Core & Main Cuts Profit Forecast to $950–960 Million as Third-Quarter Sales Grow
Key Facts
On November 10, Core & Main reported unaudited preliminary results for the third quarter of its fiscal year ended November 1, 2026, and lowered its full-year adjusted earnings before interest, taxes, depreciation and amortization forecast. The company now expects the measure to range from $950 million to $960 million, compared with a previous range of $950 million to $980 million. It kept its annual net sales forecast unchanged at $7.8 billion to $7.9 billion. The company said third-quarter sales grew 3% in an uneven demand environment, while transportation costs and investment in new branch locations weighed on adjusted earnings. The preliminary results come ahead of the release of full figures on December 8.
The company estimated third-quarter net sales at $2,120 million to $2,130 million, compared with $2,062 million in the same period a year earlier. That puts the current estimate above the comparable figure, in line with the 3% sales growth the company reported for the quarter. Net income is expected to range from $128 million to $140 million, compared with $143 million in the quarter ended November 2, 2025. The preliminary net income range means the company’s estimate for the current period is below the comparable figure. Adjusted EBITDA was estimated at $267 million to $275 million, compared with $274 million in the comparable period, putting the high end near the prior-year result and the low end below it.
Core & Main said higher transportation costs and investment in growth contributed to the revision of its annual profit forecast, while it continued to expect sales within the previous range. The revised outlook is based on assumptions of stable municipal demand and continued contributions from completed acquisitions. By contrast, the company cited weakness in residential land development and light commercial activity as factors limiting performance. This divergence in demand between municipal activity and sectors tied to residential and commercial development features in the company’s explanation of its outlook. The company did not change its annual sales range despite lowering the upper end of its adjusted earnings forecast.
The company said it completed three acquisitions in September, October and November, with combined annual revenue exceeding $250 million. The deals were Southwest Stormwater Solutions in September, Gajeske in October and KTI in November. The activity adds revenue sources to the company as it keeps its fiscal-year sales forecast unchanged. Core & Main acquired KTI Limited and KTI Utility Services, providers of utility and metering solutions operating in Ontario and Alberta. KTI operates from seven locations in the two Canadian provinces, according to the company’s statement.
Chief Executive Officer Mark Witkowski said the company continued to expand through acquisitions and internal investment, noting that it had opened eight new locations since the start of the year through the announcement date. The expansion combines the addition of established businesses through deals with the opening of new locations, alongside an outlook that assumes contributions from acquisitions. The available information in the statement did not specify expected revenue from the new locations or their separate financial impact. Before the November 10 announcement, the company’s stock, CNM, closed at $47.90 in the November 9 session. That closing price preceded the announcement and does not represent a market reaction to it.
Core & Main set December 8, 2026, as the date for releasing full results for the third quarter of its fiscal year. The final figures will then replace the preliminary estimates the company announced for the quarter ended November 1. The full release is expected to provide final data on sales, net income and Adjusted EBITDA, along with period details not included in the preliminary disclosure. Until then, the annual outlook announced on November 10 remains $7.8 billion to $7.9 billion for sales and $950 million to $960 million for adjusted earnings. The company kept its sales range unchanged while narrowing the upper end of its profit forecast.