Core & Main reported net sales of $2.145 billion for its fiscal 2026 second quarter, an increase of 2.5% from $2.093 billion in the prior-year period.
Gross profit increased 2.3% to $573 million, while gross margin was 26.7%. Net income increased 6.4% to $150 million and adjusted EBITDA increased 3% to $274 million, representing a 12.8% adjusted EBITDA margin.
Diluted earnings per share increased 10% to $0.77, while adjusted diluted EPS increased 8% to $0.94.
Core & Main said sales benefited from a combination of volume, pricing, and acquisitions. Fire protection products recorded higher volumes and selling prices, while pipes, valves, and fittings benefited from acquisitions. Smart utility products increased primarily due to higher pricing.
Municipal demand remained a source of strength, while fire protection and large capital projects, including water treatment plants and data centers, generated strong growth.
The company deployed $169 million to repurchase 3.7 million shares during the quarter and another $11 million for approximately 300,000 shares after quarter-end. Year-to-date open-market repurchases reached nearly $270 million and 5.7 million shares.
Core & Main also continued investing in acquisitions and greenfield expansion. The company has opened seven greenfield locations during fiscal 2026, including two opened during and after the second quarter.
For the first six months of fiscal 2026, sales increased 1.3% to $4.055 billion, net income increased 6.9% to $263 million, and adjusted EBITDA increased 2% to $500 million.
Core & Main reaffirmed its full-year outlook for net sales of $7.8 billion to $7.9 billion, adjusted EBITDA of $950 million to $980 million, an adjusted EBITDA margin of 12.2% to 12.4%, and operating cash flow equal to 60% to 70% of adjusted EBITDA.
KEY QUOTES:
“We delivered growth across sales, adjusted EBITDA and earnings per share during the second quarter, while momentum continues to build across the business. Municipal demand remained a source of strength. Fire protection and large capital projects, including treatment plants and data centers, delivered strong growth and we are encouraged by the opportunities emerging across our acquisition pipeline. These trends support our confidence in the second half and reaffirmed full-year outlook. We also deployed significant levels of capital, executing our second consecutive quarter of record open market share repurchases while investing in future growth through acquisitions, greenfield expansions and other strategic initiatives. With a strong balance sheet and substantial liquidity, we remain well positioned to fund potential additional share repurchases and pursue attractive acquisition opportunities. The quarter highlights the durability of the Core & Main business model: growing revenue, generating strong cash flow, investing for the future and strengthening our market position while operating in a mixed demand environment. With a robust acquisition pipeline and multiple avenues for growth, we remain confident in our ability to create long-term value for our customers, associates and shareholders.”
Mark Witkowski, Chief Executive Officer of Core & Main
