Overview

* Core & Main ( CNM ) Q2 sales rise 6.6% to $2.093 bln, missing expectations

* Adjusted EPS for Q2 beats estimates at $0.87, per LSEG data

* Adjusted EBITDA of $266 mln misses analyst expectations, per LSEG data

* Shares of the company falls 8% in premarket trading

Outlook

* Core & Main ( CNM ) lowers fiscal 2025 net sales outlook to $7,600-$7,700 mln

* Company expects fiscal 2025 adjusted EBITDA of $920-$940 mln

* Operating cash flow for fiscal 2025 projected at $550-$610 mln

* Core & Main ( CNM ) sees strength in municipal demand offsetting residential softness

Result Drivers

* NET SALES GROWTH - Driven by higher volumes and acquisitions, with increased sales in pipes, valves & fittings, storm drainage, and fire protection products

* GROSS MARGIN EXPANSION - Improved price realization and execution of private label and sourcing initiatives contributed to higher gross margins

* MIXED DEMAND - Strength in municipal demand and stable non-residential demand offset by weaker residential lot development

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $2.09 $2.14

bln bln (13

Analysts

)

Q2 Beat $0.87 $0.79 (7

Adjusted Analysts

EPS )

Q2 EPS $0.7

Q2 Net $141 mln

Income

Q2 Miss $266 mln $287.10

Adjusted mln (11

EBITDA 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 ( CNM ) is $67.50, about 1.3% above its September 8 closing price of $66.59

* The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)