Core & Main Eyes Growth in $44B Water Infrastructure Market

TL;DR

**Core & Main is a solid bet, poised to ride the wave of massive infrastructure spending and strategic acquisitions in a fragmented, essential market.**

AI Summary

Core & Main, Inc. (CNM) reported a balanced mix of sales in fiscal year 2025, with approximately 44% from the municipal end market, 38% from non-residential, and 18% from residential. The company operates a network of over 370 branch locations across the U.S. and Canada, serving over 60,000 customers with more than 225,000 products. The addressable market for water, wastewater, storm drainage, and fire protection products in the U.S. and Canada is estimated at $44 billion in annual sales for fiscal 2025. Core & Main plans to capitalize on the Infrastructure Investment and Jobs Act (IIJA), which allocated $55 billion to water infrastructure, with the majority yet to be realized. Strategic initiatives include expanding into underpenetrated geographies, increasing share with strategic accounts (which represented 5% of fiscal 2025 net sales), accelerating new product adoption like smart metering, and pursuing value-enhancing acquisitions. The company also focuses on margin enhancement through private label expansion, sourcing optimization, and data-driven pricing strategies.

Why It Matters

Core & Main's strong position in the critical water infrastructure market, estimated at $44 billion, makes its performance vital for investors seeking exposure to essential services and government spending. The company's diversified revenue streams across municipal, non-residential, and residential markets provide resilience against sector-specific downturns. Its strategy of geographic expansion and strategic acquisitions, coupled with leveraging the $55 billion IIJA allocation, positions it to potentially outpace competitors in a fragmented market. This growth could translate to sustained shareholder value, job creation, and improved infrastructure for communities, while also impacting the broader construction and utilities sectors.

Risk Assessment

Risk Level: low — The company operates in the essential water infrastructure market, which exhibits stable long-term demand due to critical replacement needs and government funding like the $55 billion IIJA allocation. Its diversified sales mix across municipal (44%), non-residential (38%), and residential (18%) end markets, along with a near-equal split between new construction and repair/replacement, provides inherent stability and reduces reliance on any single market segment.

Analyst Insight

Investors should consider Core & Main (CNM) for long-term portfolio exposure, given its strong market position and clear growth strategies. Monitor the company's execution on its acquisition pipeline and the realization of benefits from the Infrastructure Investment and Jobs Act, as these are key drivers for future performance.

Financial Highlights

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Revenue Breakdown

Key Numbers

• $44 billion — estimated annual sales of addressable market (in the U.S. and Canada for water, wastewater, storm drainage, and fire protection products in fiscal 2025)
• 370+ — branch locations (across the U.S. and Canada as of February 1, 2026)
• 60,000+ — customers (served by Core & Main)
• 225,000+ — products (in Core & Main's comprehensive portfolio)
• 44% — net sales from municipal end market (for fiscal year ended February 1, 2026)
• 38% — net sales from non-residential end market (for fiscal year ended February 1, 2026)
• 18% — net sales from residential end market (for fiscal year ended February 1, 2026)
• $55 billion — allocation for water infrastructure (from the Infrastructure Investment and Jobs Act signed in November 2021)
• 5% — net sales from strategic accounts program (for fiscal year ended February 1, 2026)
• 188,072,306 — shares of Class A common stock outstanding (as of March 20, 2026)

Key Players & Entities

• Core & Main, Inc. (company) — registrant
• CNM (company) — ticker symbol
• U.S. Environmental Protection Agency (regulator) — administers state revolving fund programs
• Clayton, Dubilier & Rice, LLC (company) — private equity investor, former owner
• The Home Depot (company) — former owner of HD Supply Waterworks
• National Waterworks Holdings (company) — acquired by The Home Depot in 2005
• Hughes Supply Inc. (company) — merged with National Waterworks Holdings
• Infrastructure Investment and Jobs Act (regulator) — U.S. law allocating $55 billion to water infrastructure
• February 1, 2026 (date) — fiscal year end
• $11,940 million (dollar_amount) — aggregate market value of voting and non-voting common equity held by non-affiliates as of the last business day of the most recently completed second fiscal quarter

FAQ

Risk Factors

• Dependence on Municipal and Government Spending [high — market]: A significant portion of Core & Main's revenue is tied to spending by municipalities and government entities on water, wastewater, and storm drainage infrastructure. Reductions in government funding or delays in infrastructure projects, potentially influenced by economic downturns or shifts in political priorities, could materially impact sales and profitability.
• Supply Chain Disruptions [medium — operational]: The company relies on a network of over 5,000 suppliers for its more than 225,000 products. Disruptions in the supply chain, whether due to natural disasters, geopolitical events, labor shortages, or supplier financial instability, could affect product availability and lead times, impacting the company's ability to meet customer demand.
• Competition in a Fragmented Market [medium — market]: While Core & Main is one of two national distributors in a $44 billion addressable market, the market is described as highly fragmented. Intense competition from other distributors, manufacturers selling direct, or new entrants could pressure pricing and market share.
• Interest Rate Sensitivity [medium — financial]: As a company that likely utilizes debt for operations and potential acquisitions, Core & Main is exposed to interest rate fluctuations. Rising interest rates could increase the cost of borrowing, impacting profitability and the company's ability to finance growth initiatives.
• Integration of Acquisitions [medium — operational]: Core & Main pursues value-enhancing acquisitions. The successful integration of acquired businesses is critical. Failure to effectively integrate these acquisitions could result in operational inefficiencies, failure to realize expected synergies, and diversion of management attention.

Industry Context

Core & Main operates in the highly fragmented specialty distribution market for water, wastewater, storm drainage, and fire protection infrastructure products. The industry is characterized by a significant addressable market estimated at $44 billion annually in the U.S. and Canada. Key trends include the ongoing need for repair and replacement of aging infrastructure, new construction projects, and the increasing adoption of smart technologies like smart metering. The competitive landscape includes other national distributors and numerous regional players.

Regulatory Implications

The company's products must meet stringent municipal, state, and federal specifications and engineering standards, requiring robust quality control and compliance processes. Changes in environmental regulations or building codes could impact product demand or necessitate product modifications. Furthermore, the significant government funding from the IIJA may come with specific compliance or reporting requirements.

What Investors Should Do

1. Monitor IIJA Fund Deployment
2. Analyze Margin Enhancement Strategies
3. Evaluate Acquisition Integration Success
4. Assess End Market Diversification

Key Dates

• 2021-11-01: Infrastructure Investment and Jobs Act (IIJA) signed — Allocated $55 billion to water infrastructure, representing a significant long-term growth opportunity for Core & Main, with the majority of funds yet to be realized.
• 2026-02-01: End of Fiscal Year 2025 — Reporting period for key sales mix data (44% municipal, 38% non-residential, 18% residential) and strategic account performance (5% of net sales).
• 2026-03-20: Shares of Class A common stock outstanding snapshot — 188,072,306 shares outstanding, relevant for per-share calculations and ownership analysis.

Glossary

Addressable Market

The total potential revenue available for a company's products or services within a specific market segment. (Core & Main estimates its addressable market for water, wastewater, storm drainage, and fire protection products in the U.S. and Canada at $44 billion annually, indicating significant market opportunity.)

Municipal End Market

Sales generated from government entities responsible for public water, wastewater, and storm drainage systems. (This is Core & Main's largest sales segment, accounting for 44% of fiscal 2025 net sales, highlighting its importance to the company's revenue.)

Non-Residential End Market

Sales generated from commercial and industrial construction projects, including buildings, factories, and other non-governmental infrastructure. (This segment represents a substantial portion of Core & Main's business, contributing 38% of fiscal 2025 net sales.)

Residential End Market

Sales generated from housing construction and related infrastructure projects. (While smaller, this segment still contributes significantly, making up 18% of fiscal 2025 net sales.)

Infrastructure Investment and Jobs Act (IIJA)

A U.S. federal law enacted in 2021 providing significant funding for infrastructure improvements, including water systems. (The IIJA's $55 billion allocation for water infrastructure presents a major growth catalyst for Core & Main's business.)

Strategic Accounts Program

A program focused on deepening relationships and increasing sales with key, large customers. (This program accounted for 5% of fiscal 2025 net sales, indicating a focus on high-value customer relationships.)

Year-Over-Year Comparison

This analysis is based on the fiscal year ended February 1, 2026 (fiscal 2025). A comparison to the previous fiscal year (ended February 2, 2025) would require data from that filing. Key metrics to compare would include revenue growth, changes in the revenue mix across end markets, gross and operating margin trends, and any shifts in reported risks or strategic priorities.

Key Financial Figures

• $0.01 — stered Class A common stock, par value $0.01 per share CNM The New York Stock Exchan
• $44 billion — we estimate to represent approximatel y $44 billion in annual sales. As of February 1, 202
• $55 billion — S. law, which included an allocation of $55 billion to invest in water infrastructure acros

Filing Documents

• cnm-20260201.htm (10-K) — 1852KB
• coremainex211q42025.htm (EX-21.1) — 6KB
• ex231-pwcconsent2025.htm (EX-23.1) — 2KB
• coremainex311q42025.htm (EX-31.1) — 9KB
• coremainex312q42025.htm (EX-31.2) — 9KB
• coremainex321q42025.htm (EX-32.1) — 5KB
• coremainex322q42025.htm (EX-32.2) — 6KB
• cnm-20260201_g1.jpg (GRAPHIC) — 92KB
• cnm-20260201_g2.jpg (GRAPHIC) — 104KB
• 0001856525-26-000031.txt ( ) — 10386KB
• cnm-20260201.xsd (EX-101.SCH) — 71KB
• cnm-20260201_cal.xml (EX-101.CAL) — 99KB
• cnm-20260201_def.xml (EX-101.DEF) — 343KB
• cnm-20260201_lab.xml (EX-101.LAB) — 851KB
• cnm-20260201_pre.xml (EX-101.PRE) — 627KB
• cnm-20260201_htm.xml (XML) — 1394KB

Risk Factors

Item 1A. Risk Factors 10

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 33

Cybersecurity

Item 1C. Cybersecurity 33

Properties

Item 2. Properties 34

Legal Proceedings

Item 3. Legal Proceedings 35

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35 Part II 35

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35

[ Reserved ]

Item 6. [ Reserved ] 37

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 38

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 52

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 54

Changes in and Disagreements With Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures 86

Controls and Procedures

Item 9A. Controls and Procedures 86

Other Information

Item 9B. Other Information 87

Disclosure Regarding Foreign Jurisdiction that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections 87 Part III 88

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 88

Executive Compensation

Item 11. Executive Compensation 88

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 88

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 88

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 88 Part IV 89

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 89

Form 10-K Summary

Item 16. Form 10-K Summary 93

Signatures

Signatures 94 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include, without limitation, all statements other than statements of historical facts contained in this Annual Report on Form 10-K, including statements relating to our intentions, beliefs, assumptions or current expectations concerning, among other things, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, including, among others, statements regarding expected growth, future capital expenditures, capital allocation and debt service obligations, and the anticipated impact on our business. Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "shall," "should," "would," "could," "seeks," "aims," "projects," "is optimistic," "intends," "plans," "estimates," "anticipates" or the negative versions of these words or other comparable terms. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be outside our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Annual Report on Form 10-K. In addition, even if our results of operations, financial condition and cash flows, and the development of the market in which we operate, are consistent with the forw

Business

Item 1. Business Our Company Core & Main, Inc. ("Core & Main" and collectively with its subsidiaries, the "Company," "we," "our" or "us") is a holding company and its primary material assets are its direct and indirect ownership interest in Core & Main Holdings, LP, a Delaware limited partnership ("Holdings"), and deferred tax assets associated with this ownership. Core & Main is a leading specialty distributor dedicated to advancing reliable infrastructure with local service, nationwide. With a focus on water, wastewater, storm drainage and fire protection products, and related services, we provide solutions to municipalities, private water companies and professional contractors across municipal, non- residential and residential end markets. Our specialty products and services are used primarily in the maintenance, repair, replacement and new construction of water, wastewater, storm drainage and fire protection infrastructure. We are one of only two national distributors operating across large and highly fragmented markets, which we estimate to represent approximatel y $44 billion in annual sales. As of February 1, 2026, we had a network of over 370 bra nch locations across the United States ("U.S.") and Canada, which serve as a critical link between more than 5,000 suppliers and a diverse and long-standing base of over 60,000 customers. Our sales reach, technical product knowledge, broad product portfolio, customer service, project planning and delivery capabilities, customer service and ability to provide local expertise, nationwide, make us a critical partner to both our customers and suppliers. We offer a comprehensive portfolio of more than 225,000 products covering a full spectrum of specialized solutions to address aging water infrastructure, including pipes, valves & fittings, storm drainage products, fire protection products and smart metering products. Our products are generally unique to our industry and must meet municipal, state and federal specifi

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