

For fiscal 2026, Core & Main expects adjusted EBITDA of $950 million to $980 million, representing an adjusted EBITDA margin of 12.2% to 12.4%. The company anticipates operating cash flow of 60% to 70% of adjusted EBITDA. The outlook assumes flat pricing and end-market performance, contributions from acquisitions, and benefits from fiscal 2025 cost reduction initiatives.

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