Core & Main Posts Strong Sales, Net Income Growth in Q3

Ticker: CNM · Form: 10-Q · Filed: Dec 9, 2025 · CIK: 1856525

Sentiment: bullish

Topics: Infrastructure, Construction, Water Utilities, Specialty Distribution, Earnings Growth, Debt Reduction, Share Repurchase

Related Tickers: CNM, HD, LOW, FAST

TL;DR

**CNM is building a strong foundation with solid sales and profit growth, making it a buy for infrastructure plays.**

AI Summary

Core & Main, Inc. reported a robust financial performance for the three and nine months ended November 2, 2025. Net sales increased to $2,062 million for the three-month period, up from $2,038 million in the prior year, and reached $6,066 million for the nine-month period, a significant rise from $5,743 million. Net income attributable to Core & Main, Inc. grew to $137 million for the three months, compared to $133 million, and $371 million for the nine months, up from $347 million. Basic EPS also saw an increase, reaching $0.72 for the quarter and $1.95 for the nine months. The company's total assets expanded to $6,300 million as of November 2, 2025, from $5,870 million at February 2, 2025, driven by increases in receivables and inventories. Cash and cash equivalents surged to $89 million from $8 million over the same period. Long-term debt decreased to $2,129 million from $2,237 million, indicating effective debt management. The company also engaged in share repurchases, with $97 million used for repurchase and retirement of equity interests during the nine months ended November 2, 2025.

Why It Matters

This strong performance by Core & Main, a key player in water and fire protection infrastructure, signals continued demand in municipal, non-residential, and residential construction markets. For investors, the increased net income and EPS, coupled with a reduction in long-term debt, suggest financial health and operational efficiency, potentially making CNM an attractive investment in the infrastructure sector. Employees benefit from a growing company, while customers can expect continued reliable service and product availability from a financially stable distributor. In a fragmented and competitive market, Core & Main's growth and strategic acquisitions reinforce its market position, potentially putting pressure on smaller competitors.

Risk Assessment

Risk Level: medium — While Core & Main shows strong financial performance, the company acknowledges risks such as 'declines, volatility and cyclicality in the U.S. residential and non-residential construction markets' and 'slowdowns in municipal infrastructure spending'. Additionally, the 'fragmented and highly competitive markets' could impact future growth, despite current positive results.

Analyst Insight

Investors should consider initiating or increasing positions in Core & Main (CNM) given its consistent revenue and net income growth, coupled with a reduction in long-term debt. The company's strong cash position and strategic share repurchases indicate confidence in future performance and a commitment to shareholder value.

Financial Highlights

debt To Equity
1.07
revenue
$6.07B
operating Margin
10.0%
total Assets
$6.30B
total Debt
$2.15B
net Income
$371M
eps
$1.95
gross Margin
26.9%
cash Position
$89M
revenue Growth
+5.7%

Key Numbers

Key Players & Entities

FAQ

What were Core & Main's net sales for the three months ended November 2, 2025?

Core & Main's net sales for the three months ended November 2, 2025, were $2,062 million, an increase from $2,038 million in the comparable prior-year period.

How did Core & Main's net income attributable to Core & Main, Inc. perform in Q3 2025?

Net income attributable to Core & Main, Inc. for the three months ended November 2, 2025, was $137 million, up from $133 million for the three months ended October 27, 2024.

What was Core & Main's basic earnings per share for the nine months ended November 2, 2025?

For the nine months ended November 2, 2025, Core & Main reported basic earnings per share of $1.95, an increase from $1.81 for the nine months ended October 27, 2024.

Did Core & Main's long-term debt change as of November 2, 2025?

Yes, Core & Main's long-term debt decreased to $2,129 million as of November 2, 2025, from $2,237 million as of February 2, 2025.

What were the total assets for Core & Main as of November 2, 2025?

Core & Main's total assets as of November 2, 2025, were $6,300 million, an increase from $5,870 million as of February 2, 2025.

How much cash and cash equivalents did Core & Main have at the end of the period?

Core & Main reported cash and cash equivalents of $89 million as of November 2, 2025, a significant increase from $8 million at the beginning of the period.

What are the key risks identified by Core & Main in its 10-Q filing?

Key risks include 'declines, volatility and cyclicality in the U.S. residential and non-residential construction markets' and 'slowdowns in municipal infrastructure spending and delays in appropriations of federal funds'. The company also notes risks related to 'price fluctuations in our product costs' and 'the fragmented and highly competitive markets'.

What is Core & Main's business focus?

Core & Main is a leading specialty distributor focused on advancing reliable infrastructure, providing water, wastewater, storm drainage, and fire protection products and related services to municipalities, private water companies, and professional contractors.

How many branches does Core & Main operate across the U.S.?

Core & Main reaches customers through a network of approximately 370 branches across 49 U.S. states, providing local service nationwide.

What was the net cash provided by operating activities for Core & Main for the nine months ended November 2, 2025?

Net cash provided by operating activities for Core & Main for the nine months ended November 2, 2025, was $382 million, slightly down from $386 million in the prior-year period.

Risk Factors

Industry Context

Core & Main operates in the highly fragmented and competitive wholesale and distribution of construction materials and related products industry. Key trends include ongoing demand from infrastructure projects, residential and non-residential construction, and the need for efficient supply chain management. The company competes with a wide range of national, regional, and local distributors, as well as manufacturers selling directly to customers.

Regulatory Implications

The company is subject to various federal, state, and local regulations, including environmental laws and workplace safety standards. Compliance with these regulations is essential to avoid penalties and maintain operational continuity. Changes in environmental policies or increased scrutiny on supply chain practices could present ongoing challenges.

What Investors Should Do

  1. Monitor inventory levels and turnover ratios.
  2. Analyze gross and operating margins for trends.
  3. Evaluate debt reduction strategy and interest expense.
  4. Assess the impact of economic conditions on demand.

Key Dates

Glossary

Net sales
The total revenue generated from the sale of goods and services, net of returns, allowances, and discounts. (Key indicator of the company's top-line performance and market demand for its products.)
Gross profit
Net sales minus the cost of sales. It represents the profit a company makes after deducting the costs associated with making and selling its products. (Measures the efficiency of production and pricing strategies.)
Operating income
Gross profit minus operating expenses (such as selling, general, and administrative expenses, and depreciation and amortization). (Indicates the profitability of the company's core business operations before considering interest and taxes.)
Net income attributable to Core & Main, Inc.
The portion of the company's net income that belongs to its shareholders after accounting for non-controlling interests. (The bottom-line profit available to the company's owners.)
Basic EPS
Net income attributable to common shareholders divided by the weighted-average number of basic common shares outstanding during the period. (Measures the profitability on a per-share basis for common shareholders.)
Inventories
The cost of raw materials, work-in-progress, and finished goods held by the company for sale or use in production. (A significant current asset that impacts working capital and operational efficiency.)
Long-term debt
Obligations that are due more than one year from the balance sheet date, typically including bonds, notes, and capital leases. (Represents the company's leverage and financial risk.)
Non-controlling interests
The portion of equity in a subsidiary that is not owned by the parent company. (Reflects ownership stakes in consolidated entities that do not belong to Core & Main's shareholders.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Core & Main has demonstrated solid growth. Net sales for the nine months ended November 2, 2025, increased by 5.7% to $6.07 billion, and net income attributable to Core & Main, Inc. rose by 6.9% to $371 million. Basic EPS also saw a notable increase to $1.95 from $1.81. The company has strengthened its balance sheet by increasing cash and cash equivalents significantly to $89 million and reducing long-term debt by $108 million to $2.13 billion. Total assets grew to $6.30 billion, driven by increases in receivables and inventories.

Filing Stats: 4,910 words · 20 min read · ~16 pages · Grade level 20 · Accepted 2025-12-09 06:33:27

Key Financial Figures

Filing Documents

- Financial Information

Part I - Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) 5 Condensed Consolidated Balance Sheets as of November 2 , 2025 and February 2, 2025 (unaudited) 5 Condensed Consolidated Statements of Operations for the three and nine month periods ended November 2 , 2025 and October 2 7 , 2024 (unaudited) 6 Condensed Consolidated Statements of Comprehensive Income for the three and nine month periods ended November 2 , 2025 and October 2 7 , 2024 (unaudited) 7 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine month periods ended No vember 2 , 2025 and October 27 , 2024 (unaudited) 8 Condensed Consolidated Statements of Cash Flows for the nine month periods ended November 2 , 2025 and October 27 , 2024 (unaudited) 10 Notes to the Condensed Consolidated Financial Statements (unaudited) 11

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 35

Controls and Procedures

Item 4. Controls and Procedures 36

- Other Information

Part II - Other Information

Legal Proceedings

Item 1. Legal Proceedings 37

Risk Factors

Item 1A. Risk Factors 37

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 37

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 37

Other Information

Item 5. Other Information 38

Exhibits

Item 6. Exhibits 39

Signatures

Signatures 40 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q 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 Quarterly Report, 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 Quarterly Report on Form 10-Q. In addition, even if our results of operations, financial condition, cash flows and the development of the market in which we operate are consistent with the forward-l

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CORE & MAIN, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Amounts in millions (except share and per share data), unaudited November 2, 2025 February 2, 2025 ASSETS Current assets: Cash and cash equivalents $ 89 $ 8 Receivables, net of allowance for credit losses of $ 22 and $ 18 , respectively 1,342 1,066 Inventories 1,016 908 Prepaid expenses and other current assets 60 43 Total current assets 2,507 2,025 Property, plant and equipment, net 175 168 Operating lease right-of-use assets 280 244 Intangible assets, net 847 935 Goodwill 1,918 1,898 Deferred income taxes 571 558 Other assets 2 42 Total assets $ 6,300 $ 5,870 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 24 $ 24 Accounts payable 734 562 Accrued compensation and benefits 107 123 Current operating lease liabilities 74 67 Other current liabilities 168 90 Total current liabilities 1,107 866 Long-term debt 2,129 2,237 Non-current operating lease liabilities 207 178 Deferred income taxes 89 87 Tax receivable agreement liabilities 682 706 Other liabilities 31 22 Total liabilities 4,245 4,096 Commitments and contingencies Class A common stock, par value $ 0.01 per share, 1,000,000,000 shares authorized, 189,736,004 and 189,815,899 shares issued and outstanding as of November 2, 2025 and February 2, 2025, respectively 2 2 Class B common stock, par value $ 0.01 per share, 500,000,000 shares authorized, 6,709,636 and 7,936,061 shares issued and outstanding as of November 2, 2025 and February 2, 2025, respectively — — Additional paid-in capital 1,245 1,220 Retained earnings 736 449 Accumulated other comprehensive (loss) income ( 6 ) 27 Total stockholders' equity attributable to Core & Main, Inc. 1,977 1,698 Non-controlling interests 78 76 Total stockholders' equity 2,055 1,774 Total liabilities and stockholders' equity $ 6,300 $ 5,870 The accompanying notes are an integral part of these unaud

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing