Core & Main (CNM) AI Stock Analysis

Company Guidance

Core & Main reaffirmed its fiscal 2026 guidance calling for net sales of $7.8–$7.9 billion, adjusted EBITDA of $950–$980 million and operating cash‑flow conversion of 60%–70% of adjusted EBITDA, while expecting overall end‑market volumes to be roughly flat for the year. In Q1 the company reported net sales of $1.9 billion, adjusted EBITDA $226 million, adjusted diluted EPS $0.72, gross margin 27.2% (up ~50 bps), adjusted EBITDA margin 11.8% (up 10 bps), organic volumes down ~1% with acquisitions contributing ~+1 point, and operating cash flow of $82 million. Balance‑sheet and capital metrics included net debt $2.0 billion (2.2x leverage), liquidity ≈$1.4 billion (including $150 million cash), LTM free cash‑flow yield 6.4% of market cap, $125 million of repurchases fiscal‑to‑date (≈$88M in Q1) and ~2.5 million shares repurchased YTD; the company opened 5 greenfields in Q1 and targets 8–10 in FY26. Treatment‑plant and smart‑utility grew double‑digit and high single‑digit in the quarter (25% and 15% 5‑yr CAGRs), and management expects further margin expansion from gross‑margin initiatives, cost actions and operating leverage, with PVC supplier price increases a potential modest tailwind later in the year.