Financial Data and Key Metrics Changes - For fiscal 2025, the company generated net sales of $7.65 billion, an increase of approximately 3% compared to the previous year, with adjusted EBITDA of $931 million and adjusted diluted EPS of $2.97, reflecting a 7% increase [9][34][37] - Gross margin for the year was 26.9%, up 30 basis points from fiscal 2024, driven by higher private label penetration and disciplined purchasing [35][36] - Operating cash flow was $650 million, representing a conversion rate of approximately 70% from adjusted EBITDA, with a free cash flow yield of 5.8% [38] Business Line Data and Key Metrics Changes - Municipal projects accounted for 44% of sales, with low- to mid-single-digit percentage growth, while non-residential sales were roughly flat, and residential lot development declined low double digits [5][10][34] - Average daily net sales for meter products grew 12% in the fourth quarter and mid-single digits for the year, following a strong prior year growth comparison of 32% [12][34] - The company achieved 3 points of organic above-market growth in fiscal 2025, driven by sales initiatives and geographic expansion [12][34] Market Data and Key Metrics Changes - The addressable market across the U.S. and Canada is estimated at $44 billion, up approximately $5 billion from last year, with the company holding an estimated 20% market share in the U.S. [5][6] - The residential market is expected to remain challenged in the near term due to housing affordability and higher mortgage rates, but long-term demand drivers remain strong [11][18] Company Strategy and Development Direction - The company aims to extend its competitive advantages, compound market share gains, and expand structural earnings power [16][41] - Investments are being made in product offerings, capabilities, and geographic expansion, with a focus on smart metering and treatment plant solutions [20][24] - The company plans to open a record 7-10 greenfield locations in the coming year to enhance market presence [25][40] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the private construction market due to geopolitical volatility and interest rate uncertainties, while expressing confidence in the stability of the municipal market [40][41] - The company expects net sales for fiscal 2026 to be in the range of $7.8 billion to $7.9 billion, with adjusted EBITDA of $950 million to $980 million [39][40] Other Important Information - The company implemented approximately $30 million in annualized cost actions during fiscal 2025, with $6 million recognized this year [33] - The company has repurchased over 20% of its original shares outstanding since its 2021 IPO, reflecting a commitment to return capital to shareholders [38] Q&A Session Summary Question: Growth disconnect between Core & Main and competitors - Management acknowledged differences in market presence and product mix, noting strong share growth in smart metering and treatment plant areas [45][46] Question: Cost out program and its impact - Management confirmed that the $30 million cost out program was completed in FY 2025, with benefits expected to continue into FY 2026 [50][51] Question: Current market conditions and pricing - Management is monitoring the impact of geopolitical events on commodity prices, particularly resin prices, which may affect product pricing [57][59] Question: Growth investments in data centers and treatment plants - Management plans to invest in additional resources for treatment plant initiatives, enhancing capabilities for larger projects [62][64] Question: EBITDA guidance and components - Management provided insights on the guidance range, emphasizing the importance of pricing stability and potential inflation impacts [69][72] Question: M&A expectations for 2026 - Management expressed confidence in the M&A pipeline, anticipating a return to a more normalized cadence of acquisitions [75][76] Question: Growth expectations for the meters business - Management expects continued low double-digit growth in the meters business, supported by a strong pipeline of large projects [80][81]

Fiscal 2025 Fourth Quarter and Full-Year Results MARCH 24, 2026 CAUTIONARY STATEMENTS Cautionary Note Regarding Forward-Looking Statements This presentation and accompanying discussion may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, all statements other than statements of historical or current facts contained in this presentation including statements relating to our intentions, belief ...

Market Overview - Core & Main estimates its addressable market in the U.S. and Canada for water, wastewater, storm drainage, and fire protection products to be approximately $44 billion in fiscal 2025[28]. - The company's net sales represented approximately 17% of its $44 billion addressable market in fiscal 2025[64]. - Approximately 44% of net sales were derived from the municipal end market, 38% from non-residential, and 18% from residential[22]. - Approximately 18% and 38% of the company's net sales in fiscal 2025 were directly related to the U.S. residential and non-residential end markets[102]. - 44% of the company's net sales in fiscal 2025 were related to the municipal market, which is influenced by municipal infrastructure spending[104]. Product Sales Breakdown - Pipes, valves, and fittings accounted for approximately 67% of net sales in fiscal 2025[51]. - Storm drainage products represented about 16% of net sales in fiscal 2025[53]. - Fire protection products contributed approximately 8% to net sales in fiscal 2025[55]. - Meter products accounted for around 9% of net sales in fiscal 2025[57]. - Sales through the strategic accounts program represented approximately 5% of fiscal 2025 net sales[36]. Customer Base and Supplier Relationships - Core & Main has over 370 branch locations across the U.S. and Canada, serving over 60,000 customers[20]. - The company has a fragmented customer base of over 60,000 customers, with the top 50 customers accounting for approximately 12% of net sales in fiscal 2025[59]. - The largest single supplier represented about 7% of product expenditures, while the top ten suppliers accounted for approximately 45% of total product expenditures in fiscal 2025[62]. - The top supplier accounted for approximately 7% of the company's product expenditures, while the top ten largest suppliers accounted for approximately 45% of total purchases in fiscal 2025[126]. Financial Performance and Strategy - The company aims to enhance gross margins through private label product expansion and data-driven pricing strategies[42][45]. - The company plans to pursue strategic acquisitions to expand its geographic footprint and product offerings[39]. - The company invests in new technology and data systems to enhance long-term business operations[68]. - The company has a performance-based compensation structure that aligns associates' interests with branch profitability and working capital efficiency goals[80]. - The company maintains a pay-for-performance philosophy to attract and retain industry-leading talent[78]. Risks and Challenges - The company is subject to various federal, state, and local regulations, which may impact operating costs and financial performance[90]. - The company experienced price increases in fiscal 2022 due to supply chain constraints, inflationary pressures, and availability of raw materials[111]. - The company is exposed to price fluctuations due to tariffs and trade policies, with over three-quarters of products purchased being manufactured domestically[112]. - The company faces risks related to inventory management, where insufficient inventory may lead to lost sales opportunities, while excess inventory may negatively impact gross margin[114]. - The company cannot predict the duration of market conditions in the residential or non-residential construction industry, which may lead to fluctuations in operating results[103]. Operational and Compliance Issues - The company is subject to various federal, state, and local regulations that could increase operational costs, including changes in tax laws[138]. - The company anticipates significant costs related to compliance with environmental, health, and safety laws, which may exceed current estimates and reserves[136]. - Future capital and operating expenditures for environmental compliance could materially affect the company's financial condition[137]. - The company relies on IT systems for critical operations, and any disruptions could materially affect order processing and inventory management[155]. - The legal and regulatory environment surrounding information security and privacy is constantly evolving, impacting operational costs and potential liabilities[157]. Debt and Financial Obligations - As of February 1, 2026, total consolidated indebtedness was $2,166 million, with $325 million in outstanding lease commitments[169]. - The company is required to comply with a consolidated fixed charge coverage ratio under certain circumstances, affecting its ability to borrow additional amounts[173]. - The Senior ABL Credit Facility matures on February 9, 2029, with other loans maturing in 2028 and 2031, posing refinancing risks[183]. - Default on debt obligations could lead to foreclosure or bankruptcy, adversely impacting the company's financial condition[184]. - The company is dependent on distributions from Holdings and its subsidiaries to cover taxes and operating expenses, which may be restricted[187]. Stock and Shareholder Considerations - The company completed $155 million and $176 million of repurchases of Class A common stock under the Repurchase Program during fiscal 2025 and fiscal 2024, respectively[217]. - The board of directors authorized an increase of $500 million to the share repurchase program, allowing for a total of up to $1 billion in Class A common stock repurchases[217]. - The company currently does not have an approved plan to pay dividends on its Class A common stock, focusing instead on using future earnings for debt repayment and growth[216]. - The company may issue additional shares of Class A common stock or other equity securities, which could result in substantial dilution to existing shareholders[211]. - Anti-takeover provisions in the company's Certificate of Incorporation and By-laws may discourage changes in management or control, potentially affecting the market price of Class A common stock[212].

FOR IMMEDIATE RELEASE Core & Main Announces Fiscal 2025 Fourth Quarter and Full-Year Results ST. LOUIS, March 24, 2026—Core & Main, Inc. (NYSE: CNM) ("Core & Main"), a leading specialty distributor dedicated to advancing reliable infrastructure with local service, nationwide, today announced financial results for the fourth quarter and fiscal year ended February 1, 2026 ("fiscal 2025"). The fourth quarter and fiscal year ended February 1, 2026 represents 13- and 52-week periods, respectively, compared with ...

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Earnings Report - Core & Main, Inc. is set to release its fourth-quarter earnings results on March 24, with analysts expecting earnings of 42 cents per share, an increase from 34 cents per share in the same period last year [1] - The consensus estimate for quarterly revenue is $1.6 billion, down from $1.7 billion a year earlier [1] Acquisition Update - On January 26, Core & Main announced the completion of its acquisition of Pioneer Supply [2] - Following the acquisition announcement, Core & Main shares experienced a slight decline of 0.4%, closing at $47.50 [2] Analyst Ratings - Recent analyst ratings for Core & Main can be accessed on the Analyst Stock Ratings page, allowing readers to sort by various criteria [2]

Company Performance - Core & Main's stock closed at $47.68, down 1.24%, which was a narrower decline compared to the S&P 500's loss of 1.36% [1] - Over the past month, Core & Main's shares have depreciated by 15.74%, underperforming the Industrial Products sector's loss of 8.71% and the S&P 500's loss of 1.76% [1] Earnings Estimates - Core & Main is expected to report earnings on March 24, 2026, with projected earnings of $0.48 per share, indicating a year-over-year growth of 45.45% [2] - The consensus estimate for quarterly revenue is $1.59 billion, reflecting a decrease of 6.29% from the previous year [2] Annual Performance Projections - For the annual period, earnings are anticipated to be $2.93 per share and revenue at $7.66 billion, representing increases of 37.56% and 2.9% respectively from the last year [3] Analyst Sentiment - Recent changes to analyst estimates for Core & Main indicate positive revisions, suggesting optimism about the company's business and profitability [3][4] - The Zacks Rank system, which assesses these estimate changes, currently ranks Core & Main at 3 (Hold) [5] Valuation Metrics - Core & Main is trading at a Forward P/E ratio of 15.33, which is lower than the industry average Forward P/E of 17.63 [6] - The company's PEG ratio stands at 1.86, compared to the Manufacturing - Tools & Related Products industry's average PEG ratio of 1.58 [6] Industry Context - The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 74, placing it in the top 31% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Points - Core & Main, Inc. will announce its financial results for the fourth quarter and fiscal year ended February 1, 2026, on March 24, 2026, before market opens [1] - A conference call and webcast will be held at 8:30 a.m. ET on the same day to discuss the financial results [1] - Core & Main is a leading specialty distributor focused on water, wastewater, storm drainage, and fire protection products, serving municipalities and contractors across the U.S. [1] Company Overview - Core & Main is based in St. Louis and operates more than 370 locations nationwide [1] - The company employs approximately 5,700 associates dedicated to providing reliable infrastructure solutions [1] - Core & Main aims to advance reliable infrastructure with local service [1]

Company Overview - Core & Main (CNM) closed at $54.63, down 3.12% from the previous trading session, underperforming the S&P 500's loss of 1.04% [1] - The company has experienced a 3.74% decline prior to the current trading day, lagging behind the Industrial Products sector's gain of 11.93% and the S&P 500's gain of 1.75% [1] Earnings Projections - The upcoming earnings per share (EPS) for Core & Main is projected at $0.48, reflecting a 45.45% increase compared to the same quarter last year [2] - Revenue is estimated to be $1.58 billion, indicating a 6.82% decrease compared to the same quarter last year [2] Full Year Estimates - For the full year, earnings are projected at $2.93 per share, representing a 37.56% increase from the previous year, while revenue is expected to be $7.66 billion, showing a 2.98% increase [3] - Recent changes in analyst estimates are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [3] Valuation Metrics - Core & Main is currently trading with a Forward P/E ratio of 17.7, which is lower than the industry average Forward P/E of 19.7 [6] - The company has a PEG ratio of 2.01, compared to the Manufacturing - Tools & Related Products industry's average PEG ratio of 1.8 [6] Industry Context - The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector and holds a Zacks Industry Rank of 93, placing it in the top 38% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Insights - Core & Main Inc. (NYSE:CNM) is highlighted as a strong IPO stock to consider for investment, with Wells Fargo raising its price target to $65 from $57 while maintaining an Overweight rating, indicating positive sentiment despite market volatility anticipated in early 2026 [1] - RBC Capital also raised its price target for Core & Main to $63 from $62, maintaining an Outperform rating, but expressed caution regarding ongoing challenges in housing affordability and potential shifts in the repair and remodeling market later in the year [3] Market Conditions - Wells Fargo noted that builders are currently facing high risks following a recent market rally, suggesting that while product offerings are varied, they do not present particularly compelling investment opportunities at current stock levels [2] - The firm anticipates continued volatility in the sector, with homebuilders exhibiting the most caution, while distribution and building products OEMs are viewed more favorably due to attractive valuations [3] Company Overview - Core & Main Inc. specializes in distributing water, wastewater, storm drainage, and fire protection products and related services across the United States, indicating a focus on essential infrastructure needs [4]