• On September 9, 2025, Core & Main reported second quarter sales of US$2.09 billion, up from US$1.96 billion a year earlier, and also lowered its full-year guidance, now expecting net sales between US$7.6 billion and US$7.7 billion.
• The company’s quarterly results showed higher revenue and net income, but the revised outlook points to more cautious expectations for growth over the remainder of the year.
• We’ll explore how Core & Main’s lowered annual revenue forecast impacts the broader outlook for its growth and expansion strategy.

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Core & Main Investment Narrative Recap

To be a shareholder in Core & Main, I need to believe in its long-term growth potential tied to municipal infrastructure investment and expansion via acquisitions. The recent lower full-year revenue guidance tempers expectations for near-term acceleration, but it does not appear to materially affect the most important short-term catalyst: ongoing municipal water infrastructure spending. The biggest immediate risk remains any sudden slowdown in construction or water infrastructure projects, which could impact sales momentum.

The company's recent update on its sizable share repurchase program stands out. Completing the buyback of over 4.5 million shares for more than US$200 million reinforces a commitment to returning value to shareholders, and signals confidence in future earnings power, which is relevant in light of adjusted growth guidance and current market volatility. Yet, this focus on capital returns means investors must keep watching for signs of...

Core & Main's narrative projects $8.7 billion in revenue and $645.7 million in earnings by 2028. This requires 4.4% yearly revenue growth and a $229.7 million earnings increase from $416.0 million today.

Uncover how Core & Main's forecasts yield a $59.64 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community range from US$46.65 to US$77 per share. While participants see opportunity, the company’s revised guidance brings renewed attention to short-term risks and potential headwinds for performance. Explore these different viewpoints for a more complete picture.

Explore 3 other fair value estimates on Core & Main - why the stock might be worth as much as 51% more than the current price!

Build Your Own Core & Main Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Core & Main research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Core & Main research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Core & Main's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.