Core & Main, Inc. Announces Fiscal 2025 Fourth Quarter and Full-Year Results
Core & Main, Inc. (NYSE: CNM) has released its financial results for the fiscal fourth quarter and full year ended February 1, 2026. The company’s performance in these periods highlights sustained growth, operational efficiency, and ongoing shareholder value creation. Below are the key highlights and details investors need to know:
Key Financial Highlights
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Net Sales: Fiscal year 2025 net sales increased to \$7,647 million from \$7,441 million in fiscal 2024, reflecting the company’s ability to drive top-line growth in a challenging macro environment.
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Net Income: Net income for fiscal year 2025 rose 6.5% to \$462 million, compared with \$434 million in fiscal 2024. This improvement was primarily attributable to decreased interest expense and increased other income, partially offset by a decrease in operating income.
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Adjusted EBITDA (Non-GAAP): Adjusted EBITDA grew slightly by 0.1% to \$931 million, with Adjusted EBITDA margin decreasing 30 basis points to 12.2%. This indicates continued operational discipline, though margin pressure is noted.
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EPS: Diluted earnings per share for fiscal year 2025 increased 8.5% to \$2.31, up from \$2.13 in fiscal 2024. Adjusted Diluted EPS (Non-GAAP) rose 6.8% to \$2.97.
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Q4 Results: For the fourth quarter, net income increased 9.0% to \$73 million. Diluted EPS for the quarter rose 12.1% to \$0.37, compared to \$0.33 in the previous year.
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Cash Flow: Operating cash flow was robust at \$650 million for the year, with an operating cash flow conversion ratio of approximately 70%. Net cash provided by operating activities for Q4 increased to \$73 million from \$67 million in Q4 2024.
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Share Repurchases: The company repurchased and retired equity interests amounting to \$155 million in fiscal 2025, demonstrating commitment to shareholder returns.
Balance Sheet & Capital Allocation
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Stockholders’ Equity: Total stockholders’ equity increased to \$2,074 million as of February 1, 2026, up from \$1,774 million a year ago.
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Share Count: Class A common stock issued and outstanding was 188,770,435 shares as of February 1, 2026, down from 189,815,899 shares in the prior year, reflecting the impact of share repurchases.
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Capital Expenditures: Future capital expenditures are expected to average ~0.7%–0.8% of net sales.
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M&A Pipeline: The company maintains a robust M&A pipeline and a disciplined approach to sourcing, acquiring, and integrating businesses, which could be a catalyst for future growth.
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Surplus Capital: Core & Main intends to deploy surplus capital toward further share repurchases and/or dividends, subject to board approval and market conditions.
Fiscal 2026 Outlook
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Net Sales: The company projects fiscal 2026 net sales in the range of \$7,800 million–\$7,900 million, indicating continued growth.
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Adjusted EBITDA: Guidance for Adjusted EBITDA is \$950 million–\$980 million, with an expected margin of 12.2%–12.4%.
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Operating Cash Flow Conversion: Targeting 60%–70% conversion for fiscal 2026.
Price-Sensitive Information & Risks
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Margin Compression: While Adjusted EBITDA grew, the margin contracted by 30 bps, which could signal cost pressures or competitive dynamics worth monitoring.
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Share Repurchase Activity: The company’s ongoing share repurchases are likely to be viewed as shareholder-friendly and could support share price.
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Forward-Looking Statements: Management has emphasized expected growth, capital allocation discipline, and M&A activity, all of which could affect future earnings and share value.
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Risks: Investors should note risks including possible termination of exclusive supplier agreements, changes in supplier rebates, credit risks, public health crises, regulatory changes, litigation, and debt-related risks. These factors may materially affect future performance.
Non-GAAP Measures
Core & Main provides non-GAAP measures including EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Net Debt, and Adjusted Diluted EPS, which are not recognized under GAAP but are used internally and by analysts to evaluate performance. These measures should be considered supplemental and not as substitutes for GAAP metrics. The company notes that reconciliation of forward-looking non-GAAP metrics to GAAP is not provided due to the variability and unpredictability of certain excluded items.
Contact Information
Disclaimer
This article contains forward-looking statements within the meaning of applicable securities laws, including statements regarding Core & Main’s future performance, outlook, capital allocation, and M&A activity. Actual results may differ materially due to risks and uncertainties. Investors should review Core & Main’s filings with the SEC, including the Annual Report on Form 10-K, for a comprehensive discussion of risk factors. This article is for informational purposes only and does not constitute investment advice.
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