Q1 2026 Core & Main Inc Earnings Call Transcript
Key Points
- Core & Main Inc (CNM) reported strong first quarter results with net sales of $1.9 billion, adjusted EBITDA of $226 million, and adjusted diluted EPS of $0.72, reflecting disciplined execution and business resilience.
- The company is experiencing strong municipal demand, driven by aging water infrastructure and essential repair and replacement work, supported by state and local funding.
- Core & Main Inc (CNM) is capitalizing on growth opportunities in data centers and manufacturing facilities, with fire protection sales benefiting from increased activity and higher steel prices.
- The company is expanding its geographic footprint with the opening of five new greenfield locations and plans to open a record eight to ten locations in fiscal 2026.
- Core & Main Inc (CNM) is actively pursuing acquisition opportunities to expand capabilities, extend geographic reach, and add strong local talent and customer relationships, with a robust pipeline of potential deals.
- Residential markets remain challenged with year-over-year declines, influenced by interest rates and affordability, with no meaningful improvement seen since the end of fiscal 2025.
- Non-residential demand is mixed, with softness in traditional commercial construction, particularly retail and office-related activity.
- The company faces potential headwinds from geopolitical uncertainty, which could impact end market volumes across residential and certain non-residential categories.
- PVC pricing remains a year-over-year headwind, although it has stabilized sequentially, and potential supplier price increases could impact future revenue.
- SG&A expenses increased by 2% due to strategic investments in growth, acquisition-related costs, and inflationary impacts, although cost management efforts have been implemented.
Hello, everyone. Thank you for joining us, and welcome to the Core and Main First Quarter 2026 Earnings Conference Call. (Operator Instructions)
I will now hand the conference over to Landon Althoff, Vice President of Investor Relations. Landon, please go ahead.
Good morning, and thank you for joining us. I'm Landon Althoff, Vice President of Investor Relations at Core & Main. We appreciate you taking the time to be with us today for Core & Maine's fiscal 2026 first quarter earnings call. Joining me this morning are Mark Witkowski, our Chief Executive Officer; Robyn Bradbury, our Chief Financial Officer; and Brad Coles, our President.
Mark will start with a business update. Brad will then discuss the value CORD Main is providing across our smart utility and treatment plant solutions initiatives, and Robin will follow with a review of our financial results and reaffirmed outlook for fiscal 2026. After, we will open the line for questions and Mark will wrap up with closing remarks.
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