Core & Main's Q2 Growth Driven by Acquisitions
Core & Main Inc. (NYSE:CNM) reported a modest revenue increase of 2.5% in the second quarter, reaching $2.145 billion for fiscal year 2026. Adjusted EBITDA rose to $274 million with an improved margin of 12.8%, and adjusted diluted EPS increased by 8%. The company's growth was largely fueled by acquisitions across key segments like pipes, valves, fittings, fire protection products, and smart utility systems. Despite the positive figures, underlying organic sales growth remained weak in H1 FY26 with only a 1.3% increase compared to the same period last year. Some segments such as storm drainage saw no improvement or even declined due to softer volumes. While SG&A expenses decreased slightly by 0.3%, higher distribution costs partially offset these savings. The company continued its share repurchase program, spending $169 million during Q2 and an additional $11 million post-quarter close. Institutional interest in the stock has increased marginally with BlackRock as the largest institutional investor holding nearly 10% of shares.
Tickers: $CNM
Topics: acquisitions cash flow earnings EBITDA revenue growth