Revenue growth has decelerated to a 0.1% contraction in 2026Q1, while operating margins remain constrained within a 7.3% to 10.9% range over the last ten quarters.
| Sales/Revenue | 7.65B | 7.65B | 7.44B | 6.7B | 6.65B | 5B | 3.64B | 3.39B |
| Revenue Growth % | 4.1% | 2.77% | 11.03% | 0.77% | 32.91% | 37.4% | 7.47% | - |
| Cost of Goods Sold | 5.58B | 5.59B | 5.46B | 4.88B | 4.86B | 3.72B | 2.76B | 2.6B |
| COGS % of Revenue | - | 73.07% | 73.39% | 72.87% | 73.01% | 74.42% | 75.89% | 76.72% |
| Gross Profit | 2.07B | 2.06B | 1.98B | 1.82B | 1.79B | 1.28B | 878M | 789M |
| Gross Margin % | 27.06% | 26.93% | 26.61% | 27.13% | 26.99% | 25.58% | 24.11% | 23.28% |
| Gross Profit Growth % | - | 3.99% | 8.91% | 1.28% | 40.23% | 45.79% | 11.28% | - |
| Operating Expenses | 1.34B | 1.34B | 1.26B | 1.08B | 1.02B | 855M | 693M | 634M |
| OpEx % of Revenue | - | 17.48% | 16.95% | 16.08% | 15.34% | 17.09% | 19.03% | 18.71% |
| Selling, General & Admin | 1.16B | 1.15B | 1.08B | 931M | 880M | 717M | 556M | 509M |
| SG&A % of Revenue | - | 15.09% | 14.49% | 13.89% | 13.23% | 14.33% | 15.27% | 15.02% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 183M | 183M | 147M | 140M | 138M | 137M | 125M |
| Operating Income | 728M | 728M | 719M | 740M | 775M | 425M | 185M | 155M |
| Operating Margin % | 9.52% | 9.52% | 9.66% | 11.04% | 11.65% | 8.49% | 5.08% | 4.57% |
| Operating Income Growth % | - | 1.25% | -2.84% | -4.52% | 82.35% | 129.73% | 19.35% | - |
| EBITDA | 917M | 914M | 913M | 894M | 923M | 575M | 338M | 293M |
| EBITDA Margin % | 11.99% | 11.95% | 12.27% | 13.34% | 13.88% | 11.49% | 9.28% | 8.65% |
| EBITDA Growth % | 9.3% | 0.11% | 2.13% | -3.14% | 60.52% | 70.12% | 15.36% | - |
| D&A (Non-Cash Add-back) | 189M | 186M | 194M | 154M | 148M | 150M | 153M | 138M |
| EBIT | 755M | 728M | 719M | 740M | 775M | 374M | 185M | 155M |
| Net Interest Income | -122M | -142M | -142M | -81M | -66M | -98M | -139M | -113M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 122M | 142M | 142M | 81M | 66M | 98M | 139M | 113M |
| Other Income/Expense | -112M | -121M | -142M | -81M | -66M | -149M | -139M | -113M |
| Pretax Income | 616M | 607M | 577M | 659M | 709M | 276M | 46M | 42M |
| Pretax Margin % | 8.06% | 7.94% | 7.75% | 9.83% | 10.66% | 5.52% | 1.26% | 1.24% |
| Income Tax | 146M | 145M | 143M | 128M | 128M | 51M | 9M | 6M |
| Effective Tax Rate % | 23.7% | 23.89% | 24.78% | 19.42% | 18.05% | 18.48% | 19.57% | 14.29% |
| Net Income | 449M | 441M | 411M | 371M | 366M | 166M | 37M | 36M |
| Net Margin % | 5.87% | 5.77% | 5.52% | 5.54% | 5.5% | 3.32% | 1.02% | 1.06% |
| Net Income Growth % | 24.38% | 7.3% | 10.78% | 1.37% | 120.48% | 348.65% | 2.78% | - |
| Net Income (Continuing) | 470M | 462M | 434M | 531M | 581M | 225M | 37M | 36M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 74M | 77M | 76M | 73M | 663M | 506M | 0 | 0 |
| EPS (Diluted) | 2.29 | 2.31 | 2.13 | 2.15 | 2.13 | 0.55 | 0.15 | 0.15 |
| EPS Growth % | 24.34% | 8.45% | -0.93% | 0.94% | 287.27% | 266.67% | 0% | - |
| EPS (Basic) | - | 2.32 | 2.14 | 2.83 | 3.10 | 0.84 | 0.15 | 0.15 |
| Diluted Shares Outstanding | 195.68M | 197.91M | 201.17M | 227.82M | 246.22M | 244.45M | 240.69M | 240.69M |
| Basic Shares Outstanding | 188.38M | 190.21M | 191.62M | 172.84M | 169.48M | 159.19M | 240.69M | 240.69M |
| Dividend Payout Ratio | - | - | - | - | - | - | 56.49% | 897.5% |
Cyclical municipal funding dependence
According to the latest quarterly filings, Core & Main experienced a revenue contraction of 0.1% in 2026Q1, marking a notable deceleration from the 17.9% growth observed in 2024Q4, which suggests that the company is struggling to maintain momentum amidst shifting residential and municipal construction demand cycles.
The recent shift toward negative top-line growth indicates that the company's reliance on new construction projects may be outweighing the stability provided by municipal MRO work. Investors should monitor whether this trend reflects a broader cooling in infrastructure project starts or if it is merely a temporary seasonal adjustment in the distribution pipeline.
As reported in financial statements, Core & Main has maintained gross margins consistently between 26.4% and 27.2% over the last ten quarters, demonstrating a robust ability to manage price-cost spreads despite significant fluctuations in commodity-linked material costs like PVC and ductile iron throughout the period.
This stability suggests that the company possesses meaningful pricing power, likely derived from its specialized inventory availability and technical service offerings. However, the inability to expand these margins beyond the 27% threshold may imply that competitive pressures or supplier rebate structures are effectively capping the upside potential.
Based on the provided income statement data, operating margins have fluctuated between 7.3% and 10.9% over the past ten quarters, suggesting that the company has not yet achieved the consistent operating leverage necessary to scale profitability significantly faster than its gross profit growth during periods of revenue expansion.
The lack of a clear upward trend in operating margins despite revenue growth in several quarters implies that SG&A expenses are scaling in lockstep with volume. This warrants further investigation into whether the company's acquisition-heavy strategy is creating persistent integration costs that prevent meaningful margin expansion at the operating level.
Analysis of the company's cost structure reveals that SG&A expenses have risen from $230 million in 2023Q4 to $299 million in 2026Q1, a trend that appears to track closely with the company's aggressive inorganic growth strategy and the associated costs of integrating regional distribution footprints.
While the company has successfully avoided R&D expenditures, the rising overhead suggests that the cost of maintaining a specialized, localized distribution network is substantial. Investors should be cautious, as any failure to realize synergies from recent acquisitions could lead to further margin compression if revenue growth continues to soften.
Quick answers to the most common questions about buying CNM stock.
For fiscal year 2025, Core & Main, Inc. (CNM) reported total revenue of $7.65B. This represents a 125.6% increase compared to $3.39B in 2019.
Core & Main, Inc. (CNM) is profitable, generating $441.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.8%.
Core & Main, Inc. (CNM) reported an operating income of $728.0M, resulting in an operating profit margin of 9.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Core & Main, Inc. (CNM) generated $2.06B in gross profit for the year, representing a gross profit margin of 26.9%. This demonstrates the company's core pricing power and production efficiency.