Overview

• US water infrastructure distributor's fiscal Q1 sales were flat yr/yr, meeting analyst expectations

• Adjusted EPS for fiscal Q1 rose 5.9% and beat analyst expectations

• Company repurchased $88 mln in shares during the quarter and reaffirmed full-year outlook

Outlook

• Core & Main reaffirms full-year net sales guidance of $7.8 bln to $7.9 bln

• Company expects full-year adjusted EBITDA of $950 mln to $980 mln

• Core & Main anticipates adjusted EBITDA margin of 12.2% to 12.4% for fiscal 2026

Result Drivers

• MUNICIPAL DEMAND - Co said municipal demand remained healthy, supported by ongoing repair-and-replace activity and infrastructure investment

• CATEGORY GROWTH - Double-digit and high-single-digit growth in treatment plant solutions and smart utility categories, reflecting continued customer demand for integrated solutions to support aging water infrastructure

• GROSS MARGIN INITIATIVES - Gross profit margin improved, primarily due to execution of gross margin initiatives and disciplined purchasing and pricing management

Company press release: ID:nBw7TywK9a

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales	Meet	$1.91 bln	$1.91 bln (12 Analysts)
Q1 Adjusted EPS	Beat	$0.72	$0.67 (9 Analysts)
Q1 Net Income		$113 mln
Q1 Adjusted EBITDA	Beat	$226 mln	$223.19 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 $63.00, about 19.7% above its June 9 closing price of $52.65

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

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