Core & Main misses Q2 sales estimates; shares fall

Core & Main

09/09/2025 12:42

Overview

Core & Main Q2 sales rise 6.6% to $2.093 bln, missing expectations

Adjusted EPS for Q2 beats estimates at $0.87, per LSEG data

Adjusted EBITDA of $266 mln misses analyst expectations, per LSEG data

Shares of the company falls 8% in premarket trading

Outlook

Core & Main lowers fiscal 2025 net sales outlook to $7,600-$7,700 mln

Company expects fiscal 2025 adjusted EBITDA of $920-$940 mln

Operating cash flow for fiscal 2025 projected at $550-$610 mln

Core & Main sees strength in municipal demand offsetting residential softness

Result Drivers

NET SALES GROWTH - Driven by higher volumes and acquisitions, with increased sales in pipes, valves & fittings, storm drainage, and fire protection products

GROSS MARGIN EXPANSION - Improved price realization and execution of private label and sourcing initiatives contributed to higher gross margins

MIXED DEMAND - Strength in municipal demand and stable non-residential demand offset by weaker residential lot development

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$2.09 bln
$2.14 bln (13 Analysts)
Q2 Adjusted EPS
Beat
$0.87
$0.79 (7 Analysts)
Q2 EPS
$0.7
Q2 Net Income
$141 mln
Q2 Adjusted EBITDA
Miss
$266 mln
$287.10 mln (11 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Core & Main Inc is $67.50, about 1.3% above its September 8 closing price of $66.59

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw20vSxga

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)