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Core & Main Inc
Core & Main Inc., a prominent figure in the water, wastewater, storm drainage, and fire protection industries, operates at the essential intersection of public infrastructure and private enterprise. Rooted in an extensive network that spans across the United States, the company has carved a niche for itself by serving municipalities, private developers, and commercial enterprises. Core & Main's business model hinges on the efficient distribution of a diverse array of products, from water and sewer pipes to fire protection equipment, ensuring that urban and rural communities alike have the necessary tools to manage their water resources effectively. Their operations are built on a foundation of strategic partnerships with leading manufacturers, thus providing customers with high-quality products while simultaneously supporting cost-effective management and development projects.
What truly sets Core & Main apart is its ability to generate revenue through a comprehensive service offering that complements its extensive product line. This includes value-added services like project management, technical support, and customized solutions tailored to meet the unique demands of their clients. By positioning itself as not just a supplier but a critical partner in infrastructure development, Core & Main secures repeat business and fosters long-term relationships with its customers. This customer-centric approach, paired with its vast distribution network and deep industry expertise, enables the company to maintain a strong competitive advantage in a sector that is foundational to both public welfare and economic growth.
Core & Main Inc., a prominent figure in the water, wastewater, storm drainage, and fire protection industries, operates at the essential intersection of public infrastructure and private enterprise. Rooted in an extensive network that spans across the United States, the company has carved a niche for itself by serving municipalities, private developers, and commercial enterprises. Core & Main's business model hinges on the efficient distribution of a diverse array of products, from water and sewer pipes to fire protection equipment, ensuring that urban and rural communities alike have the necessary tools to manage their water resources effectively. Their operations are built on a foundation of strategic partnerships with leading manufacturers, thus providing customers with high-quality products while simultaneously supporting cost-effective management and development projects.
What truly sets Core & Main apart is its ability to generate revenue through a comprehensive service offering that complements its extensive product line. This includes value-added services like project management, technical support, and customized solutions tailored to meet the unique demands of their clients. By positioning itself as not just a supplier but a critical partner in infrastructure development, Core & Main secures repeat business and fosters long-term relationships with its customers. This customer-centric approach, paired with its vast distribution network and deep industry expertise, enables the company to maintain a strong competitive advantage in a sector that is foundational to both public welfare and economic growth.
Sales Growth: Net sales rose 1% to $2.1 billion, with organic volumes and pricing roughly flat, and acquisitions adding about 1 percentage point.
Gross Margin Expansion: Gross margin improved by 60 basis points year-over-year to 27.2%, driven by private label growth and disciplined sourcing and pricing.
SG&A Cost Savings: The company implemented $30 million in annualized SG&A cost reductions, with $1 million realized in Q3 and more to come in Q4 and FY2026.
Guidance Reaffirmed: Full-year guidance for net sales ($7.6–$7.7 billion), adjusted EBITDA ($920–$940 million), and operating cash flow ($550–$610 million) was maintained.
Share Repurchase: Share repurchase authorization was increased by $500 million, reflecting confidence in free cash flow and long-term value creation.
End Market Trends: Municipal markets remain strong with increased funding, nonresidential is mixed but data center projects are growing quickly, and residential remains soft but shows signs of stabilization.
Strategic Growth: Continued investment in greenfields and M&A, including the acquisition of Canada Waterworks, is expanding market reach.