What were Core & Main’s (NYSE:CNM) financial results for Q4 and fiscal year 2025?

Core & Main reported net sales of $1,581 million for Q4, a 6.9% decrease compared to the previous year, primarily due to fewer selling days. However, on an average daily net sales basis, there was a modest 0.9% organic increase. For the full fiscal year, the company demonstrated disciplined margin management, with net income rising 9% to $73 million and diluted earnings per share (EPS) increasing by 12.1% to $0.37.

What was the key driver behind Core & Main’s profitability in Q4?

Core & Main’s profitability was driven by improved gross profit margin, which increased by 50 basis points to 27.1%. This was largely due to effective inventory management and a favorable product mix, allowing the company to maintain profitability despite a decrease in net sales.

How did Core & Main’s cash flow perform in Q4?

Core & Main generated $268 million in net cash provided by operating activities during Q4, highlighting its strong cash-flow generation capabilities. This cash flow supports the company’s ongoing mergers and acquisitions (M&A) strategy and provides flexibility for future growth.

What is Core & Main’s strategy for growth?

Core & Main remains an active consolidator in the fragmented waterworks distribution space. The company has been acquiring regional players to strengthen its "local service, nationwide" value proposition, further expanding its footprint and market share in the sector.

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Core & Main reports fiscal 2025 results as margin expansion offsets sales volatility

Written by Heidi Cuthbert Published Mar 24, 2026, 12:00 AMLast Updated Jul 6, 2026, 10:31 AM

Core & Main (NYSE:CNM) today reported financial results for the fourth quarter and fiscal year ended February 1, 2026, showcasing a year of disciplined margin management and robust cash generation.

For the fourth quarter, net sales reached $1,581 million, a 6.9% decrease compared to the prior year, primarily due to fewer selling days in the period.

However, on an average daily net sales basis, the company saw a modest organic increase of 0.9%, reflecting steady underlying demand for water, wastewater, and fire protection infrastructure.

A standout feature of the report was the company's ability to drive profitability through efficiency.

Gross profit margin increased by 50 basis points to 27.1%, driven by effective inventory management and a favorable product mix.

This expansion trickled down to the bottom line, with net income rising 9% to $73 million and diluted earnings per share (EPS) growing 12.1% to $0.37.

On an adjusted basis, diluted EPS reached $0.52, a 2% year-over-year improvement.

Operationally, Core & Main continues to be a cash-flow powerhouse.

The company generated $268 million in net cash provided by operating activities during the quarter, providing ample dry powder for its ongoing M&A strategy.

Throughout fiscal 2025, Core & Main remained one of the most active consolidators in the fragmented waterworks distribution space, acquiring several regional players to bolster its "local service, nationwide" value proposition.

While adjusted EBITDA saw a 6.7% decrease to $167 million, the adjusted EBITDA margin remained resilient at 10.6%, benefiting from structural cost-saving initiatives.