Business Overview
Core & Main, Inc. is a leading specialty distributor of water, wastewater, storm drainage, and fire protection products serving municipalities, private water companies, and professional contractors through over 370 branches across the U.S. and Canada. During the three months ended May 3, 2026, the company maintained net sales of $1,910 million compared to $1,911 million in the prior year period, while expanding net income attributable to Core & Main to $108 million from $100 million. The company completed two acquisitions during fiscal 2025 (Pioneer Supply and Canada Waterworks) and continued its authorized $1 billion share repurchase program, repurchasing 1.8 million shares for $88 million in the current quarter.
Segment Performance
The company operates as a single reportable segment managed by the Chief Executive Officer. For the three months ended May 3, 2026 versus May 4, 2025, net sales remained essentially flat at $1,910 million versus $1,911 million. Revenue by product category showed: Pipes, valves & fittings decreased from $1,297 million to $1,274 million; Storm drainage products decreased from $295 million to $278 million; Fire protection products increased from $152 million to $178 million; Smart utility products increased from $167 million to $180 million. Operating income increased to $177 million from $171 million, with net income attributable to Core & Main increasing to $108 million from $100 million.
Key Risk Factors
Key risks include: (1) declines, volatility and cyclicality in U.S. residential and non-residential construction markets and municipal infrastructure spending; (2) price fluctuations in product costs including tariff effects and challenges managing inventory during supply chain disruptions; (3) highly competitive and fragmented markets with consolidation risks and the development of alternative supply chain channels; (4) dependence on key personnel, qualified suppliers, and exclusive/limited distribution rights that could be terminated; (5) cybersecurity threats and IT system interruptions affecting company and third-party service providers; and (6) significant indebtedness obligations and variable rate interest exposure that could restrict operating flexibility.
