Earnings

Core & Main Cuts Fiscal 2026 Ebitda Outlook

The Tip Desk · November 10, 2026 · 3 min read

The specialty distributor now expects fiscal 2026 Adjusted EBITDA of $950 million to $960 million after preliminary third-quarter sales of $2.12 billion to $2.13 billion.

Core & Main, Inc. (CNM) now expects fiscal 2026 Adjusted EBITDA of $950 million to $960 million, down from a prior range of $950 million to $980 million, after preliminary third-quarter results that showed sales growth but a decline in net income from a year earlier.

The St. Louis specialty distributor of water, wastewater, storm drainage and fire protection products said it maintains its fiscal 2026 net sales outlook of $7.8 billion to $7.9 billion. It attributed the EBITDA update to stable municipal demand and contributions from completed acquisitions, partially offset by softer-than-anticipated residential lot development and light commercial activity.

For the three months ended November 1, 2026, the company estimated net sales of $2.12 billion to $2.13 billion, up 3% from $2.062 billion a year earlier. That followed second-quarter sales of $2.145 billion, which rose 2.5% year over year, and first-quarter sales of $1.910 billion, which were essentially flat. Core & Main said it delivered 3% sales growth amid a mixed demand environment.

Preliminary net income was estimated at $128 million to $140 million, versus $143 million in the year-ago quarter. Second-quarter net income had been $150 million, up 6.4% from a year earlier, and first-quarter net income was $113 million, up 7.6%.

Adjusted EBITDA was estimated at $267 million to $275 million, versus $274 million a year earlier. The company said the preliminary figure was affected by higher transportation costs and investments in greenfields to drive long-term growth. Second-quarter Adjusted EBITDA was $274 million, up 3.0% year over year; first-quarter Adjusted EBITDA was $226 million, up 0.9%.

Chief Executive Officer Mark Witkowski said the company continues to execute its strategy across multiple avenues for growth, strengthening the platform through acquisitions in storm drainage, fusible HDPE and smart utility solutions and completing another record quarter of open-market share repurchases. He said Core & Main opened a record eight greenfield locations year to date.

The company completed three acquisitions representing over $250 million in combined annual revenue. In September it acquired Southwest Stormwater Solutions, a Phoenix provider of underground stormwater vault systems. In October it acquired Gajeske, a Houston-based distributor of fusible HDPE pipe and fittings with eight locations across Texas and Oklahoma. In November it acquired KTI Limited and KTI Utility Services, a Toronto-based distributor and utility solutions provider offering meter and AMI solutions from seven locations across Ontario and Alberta.

Core & Main repurchased a quarterly record $171 million of shares in the open market during the third quarter, bringing year-to-date repurchases to approximately $428 million, with approximately $240 million remaining under its current authorization. Second-quarter repurchases were $169 million, plus $11 million after quarter-end, and first-quarter repurchases were $88 million, plus $37 million after quarter-end.

The company said it expects to report full third-quarter fiscal 2026 results on December 8, 2026. The preliminary figures are unaudited, subject to revision, and PricewaterhouseCoopers LLP has not applied agreed-upon procedures to them.

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