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.