12:23 PM EDT, 06/10/2025 (MT Newswires) -- Core & Main ( CNM ) affirmed its full-year guidance Tuesday as headwinds begin to emerge in residential development, while the water, sewer and fire protection product distributor's fiscal first-quarter results rose year over over.

Earnings for the three months ended May 4 rose to $0.52 a share from $0.49 a year earlier. Net sales grew 9.8% to $1.91 billion, surpassing the FactSet-polled consensus of $1.84 billion. The company said revenue growth was driven by volume gains and acquisitions that offset weakness in fire protection products.

For fiscal 2025, Core & Main ( CNM ) continues to expect net sales of $7.60 billion to $7.80 billion, representing growth of 2% to 5% over the previous year. Analysts are looking for $7.73 billion.

Residential lot development was resilient through the first quarter, but activity is beginning to ease amid economic headwinds, Chief Executive Mark Witkowski said at an earnings call, according to a FactSet transcript.

"We are beginning to see signs of softening in response to general economic conditions and affordability pressures," Witkowski told analysts. "Specifically, we are hearing from some of our customers that developers are reducing footprints in an effort to manage their capital investments."

Shares of Core & Main ( CNM ) were down 3.2% intraday.

"Despite the short-term uncertainty surrounding residential development, the secular fundamentals underpinning the US housing market are strong, and we continue to expect builders to keep building homes and a release of pent-up demand as interest rates moderate and affordability improves," Witkowski told analysts.

The company has so far seen a "minimal" direct impact on its supply chain from tariffs and trade restrictions as most of its products are domestically produced, according to Witkowski.

"We are actively working with our suppliers to mitigate any supply chain disruption, and we have taken pricing actions to the extent necessary," Witkowski said. "The direct and indirect impacts of tariffs on the broader economy and on private construction, specifically remain uncertain."

Trade discussion between US and Chinese officials reportedly continued on Tuesday in the UK. Previously, the two sides accused each other of violating their preliminary trade deal reached in May.

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